Two types of owner-ops

The owner operator in this case is leasing the carriers authority.

 

That’s what I love about independent operator as well book a load drop it and that’s it

 

That is not necessarily so. It all depends on what it is you are hauling.

 

I have done it both ways. On average I grossed around the same money, BUT I did a lot more miles ( around 130k) and had a lot more expenses with yown authority. as a contractor I do less miles ( around 85k) and a whole lot less expenses. I also do not have as high an insurance cost, or take time to find loads, wait for my money, or deal with slime ball brokers. After it's all said and done my expenses are lower and I keep more in my pocket.

 

I have different experience.
I was leased to a 200 trucks company then a company who I booked loads by myself and now since June under my own.

After I started haul under my own authority my rates going higher. That's because of a better Dispath (previously I have dispatched myself now I have dispatch and help him also).

My insurance is also less then in 200 trucks company and I don't pay 12-25% from gross. No factoring. Dispatch 3% from gross.

Much more money here)

 

My last 3 weeks of 2021. Was off from mid October until the end of November.
Flatbed Conestoga. Starting and returning to Cleveland weekly.

 

I think your higher rates might be due to all rates are higher now. I'm paying $996 / MO for insurance that's for truck and trailer workers comp and occupational accident. I was paying way more then that on my own. True I do give up some percentage being leased but I don't have to wait for my money, look for loads negotiate with brokers, or have to do any of the other back offfice stuff.

I'm glad you found d your nitch zlot of people don't. When I was younger I thrived on pressure now I rather just work easer.

 

On the other hand, and that's funny enough, I see own authority as a way to make it easy for myself. JB Hunt, XPO, Convoy, Coyote, Uber Freight, CH Robinson, Schneider...that's it, just them, 7 mega brokers I dealt with in the last year. I looked no further than that. No money chasing. No money waiting (30 days the most: XPO/Coyote/Schneider, or Quick Pay which is 1.5% - 2% CHR or free - UBER/Convoy/JB Hunt). Rarely any unpleasant surprises with the megas - not to say you don't have to watch out for some details. I think that money wise it should not be that much less than other brokerages, especially in the 'bull' market, we have seen lately. Even CHR can cough up $5 per mile on 400 miles in times like these. What I do is hardly any nitch, just a bunch of favorite lanes, then just go with the flow and I could do that till I am ready to retire. But when the times are slow, and they shall come, it does not look as pretty either - you will haul for 1.5 - 2 dol per mile for these brokers or you won't haul at all.
Back office stuff - I hear it a lot of it as an excuse but trust me that's just a little homework to do. Maybe a thread explaining what needs to be done and at what frequency could be the one still missing here...but the most of the back office staff is needed whether you are leased on or on your own because most of it involves the small business accounting which everybody running the smallest of businesses should know how to conduct too.

 

I don't know what kind of a conclusion this thread is arriving as to what kind of o/o division we may come up with but as far as I am concerned the primary group of owner operators are those with real business acumen.
I don't trust enough that I have it myself. I do what I do because I love calling my own shots and this configuration allows me to think that I have found what I was looking for in trucking. I've been at it - own authority for 5 years - and due to the fact I've survived lean times and took advantage of much shorter good times and the fact that I am still here at least allows me to say now, that I have not screwed anything up yet.

A real business minded owner operator with a truck and trailer goes beyond the notion of a spot market and load boards and brokers and hustling like the worst kind of flea market vendors. I envy the business mind that goes beyond the general flow of the mass and is able to come up with a real niche, unique idea, own customers - something that is hard to copy for others too.
@SteveScott wrote the greatest post I've ever read on this forum about his becoming an owner operator. I encourage you to read the post# 5644 in Truck Load Rates Halt 8 Week Slide 2.0 thread.

 

Thanks @TallJoe although I'm not sure I would rank that as one of the best posts on here. There are many other similar stories on here from successful O/O's, but since I'm now retired, no need to keep it to myself and hope somebody else can put the info to good use. My market out here has plenty of room for others if they can stand driving in California, there's a lot of money to be made.

Kind of glad I'm not driving this winter as it's been a real ball buster out here with the snow and storms.