How do they make any money?

Discussion in 'Motor Carrier Questions - The Inside Scoop' started by WildTxn, Feb 19, 2018.

  1. WildTxn

    WildTxn Light Load Member

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    I am a new OTR company driver with only 3 months, although I've had my CDL for 6 years prior. Had a bad experience with a Mega (not naming names) and am changing jobs. I see they all play similar tricks in this area. From previous experience as a business owner, I would like to know how these mega's make any money constantly training new drivers with the extreme turnover they have on the bottom end of the driver pool? Are they getting government subsidies or something for the training programs? It also seems that the constant inflow of unskilled drivers substantially increases their RISK. With so many voraciously feeding piranha's (attorneys) around, how can they do this?

    Now I am not a youngster, and trucking is a lot of work, but for some strange reason I can't wait to get back on the road. There seems to be something about being in different places all the time that is addictive. I actually worked a lot harder when in my own non-trucking business. The biggest challenge seems to be the truck stop Roulette game with the HOS clock as the wheel. Stop too soon and yah loose valuable drive time for the day, wait too late and you might get an HOS violation trying to find a place to lite.

    I see that the good money seems to be in O/O with own authority, but one definitely has to climb the ladder first.
     
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  3. Chinatown

    Chinatown Road Train Member

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    Mega's make money through sheer volume of freight being hauled. They also make lots of money with their lease/purchase scam that drivers fall for. The lease/purchase is very profitable for trucking company; moving freight and the driver pays all the bills and the trucking company rakes in the profits.
     
  4. WildTxn

    WildTxn Light Load Member

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    Thankfully I never fell for the fleece purchase. It'll be at least a year before I can save enough extra to put down on a rig. Seems company driver is how yah have to work up the ladder.

    Seems crazy how this outfit took a new driver (me) and threw him straight up into the ice and snow. Thankfully I handled it. Then They sent me to New York! I handled that too.

    Were they making golf course bets as to what they could put me into before something went bad? Or were they intentionally trying to screw up my safety record? I must have disappointed them.
     
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  5. FullMetalJacket

    FullMetalJacket Road Train Member

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    Yep, what @Chinatown said....

    And, yes....... most are on the gov't subsidy gravy train for training, too. Big money to be made by them participating in the variety of programs out there.
     
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  6. x1Heavy

    x1Heavy Road Train Member

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    I'll caution you a little bit against Hubris thinking dispatch is out to get you.

    If I told a driver, here is a load to NYC. Get going and that driver threw a tantrum like a child denied sweets in walmart... we have a problem. I want another driver. You handled it and you did well. The best drivers do not get the squeaky wheel that is noticed by the bosses to be eliminated.

    My spouse, her first load out of Lancaster to Denver involved a friday afternoon Dallas Rush. That stressed her to the max. But that is not the problem. She handled it. Later on that year I did learn exactly where her breaking points are and vice versa. Although when I am home I am like nothing will break me. But when you have finished a thousand miles, 20 minutes late for DC and weather coming in while i am gulping coffee and hanging out the open window in the freezing blast to stay awake.. I don't look good at all.

    What dispatch WILL do to all new drivers is run em into the ground within 90 days because NO one has taught any newbie the magic word No. Not just no but backed by a very simple grade school explaination why it is no. Example I only have 10 hours to my 70 and you are sending me somewhere 14 hours away, guess what it's late. Unless you make new appt time.

    That is how you say no.

    Ultimately it is your CDL. YOUR 5th wheel. Assuming you have a mound of dollars saved up you can simply fail to put a load onto your 5th wheel a day. That alternator is acting up again. darn it...

    And no I did not say anything. It just is. He he he.
     
  7. Tall Mike

    Tall Mike Road Train Member

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    I’ve said for years with the money these companies make off leasing trucks to people that don’t know any better, they can afford to cut rates, and haul large volumes of freight..
    Yet the new breed likes to say “eld’s level the playing field”..
    There will never be a level playing field when the megas can cut rates at will and repower a load as many times as needed to keep it moving.

    Just some random thoughts from the big man and I’m back quiet...
     
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  8. Allow Me.

    Allow Me. Trucker Forum STAFF Staff Member

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    Even a 1000 truck co moving 90% of it's equipment daily is making $$$, big $$$. The write-offs are tremendious in this business. Look at hotels. Even with 80% occupancy they make $$$$. And if a truck co can self insure, that's even better.
     
  9. MrEd

    MrEd Road Train Member

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    Many of mega carriers run on averages. Any incident is averaged out over over the millions of miles their fleet collectively runs. Yeah, one truck may not be profitable this week, but they are all profitable on average. And they keep new drivers flowing in because they are several cents a mile cheaper on the pay scale....averages out better. Also, they have less health insurance costs on new drivers if they dont provide it for 3 to 6 months. Averages. They micromanage every aspect of the process they can. All to affect the averages. If they can get all their 3 thousand trucks to average 10 cpm profit and run them 300 miles a day, they figure 30 bucks a trucks, 90k a day, 2,700,000 million a month....... Many drivers will affect the averages in a positive way by running better than the 10cpm profit and more than 300 a day average. Many will squeak out the average for them and quit, unhappy, before they have to give him health insurance. They go by the old saying "keep track of the pennies and the dollars will take care of themselves". One other scam besides the fleece purchase mentioned by other guys is "per diem pay". What these trucking companies call per diem pay is neither per diem nor is it pay. Its a shell game they play with your taxable income to make it appear they are helping you earn more each week when it all washes out in April. And most of these carriers that do this then charge the driver a penny or two a mile "administrative fee". There is 20% or so of their desired profit margin just there.
     
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  10. WildTxn

    WildTxn Light Load Member

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    Back in the "intelligent" days of common sense, companies valued experience. Why? Because experience equals more efficient and faster work! Companies make more money and are more competitive. Everyone wins. Now we live in the days of stupidity and bully management. They would rather bully and penny pinch, everyone go's broke in the process, then think they were God's gift to business management.

    With companies, using any excuse feasible, firing drivers as fast as they hire, like a "puppy mill" for drivers, STUPID is the only word that truly fits this behavior.

    I have been a shop foreman before. People make small mistakes every once in a while. You only fire if they refuse to learn from those mistakes, improve, and go on. Soon, most become star performers and everyone wins. The trucking industry never lets that process happen now days, we see fantastic wrecks, and business bankruptcy's to prove the current business theory is an incompetent pile of deep s%$!.
     
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  11. Brucely

    Brucely Light Load Member

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    Wow this sounds so difficult.

    HOS time? So if you never stop at a truck stop you get a violation?

    and dispatchers can f you over by just randomly scheduling you on impossible destinations that you'll never make it in time?
     
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