Why is it so hard to make money as a independent?

Okay, so explain the numbers. It may lead me to better business practices.

 

Can someone please tell me why going from multiple trucks, to one truck, would be viewed as a sign of growth and prosperity?
Also along the same lines, can you explain why going from having your own Authority (control of your own destiny), to leasing to a company, be considered a sign of strength and outstanding business skills?

I anxiously await your analysis.

 

I've done both actually. When I downsized, it was when every trucking company out there was downsizing or going out of business. I survived where so many others failed.

As far as leasing goes, it depends on who your leasing too. I leased to Landstar and I control my own destiny. I also haul loads for rates I could never do as an independent with three trucks. Typically, the guy with his own authority that gets all of his loads from brokers makes less than I do with a lot more responsibility. My last three legal loads leaving FL have all paid over $3 per mile to the truck. Having 1,000 salespeople working to supply me with high paying direct freight is fantastic. Not every lease is the same and if I left LS, I'm not sure I could find a company with as much freedom and freight opportunities as they offer. In case you don't know LS is self dispatch system. The only time you speak to corporate are for compliance issues typically like drug tests or failed inspections.

 

Thanks for your response, I will await to hear from others.

 

I know several who ran their own authority to lease to a major carrier when the economy went sour. Thousands of owner operators, independents and carriers were forced to close their doors. Many lost everything that they owned. It is the worst economy that I have seen during my lifetime. My business dropped by about 2/3 almost over night. I survived primarily due to my having low debt on my equipment and savings put aside. Those with high debt, big payments and little savings could not survive. Some people have the illusioin that when you are in business that things never change and you are rich. That is not how it works. Business and the economy constantly changes. You either adapt or close the doors.

I know some who have gotten their authority and not done as well as they could have leasing to a carrier. We all do what we must in order to survive. Unless you are willing to change and adjust your business model you will likely not be able to survive.

 

40 & g/man.... well put

 

I have already answered your question in post #64 , but here it is again.



I do pay ifta, I pay fuel taxes with every gallon I buy, I just don't have to pay for any shortage( if ya read earlier post of mine you would see I do a almost perfect ifta without even trying) I also had my own authority with 2 trucks and 6 leased own drivers for 15 years, and before that ran exempt with a reefer for 5 years.

I pay for tag each march 31st in one lump sum just like you.

I ran mine under as a sole proprietor.

I didn't have to keep such an eye on my drivers, one was me and the other was so trusted that when I gave up my authority, I gave him the title to his truck.

my lease would only be stealing from themselves.

I been there done that and got the t-shirt, I did just as red foreman said, after economy took the dump, it was just much easier to only worry about myself, and I had got to the age I just wanted to cut back and worry with just myself.

I just simply got rid of the stress.

running a business is running a business whether you have one truck or 100, whether you are leased to a company or have your own authority. that's the trap many fall into, they think there is some difference.

an llc , a scorp wont guarantee success.

an running on a load to load basis isn't the best way for business. running that way prevents long term planning.

and again if you are spending a great amount of time ensuring drivers don't steal, you have hired the wrong people. but it is really easy to spot a thief, if ya know how to do it.

I would bet my per mile avg for speedometer miles is higher than many many folks running there own authority, but that isn't some great mystery, its simply due to experience .

your former posts in this thread are a direct contradiction to your last one, it just doesn't figure someone buying fuel on a load to load basis because they might need the 400 bucks for a repair would have hired drivers. that's a surprise

 

And here is the best answer for your question, David Lee. Success is merely a matter of perception. I would consider running a single truck a success, while others say they need 1,000, trucks to be a success. Growth and prosperity? Maybe just like skateboardman said, there is a certain amount of stress involved in running ANY number of trucks and some people just don't want the hassle anymore. Same can be said as to why a O/O would give up on the inundated Federal paperwork and let someone else have the headache. It's not that they were not a successful O/O or a failure, there comes a point in life when other things become more important than the almighty dollar.

 

Not everyone has plans to build an empire. For some, success is working when they want to and having a stress-free life where the bills are paid.

 

Doc and Red hit it on the head. My priorities have changed since I was a driver babysitter. I work my loads around doing stuff like this.