To go owner operator or not. I need input!

buddyd157 · Feb 25, 2018

retlow8 said: ↑

We are in the bulk freight industry. Largest in the Midwest. I pull end dump. The company gives the O/O the better loads because they realize that they have a truck payment as opposed to us company drivers. They keep the O/O at a minimum of $600/day gross. My last week I would've grossed $5000+ as an O/O. We do get slow during the winter months but again the O/O still move while company drivers sit some days. Dispatch sucks, but that's every company I've been at in my 9 years of driving. Lie to get you to do the run. They could still do that as an O/O but I guess it depends how much they value their job because the owner doesn't mess around when it comes to that. I have talked to many of our O/O drivers and they average around $200k a year gross and have an average of 10 years with the company.
Click to expand...

ok...you "could have grossed" $5,000

how much would you have NET after all the bills are paid..????

gross is ONE thing, NET is entirely something else.

jraulpilot1998 · Feb 25, 2018

retlow8 said: ↑

Ok guys and gals I'm in a situation. I'm really weighing my options on what I want to do, stay company or go owner op.

I've been with my current employer for almost 4 years. I make decent money, average $67k a year. The company has great benefits, at 5 years I'll have 3 weeks vacation and insurance runs me about $75 a week for everything. Not to mention the 25% company 401k match. Dispatch sucks like at every company. I average 1-2 nights out a week.

Now for my other option.

I purchase my own truck and lease on to my current employer. I would get 76% of the load with annual increases of 1% topping out at 83%. My average loaded mileage would be $3 a mile with $0 mT miles. Running roughly 10000 miles a month. Loaded vs. mT about 4:1. As a owner operator many of the runs i have to stay overnight to complete I could turn in my own truck, so less time away from family. I have about $25k saved up, the company would provide me with a fuel card, help with all necessary licensing and insurance taking it out of my first 6 checks. I'm not sure whether I want to purchase a glider kit or dealer truck. I'm doing this for maintenance security. With the glider, I'd have the piece of mind of the warranty without the after treatment aspect. With a dealer truck I'd have the extra piece of mind of a warranty and an extendable warranty, which I plan on getting on everything as long as I can. Price on both will run basically the same.

What would you guys do? Stay as a company driver since I already have so much invested or make the leap into my own truck? If you guys have any more questions please feel free to ask and there is no bad input here.
Click to expand...

The present state of the Nation, New Nafta negotiations in progress, Trucking economy, over all economy, companies will be rapidly transisioning to Electric Trucks (already in process). Other variables..........I would, stay as Company driver at least Three more Years, take advantage of your new Vacation deal, Save more money, Research the Trucking Industry in All Levels. It is rought out there..........

Scooter Jones · Feb 25, 2018

retlow8 said: ↑

I have talked to many of our O/O drivers and they average around $200k a year gross and have an average of 10 years with the company.
Click to expand...

200K gross revenue I assume. Not 200k on line 22 of IRS Form 1040.

bryan21384 · Feb 25, 2018

retlow8 said: ↑

We are in the bulk freight industry. Largest in the Midwest. I pull end dump. The company gives the O/O the better loads because they realize that they have a truck payment as opposed to us company drivers. They keep the O/O at a minimum of $600/day gross. My last week I would've grossed $5000+ as an O/O. We do get slow during the winter months but again the O/O still move while company drivers sit some days. Dispatch sucks, but that's every company I've been at in my 9 years of driving. Lie to get you to do the run. They could still do that as an O/O but I guess it depends how much they value their job because the owner doesn't mess around when it comes to that. I have talked to many of our O/O drivers and they average around $200k a year gross and have an average of 10 years with the company.
Click to expand...

$200K is really good for owner ops. You're current situation is tough to walk away from though.

buddyd157 · Feb 25, 2018

bryan21384 said: ↑

$200K is really good for owner ops. You're current situation is tough to walk away from though.
Click to expand...

but that is only GROSS...in the end...what will be the actual take home pay....after ALL the bills are paid..???

retlow8 · Feb 25, 2018

I only have to pay myself $850 a week to stay comfortable and get my bills paid. I have looked into a SBA loan to procure the truck, have $10k put back for maintenance, pay all my insurance and permits up front, and have $10k put back for fuel. Like I said, Id have a warranty so that $10k for maintenance would be my start up cushion rolling over, with money still being put in until I reach $40k worth of cushion then it's on to paying off the loan.

retlow8 · Feb 25, 2018

retlow8 said: ↑

I only have to pay myself $850 a week to stay comfortable and get my bills paid. I have looked into a SBA loan to procure the truck, have $10k put back for maintenance, pay all my insurance and permits up front, and have $10k put back for fuel. Like I said, Id have a warranty so that $10k for maintenance would be my start up cushion rolling over, with money still being put in until I reach $40k worth of cushion then it's on to paying off the loan.
Click to expand...

That's without touching my money I'm bringing.

retlow8 said: ↑

I only have to pay myself $850 a week to stay comfortable and get my bills paid. I have looked into a SBA loan to procure the truck, have $10k put back for maintenance, pay all my insurance and permits up front, and have $10k put back for fuel. Like I said, Id have a warranty so that $10k for maintenance would be my start up cushion rolling over, with money still being put in until I reach $40k worth of cushion then it's on to paying off the loan.
Click to expand...

Ridgeline · Feb 25, 2018

Stay a driver.

Here is why.

YOU have one major breakdown and you will not make the money up, it will cause you to either use your reserve funds up or seek out a loan to get the truck fixed quickly.

I would look at this hard, the money you gain can vanish in one week.

I have many reasons for this, most to do with what isn't discussed on this or other forums - real failures.

retlow8 · Feb 25, 2018

bryan21384 said: ↑

$200K is really good for owner ops. You're current situation is tough to walk away from though.
Click to expand...

It is, that's why I'm torn on what to do. Do I give up all my benefits just to make a little more, to stay more locally, have a faster truck, and more freedom? The more I lay it out in that thinking the more I look towards staying company.

Scooter Jones · Feb 25, 2018

retlow8 said: ↑

It is, that's why I'm torn on what to do. Do I give up all my benefits just to make a little more, to stay more locally, have a faster truck, and more freedom? The more I lay it out in that thinking the more I look towards staying company.
Click to expand...

Why would you have to give up your benefits by becoming an owner operator? I read this on TTR all the time.

Log in or Sign up

Forums

Find Trucking Jobs

To go owner operator or not. I need input!

buddyd157 Road Train Member

Trucking Jobs in 30 seconds

Wait, employers can't reach you!

jraulpilot1998 Medium Load Member

Scooter Jones Road Train Member

bryan21384 Road Train Member

buddyd157 Road Train Member

retlow8 Light Load Member

retlow8 Light Load Member

Ridgeline Road Train Member

retlow8 Light Load Member

Scooter Jones Road Train Member

Trucking Jobs in 30 seconds

Wait, employers can't reach you!

Log in or Sign up

Useful Searches

Find Trucking Jobs

To go owner operator or not. I need input!

buddyd157 Road Train Member

Wait, employers can't reach you!

jraulpilot1998 Medium Load Member

Scooter Jones Road Train Member

bryan21384 Road Train Member

buddyd157 Road Train Member

retlow8 Light Load Member

retlow8 Light Load Member

Ridgeline Road Train Member

retlow8 Light Load Member

Scooter Jones Road Train Member

Wait, employers can't reach you!