JB Hunt and Schneider making millions off a nickel a mile profit and 20,000 trucks and you want to compete with that?
Small Fleet Owner looking for good Carrier to lease onto
Discussion in 'Ask An Owner Operator' started by tractorfleet3, Mar 18, 2013.
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You might want to look up this fellow on here Big Bad Bill and pick his brain, maybe he has a solution for you. He is involved with the Fleet to Farm group whom I believe are an all O/O carrier. He is a very knowledgeable, well spoken person.tractorfleet3 Thanks this. -
There is no company to lease to that will pay 2 bucks on all miles. Those who do are very small and have all the trucks they need.
tractorfleet3 Thanks this. -
I flew out to meet with Risinger Bros company and see the operation 4mo back. They're running at about $1.40. You can't make money at that rate as a fleet owner. Nice people up there though. Thank you for the lead.
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I agree havn't found any companies yet willing to pay the $2 rate. The exception - I'm running fleets under Panther and FedEx custom which do pay at that rate. The negative is that it's a team operation (if you want to make) and it's extremely difficult to staff tractors with teams. It's frustrating to find rate but can't keep tractors staff since teams is so difficult to recruit. Expedite is a whole diff game altogether. I will keep some tractors with them but need to diversify into operation where I can run solos at that rate with decent miles. Note, in Expedite the rate is there for solos but the miles are not there so it doesn't make sense - you'll lose $. Only teams are profitable. I hope that helps someone. I know someone in here will lead me to what I'm looking for.
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I will look into this....thanks for the lead.
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In my opinion if you want to run a fleet then you need to go direct to a customer. Leasing on can work for a truck or two because you don't have a lot of overhead that will eat into your profits. But what you are doing is adding an extra middle man into the picture. There is the customer, the dispatcher at the company you lease onto, then you to dispatch your driver and finally your driver. The companies are set up to dispatch to the truck and have designed
The other issue I see is that you are power only. It means that your costs are lower and the companies are higher by using their trailers making it less likely for them to offer $2.00 or higher.
Your sales pitch is dedicated personal service. It can cost more but you work for them not the other way around. A lot of big companies will dictate the terms of when they haul which a lot of customers seem to put up with but really do not appreciate. That is how I got started. By providing on time/demand service. I work in cement and before they were having the other companies (split between 3 or 4 companies) show up a couple hours early or late quite often so they did not have space for the cement or sometimes had run out. This is what prompted them to go to dedicated, they have one person to talk to, that will provide them the product when they ask for it. They know I don't work for anyone else so I wont get to them when I have time or capacity. -
Sunco Carriers out of Lakeland, FL is all O/O with several different fleets. I pulled for them in '04 andI never cleared less than $1800 after fuel, plates, insurance and support. My highest settlement was $2700 with most around $2100. No touch refrigerated. I worked out of Oswego, IL and stayed between Green Bay, Cincinnati and Detroit. Wishing you the best in your search.
tractorfleet3 Thanks this. -
MoGooder- thanks for the lead. I went up to Sunco in Lakeland, FL and met with them in person. Again, they're running at $1.50 to $1.60 - don't remember. They do have freight coming out of FL and back in but they don't have miles to compensate for the rate. In other words, as they put it 98% of their drivers are home every week and that is how they run their operation which is not enough miles at that rate. It might make sense for O/O especially if they are home each week but not for a fleet. They don't cover tolls or reefer fuel which add
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Can I ask you a question ? If you are willing to lease your trucks on for $2.00/mile, and assuming you pay your drivers 25% or so. Does that mean you would be happy to get $1.50/mile for your trucks and pay maintainence and fuel out of that ?
Maybe there is other ways to get $1.50/mile on your trucks and not have to deal with keeping drivers in them ? What kind of trucks do you have ?
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