Success Leasing and Fuel Surcharge

My trailing 4 week average after everything (taxes, insurance, 6% 401K contribution, etc.) is $744 .....in the bank.

I will admit that the last 4 weeks has probably been one of the best 4 weeks ever since going solo. So my previous 6 month average would be lower than that. But business has picked up and so has my paycheck.

Not sure how this compares to the average solo lease operator. I'm not disputing that lease ops may make more than a company driver during good times...my question is if the increase is enough to make the risk and stress worth it.

I did hear some good news for you lease ops though. Listened to the safety CD yesterday and heard the guarantee for lease ops is now up to $.95 per mile. Glad to hear that!

 

Talking with several L/O the gaurantee is over a period of time if I understood correctly. These were the ones calling in because they had been in the whole for months. Then the FM looks at their revenue over a period of time and gives them an average, which usually higher than the gaurantee.

 

The guarantee of 95 cpm is averaged over 100,000 miles. So first, you have to run 100,000 miles to get the absolute, bare minimum of 95 cpm. However, Prime pays by percentage, and you can inspect the shipping contracts at Springfield MO per federal law. YOU receive 28% of the linehaul revenue, plus 100% of the fuel surcharge that is collected from the shipper... that typically far exceeds the 95 cpm minumum. In my experience - I ask for the numbers - I rarely see loads that are at or below that minumum. That's the deal. You have to make it work, because as a lease operator this is a business, not a job.

 

so when are we going into SpringMo to lease? I too feel the time is near.

 

Don't you mean 72% of the linehaul??

 

Duh! My bad!!

 

Also, the fuel surcharge is not figured in as part of the guaranteed 95 cents.

 

I am just a outsider looking in, but seems to me why l/o is popular that some of the benefits,home time,pets,bigger truck, outwiegh the downside of l/o which is inflated truck payment paying your own taxes fuel and all other expenses. before me or anyone can make that decision, I would need to see what a driver brings home after everything is paid,after all it is a business and that is what comes first. gotta pay personal bills also.could anyone give me a a break down of the business side? or is that something only the company can do? thanks a lot for all your posts I enjoy reading the good and bad of the otr life.

 

It says in your header "student." While Sazook may care to break it down for you, in my opinion, you ain't got any business even thinking about a lease until you know something about trucking... and that means more than just knowing how to shift and back. Go to your local community college bookstore, and start reading about how to run a small business...

 

well thats the plan, to get experience first, then make I decision about being a l/o.I do have a idea about running a small business I owned my own straight truck for three years delivering newspaper inserts from the mid atlantic to the northeast u s.but you are right ironpony i will get experience before I think about being a l/o