My numbers as an O/O leased to Crete

I've been in trucking since I was 16. Started in the oil fields of south Texas. Always a company driver with the dream of being an O/O and possibly a true independent and become a multi truck operation.

At the age of 41 I know it was "now or never" if I wanted to follow my dream. So I began to research different operations/companies. i.e. rates, lanes, equipment type.

My past experiences were with dry,reffer, and a small amount of tanker. However, I did not rule out flatbed, Heavy Haul, or O/D.

After talking to other O/Os, companies, and some brokers, I decided to stay with what I knew best...dry van. I researched every dry van company that would hire in the San Antonio area. It took me six months.
I decided on Crete.

But before I made the leap I was wanting to know if any O/O could verify the numbers I thought I could expect. I did get one good response, along with many discouraging ones.

Therefore, I thought that if I could help someone else make an educated decision, as to whether or not being an O/O was right for them, then I would post my numbers.

I also post them hoping to get feed back as to what others are doing revenue wise in their operations. Maybe I can find others to network with and possibly find something even better.

 

Do you know where or how I can make my numbers better? I'm not opposed to learning. But have you ever been a successfull O/O?

Howard Huges was asked, "How much money would it take to make you happy"? His reply, "Just a little bit more".

My point, not everyone is wanting to become rich. I only ask that I have enough to feed my family, pay my bills, and be able to save some of what I earn. As a leased O/O at Crete, I've acomplished this by the grace of God.

 

Net is after truck payment of $1642 p/m. I bought the trk new, through Crete in Aug. '06. It is an '07 International 9400i with dual leather seats, vener wood dash, elec. windows and door locks, 72" Skyrise sleeper with upper bunk. At a dealer it would have been over $100k. Through Crete it was $88,500. Financing on a new or used would have been around 13% because I was a first time O/O (that's even with a credit score of almost 800). Crete's affiliated bank financed me at 7.25% for 60 months with $2250 down which made the payment $1718 p/m. I've since refinanced to get the payment to where it currently is, and to allow me the ability to lease my truck somewhere else, if I can find a better gig. I'm still here. Keep in mind this is not a lease program.

 

I'm on a sliding pay scale. 0-150 = $1.45 pm, 151-250 = $1.25 pm, 251-700 = $1.00 pm, 701-1200 = .96 pm, 1201-2000 = .87 pm, over 2000 is .86 pm. Deadhead is paid at .80 pm. Fuel surcharge is paid only on loaded miles. My yearly ave. pm without fsc is .95 pm.

How can O/O make $ at these rates? Discounts on fuel, parts, and tires.

Fuel is any O/O's largest expence, other than a truck payment. Since Crete passes along it's volume discounts on fuel 100% to it's O/Os, these allows us to run those cheap looking rates. i.e, I NEVER pay the pump price for fuel. Discounts will be in the .02-.60 off pump price. The last month or so I'm getting .50-.60 per gallon off pump price. This is in addition to the fsc, which is at .20 this week.

Tires can be bought through Crete using their national account, currently with Bridgestone. You pay their discounted rate. December '07 I bought new steer tires. The total was just over $700 including new vavle steems and mounting. June '08 I bought 8 retreads through national account. Total, $1100, new valve steems and mounting included.

Parts, if you are a do it yourself guy, great pricing. Tire chains $30 per set! Filters and oil by the gallon, half what you pay anywhere else.

All these discounts contribute to a better NET INCOME.

Owning a truck requires one to be a BUSINESS MAN FIRST, and a driver second.