Owner operator worth it

I think your insurance will be double If not a little more than double. Especially between bobtail and cargo. And physical damage.
I think that your maintain fund is also low . Oil changes on 120,000 miles done every 15000 miles at $300 per will run you $2400 per year. Plus truck washes and washouts. I wash Both of mine twice a month at $83 each wash. $1992 per year. It's easy to say you will do those or your brother will but at $52000 a year he isn't gonna want to be doing oil changes and truck washes on his weekends off. Brother or not. I would triple that Repair/maintenance number and even with the tires added in its still not a bad number. On my old 99 Pete I spend roughly $23000 per year on maint/repairs/tires. (It is bumping 2mil miles)
On the 2015 glider it has only been oil changes and washes so far. (Knock on wood) part of the trade off . Big payments or repairs. One way or another you gonna pay.
And just for Schlitz and giggles I would figure everything at 110,000 to 120,000 miles.
Also, how are you paying your brother. He will be an employee so you will have to pay your portion of payroll taxes. I am paying right at $1500 per month for my driver and myself. You can offset that a little and save both of you a little by paying him a little less but then adding in per-diem. That money would be tax exempt.
Now, that didn't take long to eat up a good chunk of that $40000 did it? I am sure there are still a few things missing. Probably figure in $1000 per year for tax prep and admin fees or cost.

 

It's not illegal to log 4000 miles in a week. I've done it for years. All boils down to time management. Keep yer left door closed, the brakes released and the truck in high gear.

 

Just caught the part where you might be hauling milk. Might want to up those maintenance numbers i gave you earlier most of the guys I know run real heavy with milk tankers permitted overweight. Brakes, rims, tires and all that good stuff get chewed up quicker.

 

True. It is not illegal but you can't do it pulling a hopper running 50-500 mile runs and sitting for hours on end waiting to load or unload.

 

Please post some irrefutable proof to back up 4000 miles per week for years legally and in a scenario most drivers face i.e. more than 2 loads per week. Thanks in advance

 

61.5 hours at 65 mph average. Every day , week after week. A lot easier to log it than to actually do it. Especially with load and unload times and traffic. Not impossible given the right operation but highly improbable for most.

 

I think you can pay heed to most of the replies here, several have been in the game a lot longer than I and know the field.

I'm 9 months in as a new truck owner leased to a company. I don't know anything about grain or milk hauling. I bought my truck cash and bank financed a flat.

Your maintenance is a bit low. I include tires and oil in the figure, and had a few heavy months -

Fuel .32 cpm (7mpg, and discounted fuel)
Maintenance .34 cpm (currently, may be slightly less at years end)
Pay myself .40 cpm (state and federal, FICA etc out of that)
Trailer payment and principal extra payments - 13cpm

I'm running 3300 miiles on a dedicated schedule right now, and have a 34 at the house every week. But I'll tell ya - between keeping on top of the paperwork, and the maintenance, getting enough sleep . . . it's not easy.

I initially ran my figures on 100,000 miles a year, and hoped to do less. Wrong. The goal is higher revenue for less miles, but right now it's a case of sticking to something average in a poor market. I picked a poor year to get started, but if you waited for a 'good year', you . . . . might find yourself in line at the tire shop.

Good luck.

P.S. We're a bunch of truck drivers on here - it's never going to nice, or helpful, just use your filter and you'll find what you need. B.

 

I'm an owner operator, I do my own maintenance, book keeping, driving.I WILL no longer call my wages profit.It seems like everything your saying is possible...but I also feel like if your depending on anyone but yourself, this is dangerous. Brokers,family, jobs ,and economy are all things that can change, in a moment's notice. I think you should ask your bro for an investment, or wait till he has money to pitch in. I make a living with one truck and a Lot of extra unpaid hours.The o/o thing is no longer a high paying job so profit margin could be slim.In my line of work the guy with a driver used to get 30 percent, 30 for truck and 30 for driver.with 10 percent left for emergency. Now its truck 60, driver 30 and 10 percent left for EVERYTHING else.That's if it all goes good.Why run that business and truck for such little return. Exceptions are if you already own a business that needs the truck to haul your own freight. THEN your not on a razors edge.I have 5 brothers, not one of them can or will work as hard as I do.I would get resentful if im taking all the risk and he gets to make money.There's lots of other safer investments. I ONLY speak from love and experience. Good luck bro

 

I don't understand why you have so many questions for those on this forum when you have family members who are owner operators. Something doesn't add up. Do you not believe their numbers, you don't want to hear what they are telling you or what? Despite what you think I am not trying to be a hard a _ _. Take an objective look at all of this if it even possible to do. No more comments from me. I wish you well though.