So my company is looking to expand beyond the Ryder rentals into a 53' tractor/trailer setup for our 6 month tradeshow circuit. We have pursued quotes from both tradeshow hauling companies and more recently owner operators. My question is what we should expect to pay to hire a truck/driver for an all inclusive 6 month period, billed monthly. Price should include everything including fuel/taxes/etc. Driver would be required to help with tradeshow setup and loading. Here are some details on our trip...
1) 6 months. With the occasional week off
2) Approx 30,000 miles total
3) Newer style, black, low mile tractor required (ie T600)
4) We will purchase and own the 53' trailer
5) Unsure of load weight, although it is motorcycle riding accessories, so comparatively very light.
Best quote we've received from the tradeshow companies is $19,500/mo plus $.49 fsc cpm. Best owner/operator quote we've received is $20,600 with no fsc, unless fuel goes above $4.35.
So my question is how these quotes stack up to industry standard? Or what I should be paying for an ALL INCLUSIVE monthly lease setup with driver?
Any information is very much appreciated!
Opinions on hiring for a 6 month tradeshow circuit haul
Discussion in 'Ask An Owner Operator' started by setter12, Apr 19, 2011.
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Wish I could--good luck
Just my $.02 -
Thanks for the response. That is what we are trying to weigh...do we hire a company or O/O to haul for us? Or do we purchase our own truck and hire a driver. Not being in the trucking industry, purchasing a truck is a daunting task. Are there brokers to handle all the logistics, permits, insurance, paperwork, etc?
But back to hiring out. How does a $20k/mo rate sound for an O/O. To me, that seems quite high. -
$4500 per week for a $50,000 to $100,000 piece of equipment that still needs fuel seems quite resonable to me......
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Not a lot of miles to drive but a lot of downtime and the manual labor aspect added in as well accounts for the quotes you're receiving. It may sound high but regardless of the fact that the truck won't be rolling a lot the O/O still has payments to make on the truck insurance etc. and a standard of living to maintain, pair that with the fact that he probably will not get home for the 6 month duration and you can understand wherethe higher price comes from.
I think from a financial standpoint you would probably be better off finding a clean older truck to purchase and then hire on a company driver. The paperwork can seem a bit daunting but it really is not tough at all. If it scares you enough there are plenty of companies out there that will charge you a fee to do most or all of it for you. At the end of the circuit you can then resell the truck with very minimal depreciation (provided you put someone responsible in the truck) and get a large chunk of that investment back.
Keep fishing for quotes and I'm guessing you'll find some lower than the $20k though. -
For reference. Here is a breakdown of one of the quotes. yes I realize this doesn't total $20k, so not sure why the difference. But just FYI.
Base Rate:- 81,125.00
Fuel:-36,247.00
Insurance:-5,625.00
IFTA Taxes:-2,562.00
Base Plates:-3,500.00
Maintenance:-1,875.00
Oil Changes:-4,375.00
Works Comp-2,214.00 in base rate
Payroll Taxes:-5,904.00 in base rate
Tires:- 8,887.00
I REALLY don't understand $4,375 in oil changes for 30k of driving. Or $8887 in tires when we own and maintain the trailer. -
If we were to get our own truck, what are our purchase or lease options? Aside from an outright purchase, are there any companies that do 6 month leases?
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I would buy a truck and trailer. Yes, there is an investment, but at only 30,000 miles a year, it will last a long time. Then hire a driver that could be a warehouse worker or whatever the other 6 months. I say this because you will have more control. When you hire an O/O, you are at his mercy. If he bails on you midstream, you will have to scramble to fill his place. $4300 for oil changes is way out of line. Normally about $225 every 15,000 miles. No tires would be needed on the trailer.
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Unless you're going to be doing this every year (ah heck, even if you are), I would be disinclined to purchase a truck. Owning a truck and all the various legalilities, regulations and operationnal issues associated with it is not your primary business... selling a@@less pants is.
So, I would look into a lease or rental from something like Penske (they have a worksheet on their site) or Paclease, or somewhere similar. That way you're not tying up capital in a truck that is hardly going to get used, you can have a full-service (maintenance) lease, you can have back-up power virtually anywhere in the country, etc. They can even take care of plates, permits, IFTA and so on.
As has been suggested, hire a competant driver/manager (perhaps a former O/O... like me) and let them take care of all the hassles.
Alternatively, you could just hire power-only when needed. You'll have a different driver every time and you won't have the additional labour, but you could hire local labour if needed.
EDIT: I went and re-read your OP... Ryder won't give you a longer term/better deal? There are full-time trucking companies that rent/lease from Ryder, Penske, Paclease, et al. I was looking at a quote from Penske the other day for about $2,700/m. That's the way I would do it.
(make sure you're talking to the commercial guys, not the homeowner/retail guys)
2nd EDIT: Just did a quick work-up on Penske (rental). I don't know where you're from, so I picked SLC, UT.:
- $17,030.02 - 6 months for a tandem axle tractor with sleeper
- $2,550 - excess mileage (500 mi/wk allowance)
- + fuel
- + supplemental insurance?
- + driver's wage
- etc.
Last edited: Apr 19, 2011
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