Question for the Independents

BUT............
Guys paid $30 Clerk pockets $2 =$28
Yet Guys ended up paying $27 (3x$9)

I think this is how the TAX system works

Just to derail the thread...

 

Leased on only makes you more if the carrier has great paying exclusive freight. if the freight comes off the load board you are just giving money away to the carrier. Grossing $20,000 per month, 20% to carrier, $4000 per month. How can you imagine that it comes anywhere close to $4000 per month to do the little bit of paperwork it takes to keep everything in order?

 

Yep, they make the same thing as someone owning a truck only they do not have the liability. I have figured roughly 40-50k per truck per year after expenses. That money is a new truck every 3-4 years.

 

Now to expand what you have shown, some carriers make the leased on O/O pay insurance on top of that percentage. Thats highway robbery. One I called took 20% AND $850 per month for insurance. At that rate, the O/O is paying the carrier to move loads.

 

I don't want to seem like a pretentious ### but here's my take.

There are basically three performance levels and responsibility levels in trucking. Employee, O/O and Carrier. If a fella is the type of guy that has his ducks in a row and gets things done with time sensitive or expensive or over dimensional freight, then I think there is alot of money to be made by being a carrier.

As a small carrier you won't have the freight base to repositition your truck therefore you have alot of dead miles. This doesn't matter so much with time sensitive/expensive/OD because they're going to pay your DH anyway to make sure you don't get delayed.

So, if you are in the top 1%, sooner or later you will be offered one of these accounts and that can only really happen if you are a carrier. It may take a while, but it will happen.

 

Oscar are you thinking 3 axle trailer or are you going big....?

 

Remember , when you guys lease to a carrier, they are PROFITING off your work. Leasing is generally a great way to make some easy profit for a MC without incurring any additional asset risk.
Ultimately it comes down to your own decision about how you want to or like to work. It is certainly way easier as a Lease Operator but you're also at the MC's mercy.