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on my way to prime

Discussion in 'Prime' started by booman, Jul 18, 2011.

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I_HATE_MINIVANS Heavy Load Member

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"Fantasy trucking"??

I once saw a "video game" at Walmart that was supposed to be about trucking. You're an I/C and you have to book loads and haul them and stuff. I didn't buy it though. Always wondered how accurate it would have been. For $9.99 probably not very accurate.

Microsoft Flight Simulator is probably about as accurate as you can get,.. for sitting in front of a computer screen and not having a real set of rudder pedals. As long as you only "fly" the planes that come with the program. Once you start downloading other people's add-ons, it turns into nothing more than another video game.

I_HATE_MINIVANS, Jul 23, 2011

#41
For My Familys Sake Light Load Member

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ironpony said: ↑

Good. We get 72% of the linehaul revenue, fuel surcharge and accessorial payments - the sum of that is our gross revenue for a trip. We get a separate page on the dispatch order over the QualComm that describes the trip revenue - you won't get that on the company side, but you can always ask your FM what a load pays on the lease side. You can run a "shadow business" and see if you can make this work - and what it takes to be profitable - while running on the company side. I did that.

The way it works is that most carriers only make about 10 cents on the dollar of gross revenue - an operating ratio of 90% - if they're doin' better than that, the bigwigs (aka fat cats) are throwin' a party. If someone is going to do this and make money they have to be more efficient at it than the carrier, and the revenue stream has to be there in the first place to be profitable. I have to be better than 25 cents on the dollar - or 75% - to make this work for me, and that brother is hard work.

The largest expense that we (or any carrier) has right now is fuel. There's a point over $3 per gallon that it exceeds payroll costs - which is why many carriers are limiting the speed of their trucks. Its the same for me... that's around 35% of my costs, and is the biggest chunk of costs that I have control over. If you're going to make money at this, you MUST be able to reliably get better than 7 mpg out of a truck, and I'd say 7.5 is the target you're looking for before making the jump.

Then there's some business education. Ever hear of a profit/loss sheet? Operational ratio? You've got to be able to read and understand your settlement statements in order to know where your money is going, if you're actually making money, and to figure out what you need to do if you're not. Then there's taxes - and that's complex. And you cannot leave this for some CPA in April. Either you KNOW what your bottom line costs are when you're staring at the QualComm, or you're going to go bankrupt fast. Routing - when do you take the toll road vs getting off onto the secondary network? Fuel buying strategy... macro 27 is for keeping the company guys from bankrupting the company, not making money on the lease side. IMO, if you have to train in order to make a lease work rather than train because you have a passion for teaching, you shouldn't be allowed to be a trainer... but that's me, and I'm an a-hole.

I drove on the company side for 3 years getting comfortable with this, and I'll tell every last one of the newbs - you're cracked if you think this is easy. And you just cannot hitch your family's financial future to a truck lease - that settlement check I get every week IS NOT A PAYCHECK. It is cash flow into my business, and the second biggest cost I have is paying my driver - me. You just cannot take that settlement check and blow it on bills, the rent, groceries, the big screen at BestBuy, etc. You have to have the discipline to put that settlement check into your business bank account, and then PAY yourself - and keep your hands off of the business money.

The easy part is being a truck driver. The hard part is being a businessman.
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I'd just like to take a minute to "openly" thank IronPony for posts like this. They are the norm for him and it is pretty decent that he takes the time to do it. I will be leaving in a week or so and I am so tempted to try and lease right off the bat. It's posts like this that bring me back to reality and throws a little common sense back into the mix.

Thanks

For My Familys Sake, Jul 23, 2011

#42

The Duck, Dennis the Menace, ironpony and 1 other person Thank this.
booman Light Load Member

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well im still here guess ill see bout taking my pretrip test

booman, Jul 25, 2011

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123456 Thanks this.
Dennis the Menace Light Load Member

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booman said: ↑

well im still here guess ill see bout taking my pretrip test
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Good luck Booman!

Dennis the Menace, Jul 25, 2011

#44
joplinlocal Light Load Member

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Ahhh... The days of Radio Shack from the 70's and 80's brings back fond memories. I basically "lived" in their stores buying parts for my electronics hobby needs. Not anymore... unfortunately. Now you gotta buy mail order from Newark or DigiKey and pay several times the cost of the part just for shipping.

Back in the mid 90's I wanted a part time weekend job and the local Radio Shack was hiring. Life just couldn't get any better. I thought I was the perfect "shoe in" for the position and went to the interview reciting most of the catalog by heart and stressing my life long Radio Shack loyalty. How could I go wrong, I thought...

Well...

The store manager told me knowing their product line meant absolutely nothing. Everything was based on how well I could "sell". I had never worked retail, so I didn't even get a call back.

I_HATE_MINIVANS said: ↑

You managed a Radio Shack? What has happened to that chain?
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joplinlocal, Jul 25, 2011

#45
OpenRoadDreamer Road Train Member

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You get to take your test booman?

OpenRoadDreamer, Jul 26, 2011

#46
123456 Road Train Member

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booman,

Update Please !!!!

123456, Jul 27, 2011

#47
Dennis the Menace Light Load Member

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Breaker, breaker 1-9! Booman, you got your ears on? Come back! Lol! Sorry, couldn't help myself! Used to hear that all the time when I rode with my dad as a kid. He had a CB in his truck and in his car. But enough reminiscing. Booman, how's it going?

Dennis the Menace, Jul 28, 2011

#48
123456 Road Train Member

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Has booman left the building ??

123456, Jul 28, 2011

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booman Light Load Member

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booman back over sorry was @ the pad all day yesterday till 6 trying to take my pre trip then instructor tld me we had to b in ms by 9 so I had a busy day but yes I passed my pre trip so now I can focus on backing n driving yay also im my instructor last student so he gonna be my trainer also yay

booman, Jul 28, 2011

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123456 and CadetTrucker Thank this.

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