Landstar Questions

Load alerts and agent relations will get you the best bet for succsess. As far as budgeting and figuring your RPM L/S has a work sheet for budgeting it works pretty good, we use it. Stay in good lanes some of those higher end loads are just that and they take you away from the steady freight

 

You also need to include insurance costs in your breakdown. If you lease to a carrier, you will need bobtail or unladen liability, depending on the carrier. In addition you will also need workers comp or an occupational accident policy. If you want to cover your truck in case of an accident or theft, you will need comprehensive or collision insurance. Those will all need to be factored into your costs. If you are responsible for your base plates and permits, then you should include those in your costs. Bobtail usually runs from about $35-75/month. Workers comp will vary from state to state, but an occupational accident policy should run about $140-150/month. Base plates and permits will likely run around $2,200. If you have truck or trailer payments, those should also be included in your breakeven. I base my estimates on averaging 10,000/miles per month. It is realistic and achievable. Some may drive more than 10,000 miles/month, but I think it is better to calculate costs high and revenue low. There will always be things you forget to include when running estimates. You are entering an unknown. Historical data is best, but you don't have that starting out. Some of us can give you a basic guideline based upon our own experiences.

I break down my estimates a little more than you have listed. For instance, I do a pm around 15,000 miles. Some wait until they have 25,000 miles or more. I have known a couple of owners who change at 10,000 miles. I think that is a little too soon, but we all make our own decisions on how we handle maintenance. I break down all costs by the mile, since that is how we are usually compensated. Some break costs down by the day. For me and most others, it is easier to project based upon miles. When you understand your real costs, it is much easier to make a decision as to whether you want to take a load or not. I never take a load that I can't make a profit. I NEVER take a load to get to a better freight area that will only cover fuel or basic expenses. I know some owners have a different philosophy, but this works for me.

 

Very informative,esp the cost high revenue low.Thanks

 

You don't have anything for replacement costs. Even if you plan on just keeping and fixing your truck you will out run that $.15/mile. But if yoyu have the money already put away for a motor replacement you are looking pretty good.

 

Very true..I'm constantly out running my maintenance. .Little things but they add up..1k in it now and 10k banked, had 20k but payed truck off..

 

I have another question . I've only been with 1 company, started company driver and leased my company truck.How does the orientation work?Can I stay with comp I'm at till LS says for sure I'm in or should I just take a couple weeks off? Id like to stay on at current comp till I know for sure that LS will lease me on.

 

Stay where you are until you get a firm approval from Landstar. You can usually expect Landstar to take several weeks to go through their approval process. They don't seem to get in a hurry to approve new owner operators. They do use an outside source for checking backgrounds. I think they are owned by Landstar. I know one owner operator who went with another carrier after going back and forth with them for 6 weeks. If you are in a hurry, you should look at another carrier. If you really want to go with Landstar, then be patient. They will take their time.

 

Be patient! took me 3 months between all the cross the Ts' and dot the Is' , but like I said Im here now make good money and enjoying it!

 

Ok,good I'll stick with my comp till then.I really like the company im leased onto but,cant really afford to stay . I've read that LS is really slow and can only assume it will take time.My record is clean and I've only ever drove for comp I'm with now.Before that was a printer with 1 comp for 17 yrs..lol

 

I spend about .54 per mile on fuel.