Some numbers for new O/O

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

  1. rollin coal

    rollin coal Road Train Member

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    From when you started out independent about 6 or 7 years ago (?) until now how much have your rates come down, or have they? Are you still two trucks?
     
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  2. Misesian

    Misesian Road Train Member

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    OP paints a much more realistic picture than what some guys at the liar’s counter try and do. ATRI has done research and some of the industry mags put out studies as well, each year. Their numbers are all pretty similar to what the OP said and what I see in my operation as well as when I was a dispatcher at some large fleets. These studies and articles are called “The real Cost of Trucking” or similar names. My numbers may be distributed different than the OP example but in the end result is the same, around 17k break even. My insurance will go down next year, and I’ll have the new trailer next year and I’m hoping to shave a few hundred a month off the costs.

    Rates are similar. Rates are good and there is plenty of of freight right now. However, there have always been guys that swear up and down they average $4 a mile and have costs of $1 a mile or less and there always will be. You can hear them calling into Rutherford’s show all the time and he doesn’t call them out, which annoys me. I don’t like misinformation. If it sounds too good to be true, it probably is. I just want people informed and if they still want to do this, good for them.
     
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  3. rollin coal

    rollin coal Road Train Member

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    Well anyone claiming a $1 a mile costs or less or $4 a mile average from regular freight on all miles.... .....common sense says that is BS. However the funny thing is $4 a mile freight or better isn't as impossible to find as some people always seem to think to themselves. That's what they want you thinking, you lost half the battle already. It's not always on lousy low milage runs or to deadzones either but importantly it doesn't just magically fall outta the sky. Anyone thinking it will is in for a rude awakening.

    You got to have the balls to ask for that kind of money along with knowing when you can get it. Most people are clueless on both counts. It's always a tight rope out here what you can get versus what you can stay busy on profitably as well. Figuring out a good balance there is the key. Give me one over the top load a week, which ain't hard to do, and I can build around that if I want to. Sometimes more than one like that comes along.

    You take what you can get as it comes. Know your markets. You can't really know what anyone books but what good does it do you wondering if they do or don't do something? Nothing. A waste of time. Know your own costs and make your own profit. Don't worry about somebody else's operation.
     
    Last edited: Sep 1, 2018
  4. RedForeman

    RedForeman Momentum Conservationist

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    LOL. The words "down" and "lower" are not in the vocabulary used by an insurance man. In my case a few moving parts. Rates did drop nearly in half at the 3rd year renewal. Time in business, loss run, experienced driver, etc etc. Insurance rates started climbing again with the passing of Obamacare. It was foolish to expect insurance companies wouldn't shift their losses to other lines to keep themselves profitable. Then a run of being in the wrong place at the wrong time last year, my stationary trucks being struck by others resulting in claims. Today's rates are back up to about where they were in 2011 as a new entrant. Since my renewal, some of those losses have been subrogated (paid by the responsible party) so maybe I'll at least not see an increase in 2019. Yes still 2 trucks/trailers. I had a third driver lined up and had already dumped a bunch of $$$ into a 3rd truck when the insurance company nitpicked the driver experience and refused to cover him. There was greater value in selling the truck than taking a chance with trying to recruit another, unknown driver. Since that "support" from my insurance company nearly put me out of business, I returned the favor and fired them and the agent at renewal time.

    Moral of the story? Your choice of insurance providers can have some far reaching unexpected consequences. Anyone shopping based only on lowest cost is asking for trouble.

    I need to go back and re-read the OP, but I think @rollin coal was talking more about insurance rates than freight rates.

    Nevertheless, I have gotten to know a few of KR's stars and they're for real for the most part. I agree that there's a tendency to focus on successes and never mention failures. It's human nature. There's a few TTR celebrities known to do that too. Something universally true with these success stories is: however their business model is constructed nearly always differs greatly from mine. In other words, any effort by me to measure my success against theirs is always going to look bad and a waste of time. Like I said in my earlier post: ask 100 different truckers and you'll get 100 different best ways to do it.

    So what? Maybe try listening for some of the things these people do that can translate to your operation as an improvement. I've implemented a number of things that have improved my bottom line substantially. However, other choices I make such as lanes, days on the road, etc are the reason you won't be hearing me on the KR show or on here bragging or telling others how they're doing it wrong.

    IMO what puts most people off about KR (aside from past product endorsements and that whole "signature truck" fiasco) is the fact that he's selling a proven business plan that many others will offer for free for the asking. What he admits, but never really emphasizes, is that it takes a highly motivated (to the point of being mentally ill) person to accomplish it. KR is one of very few people I have ever met that self motivate at that level. If you ever take the time to follow and learn from his most boastful followers, they are like that too. I'll never be in that group since I am a firm believer in working smarter not harder. Maybe a little on the lazy side too. But, I will never say I didn't learn some things from them and appreciate it.

    I'm not defending KR or anything he's done, but really. If he were to drop dead tomorrow two more just like him would pop up. In fact there's a revolving door of people attempting to catch up to KR if you follow any industry social media. What they all don't have in common with KR is that none of them are motivated at his level. IMO focusing on someone's faults is a weak attempt at rationalizing your own failures and will never get you anywhere. Better to observe and then adopt some of their successes as your own.
     
  5. Dave_in_AZ

    Dave_in_AZ Road Train Member

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    $92000 year to date, net before taxes, without TTR esteemed members or KR.

    Just think if I did it correctly.
     
  6. whoopNride

    whoopNride Road Train Member

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    And another thing I have learned about insurance agents, some of them will jack you on the rates also.

    For example, I have had two different agents quote me on insurance. Both quote the policy from the same underwriter (Farmers just for example). One come back at 15k per year, the other comes back at 10k per year. You definitely have to shop around.

    I had an agent quote me thru Progressive, 11,400 per yr. I went thru Progressive direct, 7000 per yr. For the same coverage.
     
  7. Misesian

    Misesian Road Train Member

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    I wasn’t talking about KR himself. 90% of his topics, advice, and recommendations are accurate. I was talking about outrageous claims from callers and from many other sources in general. Just putting my two cents out there to do your homework before you just believe the stories if you’re considering going independent. I had a friend that got suckered into 3 bad deals back to back doing car hauling. He listened to the stories of high paying freight and cheap trucks with no payments, no ELDS, etc. He is currently broke and is leaving trucking completely. I want to see talk around the topic of being an owner operator come closer to reality so others don’t get sucked into the same situation.
     
  8. Justrucking2

    Justrucking2 Road Train Member

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    Reality for most O/Os in the first year or two is around $20,000 to $40,000 net... That is reality.

    And then that expensive emission truck breaks... Most go out of business, few survive. Unless they have $30,000 laying around for the in frame. That is a very real reality for many. ;-)
     
  9. DirtyBob

    DirtyBob Road Train Member

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    I'm there after taxes and that's with an emissions truck that everyone swears up and down you can't make money with.
     
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  10. Dave_in_AZ

    Dave_in_AZ Road Train Member

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    Mine is DEF truck too.
     
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