My dad is a o/o , leased under a carrier.. we own 2 trucks and we tried hiring a driver for the second truck but the profit is not too good because of the expenses plus finding a good driver... if we were to get our own authority and I could find the loads and get other o/o, will it be worth it? I know that the carrier make good money for just finding the loads for him. (They charge 13%)
Sure you could do good. Although once you go to hire an owner op you may change your mind on that 13% depending on what the deduction schedule looks like. In fact you guys may be in a unique position to capitalize since your able to focus on booking. However, never in a million years would I do business with family again.
What expense is there to find a good driver? The carrier is t charging him 13%, they are paying him 13% less than the gross for the load.
To pay a full time dispatcher you need at least 5 trucks unless dispatcher works part time. Things to consider: A new authority is hard to get loads from some brokers and you won’t start off with the best contacts. Yeah you won’t have to pay the 13% but with fewer trucks you may not get a insurance discount, fuel discount, and your expenses will go up with load board and factoring fees, plates, IFTA, mandatory drug program, etc.
