should i switch from company to o/o

I had $15,000 and a paid for used truck when I started. Almost didn't make it the first 6 months. One thing's for sure, you'll pay for stupid that's a fact. Money is really no guarantee, even experience isn't. I think it takes a little luck along the way as well and you can't really count or plan on that one.

 

Wasn't directed entirely towards you spider, just seems as some on this forum believe if you use a shop your gonna go broke, I haven't. As for doing a rebuild in one weekend, good deal but I couldn't do it in one week. I know my limits.

And I still think one should consider their time to be worth something.

 

I know I am going to get bashed for this...owning a truck is not rocket science....it cost "X" to move it down the road...it cost "X" for insurance, maintance, tires etc. While I know I only have 1 year under my belt I am buying a truck next month and I know I will be successful, will I make mistakes sure...but I will make enough money to pay for the truck and its bills and pay me. Its called work smarter not harder... I think his truck payments are ok depending on what his insurance is and what he is getting per mile. Anything above 1.35 should make you way more money than driving for someone..

Be Safe Out There

Captain Dave

 

True it is not rocket science driving a truck, pick up and delivering loads. However, on the business side there is some nuance that many never really grasp, that is where the rocket science comes into play. And when you think you know something really you don't know jack ######. You think anything above $1.35 a mile is money in the bank if it costs a truck $1.35 (what a dreamer lol) to roll? Oh brother......

 

If you pull for a buck 35 you will be left with typical company driver wages. If that's all you want, why not just stay a company driver and get the extra benefits?

 

As I said I knew Id take crap over the post so here is why 1.35 is better than a company driver.... 1.35 x 3000 miles a week is $4050.00 per week. I am going to assume his insurance is 150.00 per week so now were down to $3900.00 lets take the 50.00 per week for phones and internet $3850 now maintenance lets put aside 15 cents a mile thats $450.00 so now $3400.00 His truck payment is 2350.00 per month so thats 587.50 per week lets call it 600.00 for easy math now 2800.00 now fuel he should average 6 mpg so thats 500 gallons at 3.00 per gallon so another 1500.00 so now were at $1300.00 take home thats way more than most places pay...and yes 1.35 is low per mile but it can be done and dont forget he is paying off a truck...

Be Safe Out There

Captain Dave

 

Yeah I know all about $1.35 a mile actually have real world not theoretical experience with it. When I started out in this business almost 6 years ago with a paid for used truck and $15,000 in the bank I was getting all the miles I could handle at that sort of rate. And I wasn't able to turn a profit. I don't have debts and huge bills. I know how to manage money. I could barely keep my head above water with all the break downs. Even without the breakdowns i'm here to tell you there ain't squat in rates like that. If that's what you're aiming for, the height of ambition, save yourself the trouble and a lot of heartache do not buy a truck. If it costs a $1.35 to roll (it doesn't that is no-where near true cost for one truck) and you are averaging $1.40 the first big breakdown you have will be your last. The old "anything over" is a myth. You multiply your cost by .80 if you want a 20% profit. If you want 15% multiply it by .85 that is how you determine what is a safe average. It doesn't tell you what kind of rates you should be quoting or anything of the sort. Just what your average should be.

 

I completely agree your time is worth something. It's it worth the hundred dollars(on the cheap side, I've seen over 130) an hour the typical shop charges? That's debatable. I don't come anywhere near that average running loads most days. 2 bucks a mile freight, average 60 mph, is only 120, before any expenses. Not to mention you still gotta suit around and wait for them to fix the truck. If I'm gonna sit with my thumb up my butt, I might as well do the work and save the money.

And sometimes, you're time really isn't worth anything. Case in point, my rear air bags have been on the truck since the factory, that's 13 years now, and showing quite a bit of dry rot. a while back I picked up two from freightliner for just under two hundred after tax, and threw them under the bed just in case one blew on me while on the road. I've been sitting since Friday night for a Monday morning delivery. All I'm doing is sitting in this truck stop goofing off on the computer and watching tv. I certainly wouldn't put a very high dollar amount on my time here. so today I decided to go ahead and change them. Start to finish took 1 hour and ten minutes. If I had let the shop here do it, it would of cost two hours labor plus x percent fire shop supplies, environmental disposal fees, etc. plus tax.I saved almost 300 dollars, plus the difference in the part price, by getting my hands dirty. No special tools, a 3/4 inch socket, ratchet, and 5/8 wrench for the air lines. Even if I was under a load needing to go, it was still faster to do it myself than wait on the shop to get me in.

 

Unless you have already got a contract for a dedicated run, no way will you average 3k miles a week. And even with that dedicated run, you have fun running that truck, and yourself, into the ground with those miles. I'll keep my typical 8k miles a month and net much more, due to not pulling such bottom of the barrel cheap freight.

 

How come you neglected to figure taxes into your senario? Figure that in there and you are making less than a company driver.