I am considering buying a truck, need advice

Discussion in 'Ask An Owner Operator' started by Texman, Jul 24, 2011.

  1. Texman

    Texman Bobtail Member

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    Jul 24, 2011
    Rusk, Texas
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    I am considering buying a truck as an investment. I need to haul hay to my location for myself and other ranchers. Have talked to brokers that will have loads available to where hay is located and can back haul hay. I am not a driver. My questions are: what do i need to consider when hiring a driver ? What are the current costs to operate per mile and what is the fair amount per mile to pay a driver ? Any advice is appreciated.
     
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  3. onedayaway

    onedayaway Light Load Member

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    Jun 28, 2011
    alberta
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    I don't think truck and investment should even be used in the same sentence. You will have to figure out your own operating costs as everyones is total different. You will have to figure out your fixed costs, variable costs, as well as drivers wage per mile to come up with your break even. It's even tougher to make it work with a one truck operation and a hired driver.
     
  4. d o g

    d o g Trucker Forum STAFF Staff Member

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    Sep 20, 2010
    Texas
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    The best advice is not to do it. Especially since you don't even know the basics and aren't even able to drive it yourself. And using broker freight to get you to what is essentially cheap freight (hay) is a losing proposition.

    If you want to be in the hay business from now on, that's different. But it really isn't a wise business decision to make the investment and to incur all of the financial risk and associated problems with trucks, trailers, licensing, insurance, maintenance, drivers, etc. - just to solve a short-term problem this year.

    Bite the bullet and pay the freight on the hay. Let somebody else have all the headaches and risk. You can almost always find a cheapskate trucker that will haul ag commodities cheaper than you can do it yourself.

    Try some of the pipe haulers that are bouncing back from the Bakken. I talked to several of them last year that were willing to bring back big squares from Kansas/Nebraska. There's probably a lot of pipe coming out of Houston going up there and it could work out well for you and the truckers, too.
     
  5. Texman

    Texman Bobtail Member

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    Jul 24, 2011
    Rusk, Texas
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    Thanks for the info. I need the info to complete a business plan. Currently have loads lined up to haul freight to locations to back haul the hay.
     
  6. d o g

    d o g Trucker Forum STAFF Staff Member

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    Texas
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    Well, I tried. And I can almost promise you that you will regret the decision to proceed. Good luck, anyway.

    Just keep in mind that there aren't many things that can make your life more miserable than having a truck driver on the payroll. A good one is priceless. If you're ever fortunate enough to find a really good one, pay him accordingly.
     
  7. BigBadBill

    BigBadBill Bullishly Optimistic

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    Oct 2, 2010
    Chattanooga, TN
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    First question I would ask is what are you paying now to have the hay brought to you? Take a rough number like $1.60/mile as your overhead and look at the difference. And finding good paying freight out of TX can be tough. You not only have to be concerned with being profitable per mile but making sure that you can get enough miles to a driver happy.

    Being we have done something similar to provide additional trucks during harvest and use the equipment in the off-season to cover expeneses, I understand where you are coming from. But as mentioned, you don't have an understanding of this business. We had years of experience before we did it.

    But to help, if you would not be using all the hay coming back you could look at others in the area that hire trucks and see about being the trucking for them.
     
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