So I want to get into a big truck, as an owner operator, leased on to a company I used to drive for. My question is, is it really as bad as some of you make it sound? From '01 to '05, I hotshotted RV's with a 1 ton, and fell in love with the lifestyle. For various reasons, I had to leave, one being not enough money, another because of family reasons. But can I make a comparison? Could being an o/o be compared to farming? I know lots of farmers making a good living, and others that have gone broke. Is it mostly a management thing, or a company thing, combo of both? Good luck, bad luck? Etc., etc.?
There are people out there making it as an O/O. It's just a very risky business. You have to make risky decisions. There are people out there who are all "I won't haul cheap." That's the decision the operator has made. But there are operators who CAN attempt that cheap load just so he can get a better position. Maybe that could be you. You have to make decisions like that all the time. Leasing is the safest way to go. Owning your own authority carries the most risk but gives the biggest rewards.
The biggest question you need to ask is how good of freight does the company you are going to work for have. If you can't make close to $1.85-$2.00 a mile for ALL miles it ain't worth it, and cheap freight is for the people soon to be going out of business
For me the best thing that has worked is consistency, my truck runs for the most part the same area every week. The brokers get used to a truck in that area and know that I'm not going to move that truck for nothing, so they don't bother with the cheap rates. If the load coming back is not a full load then we start looking for expedites. This may piss a few expediters off, but on those loads we start cutting the rate to get it. With a couple of expedites on the tail it normally pays for the fuel. It's not uncommon to get four to six dollars a mile coming back. My driver comes back to the yard and company drivers deliver the expedites. This doesn't happen every week but when it does it works out well for me.
24 VALVE - So do you think $1.75 a running mile is too low? Even as they are paying plates, basic insurance, tolls and permits? I pulled RV's for them a couple years ago, so I know the people there, and I trust them. They helped me out as much as they could when I needed some help.(advances, information, time off, etc., etc.) It looks pretty good on paper, but I've learned from my RV pulling days, paper and real life are two completely different things!
EERR, What are you pulling for freight? (time spent load/unloading) Your own trailer? (if you don't have trailer too you are allready half way out of business) line haul miles for avg load? dead head miles to next load? what are tractor specs? (how many miles per gallon will it get) will there be any hurry up loads? (load in am/unload same day PM excellent mpg at 62/65 miles per hour with legal load like pipe (6.4/6.8), step on it 70/74mph with a head wind and an oversize wide tall load it will get 3.8 mpg You need to define all these things, put it all on a sheet of paper. Don't forget Maintenance!!! Tires, oil changes, etc.
DANGEROUS DAVE - That's what I mean, on paper it looks not too bad. But all the possible variables, make it quite hard to determine a monthly expense. At present, I don't have a tractor. I'm still in 'information' phase as to what is needed and what I'd get. As for the trailer, I'd rent from the company for the first little while, at 4% of gross. Line hauls would be a minimum of around 700 miles, up to basically cross continent. As far as dead head, I figure the more the better, as I'll get paid $1.75 a running mile as per PC Miler, so loaded or not, I'm paid. In my estimates, I'm trying to be objective. I'm working on averaging 5.5 mpg. I would sure hope I could get better, up around 6.5 or even 7, but for 'worst -case-scenario', I figured I'd plan on 5.5. As far as what kind of freight, pretty much anything on a flat deck, including RV's. RV's would be kinda rare, approx. 1-2 loads a month, but easy hauling, and lotssa miles with them. As far as 'hurry-up loads', I don't know. I'm sure there would be some. There were with hotshoting RV's, but I learned pretty quick to say, "If you want it there that soon, get somebody else, 'cause I can't do it." They were good and understanding. I guess it's the unknown expenses that worry me. I can figure out fuel, oil changes, reg. maintanance, truck payments, trailer rental, deductions, etc., etc. My one ton averaged about $9000 per year(over the 5 years) in maintanance and repairs. That's oil changes, 2 sets of tires, maintanance items, and unforseeable expenses. My estimations are including about $2000 per month for a big truck. Is that high? Low? Ballpark?
Come up with a business plan, come up with a mission statement. Run your business no matter the size like it's a large business. Know the regs and the laws pertaining to trucks. Some may seem silly but you have to do it to be in compliance. Know your customer's needs and fill that need. Do not be afraid to go the extra mile.
Since this is a thread about becoming an O/O, I will put out my situation and ask for guidance. I was a 10 year driver and O/O, pulling mostly RGN heavy haul, specialized, step decks, some reefer and van too. I want to get back into the business but it seems that since my experience is more than 3 years old it is as if I never drove a truck in the eyes of insurance companies and companies I've tried to lease to. I have no violations or accidents at all on my DMV. It is very frustrating to have more than a million miles under the wheels and be treated as a newbie. I had no idea that insurance had tightened up so much. Can anyone recommend a decent company that I can lease to? I don't need to get home and I'm not overly concerned about making the big bucks, I just need a place to get started again. I am ready to buy a truck and trailer or pull the company wagons. I'll make the Big Money after I fill my need to get someone to put me to work THANKS for the input!
