Is it worth having your own truck anymore?

I felt the same way when I first started, and that was before fuel surcharges. When I found the right contract, it become far more appealing. In 2001, I was averaging 1.20 a mile, all miles, paying 1.12 per gallon for fuel, and buying new Michelins for $300 installed. Today that contract would need to average 2.00 to keep up with the fuel, tolls and inflation. I averaged 2.12 last year, but though I pay less tolls, I have to pay for my trailer. So, I'm doing a little better than I was 10 yrs ago as a rookie o/o. My very realistic spreadsheet says 1.50 is breakeven paying a driver .40cpm and $4 fuel at 2500 miles per week. I'm not in this business to break even, even if I'm the driver, so I'm gonna want at least .30 cpm profit. So, 1.80 is my low rate right now.

 

On the cost of a new truck.... 2 weeks ago I picked up a brand new Mack (350 miles on the Od) from our yard in Houston. On the way home towing an empty trailer it started surging on the throttle (picture a teenager first time behind the wheel). This would be a definite prob with a loaded tank; possible rollover. Went to the Mack dealer for 2 days. Turned out the electronic fuel pedal plugs into the harness waaaay up inside the dash and it was barely in place (factory screwup).

Took a runto northern Indiana and at customer noticed fluid dripping on the ground. A/C's do this but wasn't using A/C. On the way back it was using DEF faster than I thought it should (1st time with this system so was guessing). Back to Mack. Yup, line going to the DEF injector was bad (factory again). In Fri afternoon, back Monday noon (3 days).

Now this was all little nit-crap stuff and all warranty. But, there's 5 days this truck was not producing income for the company and me. The Internationals and Petes we have have been much worse.... in the shop every time you turn around.

If you were an O/O this would be money you didn't make to cover money you had to spend.

So new truck/old truck you better have substantial cash set aside before you first turn that key.

 

Driving is the easy part. Fooling with all the paperwork, insurance, useless regulations and of course trud sucking brokers and shippers is the real work.
The best part is if I want to sit at home I can as long as i'm not loaded.
The most recent best thing of having my own is.
A shipper wanted me to call me dispatcher cause I wasn't going to do what he wanted. I looked at side of my truck and said Umh thats my name on side, guess your talking to dispatcher. things changed real quick then and did it way I wanted too.

 

That was always my favorite part of owning my own outfit. Another variation was giving the douche my business card/phone number and answering the ring right in front of him. Or my personal fav... "let's go see your supervisor... you know, the guy I got this account from."

 

When I first bought my truck, I was on a dock and this guy who was running the dock was climbing all over this guy who wasn't doing the exact bidding of the dock people. I knew he was an O/O, because we'd talked a little outside, just a little B.S.'ing.

Mr. Dock God wanted the O/O to load something a certain way, the O/O said no, back and forth, and so on and so on. Finally, the O/O says, "Look, guy. We're loading it my way....legally, or it's not going on....period. End of discussion. I can't and won't haul it loaded your way, so either put it on the trailer my way or stop wasting my time so I can find something else to haul. I've been here too long, already."

Mr Dock God blows up and completely amps out. Almost screaming, he says "I need the phone number for your dispatcher. NOW! I'll get this straight or you'll be hunting a job!"

O/O says, "Well, how about I give you the number for dispatch, and president of the company will most likely be available, too."

Mr Dock God began writing with this crazy looking satisfied facial expression as the O/O rattled off the number to him and then began calling the number.

Right then, the O/O's phone rings. He picks it up. "Hello. Such and such trucking. How can I help you?"

Then, Mr. Dock God almost has a heart attack. His face turns red and he storms off to get HIS boss.

A while later someone wearing a suit coat and tie comes back and listens to both sides. Mr. Dock God is irate, screaming and being totally irrational. O/O dude is cool, and explains why he can't load this stuff the way the dock guy wants and says he'd be glad to haul it and will do an excellent job, but it has to be loaded legal.

THe suit tells the dock warrior to quit hassling drivers and load it the way the driver tells him to. He asked the dock guy if he'd driven this guys truck before or knew the weights. Of course, he said no. "Well, then...Why is this guy still here? Why are you wasting everybody's time? Load it. Load it his way, and be quick about it. Then he pointed at me and said, how long has THIS guy had to stand here waiting on you to get through throwing hissy fits?"

The suit apologized to the O/O, and me (even though I wasn't really waiting on that guy) and said that everything would be straightened out shortly.

The funniest thing was that the O/O was extraordinarily polite to the irrational dock guy during the loading and that made Mr. Dock God even angrier.

Some people really love the way the little bit of power their job gives them feels, I guess, but this O/O's phone ringing on his belt and him answering it was classic.

 

My first I/T job in the late '90s was running a tech support service desk. THIS is the easiest way to get irrational people to come unglued and hang up on you. Or they come back down to Earth and work with you. Either way, you win!

 

O/O's, and company drivers would greatly benefit from listening to Dave Ramsey, and getting his audio books. His philosophy is simple, and productive.

It would be almost impossible to fail using his financial methods. He completely changed the way handle my money.

 

Although I agree with most of what you are saying, I also believe there is such a thing as SMART leveraging of OPM (Other Peoples Money). BUT you should never put yourself in a position where you are borrowing out of desperation. You cannot make smart business decisions when you are desperate. Money is cheap to borrow right now. If I can borrow at 4% and use the money to make 12%, that is just smart business. But smart leveraging is not about gambling. You have to be SURE you can get the ROI.

 

As long as a person can manage money that works. Lots of people in this business who cant and get in big trouble. I don't like having it hanging over my neck like an ax. I could manage,just don't care for the extra pressure.

 

Am I the only one using the majic 8 ball? LOLOLOLOLOLOL

I told you that you would get some good answers from ppl if you just asked.

A good business plan is a must. You have some figures out on paper and thats a start but you are selling yourself way short. I could easily make 1000 bucks a week as a company driver without the BS of owning the truck and having to pay for it all.

If you arent making at least that much then WHY? If you dont have a more than just good work ethic then why? If you cant or unable to turn a wrench then why? If you want to haul frieght for some jackwagon at 98 cpm then why?

Everybody has the dream of owning their own truck and go on wild spending sprees. You can go on a shopping spree and good luck with your NEXT breakdown if you make it that far.

Fuel is on the rise so everything else will be on the rise too.