is it still worth getting your own authority these days in the dying industry ?

Yes, he's 3rd generation owner. I could see him selling off operation, including his book of sales, he could ride off into the sunset and live a very comfortable life.

 

So, you're saying size really doesn't matter

 

I’m not qualified to speak on that matter. lol

Maybe if you make a mil a year size really doesn’t matter anymore haha

 

Thanks for the answer sir.I read that Economist are forcasting a Recession for Canada do you think that a scenario like what I describe could still be profitable?

 

That's crap margin, bet his operation is run on the thin side.

Under 7% with over 100 trucks is a marginal operation unless you have deep pockets.

Those mega carriers operate at 4 to 6% because they have the numbers but people like me I can make it to 12% in good times without difficulty and afford the downtime.

 

I don't know if 3% to 4% net margins on 30 mil are crap or not. I can assure you, he lives and travels very well.

This is the problem with trying to compare numbers on internet forums like this. So much of it is relative and trying to compare apples and oranges.

However, I'm beginning to rethink my resistance of adding trucks to my fleet. It doesn't appear to be all that hard to make the big bucks after all LOL

 

FYI remember those 3-4% margins are net after the owners/ceos have paid themselves expenses accounts etc.. you would be amazed how many “company” expenses are already taken from gross margins.

 

Absolutely true. Your check is fake news.

 

Exactly, that's what I'm saying. 3% to 4% NET is substantial.

 

I’m sitting here trying to figure out why someone who built a 150 truck fleet and 30 million dollar grossing company would be worried about the day to day operations. That’s kind of backwards thinking... The guy was smart enough to build this and then foolish enough not to delegate to others to run day to day operations? There isn’t this “heart attack waiting to happen” because he built a company that can sustain itself without him.