Power Unit Only Opportunity...couple questions about it for O/O's

Discussion in 'Ask An Owner Operator' started by LHTrucking, Jun 24, 2013.

  1. LHTrucking

    LHTrucking Bobtail Member

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    I have a potential client that keeps coming to me asking if I can help him. Let's say it's one of the big guys like Swift or JB. This company will pay $1.10 per mile plus fuel, all miles...using their trailers, dedicated SE. Back hauls are their own too. Drop and hook, don't even need to wait for unload.

    As an O/O, would you go after something like this? If so, what would you charge per mile?

    Just exploring other opportunities....

    Thanks in advance for your time and input.
     
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  3. Pound Puppy

    Pound Puppy Heavy Load Member

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    It really all depends on you. What youre cost of operation is, and is the profit you make sufficient for you. There are many leased o/o that work for that money and do well, bring in 2-2500$a week. Some guys wouldnt turn the key for that. Ultimately its about what your operation costs are and if you will b happy with the paycheck. Also consider any fuel discounts, insurance savings, and paid ifta or paid plates, that money can be good. Good luck.
     
    Dryver Thanks this.
  4. Oscar the KW

    Oscar the KW Going Tarpless

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    Fuel surcharge is what, .40-.50cpm? Would you be happy with $1.50-$1.60 per mile? I would assume you are running under your own authority, with the costs involved with that I don't see any profit in it with the numbers involved.
     
    MNdriver Thanks this.
  5. LHTrucking

    LHTrucking Bobtail Member

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    Sorry. I wasn't clear enough in my question. I would have the contract with the company running under my company authority. I would utilize O/O's in the traditional way. Right now, FSC is about 30%.

    So, of that $1.10 + FSC, what would be a fair cut (if there is a fair cut) to an O/O? I'm not asking for your own personal needs, just in general.

    72% to the owner op would be .792 CPM
    75% to the owner op would be .825 CPM
    78% to the owner op would be .858 CPM

    Etc....plus FSC
     
  6. Ruthless

    Ruthless Road Train Member

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    ...the percentage isn't the important part if the net $ makes sense. Last year I made $2.325 per odometer mile, leased to another company, pulling their trailer at no charge, mostly drop n hook on the pickup side, mostly live unload. If you can find someone that can make the numbers you are offering work for them-I suppose its a viable business plan for you.
     
  7. Oscar the KW

    Oscar the KW Going Tarpless

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    So you want to contract these loads from another carrier and pawn them off onto owner operators running under your authority?

    Fuel surcharge is about 30% of what? Fuel surcharge is figured off of the Department of Energy's website, based on fuel mileage and the price of fuel. I have never heard anyone mention percentages when talking about fuel surcharge.

    Do I think in general that a linehaul pay of .79cpm to .85cpm is fair? Not a chance, even as myself being leased to a carrier there is no way I would put the key in the door for that. Pay like that is an insult, but you have your own authority and I hope already knew that. If you are pulling for rates like that you are one good break down from being out of business. And I don't see how anyone can afford to pay their taxes, let alone keep a truck in good running condition at those rates. That is more than likely why there is such a high percentage of wannabe owner operators with serious tax problems with the IRS.
     
  8. Mr. PlumCrazy

    Mr. PlumCrazy Road Train Member

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    So you come to a trucking forum to ask how to scam O/O. I wont say it the way I want cause I dont want to get band. But you sir are a prime example of whats wrong with trucking
     
    Clasix1055 Thanks this.
  9. LHTrucking

    LHTrucking Bobtail Member

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    I'm not scamming, I'm ignorant to the business and trying to learn. What better way than to ask people that know the business? If that $1.10 changed to $2.35 or $3.51, would I still be asking you how I can scam you?

    Geez...I don't even have a company, nor authority...just asking hypothetically. Sorry I ruffled your feathers gentle sir....just trying to gain a bit of knowledge.
     
  10. Mr. PlumCrazy

    Mr. PlumCrazy Road Train Member

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    Well double brokering is a scam no matter how you put it. Get you own freight dont get freight that been brokered to JB Hunt and then JB cut the rate then you get it cut the rate then want a O/O to pull it. Thats about like me telling every driver that leased to JB to pay me 22-28% of what they make
     
  11. trees

    trees Road Train Member

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    I think it starts with someone reading the trucking guide/application books in the rack by the restrooms in the truckstops.....

    "Wow, if I could get JB to give me $1.10 plus a fuel surcharge I could start a business where I take loads from over here, siphon off my percent, and send them over there to those guys... these other outfits in the guide books are paying .92cpm plus fuel surcharge, so if I can get $1.10, take .10 per mile, and offer $1 plus surcharge they'd flock to me cause I'm giving them .08cpm more .... I'm going to be rich!!"

    You start brokering loads paying $3.51 per mile and we'll all be your friends.

    Well, go out and get one, one offering $3.51 per mile and we'll all forgive you.
     
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