I'm kinda sad... is being an Owner Operator really that bad?

Another overhead cost, and the one that is easiest to save money with, is fuel. Paying for your own fuel is a totally different mentality from being a company driver. As a company driver I run as fast as possible since I get paid by the mile. As an owner paying your own fuel you need to think different. I have heard from many owners they will drive 55-60mph for better fuel mileage. At the end of the year you may gross less, but your net will be higher ie driving 65-70mph you may gross$160k but net $90k (just making numbers up), but driving 10mph slower could only gross $140k, but your net is over $100k. So you make more money for working less. It sounds counterintuitive but I have had many owners tell me it works. Why do you think companies govern their trucks.

 

It does get them cheaper insurance rates with slower trucks. Watching some of these yahoo's out here poppin wheelies on the fuel island and at redlights I doubt the average driver in a company truck see's much improvement on mpg's from their governed truck.

 

i am a lease op also. just leased to a company, i own the truck.

 

My company truck is governed based on fuel mileage, the better mileage I get the faster it will go. You can still get speeding tickets in a 62mph truck, trust me.

 

I just a citation the other day from the Indiana State Police for going 57 in a 55

On the warning he put my speed as N/A..... guess HE was even embarassed by stopping me???

 

57 in a 55? That's just crazy!

 

i gotta agree 57 in a 55...heck a gust of wind back there is faster...wonder if the cops write mother nature a ticket...

 

"clearing" is relative. It is not the comparing apple to apples here. For instance, a company driver might make, say, $60K a year. But he also has to pay income taxes, his part of payroll taxes, medical insurance, and other goodies.

I, on the other hand, may make the same $60K a year, but it is actually clear..... after taxes, after medical insurance, etc.

Who actually came out ahead on that deal? Now, to be fair, maybe your numbers actually were an realistic comparison. But many seem to think that the gross income they see on a W-2 means the same as an O/O net income. They forget to factor out all the other stuff. Unfortunately, there are many O/O that can't seem to get a grasp on this. I never seem to be amazed at when you ask some O/O what his income was, he will state something like "I made $190,000 this year". When you ask what their net was, or their cost per mile, they haven't a clue.

And also to be fair, I had to put in more actual hours at the job than a company driver would. But as was stated before, the satisfaction of having succeeded outweighs it. And it is worth it to have more control over how things are done. I didn't say total control. That will never happen. This is a business that provides a service to a customer. There is no way to have total control, unless the tractor is sitting in the yard as a lawn ornament.

 

being an owner operator is far better than being a compant driver.. AS LONG as you know what you are doing.. AND DO NOT! do a lease purchase with a big company!! buy your truck and lease to a company (or do your own thing) just dont pull for some company paying by the mile. do a percentage contract! this is my opinion<><