Pit falls of the owner operator

Just thought I would throw it out there that I have a Flatbed for sale, 102" x 48'. 93 Fontain Combo. $4500.......With a little down, we can work out some payments. I know, a shameless plug.

 

How do you figure an increase of 40%? I know most companies charge 10-20%, never heard of one charging 40%.

I do agree, owning your own trailer is the way to go depending on what you haul. If you are hauling steel/flatbed material...yes, reefer (don't know much about) but probably yes, dry van depends on what company you are with and how much drop and hook they have, which is usually alot.

Years ago I used to pull an end dump hauling coal and scrap. They charged 12% to use their trailer. Rates were cheap and in doing the math the trailer % wasn't enough to cover a trailer payment, not to mention all the cost that go with a trailer and risks. Now if I had plans on staying with that, buying a trailer would've been the only way to go, but with the cheap rates and wear and tear on the equipment it wasn't worth it.

 

man.... i was really thinking running over at 'ol blue' would be profitable as a new o/o
thanks for sharing.

 

Very good subject. i am in the process of becoming an O/O. Never put much thought into buying a trailer. Now I will look at the "business plan" a little different. Thanks SP for the info.

 

Things must be very different in the U.S.A then here in Canada.

Right now is the time to be running for mileage pay. Rates are way down because of the sunken economy, I only knew 5 guys on percentage, and they all switched to mileage companies in the last 4 months because good paying freight simply is not out there right now, or I should say, not enough of it.

Where the old man run's, he get's $1.25 per mile, all empty miles paid, at $1.20 per mile. The only incentive there to have your own trailer is an extra $0.11 per mile. The trailer payment itself is $750 a month. So even if you have a 13,000 mile month, that's $1,430. Take off $750 for the payment, your left with $680. Now, yes, that does add up, and it is extra income, and trailers require very little maintenance. However, I find in the step deck/flat deck world, it is near impossible to stop customers from banging up your trailer and wrecking it. He makes a point to tell every unloader/loader nicely, this is my $50,000 trailer, treat it with respect, or you will pay, and countless times damage has occurred, and you have to fight, and fight, and fight, to get someone other than yourself, to pay for that damage.

When times are tough like now, mileage is simply the way to go, but that is just my opinion, and again, I am in Canada, not in the U.S, so for all I know things could differ completely. Right now there is just to many empty miles floating around, and when your on percentage, you swallow that, plus the fuel it took you to get there.

 

Good to run into a fellow Canuck . I live in "wild rose country", so I guess that would make us neighbours.

 

No different in the US. I sold my stepdeck and went to mileage pay in July. You get tired of sitting around waiting on that one good load that pays enough and then you deadhead alot to get it. Things will get better and rates will slowly creep back up.

 

Who ya run for Graymist?

Good to meet ya!

 

Mullen....and you & your dad ?

 

Mullen eh? Do you like it there? Ever get any work up at the ice roads?

I run for Kindersley Transport right now, and the old man is over at Q-Line Trucking. I am waiting anxiously for Q-Line to start hiring again, so I can get the heck away from the "kindergarden" clan.