Dear Mods...

Yeppers, if you aren't a flease operator....

Martin

 

I'm happy to hear about lease ops making money. I guess maybe O/O's and LP's get insecure about it, but as a company driver I already know I'm not making the real money. I'll be lucky if I can pull down 800.00 a week at this job I'm (probably) starting next week. But it's way better than what I was doing before.

So, what's the secret? What are you hauling? Refer? Flatbed? I'd have a hard time believing it if you say Dry Van.

 

The secret is hard work, dedication and a good business minded head on your shoulders. Keep in mind that almost everyone starts out in this business as a company driver and doesn't make a whole lot of money for the first couple of years. That's no different than any other occupation, you always work your way up.

 

You know I'll add this, too many good intentions get run over.. When you have to pay for everything including trying to feed yourself and support your family you won't pass go or collect two hundred. Even as a Lessor you need a bank roll to support you, Now if that's the bank great, if its personal savings that's also great, but to have nothing! Because you earn low employee wages and nothing is a bad idea. If you were to go to a bank and submit a business plan stating you wanted to lease without colatral, any loan would be denied.

Perhaps looking at it in retrospect it will be better understood,

Years ago if you wanted to qualify for a mortgage you had put 20% down... When Clinton took office he followed through with a Jimmy Carter plan. Making mortgages and home ownership available to everyone. The result was people were getting a mortgage with a second mortgage to pay the down payment. Essentially creating a no Down payment.. Well we all know the results.. People lost their homes because they had no back up funds, or were so heavenly in debt they walked away. In comparison, the majority who bought with 20% down and lived within their means kept their homes.
Fact, The majority of those who lost their homes was because they were top heavy and could not afford what they were told they could!!

If you lease without planning or having a reserve, your looking at the majority of lessors not surviving.. statistically 55% of new trucking ventures fail. Now add in the reduction of hours and other restrictions coupled with more and more companies turning to regional operations and the picture is very clear. As has been stated by numerous drivers mileage just isn't there but down time is!!!!

An opinion was asked for, and I gave mine. This is a follow up to my opinion and the criticisms which in turn are just an opinion!!! But that's OK, its the questioners choice to use due diligence and make calculated choices accordingly.
If everything looks green and clean go for it, if there's unanswered questions back off and re-evaluate.

I still stand by my original post and in similar circumstances would reject the idea of a lease.

 

I slept on a board. I sleep better now. Tractor is longer now. Tongue still hangs out. Where you want it. When do you want it there? I care about a check, an I 40 is just freight to me.. Lambo is as is. Miles pay my way. I get it there, pay me. Your car is not my problem/ unloaded. Yea I still have too much fun, they can't prove it. I'm asked to dinner. 3 side draft Webbers, are included on the car. 600 HP, but I am just a truck driver.

 

I should be embarrassed, I'm not, I am in no way rich. I barely pay my bills/ I am an O/O and don't take stuff off anyone. 3 trucks. Way it is.

 

this is a prime example why the rates are so low, and why the smarter ones must try so hard to make a good living. you could have better if you truely wanted it, but instead you let the broker and/or abc joke trucking make a ton of money off of you. you deserve more and i hope some day you realize that and go for more.

 

Low as it may be, 1500 a week is phenomenal for a leaser. And beyond phenomenal for a company driver.

That's the reason I'm curious to know these two guys' secrets. Sure you work hard. I get it. But it's quite possible to do that and still not make too much. I remember my trainer as Schneider was proud of having worked his way up to 37 cpm after 6 years in the company. I was making 34 cpm at my last job with 7 months experience. This new job is likely going to be just slightly higher. We'll see.

For me the lesson is that it pays to keep looking around for opportunities. Just hard work all by itself won't get you where you want to go.

 

How to make a lease work? Well some things you can control some things you can't. By planning and doing some research will help you out alot.

When I leased my first truck with DART. I had recently left Wiley Sanders truck lines where I had been making .36/mile running about 2300 to 2400 miles a week and home every weekend. When they lost a few of their customers I was lucky to get 1700 miles a week. Things had to change. I couldn't afford my bills anymore. I had thought about doing the whole owner operator thing alot. But the thought of going into it with a truck purchase seemed crazy. Not to mention I was struggling with my bills at the time due to the loss of miles I was getting at WS. And I didn't have alot in savings due to me tapping it because of the situation.

So I started doing research. Talking to drivers. I got the whole don't lease you will regret it (which I haven't) from most of the independents I spoke to. I also spoke to recruiters to get their scoop. The most important questions I asked back then were what will be my costs and charges. It's amazing the difference can make knowing some of this stuff.. Alot of these companies will nickle and dime you to death with things like trailer rental fees or trailer pool fees. Even things like drop and hook fees. Ohh and recruiters will not tell you alot of these things.

When you get these numbers write them down. Get out the calculator and start doing some math. Before I actually signed on with dart I spent 4 days in orientation with another company. The numbers never seemed to add up unless I was getting the perfect load. It was a percentage based company. Anyway I never signed got back on a bus and headed home.

After that experience I learned talking to ALOT of drivers not just a few was worth it.

So things that you can do to help you out.
1. Research the company your wanting to go to. Do some math.
2. Fuel economy is every thing it's our biggest expense. PERIOD. Drive conservatively save fuel. Also a little note on top of this, if your leasing or buying a used truck. Ask or demand an engine history report so you can see what type of fuel economy that truck hs been averaging. Don't sign for the truck unless you get one. I learned this with my first actual purchase. I keep my cruise on 65mph.
3. Try to keep a positive attitude with dispatch. I would occasionally take a bad load if they asked me to. They would usually end up hooking me up on the flipside. However there is also a limit. This is your business, and you need to know when to say no, and just as importantly how to say no. Keep it professional.
4. With DART at least communication is a key to success. If. I get held up and might be late I am shooting them a message. I'm updating my next estimated ready time.
5.Hard work and sacrifice. I understand the whole work smarter not harder. But even when I was on percentage I couldn't just sit there idle. I was out on the road to work and make money. Not sit and wait for some dream load to come available. If nothing paid good out of the area. I was looking in other better paying areas and the looking for a way to get paid to get there. As for sacrifice. You take on a truck payment lease or otherwise you better realize that truck owns you not the otherway around at least untill you get it paid off.
6. Put money back for maint. Repairs and taxes. If you don't figure this in. Your going to fail.

the main thing you can't control.
Did you get a lemon? If you did. You might as well hang it up. A constantly broke down truck will bankrupt anyone.

Hope this helps some. I realize to some of the super rich, only work 2 day a week, not get out of bed for less than 2.50/mile OOs this seems like the wrong way to go. However from the first week I got my truck with Dart I doubled my income that I was making as a company driver. I eventually got out of that lease, bought a truck on the outside and its now paid off. I think I've done pretty well considering.

Even if your goal is to be one of those OOs that don't want to get out of bed for less than $$ /mile. Getting on in a good legit lease could help you get there faster by allowingyou to make more money. However as with any business venture there is always risk of failure. If you do succeed though you will learn alot along the way.