Trailer Rent?

Discussion in 'Ask An Owner Operator' started by JDP, Apr 13, 2012.

  1. JDP

    JDP Medium Load Member

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    Sep 25, 2011
    Dubuque, IA
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    Exactly. The higher rate includes all the costs of ownership, depreciation, PM, tires (much larger issue on spreads than tandems), registration and licensing requirements, and the like.
     
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  3. Clasix1055

    Clasix1055 Even when I'm wrong I'm right

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    I don't think .40 was trying to insult you I think he was just making the point why don't you run directly for Landstar instead of (no offense Bill) having a middle man take out a % that could go to you? Wich make sense to me unless you run direct freight for Bill and only use Landstar for backhauls.
     
  4. rollin coal

    rollin coal Road Train Member

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    I don't haul any direct freight. I've got my own contacts and working on getting us some direct. Could I make more money with my own authority as a one truck show, which is all my operation will ever be, just off what the truck pulls in alone? Yes. Right now I could cover the cost of my insurance doubling and still make more cpm if Bill wasn't getting that cut. As a one truck operation though I'm limited and can't compete. I'll never have a freight brokerage, that doesn't interest me and it's not something I want to bother with - what a headache. Bill has one. I'll get sales commision on direct. Now I know some guys will say that's not right "the truck should get ALL of the money and everyone else work for free" but if he puts a load on your truck and you make a nice profit because of my legwork why shouldn't I? That's how this business works. If one of our trucks hauls it or outside carrier I'll make something off of it. That supplements the income I'm making with my truck and puts me above and beyond what any one truck show could ever hope to do. So there is value in being leased to his company. It's part of what forty preaches from time to time, that in fact it is more lucrative to lease on under someone elses authority if you're a one truck show, and you're leased to the right company.
     
  5. Clasix1055

    Clasix1055 Even when I'm wrong I'm right

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    Jan 26, 2012
    Toledo, Ohio
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    Thanks...that makes perfect sense to me, and sounds like a pretty good deal
     
  6. LSAgentOZR

    LSAgentOZR Road Train Member

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    Nashville, TN
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    Are you sure they wouldn't haul it or was it they weren't given the opportunity because that Landstar Agent doesn't give them the chance to because it cuts his profits down so much? I'm not saying that particular agent isn't stand up and our guys in the area were just too big of premadonna's to haul it...I'm just putting that thought out there.:biggrin_2558:
     
  7. rollin coal

    rollin coal Road Train Member

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    Some agents will work with only Landstar BCO's. Some agents will only work with outside carriers. Some could care less and use both inside and outside. There's even LS freight that can only go on LS BCO trucks. You know all this. My comment you pointed out was to make a point that a lot of BCO's in here think and have posted remarks in the past that the broker side of LS is garbage, cheap freight that's beneath them and outside carriers only get it because BCO's won't take it when the reality of that is, nothing could be further from the truth. It's not about playing favorites. It's about moving freight to keep the customers happy and everyone makes a little money. No BCO in their right mind would have turned that load down.
     
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  8. LSAgentOZR

    LSAgentOZR Road Train Member

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    Precisely what I was getting at old boy!:biggrin_25525:
     
  9. BigBadBill

    BigBadBill Bullishly Optimistic

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    It would depend on the year of the trailer. Take a $9000 trailer and charge $250/month that is a bit high. But on a newer trailer that runs over $25k plus the higher insurance that would be about right, maybe a little low.
     
  10. BigBadBill

    BigBadBill Bullishly Optimistic

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    LSAgentOZR should know this from his dealings with both sides. There is a lot of LS freight that is much more profitable to the outside carrier than the BCO. Is LS going to make a big deal about this? Not in a million years. There are even special programs only available to select carriers and agents. Does this make them a bad company? Not at all. Just a smart company that is making sure that they are providing a the best possible return for their share holders as possible.

    They treat their BCOs very well and in return have great loyalty. Sure I will have some fun about the cool-aid drinking that is going on. But I understand and appreciate that loyalty. I even have my own brand of cool-aid that my drivers are drinking.

    But we live in an industry where the norm is metal detectors and dispatchers working at locations that a driver has no access to so it is a refreshing change of pace to have a handful of companies that inspire loyalty vs. homicidal thoughts.
     
  11. Auggie

    Auggie Bobtail Member

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    Jun 30, 2009
    Iowa
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    Look at Bills pic and tell me there ain't a homicide floatin around in there. :)
     
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