Leased to a company vs. Own Authority?

I grossed $167,000 pulling a box for LS.....

And to that guy comparing LS to CRST, is beyond funny

 

167,000 is a successful year being leased on to someone. Especially if you turned 50,000-70,000 miles for the year. Thanks for your response, I just wanted to see how much $$ actually makes it to the trucker when I hire LS. I've heard various figures.

 

I ran about 95,000 last year... My average was about 1.70 a mile, I'm happy, I was home everyweekend, could of made alot more if I wasn't lazy

 

i looked at it this way

if you gross $200k, and any company takes 10%-20%, thats $20k-$40k out of your pocket

now, you have to decide if it would be cheaper for you to do it on your own (even with your wife's assistance) or do you want to pay them to do it for you

 

An advantage to operating under your own authority is that you are not totally dependent on a single source for your revenue. If you make it with your authority you will be totally reliant on your own initiative and ability to find decent paying freight. Leasing to a carrier you are usually limited to their freight base. Most don't want owner operators to go outside their company to find loads. On the other hand, many larger carriers have contract freight with shippers and that can help keep you running. Some carriers have dispatchers who help find loads for you and keep you running. Others, such as Landstar don't have dispatchers so the owner operators are on their own to find loads from their agents. Some agents will help keep you running with these companies and some of these carriers have resources to help you find loads, such as apps where their agents can find trucks that are looking for loads. Another positive to leasing to a carrier are fuel and tire discounts. Some carriers offer fuel cards with price plus pricing or big discounts. I have a friend who is leased to Universal AmCan and he has gotten fuel discounts as high as $0.60/gallon at some stops. Most of these carriers also have national tire discounts on major brands, such as Bridgestone and Michelin. Those discounts are not usually available to the independent who has his own authority.

If you run your own authority you will need to have sufficient funds to run your business until you get paid from brokers or shippers. If you don't have the funds available, you can either factor your loads or take advantage of quick pay offered by most of the larger brokers. Both will discount the freight bill for paying you within 48 hours. But, it is a good way to finance your business and if you are getting good rates, it is a small price to pay. In the case of a factor, you send the bills and paperwork and they do all billing and collections. Most of the larger carriers who use owner operators will pay their owner operators whether they have been paid or not. Consider them your bank. They usually don't charge extra for paying you. These carriers will also usually advance funds for fuel once you are loaded. Most will pay the balance of the rate to the owner operator within a week. Mercer will pay the same day the paperwork is received.

Running a business is not free. You pay a price one way or another. You pay the carrier or the broker for their services to you. Leasing requires less paperwork and less responsibilities for finding loads, safety and compliance costs, billing and collection costs. Most carriers charge back the cost of getting your base plates and permits and may charge you a fee for the service. But, they also may finance the cost for you with weekly deductions from your settlements. Running your authority you will need to pay for all permits and permits up front our of your own pocket.

I think I do better running my authority than I would leasing to another carrier. That isn't true for all running their authority. In reality, many make more leasing to another carrier rather than going it on their own. Personalities and abilities are different for each of us. I have no doubt I could earn a good lliving leasing to another carrier. In fact, I have leased to carriers and done well. You have the opportunity to do well either way you go. I would not get too caught up in the gross revenue. It is the net that is important. If you decide to lease to a carrier or as you talk with different carriers, make sure to ask them about revenue and whether their numbers are gross revenue or net to the truck or owner operator. If they quote gross then you need to subtract the carriers cut to get the real numbers. Another factor to keep in mind is that everyone operates their business differently. Whether you buy a truck and lease to a carrier or get your authority you are in business for yourself. If you operate it as a business, watch your costs and find good paying loads, you can do well either way. Good luck.

 

G/man great post

 

Being leased to a carrier like LS gives you access to freight from customers that you will never get on your own. Even some government freight that is never brokered.

 

Having done it every which way, it's really what suits what you want out of it at the end of the day. Whether it's putting your heart & abilities to creating something all your own or leasing for the ease of operating, they both work.

 

I would like to add that you need to know all the costs to your lease with a carrier. I did some calling on my free time to the ones advertising. F2F seems to have the best no BS deal that I talked to. Now we all know LS's deal, no problems there. The ones that guys need to be warned about are the 20% AND weekly fees. Holly cow! The one place was 15% and $150 per week for insurance, HAD to use there dispatcher. So they want company driver control at slave wages. Research your lease before you sign, please. I got in an argument 3 times that day. I am appalled by what these guys are signing O/O on to.