Lease or Own Authority

Discussion in 'Ask An Owner Operator' started by Cplmjl1218, Jun 12, 2021.

  1. Cplmjl1218

    Cplmjl1218 Bobtail Member

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    Is having your own authority profitable enough to justify the headaches of billing, factoring, fuel taxes, etc rather than leasing on with a solid company? Keep in mind I’d be getting my own loads off load boards only. If your answers are lease on with a solid company, any suggestions as to who has the best overall tools to aid to success? Companies that let you use their trailers. Looking for the best way to maximize my profit margins.
     
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  3. Arctic_fox

    Arctic_fox Medium Load Member

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    Both are viable and both have pitfalls. Many O/Os here who make money hand over fist. Many who fail, same for leaseing your truck to a company. Just depends on what you want to do and how you do it.
     
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  4. MLC Adventures

    MLC Adventures Light Load Member

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    My opinion only. I've been self employed since I was 27 in 2004, and could not stand the idea of someone getting into my pockets for a % of everything. And I don't like being under anyone's thumb.

    The factoring i figure as a simple cost of business. In my business we take credit cards, at a cost of 2-3% depending, no different than factoring.

    I hate paperwork, so less billing, receiving, and collecting I have to worry with the better. I'll spend my excess time worrying about the truck, trailer, and better paying loads.
     
  5. Cplmjl1218

    Cplmjl1218 Bobtail Member

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    I got my authority and BOC filed but insurance companies are quoting me 30k/year or better because they say I’m a new company even though I’ve got 25 years of spotless MVR. Any OO’s think this sounds right?
     
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  6. Cplmjl1218

    Cplmjl1218 Bobtail Member

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    Good points.
     
  7. Cplmjl1218

    Cplmjl1218 Bobtail Member

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    What do you mean you take credit cards? As a form of payment from the brokers? Do you charge them the 2-3%
     
  8. MLC Adventures

    MLC Adventures Light Load Member

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    No. At my business we accept cards, but do not upcharge for the service. Just making a point that I look at factoring fees as a convenience fee, and a normal cost of doing business.
     
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  9. MLC Adventures

    MLC Adventures Light Load Member

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    Doesn't sound right. I'm a new authority with zero driving experience, and my policy is under 14k
     
  10. ready2truck

    ready2truck Light Load Member

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    This doesn't sound right. lol
     
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  11. MLC Adventures

    MLC Adventures Light Load Member

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    Why not? I quoted with 2 different agents and they were within 100$ of each other
     
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