So you want to "own " your own company

I hear ya boss! I've been through all the same stuff. It's really hard for companies to pay better rates when the big trucking companies are hauling freight so dirt cheap! What I'm doing to try getting away from brokers and load boards is simply beating down doors of shippers and manufactures. I haven't come up with anything great as of yet, It's a lot of work, with a lot of competition. I think the brokers are taking around 15% right off the top so they have at least that much to work with, the problem is like I said before, it's very hard to compete with big companies who are hauling freight for as low as $.68 mi. or lower. I'm not gonna pretend like I have all the answers, because it's a fact that I don't, but at some point people are just gonna have to stop hauling cheap freight, and park the truck in the barn!! That's what I did, and that's where it's gonna stay untill the rates improve and it gets back to being worth my while to be out on the road, burn'n up my rubber!

 

I know of a few companies hiring O/O, like someone else said might be a good start to sign on with one until you build some capital, and a some contacts. It will at least keep the truck rolling while you are building on the rest of your business....

 

I have had a decent year with Fremont Contract Carriers out of Fremont, NE. I spent about a year here as company driver then put on a truck Sept '08. I have done around 145,000 miles exactly one year later. Nice to be home every weekend ( I do the Midwest Regional stuff) and still get decent miles. The pay rate per mile is variable with the rate going up the shorter the haul. Present fuel surcharge in $.25 a mile. fuel discounts average around 5-10 cents off of the cash price at the pump with some discounts even getting down to near .30 a gallon.

Just talked with Scott the other day in recruiting and they are taking on a few O/O. Even taking company drivers when a truck becomes available. Turnover at the company is around 30%.

For what it's worth....

 

Looking to break into being an O/O. I have been driving local for 10 years mostly dump trucks and some heavy haul lowboy experience. I really not sure what all I need to start. I have been looking at Freightliner Select trucks. Possibly a 2003 with 500k. I would be able to pay most of the truck off as I can pull 12K from my 401k plan. So my payment would be very small as the truck is $15,000. I want to make more than a company driver otherwise I am just throwing away my 12,000. I live in Florida.
What can I make leasing on to a company? I have a buddy that is an O/O he made 143K last year but he also owns a step deck trailer. He wouldn't tell me his net profit. I need advice what specs to look for in a truck and what start-up expenses I will have before I can go.

 

Net profit is about 30% if the truck is pretty much always running. More like 20% if he is choosy and likes hometime due to fixed expenses becoming a higher percentage of income.

He probably did about 30k last year which is about par for an O/O right now if he's making anything at all.

 

Wow, only 30k. You cant be serious. If that is the average pay for O/O right now. I moght as well collect unemployment. I would like to quit as a company driver but not for 30k

 

That's the cold hard truth if you want to make the kind of money your friend makes wave goodbye to your house the rest of the year.

 

Well first off if you drop the 12k in the truck you will need another 10k or so to get started. Insurance Heavy Highway use Tax Operating Authority and operating expense for at lease two months. Not to include money set aside in case of a break down. Starting up is not cheap. I have been working on my start up for about a month and everyday find something i missed. It depend on how you operate you can make more or less than you friend. Dont be so fast to jump into it talk to O/O in your are and find out as much as you can. I have been bouncing it around in my head for almost a year now went to the bank today with my business plan and still worried how thing will go when and if I get out there. Fl. is a good area if you know the right people and it will bankrupt you if you don't

 

$1.43/mile would be ballpark for a stepdeck right now. So that would be 100,000 miles the entire year, about 2,000 miles a week or only 400 miles a day in a 5 day week... a little over half a day's work for a truck.

Leased on he's giving away 30% of that leaving $100,100. Fuel is about 43cpm or $43000 leaving 57,000. Truck is $15,000 in payments, trailer probably $8000 leaving $30,000. (If he owns the trailer, will you?)

But I was way wrong, there's so much more.

Tag $1500, 2290 is $550, tires, batteries, brakes, oil changes ($1500), repairs $4000 to $8000 ballpark

Where are we? $18000 thereabouts. Road expenses tolls, food, any lodging, creature comforts if any.

If he pulled $10k towards home bills it is surprising.

Taxes? Loss. No if's ands or butts.

edit... I forgot about insurance. This guy musta took out a loan somewhere during the year.

 

Yea if your looking to O/O just for the money i would not do it. Most guys who o/o dont do it just for the money.