New o/o looking for advice.

Discussion in 'Ask An Owner Operator' started by Taylor and Taylor, Jul 5, 2015.

  1. Taylor and Taylor

    Taylor and Taylor Bobtail Member

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    Really after crunching the numbers I believe, if 2.55 a mile at a weekly average is good, I do have a good spot and we stay busy. The owner is a really good person, been doing this for 30 years. Kind of taken me under his wing. And I seem to be able to at the least make it home once a weekend if not a whole weekend and I live in the central valley of California. the owner brought up an idea that if I moved up to Oregon he had a deal running local making even more. my biggest thought is that we haul loads from other carriers using their trailers, it's like we are leased to multiple carriers, the thought is are we getting the rates they would give their o/o or the full rate?. So if anyone running the 5 sees my bright green pete the trailer I'm pulling is not our company lol.
     
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  3. spyder7723

    spyder7723 Road Train Member

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    2.55 a mile isn't bad at all as a to the truck number. but your only netting the same as a good company driver wage. That's very bad. are you just not running enough loads? is the carrier charging some obscene amount for insurance? Something is up, but the only one that can figure out what is you.

    For comparisons sake, I only get 75 percent of the load, and my "take home" figure is a good five to seven thousand a month more than yours. my truck is paid for, but still paying on the trailer. so you would need to subtract most of your truck payment from that, but still. It's a pretty big difference.

    Like I said, something is up. There is no way an owner operator should be working for company driver wages. But without having all the details of your lease agreement, and the last couple months of settlement sheets, all I can do is guess. My guess, with the little information you've given us, is that you need to work more.

    2.55 is only a good number if you get enough miles to generate a good income. And drivers wage, is NOT a good income for an owner operator.
     
    truckon Thanks this.
  4. Taylor and Taylor

    Taylor and Taylor Bobtail Member

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    I'll pick up load from Southern California to mid Washington running 1092 miles the load pays to the company 2192.00 to the company I get 85%, I'll then pick a load from Washington to mid to southern oregon between 300 to 400 miles which will pay the company 440.00 to 550.00 then pick up in southern oregon and drop in southern California which pays 990.00 to 1000.00. I can do that run 3 times in a week. Again I get 85% I pay the company close 400.00 for the insurance all oregon road tax at I believe is .1914 and remburse for fuel, ez pass, etc. I gross 79000 to 80000 pds and pay close to a 1000.00 a week in fuel. My truck payment is 3700.00 a month my bobtail insurance is 398.00 a month. We run 3 state so miles are limited. These are just averages so. I feel that yes when all is payed for my left over cash flow is between 3500.00 to 4500.00 that is what a company driver would make, I have earned more as a company local driver with owning a truck. This is why I have posted asking for advice from the more experienced O/Os if this is average or should I look else where. Getting miles on the I5 corridor is hard, running heavy up and down the grades and being held back to 55 mph in california and oregon doesn't let you get far to fast, not that we can move very fast anyways lol, I don't run team tried it for 2 weeks and got no sleep cause I can feel every gear change and I just don't like how company drivers treat equipment that's not there's lol. Hope this helps getting a better idea. I would pull as many loads as I can get but I pull what I am given. We own no trailers. 2.55 per mile is my average net after the company gets its 15% and all cost reimbursed, and before my truck payment and personal bobtail insurance. if someone knows of better paying loads running somewhere else the owner is more then happy to let me run them as he still gets his 15%. I think he has just got comfortable doing what we do as it is steady and keeps the bills paid at the least. I want to earn my full potential, so all advice is welcome.
     
  5. DUNE-T

    DUNE-T Road Train Member

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    Many people run these miles in one week..,
     
  6. Taylor and Taylor

    Taylor and Taylor Bobtail Member

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    Yes and that what I run in one week. Not for the lack of wanting more miles. But if a person can get more miles in in a week on the 5 doing what we do I would have to say that would be one tired driver who prays as he or she comes up to a scale house lol.
     
  7. spyder7723

    spyder7723 Road Train Member

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    That high of a truck payment is freaking ridiculous. That's about two grand higher than it should be. Bobtail insurance is also very high. And what is this 400 a month for insurance the carrier is taking? Is that for the bobtail and physical damage?

    Now for rates, how are you arriving at 2.55? The only load you posted miles and pay on is $2192 gross on 1092 miles.
    2192 @85 percent equals 1863.20 divided by 1092 miles equals $1.706. That's a full 85 cpm short of your stated 2.55/mile.

    I think I found your problem. Math.
    Seriously man, not trying to be a jerk. Your math is bad. You need to recalculate everything with good math and find out your true, to the truck revenue is. Using net revenue(what the truck gets paid, before deductions, but after his 15 percent) and all miles, loaded and empty.

    If that number is not two bucks a mile, it's time to find a new carrier to lease to.
     
    ramblingman Thanks this.
  8. DUNE-T

    DUNE-T Road Train Member

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    My bad, I understood as you doing that per month
     
  9. Taylor and Taylor

    Taylor and Taylor Bobtail Member

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    Yikes I'd diffently be in the wrong industry lol
     
    truckon Thanks this.
  10. powerhousescott

    powerhousescott Medium Load Member

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    I believe that is for the General Liability Insurance, Cargo, Non-Owned Trailer. It cost about $750.00 per month per unit for us. If you take the $400 and the $398 he has $798 in insurance expenses. That is about right for a new truck in his situation. The GL is only about $40 per month, I eat that, as that is our company expense. All others we pass onto the operators, we are not here to hold their hand, we are here to teach them the business. I think Taylor should stay with this guy a little longer and learn more of the business. If he could get his own trailer, I think his rates would go up as per mile. We tried the Power Only with a few owner operators and by the time you look at the rate differential you are better off with your own trailer. The originating carrier/broker is charging way to much for using their trailer. We don't run the West Coast, so I don't really know if his rates are good or not over there. Our guys are doing better than that in the Mid-West and don't have to have that new tractor, nor pay that much for fuel. He is home most every weekend and is still making profit after all of his overheads, he knew the cost before he bought the truck, and as far as jumping ship, I don't really think he will do any better at LS or anywhere else at a lower percentage.
     
  11. Taylor and Taylor

    Taylor and Taylor Bobtail Member

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    You are totally right! After 6 years in college for IT you would think I would not do math tired. I made a big mistake! I average 8400.00 every 2 weeks take home and I only divided 1 week of mileage. Crap and I thought my average was good. Lesson learned do math while awake. Lol. High truck payment at 0.00 down and new bells and whistles california compliant tractor, yes. I pay a higher bobtail insurance for shorter term. Company insurance is for load etc.
     
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