o/o lease purchase, i need a new dispatcher!

Yes, it is $1.40 for all your miles. But the FSC rate is at .50 right now. So you are getting .90cpm PLUS the .50cpm FSC. That is exactly the same as Schneider, JB Hunt and many other mega fleets. Not saying it is bad, but I truly do not see how ANYONE can make it on that. i too am leased to a company, but I have an avg of $2.45 for all my miles this year so far. If it works for you, then more power to ya, just explaining why you ARE making .90cpm rate

 

so.... letting someone else take care of EXTREMELY basic and simple paperwork is worth $1.00/mile or more sometimes?? i dont get that... woo hoo, they take care of plates and permits, ok, thats all of maybe $2000 a YEAR... you can make that extra $2000 in less than a week, BUT, they take care of it for you, so its ok i guess?? When i was learning the ropes, I leased onto a company til I decided i was ready, and they drilled it into my head that I NEEDED them because there was soooo much paperwork and I would be lost without them... HA.. The paperwork isnt that difficult, and for the PITA paperwork, there are services that will take care of it for you for fairly cheap. And dealing with brokers, yeah, they can be difficult, but to make upwards of an EXTRA $1.00 a mile, its worth it to me. And $1.40 for ALL miles isnt bad, i'm sure its dispatched miles.. I average an ACTUAL $2.00 + on ALL miles, because thats the advantage of negotiation with the brokers. I'm in the northeast right now, I ran 2 loads yesterday, one was 175 miles, and one was 180 miles... @ $1.40, thats a whopping $497..... but since I was able to negotiate for myself, I made $1700... there's some food for thought..

 

My old company tried to pound into my head that they were floating my fuel and collecting from brokers would be a nightmare. When I asked them how much % factoring companies take (I already knew the answer) they told me 15%, some of them 20%. As if I would be making the same money there. As it turns out, I am only using reputable brokers who do pay me as promised, and also some of them are COD. Turns out some cases, the COD, I was getting my money faster than I was under their authority. Have never looked back. Love trucking once again.

 

Our goal is that we look to be able to return 200% in value to our O/O's for the percentage we charge. For the most part companies can't even come close to 100%. Plates and permits seem to be the one that carriers use to handcuff a driver to the company. When you can't make enough money to afford your own plates at $2,000 a year that is an issue. That is less than $.02/mile. Insurance is less than $.03/mile. With a little effort and planning you can get the same discounts on fuel (if not better, many companies are making money on fuel). Factoring is the biggest expense at 5%. Being VERY generous with the numbers, mileage pay companies are providing $.15/mile value. Now on a percentage lease you have to look at what contract freight rate is.

 

I think it is more the problem that too many people are becoming O/O's that are not prepared for it. Both mentally and financially. They buy a truck without doing proper research, planning, and no funds available. So they also lease to a company with free plates and permits because they have $100 left in the bank. They then need a fuel card from the company as well, which in turn usually charges them $1 every time they get fuel. Add up all the fueling charges thru the year and you have the $$ it would have cost you for the plates....

 

Lemme simplify this.

1.40
-.60 Fuel
-.40 Truck Payment, Maint., Repairs..
.40 Driver Wages

You are a Company driver with a headache, and no Benefits. (health ins. paid Holidays. paid Vac. Workers Comp. etc.etc.etc.)

 

That $100 comment you made SHC reminded me of when I first started out as an o/o leased on at a company. 3 months in everything that could possibly go wrong did. Had a million miles safe driving when I get in my own truck had two minor non preventables, the second one had my truck in the body shop for 3 weeks. I was so miserable, it was so bad that when I left out I left $100 cash advance from fueling as soon as my truck came out of the body shop, that money stayed at home.. I borrowed $50 from my mom for food on the road that week. Absolute rock bottom wth am I doing? Every time I see cash advance option on a fuel pump I think of that.. $100 advance was all the money I had in the world and several months before I had 10's of thousands banked. Made so many stupid mistakes and had lots of bad luck.. Off topic I know, just a not so fond flashback memory..

 

We've all been in that situation. I took the $30k I had saved for a truck and bought one.....then I spent the next 3 months trying get all the other stuff I needed. I got very very lucky and the truck had 0 problems my first year or I would have been super screwed.

If we only knew then what we do now...... And that's why I try to tell people and help out as much as I can, when I can. I'd hate to see someone end up not as lucky as me or have something crappy happen like what happened to you and them not be prepared.

 

Good Advice.

It can happen and happen quick.

You guys are giving me Flashbacks. Lol!!!

I too started out broke, on a wing and a prayer. Some how I survived, But wouldnt want to do it again!!! That was 20 some odd years ago..

 

.90 cpm isn't gonna cut it. PERIOD. I average a decent amount over 2 per mile and thats running 800 miles a week empty!!!! As the others have said. Less miles more money. More miles more headaches!!!! L/P is nothing other than a glorified company driver. Fuel costs me over .75 a mile. So do the math. And that doesn't count Reefer fuel.