so how much can you make as a an O/O?

I stay out 3 weeks at a time because i like the road. I could get home weekly and make almost as much. When i say lease, i mean work for with my truck....not leaseing the truck. I own the truck and dont suggest leasing the truck. leasing on to a carroer just means using your truck and their name/freight. I work for tmc who is the company i worked for as a company driver b4 i bought my truck. There are tons out there. Some suck, some are awesome. If you want the big bucks make sure you will make enough revenue. .94+ fuel surcharge of 30ish isnt much / mile, but its the going rate for bottom feeder companies. I would suggest buying keven ruthiford's book. Even if you don't agree with all he has to say, he has some great critiria for selecting a company to work with. He also has worksheets that will help you know if being an O/O is right for you ad well as financial plans to help make sure you dont fail. You dont need to take everything he says as gospel, but alot of it makes sense and is helpful.

When slecting a company, determine what is important to you. Home time? Flexibility? Pay? I think Landstar is a good choice fro vand riving and mercer is a good choice for flatbed. Although im happy hear at TMC.

 

These numbers are worse then my actual numbers. These are more conservative. The loads I haul average over 2.40 per mile, so 2 for all miles is pretty easy since i have pretty low deadhead/ out of route. The 2/ figure is all my odometer miles. No im not paid by odometer miles, but it averages out. If you make less then 2/ then just reduce the profit margin. These were ball parks to help a new driver under stand the cost as an o/o.

 

leasing a truck is differnt then leasing on to a company.

leasing on to a company means its your truck (finaced, paid for outright...whatever). You own the truck, you maintain it, you fuel it. You put the companies name on the side and haul their freight.


Leasing a truck from a company means you dont own the rig. Highely NOT recomended. You haul their freght and they own the truck, but you make the payments, do the maintance, fuel it etc. But you dont own it. If you quit, you cant take the truck with you and loose all the lease payment you made.

 

^^ Correct ^^

 

This week I grossed $5585 on 1742 odometer miles. Legal flat freight. Stayed out 2 nites (in a row -boo!) . My own authority. Total cost for me is $1.74 including driver pay (me) of $0.50 per mile for all miles.

Personal wages need to be part of your business plan. More money isn't the only reason to pursue owning the equipment you operate.

 

Flatbed posted a formula in another thread divide your (in your case Ruthless) $1.74 / .79 = $2.20 per mile. That's what you need to average all miles to be profitable. As many never seem to add a wage for themselves others seem to think running around cost or a few cents over is good (your week shows you're not one of them just using your post for example) Takes way much more than mere pennies above cost to swing an average almost 50 cents a mile over cost.That formula tells you what your average per mile needs to be to get a nice 21% net profit. The only thing then is figuring out how many miles one needs in that year. Note: everyone is different one person may be ok with 18% another may want 25%. Adjust the formula accordingly, know your cost, and have at it.

 

Hey Guys,

I'm new to the industry and have a question. When it comes to a flat percentage for o/o, How does 10% sound compared to what you have seen or get? For example, the company you O/O for sets you up for a 5 day haul and its 2,000 miles where the gross pay for the job is $5,000. The company takes $500 and the only other expenses is on a monthly basis you pay the company for the cargo insurance.

 

Thats great company i am at is a 70/30 split plus all FSC goes to L/O since what you described is a L/O situation.

 

Sorry if I wasn't clear. I don't think its a Owner lease scenario. The trucks operates under the companies DOT ID number and also the driver reimburses the company for Liability insurance as well. I'm not sure how its different with an owner lease deal. But I thought what I'm describing is and O/O situation.