Becoming an o/o

Discussion in 'Ask An Owner Operator' started by Torin, Jun 7, 2020.

  1. Torin

    Torin Bobtail Member

    32
    30
    Jul 18, 2019
    0
    I want to move up/ make more money, and currently at my company job I can't do that so I've been thinking that I need to evaluate becoming an o/o. My plan is to lease on with TMC that way I can stay on the TX regional fleet. I've been doing regional for about six months and I am used to what the work is like and how I need to run.

    I think I've done an ok job with my numbers so far, but there's a lot I can only guess on because I have never been an o/o. My main question is about the revenue. I estimated I'd be doing 4 loads a week at $1000 per load for 50 weeks, and honestly I feel like that has to be wrong. Here's how I came up with that number. I know that I can do 5 loads a week, but I also know that the freight might not be there for me to do that, and currently I've been averaging about 3.7 loads a week. I figure, if I focus I can get up to 4 loads a week. The $1000 a load though is pretty much a guess and my main concern about this whole thing. I've talk to a few o/os on the road and that seems about right, but this is the part that could leave me broke, so I want to make sure it's right. It really seems too goo to be true that I can just buy a truck and start making $90k a year right out of the gate.

    I think all of my expenses are pretty close if not right, but If anyone see anything wrong let me know.
     

    Attached Files:

  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. JonJon78

    JonJon78 Road Train Member

    5,170
    25,363
    Jul 1, 2018
    0
    Rideandrepair and whoopNride Thank this.
  4. Wespipes

    Wespipes Road Train Member

    1,013
    1,742
    Jul 14, 2019
    0
    Ya forgot the insurance and the irp ucr 2290 is a little low. I would also add wages. What you want to make each year. That'll give you a true cpm. Everything else looks good to me. I love that ooida tool
     
    Rideandrepair Thanks this.
  5. 650cat425

    650cat425 Road Train Member

    1,548
    11,014
    Jan 26, 2020
    Pennsyltucky
    0
    You definitely mapped things out better than I ever did... I agree your number under plates and permits is a little low. I personally just paid almost exactly $2300 for my Pa apportioned plates and yearly highway use tax is $550 if paid on time. Other than that, I'd say you're off to a good start.
     
    Matt1924 and Rideandrepair Thank this.
  6. Torin

    Torin Bobtail Member

    32
    30
    Jul 18, 2019
    0
    Maybe this is one of the things I was wrong about, but I thought the insurance was paid for in the 30% TMC takes.
     
    JonJon78 and Rideandrepair Thank this.
  7. 062

    062 Road Train Member

    4,763
    9,757
    Oct 20, 2013
    0
    I’d back off that 50 weeks a year. 48 or 44 would be a safer number.
     
  8. 650cat425

    650cat425 Road Train Member

    1,548
    11,014
    Jan 26, 2020
    Pennsyltucky
    0
    That's right. You need to allow for breakdowns, slow economy, holidays, VIRUSES, health issues... the list goes on and on. If there's a million things you can think of that might go wrong, there's probably another quarter million you'd never imagine.
     
  9. Torin

    Torin Bobtail Member

    32
    30
    Jul 18, 2019
    0
    I'm scared of everything and kind of a nerd so I have to plan everything I do out like this.

    On the permits thing, that's one of the things I just didn't know about. Looking into it now.
     
    FoolsErrand and Rideandrepair Thank this.
  10. 650cat425

    650cat425 Road Train Member

    1,548
    11,014
    Jan 26, 2020
    Pennsyltucky
    0
    Definitely look into the cost of your base plate. It can vary quite a bit by state. I was just using mine as an example because my plate and hut comes to $1000 more than you allotted. That's not life changing, but it's a lot if you dont expect it.
     
    Rideandrepair Thanks this.
  11. whoopNride

    whoopNride Road Train Member

    1,649
    4,998
    Jan 13, 2008
    Miss.
    0
    Normally if you lease to a company like TMC and pull their trailer they will furnish the cargo and liability insurance.

    You will have to furnish;

    Bobtail liability - 40-60 month on averg.

    Comp./Collision on the truck. - 4-5% of the trucks value. Example 50,000 truck $2500 per year.

    Occupational Accident insurance in case you are hurt on the job. $150 per month average.

    So, you will have 3, 4 or even 500 per month in insurance costs depending on what truck you purchase.

    Hope this helps.
     
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  • Draft saved Draft deleted