Log in or Sign up

Some numbers for new O/O

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

Page 7 of 157

Rubber duck kw Road Train Member

Joined:

Dec 9, 2017

Messages:

6,092

Thanks Received:

17,686

0

HillbillyDeluxeTruck said: ↑

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.
Click to expand...

I'm on progressive right now it's kind of high, about 12k for this year, but what do you expect you're 22 and nobody else will even give you a quote?

Rubber duck kw, Sep 4, 2018

#61

Coffey, Blackhorse77 and OLDSKOOLERnWV Thank this.
Dave_in_AZ Road Train Member

Joined:

May 4, 2015

Messages:

56,958

Thanks Received:

388,353

0

Rubber duck kw said: ↑

I'm on progressive right now it's kind of high, about 12k for this year, but T do you expect you're 22 and nobody else will even give you a quote?
Click to expand...

They quoted me some big number as well. But I've heard people say that if you have a hazmat endorsement, that they quote for that, even if you tell them you aren't going to use it.

Dave_in_AZ, Sep 4, 2018

#62
spyder7723 Road Train Member

Joined:

Mar 31, 2013

Messages:

15,471

Thanks Received:

25,075

Location:

sarasota, fl

0

Dave_in_AZ said: ↑

They quoted me some big number as well. But I've heard people say that if you have a hazmat endorsement, that they quote for that, even if you tell them you aren't going to use it.
Click to expand...

Whoever told you that is full of it. A driver having hazmat on his license doesn't mean squat if you don't have hazmat authority.

spyder7723, Sep 5, 2018

#63

Rideandrepair Thanks this.
Justrucking2 Road Train Member

Joined:

Sep 12, 2017

Messages:

3,211

Thanks Received:

4,293

Location:

Plymouth MI

0

Rubber duck kw said: ↑

I'm on progressive right now it's kind of high, about 12k for this year, but what do you expect you're 22 and nobody else will even give you a quote?
Click to expand...

Progressive is a rip off, try Great Western or Great American insurance. A good insurance broker should be able to find you a much better rate. And I had Progressive years ago when they were some of the least expensive around. They went bonkers with their rates, even my current insurance broker dropped them from their list of insurance companies. Here is my broker, maybe they can help.

Navigator Truck Insurance
529 Baldwin St
Jenison, MI 49428
(616) 457-7100

Justrucking2, Sep 5, 2018

#64

gimacen, RubyEagle, TruckRunner and 2 others Thank this.
Rideandrepair Road Train Member

Joined:

Aug 8, 2015

Messages:

17,342

Thanks Received:

56,259

0

HillbillyDeluxeTruck said: ↑

Tax write offs arent all they're cracked up to be. You dont get to write off every dollar spent.
Click to expand...

That’s called a tax credit. Good point. What he means is take advantage of every write off .% of utilities laundry soap etc That being said . I keep every little receipt. It all adds up. What’s left is what you pay taxes on.I depreciated my Truck years ago. I pay a little tax every year.Id rather pay 15% and still have 85 cents of the dollar .

Rideandrepair, Sep 5, 2018

#65

Blue jeans, van3, Derailed and 2 others Thank this.
Rideandrepair Road Train Member

Joined:

Aug 8, 2015

Messages:

17,342

Thanks Received:

56,259

0

RedForeman said: ↑

It's above my pay grade, but I'd expect it has to do with what sort of laws they have on the books in Louisiana versus other states. Things like no-fault, does the insurance commission or courts favor plaintiffs versus insurance companies, things like that. If it costs more for an insurance company to operate in that state, rest assured 110% of that increase cost will be passed on to the consumer.
Click to expand...

Last three insurance Commisioners ended up in prison

Rideandrepair, Sep 5, 2018

#66

Dave_in_AZ Thanks this.
OLDSKOOLERnWV Captain Redbeard

Joined:

Nov 29, 2011

Messages:

18,369

Thanks Received:

276,626

Location:

West Virginia

0

Rubber duck kw said: ↑

I'm on progressive right now it's kind of high, about 12k for this year, but what do you expect you're 22 and nobody else will even give you a quote?
Click to expand...

At that age all of them will seem high...
I'm O/O with my own authority, 31 yrs driving with ZERO accidents... Progressive charges me less than $7K annually. Keep your nose clean young fellow and do your best to keep a clean slate, eventually your insurance will drop. Best of luck to you.

