Pit falls of the owner operator

NOW FELLOWS i just read a couple of threads from an owner operator that is having a hard time with the company he is leased to and as with any leasing company what he was say rings true been there done that and it is in fact a ##### trying to make money, enough money when your leased to a company.

now ill be the first to admit there is a certain amount of security when you lease to a company , most will lease your truck with no upfront money involved, just stick there signs on and most don't think beyond that point BUT there is a lot more to consider.

now its true you don't have to look for a load, they do it for you, you don't have to worry about permits, they do it for you, you don't have to worry about insurance , they take care of it for you, you don't have to worry about equipment they give it to you on credit . all this stuff they take care of BUT you have to pay it all back. then on top of that you have to pull there trailer , now none of this stuff is free in particular there trailer you have to pay for it and you pay dearly in particular there trailer.

now there trailer you pay for every load about 36% of the load o i no they all sell you a set of rose colored glasses and it all looks so good but it all comes at a hefty price, DO THE MATH , o you will make money alright but you get a little they get a lot and there is a lot of money to be made BUT you give it all to the leasing company.

now here is something that i doubt most of you no. on average the owner operator goes out of business in the first year of business WHY? because he is leased, he has payed most of his earnings to said leasing company he has no money saved , nothing left to save. he is behind on his payments, and his truck needs repair and there is just no money left.

now I'm not at all saying you cant make money with a truck Ive been in the business all my life and i have made money BUT Ive lost money to and with just a tractor Ive lost a bunch. its hard to make enough to stay in business with just a tractor.

doesn't make sense? well consider this , why do you think there are so many leasing company's and most have only trailers? because the trailer makes the money and when you pull there trailer your making them a bundle compare what they put in the bank with what you put in the bank.

the trailer has very little maintenance it just Carry's the load and tags along behind the tractor all it need is a little grease once in awhile and maybe a tire or two.

now i no a lot of you are afraid of having your on trailer and i honestly have no idea why. there a lot cheaper then a tractor, there easier to get financed then a tractor and if you have your own trailer even if you lease tractor and trailer to a company you add about 40% to your revenue , now if you find your own loads your revenue goes up to about 90% now before some super trucker jumps in and says it cant be done it does vary depending on who you haul for but not buy much and i do it every day with five of them.

o and by the way its cheaper to get insurance on a trailer and remember it makes all the money with very little upkeep.

no right now its a buyers market for used equipment you can buy a decent trailer , a drop deck for 10.000 and a flat bed even cheaper , now a reefer is a lot More money and i cant tell you much about them i quit pulling a refrigerator a long time ago.

my point is if your in trouble don't wait till your about to lose your business get yourself a trailer even if you want to lease , the revenue will increase and that alone will save your business and in trucking you just about have to have one to make it .

now i don't no about the rest of you when i see a man lose his truck it brothers the hell out of me anyone that goes threw it has a lot of hopes and dreams tied up in that old truck and when its gone they all come crashing down its not an easy thing to go threw and it takes a long time to recover.

if you want to be successful keep your overhead down never mind the shiny new truck you cant afford it when you first start after a year or so maybe but not just starting out payments of 1500 and more are just to much to make , snag your self a cheap trailer and turn and burn its still hard work but at least you will get payed for it .

just some thoughts to think about that might just save your business. the best of luck to you all.

happy trails-----southernpride

 

now my friend i did not mean to emply that you had to buy your own trailer what i was talking about is if your about to lose your busines if you had your own trailer your revenue would encrease about 40% the trailer is where your money is at.

now if your tractor is paid for thats even better thats a good thing . my point is overhead will put you under all my trucks are payed for along with the trailers and have been for quite awhile but evereyone is not that fortunat and there own trailer could save the day.

southernpride