Holy Hanna !!

Discussion in 'Experienced Truckers' Advice' started by bzinger, Jan 1, 2018.

  1. rank

    rank Road Train Member

    As they should if they're paying the fuel
     
  2. ncdriver1

    ncdriver1 Heavy Load Member

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    Look at a company like swift. Their profit margin is in the mid-low single digits. So for every $1000 in revenue they only profit $50-70. But they generate over a billion in revenue, so they can afford to survive high turnover and low productivity.
     
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  3. REO6205

    REO6205 Trucker Forum STAFF Staff Member

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    I understand what you mean. I didn't know for sure but the single digit profit makes sense.
    I wonder what their profit margins would be if they weren't going through the expense of training a whole new set of drivers every year.
    We're just a mom 'n pop outfit with very little turnover and the thought of having to train a brand-new driver, let alone a whole new crew, is scary.
    One of the ways we stay successful and in business is controlling costs. Part of controlling costs is keeping the same crew as much as possible. They know what they're doing and that helps things run smooth. Most of our drivers retire from here.
    Having to pay for all the dumb stuff that newbies do, all the money they can cost you, all the legal problems they can get you into, just isn't worth it.
    I'm not saying we're perfect. Our guys can make mistakes just like anybody. But keeping good experienced drivers minimizes the mistakes...and that's good for the profit margin.
     
    Last edited: Jan 2, 2018
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  4. rank

    rank Road Train Member

    Not sure training is an expense as much as it is a profit center and business model
     
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  5. crocky

    crocky Medium Load Member

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    These companies and making money on the training side as well as the freight. They get tax breaks and govt incentives for every student they take on. Added to this, during the training phase they are getting cheap labor.
     
  6. REO6205

    REO6205 Trucker Forum STAFF Staff Member

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    That's true to a certain extent. But if you had your choice between two drivers, one a complete greenhorn with the ink still wet on his CDL and no actual driving experience or a guy with five years experience and a clean record, especially if it's in the same kind of trucking you're doing,
    the choice would be obvious.
    Sure, you'll have to pay the five year guy more money but I'm betting he'll make more money for you too.
    I don't think the megas can pay attention to this with as much personal care as the little guys like us. They want meat in the seat and I understand that. It costs them but that's their choice.
    I'm glad we're staying small, makes things easier to control.
     
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  7. rank

    rank Road Train Member

    Not sure you understand how megas operate. I believe the idea is to train more drivers than you have freight for (and collect money for that) then let them sit until they quit. Do that 2x per year per truck and you have 200% turnover. They probably still have a core of 5 yr guys but the churn is for money on the training side
     
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  8. blairandgretchen

    blairandgretchen Road Train Member

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    Yes , Old Dominion. I think we transitioned from Freymiller to ODFL that year.

    See - when I left NZ the rent was $500 a WEEK. I get here, it’s $500 a MONTH. I was astonished anybody rented here.

    It was a cheap house. $38k. Took us 13 months to pay it off, then we bought the neighbors for $42k, using a HELOC off the first.

    Now. This sounds like some really weird behavior, but we did the following.

    We shared a cell phone. (Together all the time - why have 2?).

    We had one vehicle - above reason again.

    We didn’t buy new clothes, jewelry, electronics, etc. No holidays, no fun, just nose to grindstone work.

    We took our wages, paid the bills, then dumped every available penny on the mortgage in principal payments.

    ODFL paid 60 cpm back then - they’re 75 cpm now. $200k as a team is EASY. That’s why I shake my head at these LP gigs, and about half the trucking jobs offered. It was real simple to me . . .

    If you want the most $$, find the highest paid cpm drop and hook gig you can find, and run the snot out of it.

    I probably sound like a butt head, and I don’t mean to - seriously, but I just don’t see why you can’t make a ton of cash in this country - just by putting your britches on every day and going to work. Heck, I’m 43 this year and act like I’m semi retired. I should probably work more, but after you pay everything off, the allure of cash and toys wanes somewhat - seems pointless somehow.

    Anyhow - that’s the short form story. The longer one includes where I had 3 paper runs and 5 lawn jobs at 12 years old, and didn’t officially own a sofa or a television until I was 30 something.
     
  9. Mike2633

    Mike2633 Road Train Member

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    OMG I didn't own a Sofa or TV until I was 29 ha-ha and even then the Sofa was a gift from my folks and the TV I "inherited" from my Grandmother.
     
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  10. Majestic 670

    Majestic 670 Medium Load Member

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    I love hirschbach now I will show my numbers
    1/12/18 $1000..
    1/22/18 $2700...
    3/24/29 $ 5500
     
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