How owner operators can be profitable

I have no idea what monetary unit he is using, had assumed he was talking us dollars considering the vast majority of posters on this forum are from the states. to be clear I'm not trying to discredit everything he has said. I'm trying to express that in order to have his ideas and thoughts not just be chalked up to total bs by his target audience, he needs to be very careful when stating numbers. there is a lot of useful info in his posts, but most will not pay them any attention whatsoever when they see those crazy high ridiculous costs.

 

Mn I'm not dismisive and appologies if I came accross as that not my intention at all.

 

If you are refering to the opening number those are in Rands, I reposted the numbers by doing conversion in Joe's example outlining benefits of preventative maintenance etc. Those numbers are based on hard data of fleets and some cases standardised for guys with single trucks.

 

Good My goodness, It's a great value, chart, EXAMPLE.

 

BD they will figure it out. Kugerands, Yen, no big deal. You can only loose money till your walking.

 

I was referring to the numbers you put in a chart in post 24. they are way out of balance, if that was a conversion to us dollars, there has had to be a math error in the conversion process. nobody, individual or large fleet, spends 300 thousand a year on costs, per truck. if they did, they would never be able to make a profit. it would take 150 thousand miles at 2 bucks a mile just to break even.

 

Thats not a problem, you can fit in your number that you run on that are relevant to you. But the content and approaches stated are sound.

With that said in the coming weeks I'l be covering key components on how to make an one man truck operation more sustainable and will try to introduce best practices that are simple and practical. This is really aimed at the owner that wants to take his business to next level of becoming a small fleet owner and enjoy more freedom and financial rewards from his trucking business.

It will also be an ideal platform to share your concerns and questions to see how we can help you aswell and remember there are no stupid questions and A Questioned answered is better than a question unaswered.

Once or every second week we will look into key areas of an trucking business and will use alot of stories to drive points home. I'm also inviting experienced truckers to share their experiences aswell that way we will have high value content that will be for the greater good of the industry.

 

The number runners will never ever "get it" You buy the cheapest stuff possible to get by with the least. Thinking that you are making a great profit but in reality don't. Your the ones running 30k in between oil changes and the ones we see on the side of the road due to your 200 dollar recaps instead of 600 dollar virgins. One day you'll either get it or go broke. You can believe that.

 

Business Developer,

I'm vaguely interested in what you have to say. But you are basing your argument on faulty premises. Correct me if I'm wrong, but it seems you are telling us we should follow the success formula of large trucking companies and assuming that that is where we all want to go. A large company like Swift or Schneider is a whole different animal than an independent O/O. It's two different games.

We (many of us) attempt to haul for the highest profit margins possible, maximizing net on each truck. Large carriers essentially are in the business of hauling as cheaply as possible to gain market share and price out the competition.

Now of course there are some parallel's, and we all want to lower our operating cost. But when you say "downtime is the enemy of any trucking operation" you don't know what you're talking about. I assume you mean when the wheels aren't turning ? I've found that this "downtime" is crucially important. It can be tricky to find the balance, but let's say my operating costs are $1.20/mile. Now, do I want to run 150,000 miles/yr @ $1.65/mile ?? It's not hard to do, many are out there doing it for even less than that. But what if I have a lot of downtime, but in that downtime I am able to plan and find better opportunities and now I run 85,000 miles/yr @ $2.45/mile ? The first example I gross $247,500, sounds like a lot doesn't it ? But I net only $52,500, aww shucks, should have stayed a company driver and made that a lot easier without all the risk and responsiblities. In the second example I gross only $208,250, but I net $106,250. Now we're cookin' with peanut oil !

And it is possible to do just that, by spending that downtime wisely, putting a lot of time into phone calls and negotiation. Now I'm not saying you can't line up direct freight and do well. But I'm not looking to beat JB Hunt at their own game, it's not going to happen. I have my own game, I'm pretty good at it. But go ahead, you teach me how to be an O/O. I'm all ears, BTW, what are your credentials again ?

 

Danny,

Thats not a problem as in life you wont appeal to everyone and you are entitled to your own views. This thread as stated is intended for those who want to take their business to next level not the 'us' you are refering to. Again I am emphasizing this is only for those who want build small fleet and I am not assuming or intending to appeal to every O-O. In life you wont appeal to everyone and I dont intend on appealing to everyone here aswell and in my consulting business I dont appeal to every customer as I have clearly defined my ideal customer! I apreaciate you being objective but as stated if you find this info is not relevant to you,just ignore it and carry on with your own game.

Again the approach in this thread is from cost control perspective not market and the same operating principles and cost are applicable to any one who has a truck hence about 44% of trucking companies started prior 2007 have made it due that acknowledgement to that fact. When it comes to big carriers they are masters of cost control hence in some cases they can out price competitition and no companies ceo protects marketshare at the cost of profitability and growth of shareholders value. He will be fired the following day.

I have not even touched the market side or business developement side of the trucking business which is done while trucks are running and the only downtime is allowed is for maintenance which is planned refering to Joe example. Please do be careful when you start to say people dont know what they are talking about.

As for my credentials I own an transport consulting business aimed at medium to large manufacturing companies focusing on improving distribution operations. Depending on clients situation sometimes the whole supplychain will have to be looked at to see where things can done simpler, better and faster. If I wanted to lay down my expertise you would have known from the onset but this thread is not about me or you but to help and give high value information to those that want to build a fleet.

But im not the business to tell you how to run your business and again if not relevant to you thats not a problem at all. You are entitled to your views and if what you are doing now is working for you than I am happy for you carry on. I did not start this thread to prove a point or argument but lay down blue prints of what working principally. So I do not know what premise you are refering to, again I'm not here to start arguments but laid out an invitation to experienced truckers to share and those who have question to learn and grow for the greater good of the industry.

I would like to lay this out to everyone, if what you are going to say wont be helpful, contribute, share new insights then I suggest you say nothing. This is not a thread to prove who knows more than who, but sharing best practices that anyone with a truck whether one or a fleet can apply from a cost control perspective. If your views or opinions are inline with threads objective you are welcome to share your thoughts. There is nothing wrong with being objective but should be done with a purpose to help principally not breakdown.

Im inviting all truckers to contribute to this thread so this can be an high value content thread.