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I THINK I have a good opportunity?

Discussion in 'Ask An Owner Operator' started by Markvfl, Jul 5, 2008.

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  1. Jul 5, 2008 #1
    Markvfl

    Markvfl Road Train Member

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    Nov 29, 2007
    Apopka, FL
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    Hi guys, I would really appreciate your experienced opinions!

    A friend of mine is ready to retire after 50 years on the road. :biggrin_25514: He has a very good contract pulling OD loads on a stretch double drop and the freight runs 5 to 7 bucks a mile. .He has shown me the books and the numbers are true.

    I drove and pulled mostly RGN and did heavy haul for 10 years. (Never hauled a legal load! :biggrin_25525:) That was 20 years ago... I am now I want to return to the road. My friend is offering me the use of his authority and to keep me loaded for 10% of the gross. The newbie insurance problems will be a non issue because I'll be added to his policy. Buying the truck and trailer is not an issue for me. I'll take a few trips with him to get my legs back under me. He gets home almost every weekend. I'm single and that's not too important to me. I just want to get back on the road.     I think it's a real good deal. What do you think? Thanks in advance! :yes2557:
     
    Markvfl, Jul 5, 2008
    Markvfl, Jul 5, 2008
    #1
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  3. Jul 6, 2008 #2
    im6under

    im6under Heavy Load Member

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    10% of the gross???? 50-70 cents a mile might be stiff???? am I reading it right???

    how long does this go on for???
     
    im6under, Jul 6, 2008
    im6under, Jul 6, 2008
    #2
    Markvfl Thanks this.
  4. Jul 6, 2008 #3
    Markvfl

    Markvfl Road Train Member

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    Apopka, FL
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    I guess it goes on as long as it goes on. I figure that it is a fair price for the connections, the authority, the mentoring and the ability to get insurance as a new driver. I think I can make it on $4.50 to $6.30 a mile... Pigs get fat and hogs get slaughtered! :yes2557: I'm not experienced but it looks like most brokers make more than this on the loads they broker???
     
    Markvfl, Jul 6, 2008
    Markvfl, Jul 6, 2008
    #3
  5. Jul 6, 2008 #4
    Brickman

    Brickman Trucker Forum STAFF Staff Member

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    No more than 10% is a fair compensation for finding loads. This guy is going far beyond simple finding of the loads. For 10%.

    The % sounds fair enough! What you might want to look at is getting your contract written down. And then sign it.

    My brother went into a deal with friends (not trucking). Later the deal has turned so sour that the only way to sort it out is in court.

    Make sure you also spell out how either one of you can end the contract. He can sell out, you quit.
    You can buy him out and hes out of the pic.
    Walk away lease etc etc etc etc.
     
    Brickman, Jul 6, 2008
    Brickman, Jul 6, 2008
    #4
    Markvfl Thanks this.
  7. Jul 6, 2008 #5
    walleye

    walleye Road Train Member

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    Very good advice from Mr Brickman there.
     
    walleye, Jul 6, 2008
    walleye, Jul 6, 2008
    #5
  8. Jul 6, 2008 #6
    MedicineMan

    MedicineMan Road Train Member

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    sounds like a fair percentage to me, especially if he's doing the permiting too
     
    MedicineMan, Jul 6, 2008
    MedicineMan, Jul 6, 2008
    #6
  9. Jul 6, 2008 #7
    Eskimo6804

    Eskimo6804 Heavy Load Member

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    Northeast Alabama
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    Just make sure that you look at all the expenses, and not just the gross. I don't know a lot about O.D. hauling but I know that there are alot of added expenses involved. Some seen (OD permits, escort vehicles, etc.etc.)and some somewhat unseen(Extreme wear and tear on equipment, horrible fuel mileage). Fuel alone in an operation like that may cost you $1.20-$1.50 per mile. There is also an extreme amount of deadhead normally involved in that type of operation.

    When you add up everything to get the net, that $5.00 per mile may not look as good as you think it does. It may be a profitable rate, I don't know. I'm just saying that you should do plenty of homework and be very careful.

    For example, the niche market that my company serves requires many extra expenses that wouldn't be incurred by most general frieght, reefer, or flatbed operations. My cost per mile is probably close to double what it costs guys running dry vans or flats, but my rates are probably at least double as well.
     
    Eskimo6804, Jul 6, 2008
    Eskimo6804, Jul 6, 2008
    #7
    Markvfl Thanks this.
  10. Jul 6, 2008 #8
    im6under

    im6under Heavy Load Member

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    I'd get a very detailed contract written down, and pencil the numbers in and see what is left over.

    You haven't mentioned this key part of the equation yet. it's what troubles me.

    if this guy bid the contract on his expenses and he was making in his pocket a buck a mile... good for him...??? assuming he did enough miles...

    now in come you, with his expenses plus buying the equipment, plus paying him .70 cents a mile??? does that mean you are left working for thirty cents per mile ???

    if ya get my point... nobody has seen the books but you and you didn't say anything beyond he is getting that much.

    we can assume anything about the unsaid... but ya know what they say about that... otherwise good luck.. :biggrin_25519:
     
    im6under, Jul 6, 2008
    im6under, Jul 6, 2008
    #8
  11. Jul 6, 2008 #9
    Markvfl

    Markvfl Road Train Member

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    Nov 29, 2007
    Apopka, FL
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    Thanks for all the input! We had a long talk today. We will sign a normal lease, I will be leased to him. He thinks the insurance will be no problem. He will do the permitting, filings and his wife does the book keeping as well.

    I'm stoked to get back on the road! He says to get a 70 inch plus sleeper and 500HP plus power, Cummins or Cat. I plan to stay out and follow the money for at least the 1st 6 months. No house payments, no car payments, no wife and kids so I can go without financial burden. Do you think a few nights a week in a hotel is enough to keep a guy from going nuts when he's basically living in his truck??? :biggrin_25526: Also, can anyone offer any advice on what its like to take my 70lb best friend Rocky The Wonder Mutt in a truck for extended periods???

     
    Markvfl, Jul 6, 2008
    Markvfl, Jul 6, 2008
    #9
  12. Jul 7, 2008 #10
    Brickman

    Brickman Trucker Forum STAFF Staff Member

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    GOOD LUCK to you and I hope it works out better than the lease purchase I'm in right now. It was working out until the price of fuel went up so badly and they haven't been able to get rates up enough to cover.
     
    Brickman, Jul 7, 2008
    Brickman, Jul 7, 2008
    #10
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