I'll run under your authority

I think the success or failure depends on the O/O and his ability to smell BS.

I was fortunate in that the carrier I am with took me in under his wing as a company driver. I saw and spoke with other O/Os who ran under his authority. They did not have cheap equipment. They spoke positively about my carrier. So when the time came, I negotiated what I thought was fair.

It hasnt been with out its ups and downs. But I can say with all honesty, he has always had my back and when I wanted to break and do things differently, we talked about it and he allowed me to get my own customers, my own agents and contacts. When I leave, they are mine. He understands this.

I've never felt like I would be hung out to dry if I fell behind.

Things have been exceptional for me this past year. 1 maybe 2 more years and I will be on my own authority and coming off the road. That is the plan anyway. Only time will tell.

Hurst

 

Same with me. Drove for my carrier for about 9 months. Then I bought a truck and trailer and did 10 months doing exactly what the carrier wanted. I told them for the next year I will do it my way or I'll take my toys and leave. Me and my carrier couldn't be happier with the outcome. I would be on my own but what it cost me to lease on is cheaper than if I had my own authority. I evaluate it every quarter. So far I make more NET than I would if I had my own authority.

 

Ok...But How?

How do you know you wouldn't achieve a better financial outcome?

Your carrier takes what 20-25%? usual percentage

Yeah...If you had authority and used brokers exclusively- Your Better off staying Leased to a carrier because Brokers are taking their 15-25% Anyway.

NOW....if You Get your own customers (At Least outbound) Your Better off with your own operation
I Don't even think you can file an "S" or "C" corp leased on to someone- I Could Be wrong though- BIGTIME tax savings

 

To be blunt, you can certainly have an s or c Corp leased on to someone.
There's a lot of companies offering a 10% deal to use their authority and do your back office work. It'll cost that much even without it. Not everyone takes 25-30%.

 

I disagree with your percentage. Quite a few success stories on this board guys running under somebody else’s numbers. Based on how things are going for me i would actually encourage it.

That being said you have to do your research and court the carrier and get to know their operation before hand.

Op I would encourage you to start by finding a small to medium sized local to you carrier that seems to be doing well and start there with a conversation.

 

I get charged %10 of gross. I pay for everything though. Insurance, fuel, 2290, plates, ifta. I mean everything.

The kicker is I can't find coverage for the same as I pay the carrier. It's $5000. A year higher min. The biggie for me is the place to park and the shop to work in. My model is I do all my own maintenance and repairs. I would have to buy or lease a shop, so what another $12000.00 year minimum. Fill it with all the tools I don't already have. I get a great discount on parts through the carrier as well. We spent almost $150k through our dealer this year in parts alone. I couldn't get that discount with just my purchases.

Then there is the money? I get paid within 7 days. I have enough cash to float 60 days of revenue but, there is value to getting the cash quicker. I also have a partner to work with in that we both have some options because we have multiple trucks and trailers. Not just one truck and one trailer.

Then my wife runs there office. So there is added value there as well.


So if I did say $200k for the year I give him $20k. I can't even cover the extra insurance cost and a place to park and wrench on my truck. Let alone any of the other stuff?

Lastly I like working with my carrier. It is a family operation out of there house on the farm. We all have a lot of fun working together.

I will get my authority soon but will still work through my carrier for dispatch, a place to park and a shop to use. I would still even pay the %10.

I am an llc and file as an s corp.

 

IF you are grossing 200k per year- A Free shop with tools, and only 10% to the carrier....You Got it made in the shade- Not too many have that luxury-

Best off staying put- If what your Numbers are accurate-

Here's the only thing I see that would bother me if I was in your shoes.........

With these "Farm type" operations........... When I Get back Home..I Want peace n Quiet- No 100 questions-Or "Hey,Can you Hold this Wrench" Just as you get out of your truck....

No Way- I want Nobody around me...That Way I can Choose What I Do Next Without any Questions or Voices anywhere.

You'll see 1 day that having your own Private Shop or Out Building is the way to go

 

This is my house so you can see there is no where to park a semi truck let alone a trailer to work on. I am looking for a shop but land and buildings Suitable for a truck and trailer go quick and for good money around here. Especially on a road that's not freeze poasted.

 

Yea there are times like that. I find I do help a lot around the shop and during harvest. But I enjoy wrenching. If I don't want to help I just tell them I can't.

I cleared that number over a month ago.