Prime's lease deal. The math gets done.

If the big companies weren't making money, then they wouldn't be running. It's just they know how to budget and plan, and can afford to move freight at a competitive price...And like you said, their service failures cost them the contract. It was their poor choice of employees, not their price, that caused service failures. Again, Cheap freight is a relative term. Your cheap freight rate, is someone elses money maker. I work for one of the top 20 companies in the US, size wise - not in popularity, and gross 60K+ a year, have a new truck every 4 years with an apu (a fleet spec'd truck, but a dependable, new one none the less) all with no financial responsibility to the truck... I know a lot of O/O's that don't have an adjusted gross that high. Who cares how much more money they make off my back, after all, the more they make, the stronger they are, and the more of a downturn they can endure. So I'll have a job when others, that didn't know how to run a business to succeed, are out of business. 60K a year isn't bad money in any ones book. And TMC - cheap trucks? They don't call them 'Too Much Chrome' for nothing. Peterbuilt doesn't sell a cheap truck last time I checked.

 

I have never "knowingly" competed with prime for loads, I have brokered a load through prime in the past and got paid a fair rate and paid in a timely matter. other than that I do not know much about prime. I do not know what the turnover rate is but they seem have alot of new trucks on the road

 

I know the big companies are making a lot of money, but are the drivers, not when they are getting paid peanuts. And if you take pride in the fact that you will have a job because you work cheap and put others out of business who can not compete, well that does say something about the type of person you are and I guess you must be an example of the "new breed" who does not take anything or anybody but them selves into consideration-good luck with that

 

The cheapest trucker already has his truck paid for and money in the bank = his costs are way lower than any fleece and he is way smarter than the fleece.

fleece:
Make money selling the truck at full price
Make money selling the truck after the fleece is up
Fleece contract terms (hidden add ons to protect fleece)
Insurance etc

The fleece is quite golden for a company
-2008+ trucks have more problems (driver takes responsibility)
-2008+ trucks have lower MPG (Ulsd)

A Prime fleece is still doable and gets you in a good (or even new!) truck (mostly Freightshakers). Prime trailers seem very-good. Company seems to be growing (as a driver you see more and more (new) Prime trucks.

+bottom line 2009. Can the freight levels of 2009 support the fleece? -we shall see.

 

If you mean 'new breed' as in knowing how to make the best living no matter the economy...I guess I am. I don't stab people in the back out here, but when it comes to doing this job, I'll help those out here that need help to a point, I do what I can to be professional in every way. But if I have to cut my throat financially just because others refuse to adapt their way of doing business to stay profitable, I'm sorry... This is a fluid business. You either learn to adapt to stay ahead of the curve, or get left behind. It's that way in any business. If you have to run a little slower, in a more aerodynamic fuel efficient truck, and stop idling when it isn't necessary to keep from blowing profits up the stack and shooting your mpg, then do it. But don't expect others to accept your way if their way is making a better profit for a lesser freight rate. But that 'new breed' attitude seems to be a common excuse from those out here that refuse to adapt their operation to maintain their profits...That would require more work on their part... and are usually the ones complaining about the deregulation of the industry...a time when you could run the most inefficient wasteful operation and make money without having to do any planning, just get in it and drive with your hand out. Perhaps you should refer us 'new breeds' as a modern day truck drivers instead. Maybe you're closer to the 'new breed' insult than I am... because you expect everyone else to change so that you don't have to... Based on the tone of your post, I can guess the truck you drive... A 379 Pete, 475hp or higher Cat, 13 or 18 speed, and pulling a spread flat... Avg speed is rarely less than the speed limit, usually at least 5 mph over. Close?

 

"the new breed" - You need to realize as truckers we hear every gimmic this industry has to offer. I see nothing new about "the new breed."

I have seen some Prime slow it down lately = seems a few are getting smarter. Still I think 2009 will be the year of the "failing fleece" and also many trucking companies will fail in this war of attrition.

 

A LOT of companies will fail, the ones that already know how to run lean and get the job done will survive. The company that I currently work for can cut the office staff down to 4 people (maybe even less) and still function. Companies that have 1 person to do 1 job will not make it.

I currently have been trained in 6 different aspects of the office and that's the way I like it. They can fire a dispatcher and I can take over.

Any driver that cannot run economical and has bills and is mortgaged beyond their means will not.

