owner operator wage questions

Discussion in 'Ask An Owner Operator' started by mojoblues, Nov 20, 2009.

  1. mojoblues

    mojoblues Bobtail Member

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    I am talking to a few companies about pulling refer trailers as an owner/operator I have a few questions about wages working as a company leased Owner/operator pulling their trailers

    1. What are the acceptable wages per mile and fuel surcharge as a owner operator. What is the norm and how much can I get per mile these days?
    2. What are the start up costs of buying a truck, permits, plates anything else?
    3. I talked to 2 companies and one was paying .85 per mile plus fuel surcharge and the other was paying .95 plus fuel surcharge. Is the low or normal these days?
    4. Is it even worth becoming an owner operator these days?
     
  2. kalh7

    kalh7 Light Load Member

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    percentage is the only way to go. forget the per mile ####.
     
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  3. mojoblues

    mojoblues Bobtail Member

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    I am talking to 2 companies this week that do percentage of the load.
    I'm not sure what is a good deal for me?
    what is the best percentage I can get. Can anyone explain how this works?
     
  4. blackw900

    blackw900 The Grandfather of Flatbed

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    If you haven't figured all of this out, You need to drive a while longer before you buy a truck!

    Do you have any idea what it costs to run the truck per mile?

    Do you have any idea about what to look for in a truck?

    There are many more questions that you need to ask yourself before you buy a truck!
    You can do very well with your own truck but you can also lose everything you have very quickly with one too.

    If you don't have a basic understanding about these things that I asked you...You're not ready to own a truck!


    By the way....85 cents per mile is a sure way to lose your ###...95 cents a mile will do the same thing but a little slower!
     
  5. Kansas

    Kansas Road Train Member

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    IMO a buck a mile isn't going to cut it, and its a sure fire way to lose your ###. I also think the lease deals are a joke, I have yet to see one I would trust any further than I could throw the truck.

    Hey, then again people are making millions selling "work from home" get rich quick schemes. So... that must mean there are still plenty of suckers out there to fill those voids.
     
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  6. blackw900

    blackw900 The Grandfather of Flatbed

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    Break even right now is $1.49 per mile according to my numbers and that takes into account paying myself a decent wage, putting a few cents a mile away for maintenance and repairs and equipment replacement.

    So....How can a fleece operator make money at $.95 a mile?

    The short answer is...He can't! But these theiving companies will convince these poor slobs that they're gonna be a "big time" O/O and " be an independent contractor" and "hey look! The truck isn't governed as bad as our company trucks" and BAMMO!

    Another fool signs a fleece!
     
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  7. Allow Me.

    Allow Me. Trucker Forum STAFF Staff Member

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    Things to consider: Some companies pay for plates, fuel tax, deadhead etc. Some don't. So, .90c per mile, loaded and empty, plus FSC (currently about .21) might be a better deal. Most loads are percentage, originally, and then changed to mileage. Incidentally, trucking companies can manipulate rates to their advantage every time, so, percentage isn't always the way to go. And don't even get me started on brokers. Some companies have Com-Data fuel cards that you can use. Some pay for refer fuel, some don't. Some guys have a business head on their shoulders, some don't. There's a lot of variables that come into play. Browse this forum, you'll get tons of info.
     
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  8. Graymist

    Graymist Light Load Member

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  9. blackw900

    blackw900 The Grandfather of Flatbed

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    I have health insurance that I pay for so I guess I include that in my CPM....Pension? No. Not a lot of companies out there offering pensions anyway. I have a good IRA that has quite a bit of money in it and that'll have to do...

    Quite a few reasons to become an O/O. One of those reasons for me was to be in control of my own destiny so to speak. I like being able to do it the way I want to without someone telling me how they want me to do it...

    As long as you have some self discipline you can do well at it. You do have to have a little bit of sense.
     
    Last edited by a moderator: Feb 27, 2010
    MT Pockets Thanks this.
  10. Graymist

    Graymist Light Load Member

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    So, hypothetically speaking, if you were to put a driver in your truck and pay him the exact same wages that you pay yourself to drive the truck ( approx. 35-40 cpm ), you would not make a cent by way of ROI ? In such a scenario, wouldn't it be the same as buying yourself a job ?

    I do agree with your contention that owning your own truck affords you more independence. But, at the end of the day, it's a business, and the whole purpose of undertaking the risk by going into business for oneself, is to earn that risk premium, also known as return on investment, in addition to what you would pay yourself to drive the truck.

    Please don't get me wrong, I'm not trying to give you a lesson in running a business. I'm simply trying to figure out for myself if being an owner op vis-a-vis a company driver, is worth the financial rewards, and also what a decent return on investment would be ( in addition to driver's wage ), assuming that the economy is on an even keel.
     
    Last edited: Nov 23, 2009
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