Own Authority VS lease...

Discussion in 'Ask An Owner Operator' started by hrdman2luv, Aug 3, 2011.

  1. G/MAN

    G/MAN Road Train Member

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    That is a good reason why some shippers hate doing business with brokers. They know that they and the carrier are getting the shaft.
     
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  3. BigBadBill

    BigBadBill Bullishly Optimistic

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    Yeah but that is normally the smaller shippers. Someone like this could careless because they are working with a long list of brokers and carriers. First one to call in and get the load wins. I don't like shippers like that. No loalty and feel that if after I get the load booked and they get a better rate they will cancle.
     
  4. G/MAN

    G/MAN Road Train Member

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    You will never win when price is the only consideration. A few months ago I had several loads cancel in short succession. Another carrier cut the rate. The broker said something about the load canceled, but you know how that goes. I prefer dealing with shippers and brokers where price is not usually the issue. They are willing to pay for service.
     
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  5. BigBadBill

    BigBadBill Bullishly Optimistic

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    Agree 100%. Spent the last hour putting quotes together for a customer that is bidding on new business. If they get it then I have the loads (not sure how I will cover them at this point).

    Price is part of it so that they can win the business but they could find someone a lot cheaper than me but they won't go that way because they are loyal.

    I have completed a lot of bids here recently and lost them all. Have gotten a couple call backs to revisit my rate as the winning bidders did not check out clean. Major safety issues and/or poor refferences.

    One bid I lost was to a low bidder of over $1/mile below my bid. And the carrier has been in business 3-months with 5 trucks and 3 out-of-service already. They already called to see if I wanted 2 of the 10 loads on the bid. I said no thanks. I would have to buy trucks for this business and don't trust that the business would be around next month.
     
  6. G/MAN

    G/MAN Road Train Member

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    There is no way that I would go out and buy more equipment unless I was very certain that the business would stick around for a while. I have been thinking about buying a 3 or 4 axle double drop, preferably an extendable. I have some business that I could haul with it. So far the business looks fairly stable, but with the economy teetering, I am hesitant to make the move unless I can get a very good deal on the trailer. Earlier this year I could have kept several of those trailers busy.

    I guard my safety score. I have picked up quite a bit of business over the years due to my safety score. I can't believe the guy had only been in business a few months and already had 3 oos. That will really kill his safety score.

    Price will nearly always be a consideration, but not the primary consideration with all shippers. You need to be competitive, but I still think that it is better to sell on service than price.
     
  7. osl2007

    osl2007 Bobtail Member

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    I'm a small fleet owner, 6 trucks, 9 flats..looking to change and lease to a good carrier. Are you still looking to partner up with some of us small guys?
     
  8. U-Turn69

    U-Turn69 Bobtail Member

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    Feb 18, 2012
    Niles, Ohio
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    I have been a Driver for 15 years and in October 2011 I opted to obtain my own authority due to an offer from a company that would "keep me successful". What a joke that was. I got my authority for just under $1000 which got me LLC incorporated, Registered Tax ID, MC# DOT# UCR, BOC and Carrier Certified. I mean I did nothing but pay the $978 on a $233 per week agreement. Well I only worked for this company for three months and due to this company's BS I got screwed for three months with little money to show for anything. I even ended up walking away from a lease from a truck leasing company that was costing me $65k in three years and only was able to pay for the truck, insurance and maintenance. Needless to say I took my authority and walked away!

    I was able to find a gracious man that agreed to sell me his sitting truck for just the pay off amount and that is it. I signed the truck to small carrier (3 trucks, 4 trailers). I am home every day, off on weekends and holidays but still generate approx $3500 per week revenue with pay at 77% of gross. He always gives me a copy of the load pay and pays me weekly. We use his trailers and run under his authority. I bough my own plates ($1550) insurance is only $150 month. He uses his insurance.

    After reading this post i would like to comment on a couple of things. Own Authority 3-5 weeks should only cost approx $400. I am running power only until I can put enough $ back for my own. I will buy another truck to hire another driver and pay him/her 30%-35%.
    My carrier uses ITS exclusively however I have used a couple of load boards to find the loads and negotiated a minimum of $1.80/ mile any less and I am only driving to pay for the ride. These loads are certainly set up to be paid at better rates but the agents/brokers want to move it to get paid. If it ain't worth it for me to haul it I wont period. I wouldnt go back to per miles driving nor would I consider any less than $1.80/ mile.
    In the words of my carrier, "We may be getting rich but we refuse to be broke!" Since starting over from October I have invested approx $5000 and still have been able to keep my bills in order. I am now in a position to start making good money and am quite happy with my decision to stay O/O instead of lease or company driver.:biggrin_255:
     
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