Some numbers for new O/O

The problem was it was a very steep sudden spike. We wnt from 3 bucks a gallon to 5 bucks a gallon in just a few months. With gradual price increases you can up your rate incrementally to offset the additional cost. With a sudden spike you are basically screwed. You can't call your customer on monday and demand a dollar a mile rate increase over fridays rate on a load you had booked two weeks ago.

It just boiled down to waiting till enough guys went under to increase demand.

 

Exactly. It’s been a challenge.

 

Yep. See how it spiked nearly two bucks a gallon in just a few months firing 08. That killed the economy, so not only was fuel sky high but there was a huge decrease in load volume, dropping rates across the board.

The bright side is that when the economy rebounded a year later there was a lot less trucks available.

 

i know personally 1 guy who did what i said,drove 1 full year 7 days 16 hrs a day as an lease owner operator in chciagoan outfit ,bought out that truck ,put another guy in it.smh managed to get loan on second truck,got 2nd driver in shy 1.5 years he sits home dispatching those guys ,obviously none of those guys is native american,so they dont ask w2 and fine with 1099.
Other than that,i know too many chicagoan outfits got big in few years into tens trucks,id say main point is immigrant workforce with empty pockets and big dreams.
To run this bussiness square and fair on w2 + benefits like most respectable members of this forum against big carriers will take a while before u setup relationships with decent brokers,customers.

 

And i know a guy driving a 300k dollar Mercedes and living in a 5 million dollar mini mansion, and didn't have two nickels to rub together. Smoke and mirrors can build you a house of cards. Personally i prefer staking my families financial stability on brick and mortar built on a solid foundation, but hey whatever floats your boat. Good luck.

 

That's what an owner operator is.

 

There is another reason. When you buy in bulk like they do, you get a discount. They turn around and sell them for roughly the same or more than they paid for them. Not a hard decision at all!

 

Swift is 100 percent not buying 500 trucks at a time for 150 a piece..

 

Who said $150?

Yes the carriers are buying them at a significant discount. There was an article in one of the industry magazines, not the ones we read, but one the guys who have never driven read. US Express, said this article, bought their trucks at around $69,000 (fee years ago) and sold them 3 years later for about the same. They did extended oil changes, so their cost was close to zero!