Wanna be O/O where to lease on too to start up

1.87. All in. Thanks for proving my point.

 

If 1.87 is generating gross 200K out of which you clear 100K. Sure!

 

At a buck eighty if you want to clear a hundred grand you better plan on generating quite a bit more than two hundred. 93.5 cpm will not cover costs and taxes.

 

I don't know why everyone wants to work so hard. I rather take it easy and make 75. That's enough abuse for one year. Works out to between 80-100,000 miles. Company still turns healthy profit on top of that; I just pay tax on that.

 

Im with you. Less work the better. Heck now that everything is paid off, including the house, I'm happy with 60k a year.

 

We are back to basic math. With landstar you need to average $3 per mile in order to make the same money.
Its little low because i live in houston and i go home a lot cause we are having a baby.
If you are in this business, you know getting out of houston is not good for your average rate.
Anyways this is kinda unnecessary since everybody think that they know the best.
Good luck y'all

 

Yes. Back to basic math. It's closer to averaging 2.30 gross than 3. Gotta remember they keep none of the fsc and other accessorials. Ends up being about 1.85 to 1.95 to the truck, with a fraction of the back office work and expenses, deep fuel discounts. So tire discounts. Etc etc.

And yes that's what a guy leased to landstar should average. Do theire agents have plenty of cheap freight? Certainly. But why get hung up about an agent that brokers out cheap freight? It's just an additional income source for him. Add long as the agent is providing good loads to the contracted trucks who cares that they also got a lot of garbage they broker out?

It's the same thing at my carrier. We got good paying freight, and garbage freight that ends up being brokered to some joe with his own numbers. Some guys get hung up on the junk and other guys ignore the junk and focus on the gravy.

 

So you are saying that landstar oos grossing $9000 doing dry van. It sounds like you had way too many kool-aid. I had friends leased to landstar none of them averaged $3 a mile. After ls cut and fuel they take home was around $2500. Funny story huh?

 

I think any new owner operator that doesn't have business experience would be better off starting with a percentage based lease that can generate at least $1.80 for all miles before taking the plunge to get their own authority. There are drivers that have the talent to be a failure leased on to ANY company.

I suggested Landstar and companies like it because it gets your head into the game of figuring out your lanes and developing relationships. That's a key part of being successful if you are going to move up to have your own authority.

Notwithstanding many a story from crying truckers, I have met and continue to correspond with some Landstar owner operators and fleet owners that are doing very well. The trick is to ignore the majority of whiners and key on developing relationships with successful businessmen. They have been helpful mentoring my business plan.

I'm not leased to Landstar, but to ACME. This is expedited service to the oil industry and I pull a flatbed. While I have only been an owner operator for two months, in the 18 months prior to that I was paid a percentage of TTT. I tracked revenue, fuel, and repairs (doing as many repairs as I could) for the truck owner and determined this was a good fit for me.

The rolling average hovers about $2.40 for all miles, at 100,000 miles per year. That's in one of the worst downturns in the oil patch in years. Right now rates and loads are up and going to get better.

I guess my overall point is first, avoid low fixed rate leases like the plague. My brother was roped into a gig like that with a small California outfit, and it was a STRUGGLE.

Second, seek out companies that pay a percentage. Look at the whole package: fuel discounts, trailer rental rates, fuel surcharge, percentage they take, etc.

Third, develop a business plan that includes an Excel spreadsheet with profit and loss forecasting. Plug in each company you are thinking to lease to, and see which one has the better bottom line (net profit AFTER paying yourself).

Last, IF you think you have the network of customers ready to do business with you (and the OP doesn't), then figure out how much additional capital you need to buy, rent, or lease a trailer and the capital to sustain accounts receivable collections. You don't usually get paid instantly running under your own authority, do you?

 

Well somehow I had a good year at LS and ran 54,018 miles,
But the op wants to know a good place to lease on. LS takes 27% not 35 if you pull flat, your trailer or rent theirs.
Once again someone who never worked for LS knows all about them