First off want to say hello, this seems like a great place so far I have found alot of useful info, I do have some questions, and comments. My uncle use to be a trucker O/O. Now he is a freight broker, and i work for him. I wanted to say not all brokers are bad, and seeing how my uncle does things, and how we work. My interest of trucking is comming back. growing up i always rode around town with him on his chosen time off in his pete LOVED IT. grew up loving trucks, i have a strong interest in logistics as well. now i take care of around 150-175 loads per day posting across 3 sites. the loads we get are straight from a manufacture we do not play that broker to broker to broker game. I notice some of these truckers who call still will not touch our loads, almost all of my loads are flatbeds. paying $2.25-$4 a mile like i said we do not take from other brokers we deal with the main distribution companies only. and honestly we dont make much on each load we get moved i wont get involved in exact amount but i can tell you its not alot at all, we barely make payroll right now because my uncle understands the hard times on truckers out there, but he does have another big company that he started a few years back that more then supports his frieght. I talked to my uncle about this he told me the usual about trucking. its a hard industry, alot of good and alot of bad in it. I just think to myself trucking is a lifestyle, i would love to be a driver. and thats why I am here and need opinions, my uncle wants to help me he will pay for my cdl once i get it, we are looking into a lease option. shopping around do our figures, and going the flatbed route, tarps, etc etc. he also said i can have my pick of loads and out of the 150-175 we have daily, im sure taking one a day or every other day wouldnt hurt. im looking to do small routes on east coast only where most of our loads are at. working 4 weeks on and 3-4days off. some of these loads are 300 miles paying $975. another example is 218 miles paying $600. with the way things are i know it can be tough but i see potential in myself, and the loads we get. would it be wise for me to enter the industry at such hard times? and im sorry if i broke any rules in this post, im just a young honest person wanting to do something more, and there is no better education then talking to the people who have already been there and experienced it and still going. thankyou so much for taking the time to read. and thankyou for your opinions, and concerns.
New guy New questions, no CDL YET
Discussion in 'Questions From New Drivers' started by Cyngus, Jul 4, 2012.
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business and family rarely mix... at first everything will be fine, but when you start costing your uncle money things will change... O/O with paid off trucks are having a hard time out there, with a lease payment its really hard to make it, also if your a beginner...
i suggest you get your cdl and tell your uncle to try and talk with a fleet owner willing to train you or get on with a decent starter company and drive for 1-2 years then when you have money get your own truck...
doing the O/O game with no experience and no money is dangerous.Rick_C Thanks this. -
It is usually not a good idea to start out by leasing or buying a truck without first having some solid experience. Working with your uncle could be a plus since he owned his own truck. Access to good paying freight is also a plus. It is more often than not the costs that get many new and inexperienced owner operators. When you say that you want to lease a truck, do you mean from a leasing company or from your uncle? Leasing to buy through a leasing company is essentially buying the truck. When you make the last payment they send you the title. Unless you have money set aside to take care of operating expenses and major repairs, I would recommend that you wait until you can actually afford to get into this businss. In any case, this is not a time to get into heavy debt. There is too much uncertainty in the economy. We seem to have more regulations by the day. There is still money to be made in trucking, but it is not for the faint of heart. As far as your other question about carriers not wanting to haul loads for your uncle, it could be a couple of things. I usually don't haul anything for a broker who has not been in business for at least 1-2 years. Most of those with whom I do business have been around for much longer. It takes a while for a broker to have some sort of track record. Carriers and owner operators want to make sure that they will be paid. If I take a load from a new broker then I make sure to check them out very carefully. I check the bond, credit and general reputation, as well as I can. It may be that your uncle has not been in this side of the business very long and carriers are skeptical. Many have had bad experiences with newer brokers. Good rates are only good if you get paid in a timely manner. If your uncle has a reputation for late pays, then that can be a problem with most carriers, just as a fast pay can be a plus. Not knowing the company it would be difficult for me to say why some are now willing to take a chance. When rates are at or above $3/mile it is usually not difficult to find trucks.
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my uncle has been a broker for 10 plus years and has the max of $250,000 surety, TIA performance cert, diamond broker, part of truckload carriers association and never misses a truckers payment, its just when we get a call the trucker says because of produce season they wont touch a load of lumber or steel for under $5 a mile, and of course the majority of the people who call stating this BS are foriegn
. and i dont know to much about the produce season but come on is there really any produce that can be on a FLATEBED, so it does get funny. and the money isnt an issue with my uncle, i myself wouldnt mind going on with a big company but the horror stories......is there anything good to come out of it? my uncle knows a guy who said he will teach me with one of his trucks and let me do local work and ride with me etc etc. so i am hoping things go good, i just need opions and thankyou for the reponses. i figured since no one else wanted to touch these $2.25mil and up loads that i could run them on a normal route because i have found one that would keep me out on the road for the 4weeks. and each load is paying what seems decent money for only having to go 200-400miles each load. and also my uncle says if i did this and did good he would just helpe me after the lease do a buyout on the truck, like i said money isnt a problem for him, and it never bothers him to loose some money if he sees people succeed.
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Normally I would say no, don't do the owner operator thing until you have some experience. You obviously have financial backing and ties to a broker so that will be a big help. Ok, so now you have know how to drive a truck and proficiently. Your probably going to go through more fuel and have more maintenance costs and as a newbie owner operator your insurance will be outrageous but like I said you seem to have somebody willing to help you with that.
The other poster mentioned not getting involved with family business. I have one word "Kardashian"! Many families have business's and many of them are successful. Be upfront with and professional when it comes to the business side and know where to separate family and work and you should be fine. A lawyer wouldn't hurt to sit down and talk to and maybe draw a few lines. Also with any good business plan (which you also need) you need an exit strategy. Discuss and plan this with your Uncle so that if anything were to go array or somebody decides its time to move on then you already have things settled.
I believe if done right you might be able to have a good thing there.
Check out the OOIDA website, they may have some good info as to where to start and also permits and such.
Good luck man... -
chompi thankyou for that
we have akready talked to a lawyer, because of his other business, lets put it this way we all have a firm understanding of business is business my uncle maybe a nice guy but he fired his own brother(my other uncle) for trying to use "family" to try and get what he wanted, special time off etc etc. thats why it makes me feel good because my uncle can be a hardass. i looked into OOIDA great site helpful as well, ive done some quotes yes very pricey, even a clean record doesnt help much my young age and no experience killed it but, even after insurance and researching the fuel in the areas my route would be, emergency money for repairs or the unexpected, food which most would be me bringing my own on the truck, and misc expenses, our rough figure was still $7,000 profit monthly, which isnt bad in my opinion. of course the profit margin could be less could be more but i dont think its to bad it could be more IF my luck comes through and things happen like ive been told by my uncles friend, when i find out more about it i will inform you guys the situation that may make this work for me. and chompi, i see deland florida, you live there or passing through? i am located in ocala
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Things should go fine for you. You seem to be going about everything the right way and have a good idea of what's going on.
Technically I live in Deleon Springs but Deland is the closest actual town. Been here my whole life! Not sure if that's good or bad.Cyngus Thanks this. -
good lol i love florida, born in west palm living in ocala 1hr from everything orlando, tampa, gainesville, daytona, crystal river
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