I'm REALLY Confused About Something

I was a L/O with Swift for 12 years...my last year the truck grossed 195k....that was one truck with Swift....much smaller income than a true independent O/O....plus, I didn't have all the expenses a true O/O does, Swift still carried some.....900K doesn't sound that great for gross with 3 trucks and 3 O/O leased into the picture.

 

^^^^ THIS! My husband and I have a construction-related business. AFter paying everything and everyone else we were lucky to see maybe 75 out of nearly 300k.

 

I would really question those numbers. Unless he is hauling helium baloons I don't see how 5 trucks can use less than $30,000 in fuel in a month and still pay all of the drivers. I run two trucks, loaded heavy so I don't get great mileage and I am paying 5500-6000 a week in fuel. If you get 25% better mileage then I do and for 5 trucks that would mean that he should be paying somewhere in the neighbourhood of $40,000 just for fuel. Drivers wages if he is trying to just beat out the bottom feeders will take up at least another $20,000. Throw in insurance and a few repairs and he will net $30,000 before any finance or other costs assuming he made $100,000 for the month. but if you take an even approach to his revenue he would make around $75,000/month on average so he might actually only net $5000 or $60,000 a year, good money but nothing to brag about.

If everybody could make money dispatching then everyone would be doing it. There are a few that have great contracts hauling dedicated routes with a few trucks and make a lot of money at it, but they are the exception not the rule.

 

where this joker is making money is with the 15 per cent.

i made more money with a leased on op paying a higher percentage to him than my competition, example bennett motor paid 65 per cent of linehaul on their mobile home towaway , i paid 75 per cent and didnt screw the drivers on permit charges like bennett. my guys avg was 2.40 a mile and bennett was 1.65 to 1.70 i paid more for escorts also. i reimbursed for rooms for my lease ops if they turned in receipt also.

i had 2 trucks owned and 6 lease ops, i put in my pocket 4 to 5 grand a week off the lease ops, and maybe 600 a week off the 2 i owned, i paid my drivers .60 a mile also.


then came 2008 and boom it was over. but i had saved money and put it away. if i had paid my guys like bennett i would be retired and in the carribean.


yep that joker is making his money with the dispatch fees.


if he had any sense he would sell his 2 trucks and lease on 2 guys