Owner Operator's Earnings?

This is my third rewrite to answer this question so forgive me if it makes no sense.

First thing is you have to define Owner Operator. The term is used for a wide variety of things. Not all of which I believe should be called Owner Operators.

Hirschbach hires folks and supplies them with a tractor, trailer, and customers. They call them owner operators but they are not. An Owner Operator has his own authority, his own tractor, and his own trailer. Then he comes up with his own customers. He also provides all the support that a big company driver gets for free. You have a flat, you pay to have it fixed. Oil change $250 or more.

So what kind of Owner Operator are you asking about? What kind of equipment? What is your business Plan? What lane? Over the mountains better pay more then flat land.

 

So if you have your own authority and your own tractor, but run power only your not an owner operator?

 

To me an O/O is someone who has their own truck. Having your own Authority and using it of coarse, an Independent. Making a truck payment to a company that you lease onto, Fleaser.

 

60 a mile? That's disgusting for an O/O. My Grandad made more than that in the 70's. unfortunately, it's just not in the cards for an O/O these days. I've got experience under my belt. Sure, I'd love to have my own authority. But at the same time, I'm looking to get a pension and that won't happen as an O/O. I'm not very business savy so I have great respect for those that can truck and pull off a retirement... kudos to you.

 

I assume that is 60 cents a mile after the costs of running is paid for?

by the way, people should not look at their pay as per mile but as revenue after the job is done.

 

Never buy a job.

As someone already noted, if you can't double what you make as a company driver then it isn't a business, it's a job.

Think of it like this:

If you buy a truck and hire a driver you trust to drive for you, could you pay that driver REALLY WELL and STILL make a profit? Would that profit be AT LEAST 15-20% AFTER ALL YOUR COSTS, INCLUDING PAYING YOUR DRIVER?

If the answer to any of those questions is "no", you bought a job.

This is why I think owner operators that run for barely over a dollar a mile are kidding themselves. They basically earn about the same, or in some cases LESS than they would as company drivers and end up being stuck. They are one major repair from financial catastrophe and unless they either lease on to a carrier that has decent rates or run under their own authority, they will always be scraping by.

 

I am right now pulling power only loads. I have my own authority. While I am technically an Owner Operator I believe there should be an * asterisk by the word. I am not totally in control of my freight. I have a company trailer behind me and cannot just grab a customer off a load board or in person. With the trailer behind me I am trapped and depended on the folks who own the trailer. Now I am paid more but I have higher cost.

I am buying a trailer in the next month, then I become an Owner Operator with my own authority with my own trailer, * still tied to a load board.

I am still working on becoming my own Company Driver.

 

After expenses. What is the gross to the truck, and what are your expenses? Do it on paper, and estimate high on maintanence and repairs.

 

To answer your question, Yes. An O/O should make atleast in his pocket after all expenses paid, $.60 cpm. If he isn't making atleast that, He is loosing money.

 

I'm incorporated. I pay myself as an employee at the rate of $0.50/per mile. After deductions for taxes, WC, SS, health insurance, retirement and per diem, I pocket about $0.24/per mile in cash compensation. Unless something goes wrong that week or month. That may seem low, but you have to consider that at that point my truck is paid for, my taxes are paid, and I have healthcare and retirement. Also I've eaten, have a place to live (my truck) and usually have a little money in the bank at the end of each quarter. I'm not rich but I don't have money problems either. If you spend all your positive cash flow in this business (not to be confused with profit), you won't last long. When it comes to money, think like an accountant, not an employee.