How much does a owner operator with his own authority expects to make?

heres the question, how much do you Need to make to cover payments, expenses, and whatever profit you nned to make? only you can answer that question. and a couple of folks should have been determined before you ever bought a truck and trailer.

from your question, it would be logical to assume you have no idea what your costs per mile is.

 

This isnt you leasing on to a ###### company paying you 1.15cpm plus fsc
Get own authority or a company that pays percentage and make sure the percentage pays isnt capped meaning you can only get up to 1.25 plus fsc
Better to book your own loads


Truck note. zero dollars if you pay cash.



Truck note. Lone mountain 4500 down 1500 a week


Lets say you avg 5 miles per gallon on fuel at 3.99 a gallon

How many miles you wanna run for sure 2k miles a week is possible

I think dry van has the leaset amount of dead heading but pays a lil less lets say 2.00cpm to 2.50cpm it can go higher for short hauls gotta negotiate what you want i would say dont take less than 2.75cpm

Lets say you avg 2k a month on repairs and maint

1k month for insurance tags and add another 500.00 for admin and other stuff monthly


7k miles a month time 2.00cpm =14k in revenue

7k miles a month would cost about 5.5k in fuel

You got 8.5k revenue left

Then you have a major repair deduct 2k

Now you got 6.5k left

Then subtract 1400 truck payment

Now you got 5.1k of revenue


Put up 2k for maint fund and uh ohhs.

Now you got 3k for yourself and family


Maybe you wont have 2k in reppairs next month stack that away and keep staking

 

Hey that's great advice, and I really appreciate it. I totally agree with you. However, what is your perception about leasing with your own authority to a local company? For Example, what If I don't buy a trailer, but rather just use other companies trailer. I'm getting 1:65 per mile with a company, and I use their lot and stuff. Also, subtracting 2 every month for repairs, is that plausible. I mean every month we spend money on repairs? even on new trucks? excuse me if I sound obfuscating.

 

You can't lease and have your own authority at the same time. It's one or the other.

 

First, I want to apologize for the the an abstruse comment. What I meant to say was that I have my own truck with my own authority, but I work as an owner operator with a different company. basically, they give me their trailers and loads. I have talked to several companies that do this. They pay 1.65 per mile for a dry van. I'm going to be having a brand new truck.

 

There are companies that do 90 10 deals and you can keep your authority if you want to. Difficult to find.i think mag carriers does it tho. Ive never done a lease ive thought about but after analyzing the pay it feel like this. A Lease is like having a broker who owns a truck rent the truck out to you and get his regular broker fee plus more. Because the leasee has to take the flat rate because your he set the rules and you cant negotiate.

The load is paying 4.50cpm to go to phoenix from LA and he pays you 1.65cpm (wheresthemoney) its his truck his trl


If you find a conpany to give you 90% of gross and you book your own loads and get all the benefits of tire and insurance discounts thats cool

You get the most money with your own trl your pwn authority period.


If a guys leased to landstar and he says he grossed 4500 for the week after the company took there cut and its a 73percent deal. You made them 1700 without paying a dime of fuel or teactor payment. That #### should be illegal

 

Thanks alot. I really appreciate it. What would you say is the best factoring company to deal with and how do they work? Can you give me an example? Thank you again

 

Why should that be illegal? What if that operator makes more at 73% or 65% than you do at 90% or even a 100%? Because more often than not they probably do. You can't judge a company by the cut they take off the top leasing contractors on.

 

Depends on what your goals are. If i was just starting out with limited funds i would go to lanstar because they cover major repairs and you can pick your own loads amd you know the rates. I would lease onto a carrier for flat rate of1.65cpm if they paid my fuel. If they dont pay for repairs or give you any other discounts whats the point.your basically an employee. What are they doing for that cut that you couldnt do with your own authority give some good examples.............

What does farm to fleet offer you what do they do for the 20

 

So you are saying if they're giving me $1.65 per mile and no gas included, is that a bad deal? I have my truck, I'm just going to use their trailers.