Help - can't find my niche as an owner operator

I m learning from both of U.
I m sure both of U great man.
really.

 

You must consider what that missing % pays for. Yes your gross will be higher with your own authority, but will your net be? A large carrier has a great freight network and will keep your deadhead miles down. They often pay cargo insurance, trailer, permits, etc. They also take care of sales and collections. If the customer doesn't may, most leased on O/O still get paid. I get paid regardless of the financial status of the customer.

So, I make 73% pulling someone else's trailer. They have high rates because of premium customers and a premium name. (the kind that i might not find through a broker) My weekly expense for insurance, plates, escro etc. is under 200 bucks. Now it sounds to me like the Op isnt even sure what industry segment he wants to stay in. I would not go out and buy a trailer and autority without a clear plan and direction. Thats not to say he shouldn't in the future, but leasing on isnt bad. Getting own authority, might be a good move for some, but will not solve all your problems.

 

think about it

73%, that means if you gross $200,000 you have paid out $54,000 in a year

are you meaning to tell me that the items you mentioned are anywhere near that amount?

my insurance (everything, including cargo, etc) is about $800/month

my deadhead is included in my mileage rate, my permits are all included (most carriers backcharge for permits, so you are paying anyway)

sorry, i have driven for carriers, and nothing they do is worth 25% of the gross

 

Um no... the math doesn't work like that.

If i gross 200k per year, a good portion of that is FSC which i get 100% of. Some is toll fees that i get 100% of. If i make 1.50 a mile plus .50 fsc, im only paying the 27% on the 1.50. I think a larger portion is at 100% but to give you the benefit of the dought this brings it to. 40k a year.

trailer payment alone is 5-10. Insurance is 5K+. Additional maintenance on trailer including tires (since you own it), additional baseplate. Additional dead head expense. (weather factored in or not, its still a loss. ) Less fuel discounts. (fuel could be 10 k a year right there)

thats an expense, not income

My permits are paid by carrier.
You still dont address the issue of customer not paying (less income), or having to wait longer for freight. I have a guys thats entire job is to keep me happy and find me freight.

What is your average per mile income for all odometer miles? If your as high as I am, then yes you will prob make 10 or 20K more then me. If not, i may be able to make a higher rate for all miles. 73% of 100 is the same a 100% of 73. By having tmc's freight network i don't waste as much time finding loads and get very decent rates.

Likei said, if it works for you, then great. You do have more flexibility, but you also have a lot more work. Are you able to run over 100k per year or is to much of you time doing paperwork? Personaly, i hate paperwork and i hate reduced efficiency wasting time looking for a load. With dot regs, it can be hard to wait for the right load. I got a guy that does that for me. I like that. Now, yes, if doen right you can potentialy make some more money with own authority. POTENTIALLY. But, if you cant run your business leased on, just making a little more money wont fix all your problems. I Know a guy that does oversize heavy haul. He has his own authority and makes about .50 more then me loaded. With all his dead head he made .20 less then me. Doing heavy haul with his seriously speced truck his empty MPG was worse then my loaded mpg. So, he makes less per all miles. His average mpg (including all the empty mile) is worse then mine. His truck cost alot more then mine. His net was way lower then mine and he worked much harder then i do. So whats the point. Now this is a extream example, but the point is, having authority is not a magic fix. It may be a good decition, but you still need to have decent business skill...even more so since there is alot more apaperwork.

 

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Oh yeah baby..........

Martin

 

They should have a section of the forum just for you two to argue..

 

I'm not arguing, I am leaving it in other people's perfectly capable hands this weekend.
Next....

Martin

 

And what do you think that is?

 

A statement of fact, high school not teach you the difference?
As I said.....Next.

Martin

 

Yet your still hear...this is my last response directly to your comments.