New to O/O

Forget it, stay company or just go find something else to do. TOTAL SUICIDE in this economy!

 

On the other hand this is the perfect time to go through the numbers. If you can pencil it out now you know you can survive a poor economy. Far better to make a plan now and see the tough numbers then do it when freight is abundant and companies are money, miles and riches galore.

 

Normally that would apply, however, we will not have another prime minister than Trudildo now. Thus we are heading for economic collapse, there is no recovery coming, only decline IMHO.

 

I put money down on a custom ordered truck this time last year when we had been busy as all heck. by the time the truck arrived and i put it on the road ( aug1 2019) we had experienced a slow down. it has been nothing short of challenging. however to make it, you must start with some money in the bank to get going. being able to budget and stick to that budget is key to your success during a down turn like we are experiencing now.

in regards to your post however there are different options out there. for example as an o/o you may like to run on a percentage contract rather then a per mile contract. both of these present different costs for your business. an example is on percentage i pay for my insurance, plates, tolls, and permits (both annual and single trip) . if i was on milage the company covers the tolls, permits, pilot cars, empty and loaded miles paid.

the cost of decals on the door was covered by the company up to a cost of $200. but big suprise the decals cost $250. so i pay $50.

another cost that you may not think of is the company might charge you a form of "administration fee" this is generally a fee that covers the work the office does for you, and it may or may not also include the cost of the ELD/ satellite system in your truck. an example of this say i am deducted $300 month . this covers : satellite, ELD, paperwork done in the office ( such as all your finical statements) , fuel card, permit services.

if your a company driver and you want to start off at the company you currently are at, sit down with them and see what the pay package is, and what all the deductions are. ask to see a statement from a current owner operator.

but know that your miles and runs may change from what you are doing currently as a company truck. in my case i was per paired to see a lot of that gravy train stay on company trucks. and i was not disappointed

 

So, just wanted to share something. Friend of mine who bought a truck the same time I did, was doing deck work for a larger carrier based in Manitoba. He was basically living in the truck, the last 6 months, working as hard as possible to make it work. Unfortunately, the rates and lack of work was just to much, and his truck was repossessed last Tuesday. The company that he dedicated 10 years of his life too, couldn't care less.

He was setup as a Sole-Proprietor, so he was personally liable for the outstanding monies/taxes/penalties owed from going under. I spoke to him on Friday, as he wanted some contact information for my lawyers/accountants, we chatted a bit, I guess the dealership/CRA/Company/Bank were already after him full force.

Anyway, I just found out he committed suicide over the weekend.....

 

Sorry to hear that!!

 

Thanks, been a lot of this since 2014, first with Oil and Gas, now trucking. Minimize your risk guys, that's my best advice.