KLLM and Lease Purchase

Sounds like there's plenty of "trouble in paradise".

 

probly me i am pissed about it.. now my apu quit.. what the hell..the person befor me did not take care of this truck.. but its all good. i will fix it.. i am not leaving kllm.. i like my dispatcher and load planner... just tired of things going wrong new fuel filter every week... its crazy..

 

Having read the posts in this thread, I wanted to offer some insights and confirm some things already posted. Lease purchase exists to benefit the company. It moves the cyclical business risks off the company balance sheet and places them with the contractor. This allows the company to have a set of accounting records that make it appear far more stable than may actually be the case. This is beneficial to the company in securing operating capital and credit. Remember the credit crunch of 2008? Lease purchase ramped up in response to increasingly tight credit in the commercial lending market.

Secondly, recruiting and hiring drivers represents a large expense to any company. 10 years ago, in 2001, I worked in an administrative position with a company that estimated they were spending $5000 per driver in recruiting and hiring costs. There are a lot of things that figure into this. Some of the costs include advertising, phone bills for 800 numbers, background checks, drug testing, road testing, the cost of traveling recruiters that work driver schools and job fairs, orientation travel fees and costs like meals and lodging, and the wages and benefits of all the admin personnel involved in the process. Factor in turnover rates above 100% and you can see how the company was desperate to reduce costs. Lease purchase presents a carrot to dangle that will keep a driver 'invested in the job', thus reducing turnover and costs.


Unlike the auto industry, where warranty work is the solely under the dealers tent, trucking companies can, and do, strike deals with manufacturers to preform warranty work. Consider this when asking yourself why does a company only want to lease me brand X or brand Y, not offering a choice. This can explain the pressure to have repairs done at the company store. There is profit to be made on parts and labor as well as providing a steady stream of income to subsidize the shop for the company equipment side of the house.

A lease purchase is a business. It is a very difficult time to succeed in any business in this economic climate. This is why one driver makes 3000 miles a week and turns a profit while others run 1900 and don't break even. Not everyone that goes into a business will be successful, despite the glowing predictions of recruiters and lease agents. Remember these people work on commission and have a history of saying anything to close the deal.

For drivers coming out of school I would offer this advice. Go to work as a company driver for at least a year or longer before signing any type of contract that chains you to that seat. This is a hard industry. Driving the truck is actually the easiest part of the job. Dealing with the cut throats and criminals that claim to have your best interests at heart is not easy. You may find that a driving career is not worth all you have to sacrifice in order to get a paycheck. Don't be tricked into wrecking your credit with a contractual agreement when the grass may be truly greener some where else.

 

Very well said.

There are definitely some lease-ops out there making plenty of money, but there are probably just as many losing their axxes. It's not always the fault of the driver, but then again, it's not always the fault of the company either.

 

I agree with that. Problem is, the company ALWAYS has the chances slanted in their favor, and they know it. They are not in business to LOSE MONEY, therefore the problem of making money ALWAYS falls on the driver.
It can greatly depend on having a good dispatcher and load planner. Some drivers are not always allowed to pick and choose those people. The one I had couldn't wait until Friday, and on Thursday, you could count on it being your last load of the week, unless one was thrown in her lap and you happened to be available. Otherwise, you were sitting the majority of the weekend.
I tried getting another dispatcher, but that was like pulling teeth.

 

ok i am not going to complain.. kllm is still a good company

 

Well, to offer a counter balance, (not a defense) I still find working with KLLM to be WELL worth it. Yes, I had some rocky moments, but each time the company has gone above and beyond my expectations. (now true this happens LESS now that I am in the S E Regional fleet)

Been regional for 2 months now. In that time I have averaged 1500 miles per week. And though that ay not sound like much, because it is % pay, I average between $800-$1500 per week because of the lowered cost of fuel AND maintenance.

Last week I took 4 days hometime (Thursday to Sunday evening). I fit a total of three trips in that week. After I paid for fuel, maintenance, my truck payment, and insurance, I pocketed $800

The main problem (as I have seen it) with KLLM (OTR) is the shop and the lack of communication for drivers and their dispatchers. Main problem I have seen with regional is the shop.

Have I had issues with the shop? yes. one time. but because it was the shops fault, and I brought it up in an adult way, both the shop, and operations took care of me.

But, I also grant that I have not had the kinds of problems that others have had with major issues popping up with the tractor. Road Toad is a prime example of this. I cannot say how I would have dealt with this had I been in her shoes. I wont even try

I am still very satisfied with KLLM. My puppy is too!

 

i am staying with kllm theres issues with all companys... just upset myself.. but i will be fine.

 

You should call and talk to Mike in Recruiting. He was able to help a friend of mine get a 2010 Cascaida. Worth double ckg before starting over somewhere else!

 

Not only do we get their discount at the pump all LP's and OO's are pd fuel surchg on every loaded mile. Sure helps out. Like when surchg was at 54 cents ld mile I get almost 6 mpg that was $3.24 off of every gallon I got back. Not bad; would be better if i would drive little slower.