Buy Trailer????

Nice to have a spare if you're looking at a good deal on one. It wouldn't stop you from doing D/H if you left it at home when you didn't need it.

 

Kinda frees you up from the company entirely if need be too. I wouldn't buy a brand new one though. Unless some company bought it, brought it to the lot, and went out of business and were selling it at a steep discount. New stuff is way overpriced in my opinion.

 

You've asked the right questions. You need to run the numbers. I missed the trailer type. I'll comment since I just ran an analysis on Landstar for a dry van. Based on the information I was able to get and my modest calculation of gross revenue it looks like about 0.12 CPM more for your own trailer (1.74 CPM vs. 1.52 CPM). My calculations show a savings of 0.08 CPM if I don't have a trailer. My model is based on less miles. It looks like 0.04 CPM profit to me or them depending on who owns it.

If you're running for them now, you should have numbers much more accurate than mine. You should also know how much drop and hook you do.

Take gross revenue in CPM times .07 (7% van) times weekly/monthly miles and compare to projected trailer costs. IMHO, the drop and hook opportunity must be heavily weighed into the decision. If you miss loads, a higher profit won't equal a higher gross. Drop and hook saves loading time, this could mean more miles.

I think they charge weekly on a flat or drop. Divide weekly rental by weekly miles to get a weekly cost. If you need monthly take that times 4.333. Compare to you projected costs for trailer payment, insurance, repair, maintenance, license and tires.

Well I'll bet you have less of an idea now than you did before. Just trying to share my decision process with you. IMHO, there's more to consider than what you can make in profit on a trailer. I'll all for not leaving anything on the table but I want to weigh the facts to insure my decision pays off. I'm all for owning all the equipment but chosing a lease over authority could make a trailer break-even or lose money. I'm guessing they have the loads to keep you moving now, whatever the choice. It could hurt more in the slow times. I was encouraged to use theirs but that was a biased opinion.

 

If you need help with calculations. Post average gross revenue in CPM and miles in a given period. I have most everything else.

 

personally, i'd buy my own trailer. you never know what to expect when you do a d/h. plus you personlize your trailer anyway you want. most of the time you see a married unit, it looks really nice, well kept. go for it.

 

Do your own study based on what you are seeing on the boards. The BCOs that I have talked to said that they see a lower average rate with Drop and Hook. Surprised me since LS needs to price extra trailers into the rate. But you will be in a better position.
Also, talk to BCOs that have their own trailers and see what they think and get examples. Plenty of negative people that just want to smash a company when it may be a good decision.
And based on the numbers, extra % of pay, it really only makes business sense if you can get a better starting rate per mile than you can get with the Drop and Hook business.

 

CatFish, I have got to say it. This was business advice?!? How much more per mile does that "married" unit make per mile compared to what it cost per mile?

 

this is the only post that you got your attention?