OLDSKOOLERnWV, Sep 5, 2018

#67

W903B, xiipercent, kenn2632 and 6 others Thank this.
RaRa Light Load Member

Joined:

Jan 17, 2018

Messages:

107

Thanks Received:

54

0

DUNE-T said: ↑

So we have $17300 in expenses. Now for being a business owner and all the headaches, you deserve another $1000 per week, which makes it $21300 per month, I will round it up to $22000.
Click to expand...

7 pages in and no one mentioned how he went from 17300 to 21300 after adding an extra 1k to pay himself for all the headaches. wtf?

RaRa, Sep 5, 2018

#68

Brandonpdx, solidified and jochnessmonster Thank this.
dlc trucking Bobtail Member

Joined:

Sep 1, 2018

Messages:

6

Thanks Received:

2

0

DUNE-T said: ↑

There have been a lot of threads lately here and in Facebook groups from people wanting to start their own business. Here are some rough numbers to show how much does it really cost to run a truck.
Lets take a single O/O with new authority and a dry van trailer, who will run 100% brokered loadboard freight (thats how majority of people start out, right?). Lets say this guy (John) has a family and wants to be home every weekend to have somewhat normal life, so he will work Mon-Fr.
1. Truck payment of $1500 per month
2.Average truck/trailer yearly maintenance/repair bill is $25000, so lets say $2000 per month
3. Trailer payment $600 per month. Yes, you should get a brand new trailer. Running a used one will cost you the same or most likely more, when you calculate the repairs and downtime
3.Insurance for the first year will be $12-16k, so lets say $1200 per month
4. Driver salary (pretend you are an experienced company driver and you make $72k per year, so $6000 per month.
5. Fuel $5000 per month
6. Ifta, plates,parking, misc expenses $1000 per month
So we have $17300 in expenses. Now for being a business owner and all the headaches, you deserve another $1000 per week, which makes it $21300 per month, I will round it up to $22000.
$22000 per month, means you need to gross at least $5500 per week, or $1100 per day. You have to figure out lanes/rates and how to make that amount every 5 working days and be home for the weekend.
If everything goes smooth as planned, John will make $120000 per year and be a happy camper.

Of course things never go as planned. John takes time off to spend time with his kids, some repair downtime adds up and now gross revenue starts shrinking. John is lucky if he does all repairs at home, thats usually cheaper. Because if his 500k Cascadia starts having DEF problems on the road and a gangsta dealer charges him $6000 to fix it, on top of the $1000k towing bill, his maintenance/repairs budget starts having problems. Its not uncommon for a new O/O to dump $40k into his truck during each of the first couple years of ownership. The worst I have seen is complete engine failure and a few months of downtime. (happened to me too haha).

Now think if you have a tough enough skin to deal with shark brokers every day, make your revenue goals and deal with all the headaches of owning this business. Remember, in busy months you have to gross much more, than $5500, because in the slow season you might be working only couple of days per week and only do $2-$3k. It means you have to play constant poker games on spot market. You have to be ready to talk to 50 people per day, constantly hear "NO" for an answer, be very resistible to stress and be very efficient with time management. The first year you will be spending time learning lanes,you will make many mistakes, like taking 1500 miles load to Miami for $3500 and thinking its a great rate, or taking already late loads to grocery warehouses and sitting there for 3 days waiting to get unloaded, while getting paid $150 per day broker layover fee. Some of those mistakes can have you make a great big $0 profit at the end of the week.

Oh, also, if you are one of those people who just want to buy a truck and put a driver in it, think about all that and about your truck going down for a month and how you will be paying your driver to seat and wait while your truck is getting fixed. Also think about your driver not checking oil level, ####ing up the engine 1000 miles away from home, getting put out of service for some stupid reason, damaging the load, e.t.c and another 100 mistakes crappy drivers do, because being a new business, you will not be able to hire great experienced drivers, they usually already have good places to work at.

Some people will be lucky and have less expenses and some will be lucky to make more money, but you still will be around numbers posted above. Good luck
Click to expand...

Thank you for the encouragement. Great post my friend

dlc trucking, Sep 5, 2018

#69
DUNE-T Road Train Member

Joined:

May 10, 2015

Messages:

6,944

Thanks Received:

16,851

Location:

Detroit, MI

0

RaRa said: ↑

7 pages in and no one mentioned how he went from 17300 to 21300 after adding an extra 1k to pay himself for all the headaches. wtf?
Click to expand...

It says $1k per week and its only 4 pages

DUNE-T, Sep 5, 2018

#70

joseph1853, Matt1924, Old Hullabaloo and 3 others Thank this.

(You must log in or sign up to reply here.)

Page 7 of 157

Search