Owner operator/ so many prolems

For those guys just starting out you have to remember it takes a while to build up your business, your aren't going to just waltz into your own contracts. it takes years to build up relationships in this business. Southerpride is quite right when he said leasing to a company isn't that great of an idea. the really good carriers like Landstar, Inway you have to be there a while before you get the great paying loads. everyone has to pay their dues at those places, the others just chew you up and spit you out. when first starting out or even if you've been at it for years try using a Dispatch service you will find better loads than you can on your own and they (brokers and shippers) will be those that pay on time.

 

I guess it is all relative. Most can buy a good used truck and keep payments below $1000 a month. Leasing on to a carrier is not that bad if you get the right package. All truck insurance can be reasonable when bought thru a carrier (I pay roughly $117 a month for ALL my truck insurance). Plus many carriers have substantial discounts on fuel well below the cash price at the pump. 20-30 cents off is not uncommon. And with my carrier, the fuel gal keeps all the pricing and discounts for all the major truck stops online. I just go online and find the best pricing (with and without fuel tax) along my run and plan accordingly. Plus the savvy O/O can negotiate good pricing on a lot of things they use regularly. Like oil and filters. I can get a very good 40% synthetic blend oil, delivered to my house, for $9 a gallon. I have a supplier that I can purchase all my filters from for roughly 30% less than normal retail pricing. I do a large portion of maintenance myself with larger problems going to a local shop with rates considerably lower than dealer rates. Internet shopping for spare replacements such at alternators, starters, belts, etc can save a chunk of change over impulse buying. I have done a few modifications to the truck and my driving so that I consistently see mpg's well into the 7 category. I don't have to pay anything for use of company trailer.

If the load planning is done right, then keeping the truck productive is not an issue. I never sit, except for breaks, and get home each weekend and by the house once or twice a week. Not on a dedicated type run either, I just operate in the upper midwest with my house being situated almost in the middle of where I run. Since I usually do the shorter runs of 500-600 miles, I get a higher rate per mile for the haul than the trucks doing longer runs at the company. Sure, I have to load/unload almost daily (with a fair amount of drop and hook), but with the right customers that don't tie you up at docks for hours at a time, and preplanned loads, it is never much of an issue. When I get one load done, I go get another. Sit time is virtually non existent except for maybe a rare time of an hour or two at most.

Sure, I probably would get a higher revenue by doing my own thing, but in the end, the net might not be that much better when you factor in all the leg work an independent does compared to me having my "back office" do it for me. I operate the truck and manage my costs. They take care of all the other stuff I would have to take time to do and pay for, like getting the loads, managing compliance with the government, getting and paying for permits (no cost to me), getting paid on the shipment, etc. But my net is not bad. I own a 2006 Jeep Liberty Diesel, a 2005 New Holland ag tractor, 68 acres of farm land. All free and clear. I have a few months left on the truck and a mortgage on the house, but both are very managable costs. I don't spend money on the truck except for maintenance. If something doesn't save me money or make me money, it doesn't go on the truck.

I do not in any way feel inferior because I have chosen to lease on to a carrier. I just made sure that it was the right deal, with the right carrier, working with the right customers. I did not just call them and ask "how much per mile" basic questions. I dug deep and asked a lot of questions about their business model, customer base, etc. (the big carriers usually don't like to share too much information like that). It took several months before deciding to lease on. One has to go into things with eyes wide open. Glossy ads in a truck stop magazine do not impress me.

 

Buying a used truck with alot of miles is a death sentence also. Even with my own authority and trailer after 2 years im still breaking even. Breakdown after breakdown. Permits brokers taxes fuel. It isnt worth it unless you csn get shippers to deal with you and you can get a truck with great fuel mileage

 

How are you breaking even at current rates? You must be leavIng a ton of money on the table.

 

Malong more bur my truck is breaking down constanly

 

My avg is 2.90 mile. Am i leaving money on table?

 

I disagree when it comes to pre egr engines, they can be rebuilt for the same price emissions systems takes to be repaired. And the new Cummins is no better than an old big cam Cummins on fuel, if emissions are not working.

 

You should have 86'd the truck if you could not make it at $2.9 a mile.

 

At $2.90 a mile I would not know where to put all my money. I still have the sting from .90 cent a mile promises of riches untold. I will say if I could not use an old non Def truck, that I would be taking everything off the new style truck I was paying for. Or replacing the engine.
But than again I still hate elog.