I see why trucking is going the way it is...

no, he has his own authority

 

Here's the thing. Most of us didn't go into business to make the same take home as a company driver. Call me stuck up, but I know my skills and my financial investment in equipment and my risk is worth more than what a company driver takes home.

It has nothing to do with whether or not my family made minimum wage or not. It has nothing to do with whether or not my parents were upper middle class while I was a child. The salary of the profession can be compared with similar KSAs and risks and responsibilities from other similar professions. You yourself understand not all trucking businesses are the same. Some have more demands put on the owner than others. But still, owning and operating that trucking business carries higher risks and responsibilities and abilities than being an employee at that business.

This idea, and I've heard it in person from a freight agents mouth... this idea that, "all a driver needs is enough to earn a decent living". I ask, "What's your idea of a "decent" living, Mr. Mercedes driving, going home at 5PM everyday man?". That's just a load of sales guy mind trickery right there. Try telling the brokerage owner that all he needs is enough to earn a decent living. Tell me what he says in response. I bet he 'HUFFS' in rejection so forcefully, he blows you backward!

So, my first point is a business owner should take home more than an employee doing that job.

How much? This is subjective, but, for starters, I think the amount of his money tied up in equipment should come back to him at 8% annually. If he had a truck loan, the bank would charge interest on the capital loaned. So why shouldn't he make money off his own capital invested in the business. This compensates for some of the financial risk with which he is burdened. If everything is financed to the hilt, the business is still costing finance.

Next is how much more should he make in wages to himself vs an employee. I compare this to a middle manager's position at a small to medium size business. They usually make at least twice as much per year as the highest paid hourly worker there. So the average trucker, nationwide in OTR work, is making $50K, let's say; so twice that is $100K/yr. Add our cost of capital invested in equipment at 8% annually on a typical tractor + reefer + APU, totals $230000*.08=$18400.

Ok, where are we in summary on a national reefer OTR truck O/O? $100000salary + $18400capital risk reimbursement = $118400/yr. You could adjust: +/- $20000 for regional cost of living variance. A northeast regional O/O has more taxes to pay so he may need something closer to $140000, while a Laredo based O/O has lower cost of living and low taxes. For him, $100000 is fine.

These numbers are after all business expenses and business taxes, but before personal taxes. This is also based on working a typical 100000 mile year. So, working 150000 and quoting high income numbers is not bragging; also, counting money that should be reserved for taxes and long-term maintenance costs is also not bragging. It's a "fantasy" take-home-income; that will come home to roost.

 

I know this doesn't help, but, after reading all your comments, I am SO glad I'm "semi" retired!

 

That is nuts... Talk about a guy who was suckered into a L/P program and knows how to do nothing but hold the wheel and accept loads from a dispatcher! I don't even own a truck yet and I play around with multiple spreadsheets and research all this crap so when I make the jump I am not blind!!! When I was a company driver OTR I use to keep track of everything!!! I still have it all on spreadsheets and knew a rough cost per mile and have all sorts of info! Probably took more detailed notes and kept more information then most company drivers do let alone L/P guys. Pretty sad....

 

you somewhat miss my point, your background may not affect the amount of money you want to earn or the amount you consider enough money. but to many folks it does, someone who had 2 parents who worked and made 600 bucks a week together between the two, may very well be quite quite being a lease/purchase op making 750 a week. whereas someone else will not be satisfied with that.

the fact is , its just as you say, its the amount of investment and time you are willing to put into a business that is the main difference between a lease /purchase guy, a guys who bought his own truck, versus someone who drives a company truck.

some guys are willing to save the money, take the risk and purchase their own, and have everything on their shoulders

some want to put a toe in the water and somecheck things out, without much risk and having someone to call if it breaks, and decide to try the lease purchase route, to possibly make a bit more than company.

and some are quite happy driving someones elses truck, without any risk in a breakdown event.

there is nothing wrong with either scenario and any scenario in between, if it makes the individual happy.

and to one guy 500 bucks a week may make him very happy, and the next guy isn't satisfied with 2,000 a week even.

so 1.80 may very well look like a mother lode to one guy and be cheap to another guy and both could be exactly right.

what matters is ones happiness, and quite often though happiness is never found as one is never satisfied.

my post was meant to address this, when is enough enough?? there is no answer.


I just don't thin lease purchase are ruining things for everyone else, many folks ruin it for themselves , as they have no idea of their costs, and operate on some random number they pull out of a hat, like nothing under 2.00 a mile.

that's a excellent goal, but it also has to be weighed by delivery location, weight, and commodity. it can be better to take a 1.90 a mile load at 500 miles than a 2.20 a mile load at 500 miles sometimes.

the trick is knowing the difference

 

What about the brokers pushing cheap rates like they are doing the owner some kind of favor? Was stuck in Seattle for a few days,, agent calls with a $1.80 load out about 1000 miles to an area she said was easy to reload out of. I said I like it, and she said she would call back.

When she called back she said that load was off but she got me another one going to a place where I would have to deadhead out 300 miles to the next state. Oh and $1.56 hazmat heavy, strike 3 you're out lol. I said, 'don't you mean $2.56?' I wasn't expecting a text back from her saying "thats BS" and the BS was spelled out lol.

I ended up getting a different load, 2 stops, first stop $1.54 (I know I know) but second stop $3.40.

 

I hate running West and rarely do. It's impossible to make a "decent" living out there.

But that broker was using a marketing trick called "bait and switch". Brokers are just sales people. They really can't do much other than talk. That's it. Talk.

Talking is how they bring home the bacon, and talking to make a living requires tricks. Oh boy are they good at tricks.

So, learn their tricks and throw it back their way, listen to how they deflect and turn that trick their way. This is how we can learn how to deal with them. By doing what they do. It's just a slimey, trick-filled money game.

Oh and try to stay in areas where they won't have you by the short hairs!

 

What bothers me is the 'rate confirmation' they send. It is whatever they say it is. I think we should see the true rate offer the shipper is willing to pay

 

scottie , don't get caught up in that game. worry only about what you are getting. it doesn't matter what the shipper is paying unless you are going to try and haul direct.

and when you are putting together a ltl, 1.54 is very acceptable,