Some numbers for new O/O

Discussion in 'Ask An Owner Operator' started by DUNE-T, Aug 23, 2018.

  1. HillbillyDeluxeTruck

    HillbillyDeluxeTruck Road Train Member

    2,458
    14,016
    Mar 3, 2013
    San Antone
    0
    Tug toy I agree your insurance is way high. We had Progressive til this year when those f'ers tried to jack the rate by 4 or 5k iirc. We have a new co now and I believe we're under 8k for the yr.

    As for parking cost, Im lucky that I have a place for the truck & trailer(s) for free currently, and also have secure parking available for $50/mo. on the east side of SA if needed.

    Tall Joe, the revenue #'s you posted are attainable in the oil field right now.
     
    20 Mule Team and Need4Speed Thank this.
  2. Justrucking2

    Justrucking2 Road Train Member

    3,211
    4,206
    Sep 12, 2017
    Plymouth MI
    0
    Progressive is insane with their rates! Some of the quotes I have gotten from them are nuts. The broker I have always used has dropped them for that very reason. Much better prices out there. Great West and Great American are two to look into.
     
  3. Tug Toy

    Tug Toy Road Train Member

    4,060
    40,037
    Jul 4, 2015
    Corn field
    0
    Crazy right?

    We I pay about $9k year for insurance through my career and I park there for free and use his shop and tools for free.

    I was just pointing out what It COULD cost. People don’t seem to understand how fast it can get out of control. I’m looking at the property with the shops on them for potential investments. I also keep tabs on what insurance would cost for my own authority so I know when or if to make the change in the future.

    Health insurance is nuts though. Last year it was under $1000.00 this year over $1400.00.

    Insurance guy said some clients he has over 50 years old are looking at over $25,000 a year for Obama care!!!!!
     
  4. 86scotty

    86scotty Road Train Member

    1,012
    1,555
    Aug 27, 2017
    Appalachia
    0
    I built a 24x36 insulated metal building for about $25k. I have a 10k 2-post lift in it and 2 guy's lifetimes of tools (mine and Dad's). I only put a 10' overhead door in it though and with that were higher. I can get the nose or tail of my truck in it if needed but I usually work on mine in the gravel out front. The cheap parking spot I found is safe but I almost always just drop my trailer and drive my tractor home. There's always something to be done. Next weekend it'll be welding up a spare rack on the rear deck.

    You guys in Chicago have REAL winter though. I don't blame you for wanting a full building.
     
    Mooseontheloose and 20 Mule Team Thank this.
  5. 86scotty

    86scotty Road Train Member

    1,012
    1,555
    Aug 27, 2017
    Appalachia
    0
    Dune, I really like how you laid all this out but I was thinking about something today. The cost of living is different all over the nation but us OTR truckers drive all over the nation all the time and the rates are mostly the same no matter where you live, so while your example might be pretty dang accurate for some it's not for others if their cost of living is higher or lower.

    I shoot for the average of 20k/mo. (more or less) gross you mentioned but I only send $2k to the house for salary. My wife has a good teaching job with insurance so I can bank all the rest to my business to pay off/maintain truck and I pay other debt out of my trucking account as well, like if we have a big expense at home I don't pull it out of the 'house' budget. I know, just different ways of doing the same thing but I was doing the math today and I should be able to save around $60k/year if I average 20k/month. I'm hoping to pay off several things as soon as the truck/trailer are paid for.

    I'm not at all disagreeing with you. New O/O's should use your example as a base. It's pretty spot on, generally speaking.
     
    20 Mule Team Thanks this.
  6. kenn2632

    kenn2632 Light Load Member

    81
    31
    Nov 25, 2010
    baltimore,maryland
    0
    YES ..Most definitly
     
    Mooseontheloose Thanks this.
  7. Rideandrepair

    Rideandrepair Road Train Member

    4,352
    4,638
    Aug 8, 2015
    0
    I agree with all that !!!! The maintenance seems a bit high at first but not if you include the occasional big money repairs.
     
  8. Oldironfan

    Oldironfan Road Train Member

    5,778
    5,448
    May 22, 2017
    0
    Sounds good Except pay your self $600 or less a week. To keep the business in the black. Save money for that big repair you did not see coming that will cost $13,000 big ones. Or you may end up closing up shop.
     
    kris20 Thanks this.
  9. Rideandrepair

    Rideandrepair Road Train Member

    4,352
    4,638
    Aug 8, 2015
    0
    I’ve heard that insurance rates are about double for your first couple years these days.

    Funny how things change.I watched everybody sell their trucks, somehow I made it through. Now trying to keep all the

    Now trying to keep all the discipline it takes.Its definitely a lot of Responsibility and Stress if you let it get to you. Depending on someone else for my livelihood is much more stressful to me
     
    Last edited by a moderator: Aug 27, 2018
    20 Mule Team, Tug Toy and Oldironfan Thank this.
  10. Justrucking2

    Justrucking2 Road Train Member

    3,211
    4,206
    Sep 12, 2017
    Plymouth MI
    0
    The key to surviving out here is debt, try to have as little as possible. And maintain the truck and equipment, learn how to do most of the work yourself. If you have to use a shop for repairs, know what your issues are, and know how they are to be repaired before you get there, if that is possible. That is where many guys go bankrupt, the repairs and emissions. A thirty dollar sensor or lose hose clamp and they are throwing $10,000 worth of parts at it. Seen it a hundred times and been a victim myself.
     
  • Draft saved Draft deleted