prime and leasing, whats the real deal

that's all you is?

 

It's not about the miles - its about gross revenue and minimizing costs. The fewer the miles you run for a given amount of revenue, the lower your fuel costs will be.

 

Sounds better that way.....

 

I'm going to break this one down a little. Understand that I'm not criticizing, and I totally understand your situation.

Well that comes under the heading of under-capitalization. It's a common mistake with folks starting out in business. There's got to be a cash reserve to cover the rough patches.

That's certainly one way to approach it. I really like to be mty by the first thing on Friday morning to be in the queue for a load running over the weekend - but it does depend on where you are. What I'll do is prevail on my FM to find me a preplan on Friday afternoon before he heads out the door, rather than turn down the load that delivers on Saturday. A Sunday delivery usually means you have an opportunity for laundry, and a load out first thing Monday. You realize that by turning down a load you're going to the bottom of the list, yes?

I've been averaging around 2400 miles per week for the last couple of years - but its not about the miles. Honestly, the fewer miles you run, the better off you are - lower costs. The game is about maximizing gross revenue and minimizing costs - which it sounds like you've got that down. Keeping that left door shut and reporting ready for that next load as soon as you're empty is the most we can really do under this system on the revenue side.

The way our dispatch system works is outside of saving something that can't be delivered on time, a time sensitive load that can't be delivered by a solo, or you happen to be the only truck in the vicinity - our dispatch basically works on the principle that the first truck empty is the first truck assigned a load as the loads pop out of sales. That's why you go to the bottom of the mty list when you turn down a load - so you can't cherry-pick the good ones. Now you can say that the teams get the "good freight" out of California - but that's just part of the business. That's fresh produce, and our clients pay us to move that freight as quickly as possible; that means teams and training trucks get that.

I'm sure there is some favoritism by the FMs, but in the long run it doesn't benefit them. Our dispatchers and load planners are paid a base salary and a commission. The commission is based on the success of the drivers on their board. By enhancing the success of a few at the cost of the majority - they are in fact making sure that their commission is minimized - and that base salary ain't nothing to write home about. There is also a system of "fines" that they are subject to when you screw-up (tickets, service failures, etc,) and they do get a pretty stiff fine for "loosing" a driver. It doesn't pay for them to starve you. They do rate us - and how you operate your truck in terms of on-time pick-ups and deliveries will show on the loads you get.

ANYONE who tells you that leasing a truck means you're just some kind of company driver paying the expenses has their head where the sun don't shine. So for anyone looking in... I'll say this again. Leasing a truck at Prime is not employment on steroids, and not just anyone can do it. You have to prepare yourself by studying the industry, and learning how to operate a CMV economically before you jump into the deep end. It is starting a small business. You have to run the truck as a business, be connected in the numbers (do your own bookkeeping outside of taxes,) and you must be capitalized properly so you don't run out of money. Socking away as much as you can is imperative. And finally... that settlement check is absolutely not a paycheck. It's cash flow into your business - and you can't just take it and blow it at the mall. Your paycheck is one of your expenses - you pay yourself a salary out of your business bank account, and your personal expenses have to be in-line with the kind of revenue operating a truck will generate. There's got to be money for maintaining the truck, paying your taxes, generating a strategic cash reserve - and paying your driver/employee. That's you. If you're going to be successful - this is how you do it.

Anyway J&J - sorry it isn't working for you. Whatever you end up doing - good luck!

 

Very informative post! Glad you are telling it like it is! Many don't!

 

I'm not going to beat a dead horse.

The above posts sum it up very well. I've been leasing with prime now for 16 months and wouldn't go any other way.

 

To the OP
Check what it will cost you to turn in the truck before you turn it in.
Ask what it would cost to buy the truck outright.
Might be cheaper to buy the truck and sell it yourself.

 

I'll break this down a bit further...

1. under-capitalization.. You need a lot of cash before you lease...

2. Revenue.. Keep that door shut and report ready for next load.. Simple

3. Don't turn down Loads, you will be punished......

4. Teams will get the money loads.

5. Only the best can drive for prime. sorry if you did not make it, you are defective....

 

That's 100% Bravo Sierra. I've turned down loads and have never been "punished." If I were to have a FM who treated me that way, I'd fire him in a NY minute.

That's another load of Bravo Sierra. I run solo, and have never had that sort of nonsense pulled on me. The teams get freight that cannot be pulled by a solo because of time constraints, not necessarily maximizing revenue. We're paid by percentage of linehaul, FSC and accessorials - long miles the the teams get do not necessarily equate to greater profitability.