Saying "No"

Discussion in 'Ask An Owner Operator' started by Roteck, Aug 16, 2017.

  1. Roteck

    Roteck Light Load Member

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    They are low but still profitable. There is a $0.16 fsc per loaded mile, if I fuel at Werner fuel locations I get a decent fuel discount. My T680 gets about 8mpg at 65 with 40,000lbs depending on where I'm driving. Tolls, plates, permits, all paid for by Werner. I get full benefits thanks to Werner's partnership with TrueNorth. I'm in a 2015 KW T680 242,000 miles, w/ an APU for $350/week plus a $0.07 cplm principle charge to pay the truck faster. I'm participating in a maintenance escrow account pulling $0.07 cplm to be placed in a separate account each settlement. I'm not rolling in dough but as long as they keep me moving, not these ####### shag runs, I should be able to pay the truck off in 2.5 to 3 years. Of course I don't have to stay with Werner but currently I have the fallback choice to turn in my truck without penalty and become an company driver again. I didn't want to get into this on this thread because I didn't want to short it but the reason I decided to go o/o with Werner was not necessarily to increase my revenue although the opportunity is there. I did it because I want to advance my career the safest way possible. Right now I have 260,000 miles or 2.5 years of manufacturer warranty left on this truck. Werner allowed me to get the truck with $0 out of pocket. 4 weeks until first truck payment due. If I do breakdown and it's not a warranty repair, Werner will pay for it and I will be charged weekly so as to keep me from fronting the entire bill right away. I also knew all the operations and how Werner did things as far as loads, customers, rules, all that so it was just one less thing to worry about. I DO NOT plan to stay at Werner for more than it takes for the truck to be in my name, with the title in my hand. I'm just starting out as an o/o and didn't want to dive off a cliff hoping to sprout wings, I'd rather have a parachute with me.
     
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  3. QuietStorm

    QuietStorm Heavy Load Member

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    An exercise in understanding profit for your situation:

    Situation 1:
    1x600 mile run
    Hours used: 10.5 drive 1.5 on duty =12/70
    Revenue=$630
    Expenses= fuel -$250, maintenance/insurance/other -$200, taxes -$50
    Profit= ~$130

    Situation 2:
    4x100 mile runs
    Hours used: 8 drive 2 on duty =10/70
    Revenue= $680
    Expenses= fuel -$180, maintenance/insurance/other -$200, taxes -$90
    Profit= ~$210

    Situation 1 vs situation 2:
    Situation 2 profits $80 more a day, $480 more a week, $6,240 more a quarter, around $20000 more a year even compensating for extended breaks.

    Disclaimer: all figures are approximations based on real world data. Your mileage, expenses, and profits may vary. The writer of this educational material strongly suggests you take the time during this 34 hour reset to run your own numbers and come up with a better business plan than "work hard, go broke, and make Werner rich".
     
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  4. QuietStorm

    QuietStorm Heavy Load Member

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    I really just wrote this to help you out with thinking business, don't take it harsh.
     
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  5. daf105paccar

    daf105paccar Road Train Member

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    If i read it the right way,you allready turned down a load to Chicago because you don't like to go there?
     
  6. Studebaker Hawk

    Studebaker Hawk Road Train Member

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    Sure you can turn down loads. Sure they can retaliate by giving you just enough revenue to slowly cause you to go belly up.
    Operations holds ALL of the cards. They can run you well enough you will need another 53 foot trailer to put all the extra cash in. Or bankrupt as fast or slow as you accept.
    There is no easy answer. After 40 years as an owner operator, 15 with my current company, I put the onus on them. I tell operations:
    "I have a specific revenue target in mind for this whole month. Run me anyway you want, if the Rev per mile is within the target we are good. If not we have to make an adjustment. You have all the info and power, you can make it happen."
    If it doesn't you have to go elsewhere.
    "
     
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  7. HopeOverMope

    HopeOverMope Road Train Member

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    Just REMEMBER, you are paid on a 1099, as a CONTRACTOR, it is illegal for a company to dictate your schedule; your loads are your schedule | and it's illegal for a company to tell you HOW to do your job; your work is trucking, according to the loads you want to run... anything besides the way you want run is illegal in IRS law [which is a big deal]

    Big companies have been getting caught up lately in forced to semi forced dispatch operations, take FedEx for example: court ruled their owner operators were actually employees


    SOOO: don't explain yourself to these people [dispatch], just tell them I don't think so, or no, not interested. It's his problem not yours OR he's looking at legal problems if you pursued it. [yes saying no can be an art]

    If your worried about being left out on next loads then negotiate with him. "Sure I'll take the shag load but I need a pre plan first going 500mi -700mi"

    Quit explaining/exposing yourself and your business to them. You give them the advantage at that point: look at old westerns and old school truckers in general, not much talking going on... this is my price... "why driver"... because it is

    My opinion
     
    Last edited: Aug 16, 2017
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  8. miss elvee

    miss elvee Heavy Load Member

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    Russellville, AR
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    I've had this discussion with another company back when I was an L/O.

    It's very difficult to run profitably for a mega. Your responsibility is to your company. Your LLC or whatever. NOT to them. If you have the right of load refusal you can use it. Yes, there may be some push back. But, in the end remember this: YOU WON'T PAY ANYONE TO HAUL THEIR FREIGHT. You are in business to do business. Not charity.
     
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  9. Roteck

    Roteck Light Load Member

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    Abilene, TX
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    I don't take it the wrong way. I understand what you're saying and I agree with what you're saying. But I don't ever get those inbetween loads. Lately it's 1000+ or literally 0 shags.
     
  10. Roteck

    Roteck Light Load Member

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    Dec 18, 2016
    Abilene, TX
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    Yes I did because I have the right right? I do not like to go to Chicago, simple as that. It's the ONLY city I will not drive in. The only one. It has never been a problem because I always told my fleet managers as a company driver that I'd prefer not to go there, not a single one of them sent me there, AS A COMPANY DRIVER. I figured hell if they didn't send me there when I asked as a company driver with no right to say no, why the hell wouldn't they as an owner/operator. Of course I've had good FM's until now. Yes I refused a load from Chicago, that's the only city I refuse loads to or from.
     
  11. Roteck

    Roteck Light Load Member

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    Abilene, TX
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    Yeah and I plan on going elsewhere since they seem to react poorly to a "no". Sorry that I am trying not to drown, they just don't get it or they don't care.
     
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