How much money do you make? How green is your grass?

Howdy,

I’m just a working class guy, 28 year old at a crossroads, with some heavy decisions to make, career and money wise.

A little background to me: I went to college right after high school, earned my Bachelors in Business. I’ve always worked, since I first legally could, at the age of 16. I first got into logistics during my last years of college, driving for FedEx Express (non CDL). After graduating at 22, I got picked up by UPS Freight as a part time supervisor, running the outbound operation and working amongst LTL drivers/Linehaul drivers, and leading a logistics operation. I did that for a year, until moving on to UPS (package), to be a driver (non CDL). I left about 2 years later, to pursue other things. One among them, getting my CDL Class A with all endorsements, to work the oil field. I eventually became a middle school math teacher, but just got laid off due to the COVID-19.

Long story short, I believe I’ve earned experience and skills that collectively would enable me to be successful as an Owner Operator.

I’m now 28, and I’ve had this idea for some years, of buying a truck, and in essence running a business.

I’ve spent a lot of time on thetruckersreport.com. I’ve spent a lot of time talking to truck drivers that I know, as well as just approaching random truck drivers at a local truck stop.

The way I see it, the best company-driver position that I know of, is driving for an LTL company such as UPS Freight, FDX Freight, Saia, Southeastern, XPO, etc. Top pay for those positions is about $30/hr, and they average about 50 hrs/wk. That means they are making approximately $82,500 a year, before taxes. They are home every night, work Monday-Friday, have holidays off, get benefits and insurance through their employer, and don’t drive over the road. Driving locally, is safer than driving OTR in my opinion.

That is good money where I come from. And that is a pretty #### good job in general by my standards.

If a man can have all of that, working for a company, then the only justification for being an Owner Operator, and taking on all of the additional risk, liability, responsibility, and costs associated with being an Owner Operator, would be to make SUBSTANTIALLY more money than a company driver could.

But then I see threads and posts on here where Owner Operators are driving for what seem to be low mileage rates, below $2.00/mile. I know that the LTL companies use Owner Operators too, aka “contractors”, and that pay through them is below $1.25/mile in general. I used to talk to those guys whenever they would come through my terminal.

After you account for fuel, maintenance, all other operating expenses, as well as real depreciation on your truck (I am talking about the money that you are losing due to loss in value, not depreciation for tax purposes. In other words, when you want to sell it, it will be less than what you paid for it. And eventually, you will have to buy a new truck, as equipment has a lifespan.), I don’t see how being an Owner Operator really makes sense financially.

You start off with a lowly $X dollars per mile to begin with, but after losing cents in so many ways, what remains seems unjustifiably small. In other words, operating is expensive, and the market just doesn’t pay what it should. Yes, you will make money and be profitable technically. But the profit margin itself seems very slim, and therefore not worthwhile.

Enlighten me. I am listening. I want to learn. If I’m right, I just want confirmation. If I’m wrong, I just want to know the truth.



1. How is the money in Owner Operating? In order to compare fairly, please provide a NET “take home” figure, as well as a description of how many weeks out of the year you run, and how many miles you ran for the year. Also, if you know it, an average GROSS CPM rate would be helpful too.



2. I’m not asking IF you make money. I know that you do. I am asking, HOW MUCH money do you make?



3. How does Owner Operating make sense for you, considering the other trucking opportunities out there, such as being an LTL company driver making $80,000 a year while being home every night?






p.s. One thing I don’t like, is when people get shy about talking about income. I’m not here to judge. I’m not here to brag. I’m here because I believe that censorship and secrecy among working men leads to a group of people whose desire for good pay is undermined through the division that secrecy creates. I believe the conversation about pay should be an open one.

I don’t see how withholding that information, when asked about it, is the only response deemed decent. If somebody asks you how much you make, because he is trying to learn from your decisions, I don’t see why helping him with an honest answer is such a bad thing.

 

I average $70-80,000 per year, net taxable income.
My best ever was $105,000 I worked all I could that year.
Now I take 3 or 4 weeks a year off.

 

Not an O/O, so I can’t give you numbers, but i own trucks, and you are right. Becoming an owner op and trying to beat the Mega’s at their game is futile.

the most successful companies, in terms of net revenue, I’ve seen in my career have been super regional refrigerated LTL guys that would run a set weekly route with bulkheads. Some were generating over $4 per mile, but they were busting their hump.

In general, the guys that specialize AND become very good at what they do are very successful. Running off load boards is generally a low revenue strategy.

 

Not an O/o either. But something to consider. Not all do CPM. Some do %. Different game then.

 

I've said this many times, a good company job with full benefits package/retirement will make you more money than being a owner operator in most cases.

With that being said not everyone wants to be a company driver or run Linehaul 5 days a week doing the same exact route day in and day out.

I like the freedom of working when & where I want, as a O/O even if i make less money at the end of the day money doesn't always bring happiness.

 

An O/O who works smart and hard can earn $100k per year. An experienced company driver with a spotless record can make about the same. If you're looking at it from the perspective of earning potential, you're better off staying a company driver for a few more years at least, because you won't make a lot for the first couple years as an O/O.

Unless you have a butt load of cash laying around to buy equipment, and have a butt load of cash leftover to pay for repairs and maintenance on that equipment, it's not worth getting into a business with an extremely high failure rate. If you finance equipment, and because your insurance will cost a fortune for the first few years, your income will be substantially less than what you could be making as a company driver.

BTW, I'll cut you some slack because you're only 28, but a lot of guys over 40 consider it rude to ask how much they make per year. You don't have to understand why, we're old school and that's just how it is.

 

1. Last year (and most others) have been 43 weeks a year. This year will most likely be the same. For gross revenue, 175k to the truck. Net revenue usually half that, 80-90k. Miles are 120k on avg.

2. Enough to have 2 homes, keep my dogs spoiled, keep my truck running, go to shows and enjoy my toys. Along with setting money aside for retirement/future. Hopefully that is what you wanted and not a dollar amount.

3. I enjoy the freedom and creativity. While I am contracted for a customer, I still choose when I leave out or how I want to deliver/setup appointments and such. I don’t make spot market money, but I enjoy knowing I have work each week. I built a strong reputation for myself that if my customer closed up tomorrow, I have others I can haul for.

For me, I couldn’t function in a 9-5 job anymore. I knew in college I wasn’t pursuing engineering once I turned 21. I’d say this path worked well for me, having been in the same position since day 1.

However what I failed to acknowledge, there’s a price you pay for owning your truck. For me I strive for a working class show truck and also do any repair/modification/customization myself. Most of my time at home is spent around the truck. Many times I wish I could see life as a guy that drops his truck off at a shop and has no pride in his ride.

No grass is 100% green.

 

I would rather make less money working for myself than working for a company.

Everybody's wants, needs and desires are different.

Do what ever makes YOU happy.

 

I think Mr. @Banker would be an excellent person to weigh in on this, even if he doesn't give you exact numbers or any of that. He did something very unusual in my opinion, and it's worked out very well for him.

 

There is no difference between cpm and percentage.

Multiple the miles or divide the money, typically works out the same.

At least, you'd better do the math to check. I've had a few ex trainees who didn't.