And in the for what it's worth column, we currently have two (2) long haul drivers working as dispatchers.

I don't know how to word this, but I saw this current economic condition coming. After selling real estate for quite a few years (stopped because it was more of a 24/7 job than driving ever thought of being) and being approached for many of the finance options that were out there, I was just waiting for the "bubble to burst".

People being financed WAY WAY WAY beyond their means with interest only loans, balloon loans, and adjustable rate loans and a combination of the three. Low credit score loans and EXTREMELY EASY low doc/no doc loans... it was just a matter of time before all that "paper" caught up to bite someone in the but.

I chuckled when people in San Antonio were telling me that "we" won't be affected because our housing did not increase at the same rate as others cities... Now foreclosures are up 125% in the past 10 months. People now own houses were they owe $100,000 more than the property is worth / selling for. You can "value" a house at what ever you want, but it does you NO good if you can't sell it

 

I just left Prime's 'Fleece" deal and would like to relate my experience as objectively as I can...

Basically, it's true. If you lease, you're a wide-eyed, bushy-tailed #########. Here's my brief story... I was forced to give up my own truck several months ago while I leased to Quality Carriers. Several major problems existed with Quality, myself and the economy. The freight volume dropped dramatically, Quality’s administration (Terminal managers, dispatchers, etc.) turned over an average of 4 times a year, and my 7 year-old truck would break at every opportunity. What little I made hauling 2 or 3 loads a week would usually go back into the truck in the form of repairs/IFTA/IRS/Plates/tires, etc. In the end I would usually be left with $250 a week or less for myself – once a month or so a negative statement would find its way to me. But I stuck it out as long as I could because I was home every weekend, and 1 or 2 times during the week.

After researching about 30 different carriers, I settled on Prime because they (Tabitha, my recruiter) insisted PRIME HAS THE FREIGHT and they looked like a professional operation. Beyond believing her, I figured it was simple: I pull tankers, Prime has 90%+ bulk food grade accounts, people ARE still eating despite the poor economic conditions, and you get a new truck to make a go of it. After crunching the numbers, the lease deal does in fact look do-able. Maybe not wildly profitable at first, but I well know how to run lean and can make some money as long as the truck doesn't break down and the freight volume is there. I rationalized the $750/week lease payment by figuring it was the price you pay for a no money down, no credit check, and no questions asked if/when you walk away, deal. The only part that haunted me was the $750 per WEEK 'rental fee.' After all, if the economy did get worse and freight volume dropped off for Prime, how could ANYONE ever be able to make a $750/week payment? After all, I found it difficult to make my $1100/month payment for my own truck just a few months prior because of the slow/stagnant economy amidst other factors.

On a good note… I have to admit, everyone I met - EVERY SINGLE EMPLOYEE - right down to the cafeteria cashiers within Prime was professional, courteous, respectful and treated the drivers as the focal point they truly are, or should be, in trucking companies (really!). Prime's equipment is in great shape (tractor AND trailers). Their terminals are incredibly clean, neat, professional, and new. Prime is concerned with appearances, for example the Pittston, PA terminal is in the process of tearing down the old TRL building and moving everything to the new side. Don't even bother going to the Springfield, MO main terminal - you won't leave! A full court basketball gym, spa, weight room, massage room, pool room, sleeping quarters, library, first class cafeteria with incredible food, a company store that blows away the best truck stop, detail bays, maintenance bays, and way too much more to list.

