So called owner/operators

Discussion in 'Car Hauler and Auto Carrier Trucking Forum' started by Mr&MrsPete, Mar 26, 2016.

  1. brian991219

    brian991219 Road Train Member

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    Bottom line, I don't force anyone to do anything except follow the terms of the contract they signed with me. After all, I have to follow the terms of the contract I signed with the vehicle supplier, traffic manager, ramp manager, or where ever I get my freight from. Last I checked, this is a free country and I am not holding a gun to anyone's head saying they have to lease on with me, but I will hold you to the letter of the agreement you make with me. Don't like the way I do it go get your own freight!

    Single truck guys never seem to get the fact this is a business, no business makes a profit every single day they run, now every month/quarter/year, that is more likely to happen, but every run every day is just not feasible. Especially if you are leased on to me and expect me to shoulder most of the cost of operating your truck (cargo, public liability, responsibility for DOT safety, compliance, sales, and marketing). Again, I am the one out there taking the risk to find the work, agree to get it done, and doing it with my company trucks sometimes at a loss just to keep the customer happy. So it is my freight, my way. Really, if it was so easy there wouldn't be such a demand for leased operators, every truck owner would have their own authority and customers.

    Also, I have no idea where the notion that forced dispatch equals company employee, no it does not. Forced dispatch just means you actually have to follow the agreement you signed, I am not telling you how to do your job, just what has to be done (move vehicles from point a to point b within the contracted schedule and for the contracted rate). And, the type of leasing we are talking about in this thread is not the scam lease purchase programs that are really nothing more than buying yourself a job, but rather agreeing to work exclusively for one motor carrier for a specific period of time in exchange for a specified amount of money and back office support. Nothing more, nothing less.
     
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  3. SLANT6

    SLANT6 Road Train Member

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    I meant that for Diesel Engine, not you. The quote function did not work from my phone. I'm on your side.
     
  4. skinnyb01

    skinnyb01 Light Load Member

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    Wow. And this is why central dispatch is fked up. This isnt freight we aren't dock bumpers. Our trucks cost more. They cost more to operate to maintain and to fix. If more guys stood up and said no to cheap freight the rates would have to eventually come up on those cars that " have" to go.

    And slant6. ..
    You're so wrong about your thoughts on lease operators.
    I'm leased onto a large company and I'm able to broker my OWN loads through them. They take a lesser percentageon my freight because I'm doing all the leg work. They realize that yes there are some crap runs but we have things like subsidiary rates and bonus runs that make up for it. Your idea of running brokers into the ground because fright has to go is dry box mentality.
     
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  5. skinnyb01

    skinnyb01 Light Load Member

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    I respect you Brian but I disagree. I work out the profit on EVERY load before I accept it. If it doesn't pay my desired profit margin it will sit. There are guys with lower overhead that can run those loads. All power to them. But I'm not out here just because it's cool to haul cars. I'm out here to make money. It's cheaper for me to leave her looking clean In the barn with zero risk than to risk a damage on an already under paying load
     
    Last edited: Dec 28, 2016
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  6. Big Nassty

    Big Nassty Bobtail Member

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    Interesting.....So let me ask a question: How long does one think that an O/O can operate at a loss for anyone? One trip, 2, 20 ? I realize that everything does not turn to gold but why would anybody want to work not only for free but in reality, lose money in the process? I agree with doing as you agreed but if you are not making money, how long can anyone afford to stick around?
     
  7. skinnyb01

    skinnyb01 Light Load Member

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    Ok post your lease agreement here. Show me where you tell your contractors that they must haul what ever you put on their plate. Hey if it's in there and they signed it.. Too bad for them. But the only ones I've ever signed have talked about what percentage of revenue the company takes and what goes to me. See that's the blessing of being an independent contractor. Means I'm the captain of my ship. Means I will decide what's best for my business. If it doesn't work for me and who Evers name o put on the door we will part ways.
    Too many companies and big time dreamers think having a new car contract makes them a GOD. Nope. I'll stick to my used cars and auction freight that still has money in it and pays a 2 way rate with less risk of high damage claims. With used it's not always about who can under cut who and who took the guys out for blow and hookers.
     
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  8. Mr&MrsPete

    Mr&MrsPete Medium Load Member

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    I hear you buddy. I know you know how this works
     
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  9. Mr&MrsPete

    Mr&MrsPete Medium Load Member

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    We all are in this business to profit. That goes without saying all Brian, slant and I are trying to explain is that you don't hit a homerun everytime at bat. It doesn't matter the profit I turn everyday, It only matters at the month, quarter and year. As owner/operators you have the right to refuse loads. However I have watched many owner/operators go broke sitting home waiting for that "homerun" load or day. Plus, why lie, when a dispatcher thinks you are that guy, he or she is going to take care of the trucks who take care of him or her when they really needed it first. And skinny, if you are running your own freight through your company and giving them their percentage, that's cool. All that really tells me is that they don't have enough freight to keep you busy and are more that happy to make a percentage off of you being your own salesman. I bet if they had an OEM contract moving a hundred thousand vehicles over a three year contract it would be a much different story
     
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  10. Pedigreed Bulldog

    Pedigreed Bulldog Road Train Member

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    I don't make as much as I'd LIKE on every load, but every day's run needs to be at least a little profitable. I'm even willing to negotiate a bit on runs that simply MUST get done, and have done so before if the numbers are close. Tweak the fuel surcharge a little (I get 100% of that) instead of assigning as much of the total bill to the line haul (of which I only get my %). Or, agree to cover my motel if needed so that I don't have to deduct that expense from the per-mile average on the run. Little things like that can shift the numbers enough for me to decide it pays enough to justify running the truck. I don't say "No" without at least trying to see what they are willing to do first...unless they are WAY off. I know what I need to run the truck. Doesn't have to exceed that number by much on a "must go" load...it just has to exceed it. I understand that other loads make up for the barely profitable ones over the course of a month/quarter/year...but EVERY load still needs to have the potential to be profitable for me to fire up the truck. If stuff happens along the way during the day to change that, that's life...but if the run isn't profitable to begin with and that same stuff happened, it becomes a tough pill to swallow. Breaking stuff when I shouldn't have been running in the first place REALLY ticks me off...
     
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  11. Mr&MrsPete

    Mr&MrsPete Medium Load Member

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    Trust me every load has a profit in it. I just think everybody' s version of profit is different. Ill give an example. A pretty large nationwide auto transport VP just recently broke it down to me like this. The way they bid is cost + 40%. Sounds like a really good deal. He said that if it goes on his truck he makes the full profit. If he has to put it on an o/o or sub hauler he takes 20%. Here is where the difference comes in. He is buying Volvo's and Freightliners, where we like our Peterbilts. Usually about a $50K difference not including his volume discount. He get a huge fuel discount from Pilot/ Flying J. Try $.30 off posted cash price. Im still paying retail. He gets a huge insurance break because he is insuring 500+ trucks a year. For 2017 mine is gonna be $39k a year per truck. That's because most OEM's now want $400 - $500k in cargo and dimminshed value. Just yesterday I gave my ins guy a check for $15k down and it will be $2k a month for 10 months to insure my personal truck. To make a long story short, his CPM is somewhere around $.50 a mile cheaper than me based on an average 9,000 miles per month that we run here in CA running new car freight. So, the formula is the same but everybody's cost are different. Trust me, you as an o/o or subhauler are operating on the who ever the company is, their formula because they have the contract. You cant go get these contracts because you don't have the volume of trucks to handle it. However most guys like running new cars because it is consistant and everyday. There is the sacrifice and trade off
     
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