New owner op too be. Need honest assessment

It doesn't even take that. 1.30 a mile won't even cover a decent driver salary.

 

Why would he get a fine? He stated he’s running an older truck.

 

I guess my question is what all are you getting for the 10%? Is it just authority and back office stuff? Weekly pay so you’re not waiting on your money?

I don’t pay attention to dry van and reefer stuff so my opinion is based solely on what people are saying. If it were me right now just starting out I think I would go to an established carrier with their own customers at least for a little while instead of looking for my own loads and learning lanes and such at a time when things appear to be on a downswing.

That being said, if you’ve been doing your research and are comfortable with your choices then by all means do what you have to do. And if things get real bad remember it costs less to sit home than wearing out your equipment hauling cheap stuff.

 

You get a lot more than that. With a carrier like landstar or mercer you get direct freight. 75% of direct freight is usually equal or more than 90% of brokered freight. In the end i think you will be fine but i think jumping right into dealing with brokers with out experience in the market is going to make it a much rougher start.

Look into mercer. For an experienced owner operator i would say landstar and mercer are equal but for a guy like you with no in depth knowledge of freight markets the option to lean on a coordinator at mercer and their first empty first offered system is a huge benefit for a guy just starting out. And if you decide they arent for you the only thouht you are out is a little bit if time researching.

 

Link please.

 

Taking the plunge. My journey as an O/O.

 

Even if they offered free fuel and tolls with it, I'd still kindly decline.
I think that the Crete's 1.30 where they pay tolls and tags is an equivalent of doing power only at JB Hunt for 1.55.

 

Your assessment of 1.70 is good. As an owner you want to be paid more than a company driver. If they are paid 50-55 cpm as seasoned drivers nowadays, you want to make 80c -1 dol a mile. This is a good advise on trying Landstar or Mercer. Indeed, their 75% of direct freight could be even more than my 100% DAT loadboard brokered freight, especially in times like these. Question is how can you gain access to it while you are there? I guess, with LS and Mercer you have additional layer of protective umbrella for cargo claims and some logistical issues.
If I were to sign up for company that offered nothing but loadboard access for 10%, I'd rather go all the way independent - the additional insurance cost is going to go down significantly after a year or two.
Back office staff should not be regarded as something that has a decisive role; paperwork for 1 truck is easily manageable.

 

I think 1.70 is a good number to go with. Mine is even higher but I also have a yard and office staff to be included. You may come in lower but it NEVER hurts to estimate your expenses higher.

Anyone that says driver expense should not be included... I couldn’t disagree anymore! If you can’t make money while paying a driver .60/mi then your business model is not sound enough and are underestimating expense. What happens if you get sick or hurt? Don’t you want the option to hire a driver and still be profitable? Or do you want to be up #### creek and go bankrupt? What if you want to add more trucks and trailers? Are you not going to account driver expense then either?!? You can’t drive 2 trucks.

As far as the 90%. Who knows. 90% of what? lol. I could probably pay you 65% and it be more then 90% of some joker company. You better be atleast above 2/mi your cut on all hub miles or it won’t be worth it. That’s averaging say 2250/mi a week. You could go completely independent but frankly you can’t afford it yet. Your startup funds are weak from a risk perspective.