Bad news… Prime puts the onus of your being profitable in this tight economy squarely on your shoulders by suggesting you s l o w d o w n in order to achieve a mandatory average of 6.3 mpg. The freight rates (and therefore profit margins) are so low that the only area you have control of at this point as an operator is your fuel mileage – which is pretty #### sad! This angle sounds viable in theory, but it's an absolute unrealistic no-go in practice. The mpg argument is an absolute Red Herring designed to divert your attention by having you absorb the blame for lower than average mpg and the attendant higher fuel costs which result in, of course, lower profits in your weekly settlement! Understand, no matter WHAT I did under real world conditions I couldn't get that mpg figure with a Prime-spec'd '08 Century – even while deadheading hundreds of miles with an empty trailer at 55mph! Maybe at 45-50mph, but who in their right mind would be out there doing THAT in 65-70 mph zones with time constraints? Yes, of course they had a several drivers with success stories who drove everywhere at 45-50 mph and were able to make a buck because of it. (Who in their right minds would advocate anything without a host of flunkies in agreement to support their outlandish position(s)?) So, although their trucks look nice, ride decent and seldom break down, when loaded, they could only muster 25-35 mph uphill in 6th or 7th gear because they're so constrained via the electronic control module. As a driver, this was the most aggravating issue (besides pay). According to my computer, despite my truck being governed at 65, lack of pulling power brought the average speed of my trips to 43 mph! I was given loads (that I happily took) that with my 10 hour break, allowed for only 11 driving hours making a 600 mile trip at 55 mph. Prime never bothered to add in the extra 3 hours due to their EXTREMELY poor performing trucks. When I mentioned this to my Fleet Manager his reply was “hey, Prime’s all about fuel mileage now, you can’t speed everywhere anymore.” When I noted I had absolutely no desire to speed anywhere and just wanted (needed) enough power to get up hills and maintain a CONSTANT speed, his lame reply was, “hey, you have to plan better.” Lastly, although a function of the economy and no fault of theirs, Prime DOES NOT currently have the freight to sustain a "Fleece Operator." I worked there for a little over a month and was forced not just to walk out, but run like I was naked and on fire! I did NOT make a dime... as a matter of fact, I owed THEM money upon my exit!

Money matters… Although they were willing to absorb some of the deadhead for me (a new program enacted only weeks ago) I was constantly deadheading 250-300 miles to get to freight that paid an average of $1.20/mi. Factoring in my deahead miles with my .80/mile overhead, these loads paid an average of .94/mile. That's right, 80% of the time I got to pay myself .14/mile BEFORE taxes! Additionally, I was sitting 2-3 days between loads at truck stops after a day spent getting washed out (no you couldn’t just take a clean trailer Prime had sitting in the lot of the wash rack). After having a conversation with Pittston Terminal Mgr. Adam Landau (another decent guy) upon my departure, and being accused of "fuzzy math" and giving up early in the game, I recalculated everything 3 times more... naturally with the same results. For good measure, I not only looked at my bank account online, but called the 800 number to double check my live balance and found it the same as it was a month and a half prior. Not a single deposit. PLEASE NOTE, I did NOT take a single ComCheck cash advance, go home the entire time, nor did I turn down a single load. I existed on my personal savings the entire time which not too many people can do nowadays. After arriving back home, I poured over the litany of deductions found on my settlement sheets that were mailed to my home address and almost crapped my pants! It's way too much to list here but suffice to say this mode of operation (Fleece Operator as it's now so correctly called) CAN BE marginally (read barely) profitable in the best of times – if and only if - you're willing to literally run yourself into the ground like an animal and not see home for months (hey, some guys run like this all the time and think nothing of it). But during these times it’s pure masochism. Actually, one would be better served to go around the back of the Springfield terminal and have another driver or your Fleet Manager urinate on your face for $20. This way you could get the same effect, be out a LOT less money and save an enormous amount of time!

Take heed… It's all here on these pages if one simply takes the time to read. Although everyone's experience is subjective and open to interpretation, collectively, these are real world experiences. After my own poor experience, I can blame no one but myself… certainly not Prime. I can tell all who read this that no one here is lying or has a motive to. They are simply relating their version of events. Just pay attention to how closely all these driver’s accounts match, what they have in common, and how they are thematically synonymous. Quite simply, don't be a naive 'babe-in-the-woods' and believe your experience will be any different. I'm convinced every single person walking into the Success Leasing office located within Prime's terminals and walking out with a set of keys to an either new or almost new truck during this economy is a flaming, uninformed ######### and deserves what he/she gets!

Yes, feel free to consider me one as well.


Good luck everyone!
Sean

 

To Seanoleary1979,

Thank you for having the guts to relate your experiences with Prime over the past month. It is difficult to get inside info from Prime directly or even former Prime drivers with specific numbers and deductions.

It would be extremely helpful to me as well as others if you could actually copy those statements Prime sent to you so the rest of us could get a close look at all the "fine details" no-one at Prime seems to want to talk about.

 

now they have lowered the shipping rates to get more fright for the 2ND time! Unfortunatley they cannot lower the truck payments. so we are screwed with the high truck payments and low rates if we get a load.