Main Reasons for High Initial Failure Rates

Repair older models. Don't run in Cali.

 

How to end up with a million dollars in the trucking industry....Start with two.

 

The problem with mega's is they tie too much of their pay to incentives that are not attainable in today's trucking environment. A driver must sacrifice having any type of life outside of the truck, just trying to hit a windmill. If you look at most mega's ads for drivers, you will see that they rarely make the base pay for a position known, sometimes not until the driver reaches the orientation.

All of their ads proclaim..."make up to blank blank cents per mile" - huge red flag!

Primarily good pay is found with private fleets like Walmart,grocery stores, UPS and Specialized Carriers that do hauling like, aircraft engines, oversize and over dimension hauling. Small niche fleets usually pay their drivers very well, as they have customers that recognize and need the personalized services that a small well run and equipped fleet can provide, because they cannot afford service failures.

Your insurance will also dictate what kind of driver you can hire. You also have to factor in your operating ratio vs. ability to pay a good driver what they want. What market and lanes are you looking to run?

Will there be enough left over for you turn a profit and sleep at night? Every potential driver knocking at your door will tell you they are the best thing since sliced bread. You have to ask the question, "why are you looking then?'

 

Like others have said, not knowing your true costs has to be number one. If you knew your true costs then you would never accept loads that didn’t pay enough. Then, you wouldn’t get into a hole that eventually there’s no getting out of.

It’s one of those deals where your slowly killing yourself (your business) but you don’t know it until your already terminal.

It’s alot of responsibility being a business man or woman. Much more to it then driving the truck. Lastly, and this is more for owners who also operate, they get some cash built up and then take a bunch of time off. It works for some, but for most it’s an eventual nail in the coffin.

 

Under capitalization is the number one reason.

The number two reason that is closely related is poor management of money.

Number three is poor manangment of the business.

Number four is a lack of knowledge of the markets and how to leverage the market into making money,

These are the real reasons, after years of dealing with distressed owners and carriers, these have not changed at all.

 

Only way to do what you suggest. Is to have very good pay and benefits for driver as well as a 24/7/365 maintenance program. Hopefully you have a ride the driver you pick wants to drive for you.