I have decided to explore o/o through Crete / Shaffer.

The other thing you might want to ask yourself is this, why would Crete want to keep you on the same dedicated route as a L/O and pay you more (if they really are) as an "independent contractor" than what it cost them to run the truck themselves with an employee driving the truck?

 

First off I wouldn't lease on to somebody for that cheap per mile pay!!
NOW that I have asserted my superiority (like everyone else did) I will say if you intend to go thru with this endeavor.
First that is a decent company with the freight to keep you running. (My self id rather run 1500 miles at $2 per mile. Than 3000 miles at $1 per mile)
But I'm sure thier are plenty who have gone before you and succeeded doing what your starting.
Look at any of the megas.
But sorry even more who failed.

This is your first time as owner op, you will learn a lot by time truck is paid off.

Most naysayers have either been there and learned that. Or dont have the gonads to try.

Some will say you would make more as company driver.
I myself don't agree with that, but even if it were true.
You would not be able to turn down loads, or take off. When and where you want to, for as long as you want to. (To some that dont matter, to me thats very important).

But at that rate of pay other things become very important.
What or how much fuel discount do you get off pump price.
What about repair bills, tires, or parts? Will they back you, pay the bill and charge you back interest free over time if needed?
Or is it sorry driver, call us when your truck is fixed?
( you should always save up from before day 1, have your own money and not need them. But sometimes life happens)

Do they pay tolls? Can you run what ever way or route you want, cause you want? How about base plate, or 2290? (Sure you can take care of all that yourself. But they have to pay or provide something)
Basically if they want you to run your truck and make same or less than thier trailer. What are they doing to make your life easier?

 

I understand that.

My question still stands to the OP, what exactly are they covering in exchange for paying you 1.37 per mile?

Right now, it's clear that he's really not sure what they cover and what he covers, whether it's $1.37 or $2.37 a mile.

 

From a newbies perspective, I applaud you for looking into the O/O route for sure. With that said, I do not know if this would be an ideal setup from an outsiders perspective. As previously mentioned, the per mile rate is nothing special in my opinion and you would be running a ton of miles to get a decent gross. I think you could do better leasing on to a different carrier or getting your own authority altogether. Just my opinion.

 

According to DAT FSC is .37 why is crete paying .31.

 

Also, think about your health insurance. How much are they paying now for that? My bet is that you will lose it and be on the hook for all of it.

 

OK but ... you have to learn a lot more from what I've see in this thread.

really?

1.04 to 1.09, that's slave wage rates.

Most likely you won't stay on the account.

Huh??

Fuel mileage didn't change, how dare the truck not increase its fuel mileage.

Used truck papers are ASKING prices, not sale prices.

A lot to learn.

You don't get something, they most likely won't let you take it anywhere.

ALSO do a dyno and a blowby test.

Take the class first before even asking them for a truck.

OK the other thing is this - if it doesn't have an APU, don't bother with the truck.

AND don't keep your chains inside the cab, that's ... well not a good thing to do.

OK here is the big pet peeve with you guys that I have - warranties don't pay for downtime. AND NOT all warranties will pay for all repairs. YOU HAVE to read the entire warranty, you have to ask them very specific questions and be prepared to FIGHT to get them to pay for repairs.

YOU WILL need money for downtime, paying the bills like insurance and your personal bills.

This is one reason why I don't like lease-purchases where they tie you to their loads. It is a form of bad salesmanship and crap policies where very few succeed.

My opinion and it is based on more than being an O/O, is to forget the idea like this.

INSTEAD, save your money, get about $50k in the bank, open up another credit line to have access to, and look for a company to LEASE to, not LEASE PURCHASE to.

Then look for used trucks, pick out three or four, look at them, and then take two and check them out, spend the money to do the Due Diligence and pick out the best one. Finance it with as low as possible down payment. YOU CAN get into a truck for under $40k, believe me I just sold three of them for $45 which are in great shape but high mileage.