Stop leasing On

That and fleece purchase are the two biggest problem, people that don't have a clue about the business and they dive in headfirst.

 

You say you're going to put it all together to "grow" your business, by that I assume you mean to buy more trucks and hire drivers, or lease on O/O, or lease purchase to drivers? I believe you can, because I still believe we live in a great country where a person can become and build whatever they want too as long as they're willing to put the blood sweat and tears into it... but I have a few questions for you.

If hiring drivers, how do you plan to differentiate your company from the "mega" to get the top quality driver? Can you pay better? I'm not sure you can, driver pay is pretty decent these days. You going to pay for their health insurance, and get them a really good rate on family insurance? Again, I don't think you can. Going to provide them retirement? Going to offer the most driver friendly freight to be had? That would probably be only drop and hook pickups and delivery 24 hrs a day with no complications along the way on my schedule, not the customers. Good luck with that, but now you have the added cost of more trailers so your drivers can do the drop and hook. See despite common belief I don't think the mega fleets operate on cheap freight, they can't, their overhead is way higher than mine is so you better have some really good paying freight lined up if you're gonna compete with them in the driver pool.

Going to lease O/O to run under your authority? Again what makes your company different? Got some good consistent well paying freight? How timely are you going to pay me? I'm not going to lease onto you and wait even 30 days for my money, so you're probably going to give up some of your money factoring or taking quick pay options with brokers, not conducive to being different or better. So why do I want to help you build your business and how are you going to help me further mine? You don't do for me I won't be around to do for you.

Last but not least, you said soon you will grow your business. Wrong. I'm not even sure you are currently in the trucking business, if you were I would think you would realize how slow it has been this year, and getting slower. When a mega fleet like Swift announces lay offs and a reduction in fleet size, what makes you think that you will be able to grow "soon" ?

Speech over, thanks for your time and will be interested to see your thoughts.

 

I've actually sat here thinking about what service hasn't been tried. Uber even beat you to the punch with their business model, not that is anything new.

 

Be sure you read the threads where Independents are being offered 1.20 per mile loads. Also keep in mind brokers are keeping over 1.00 per mile on many loads due to a surplus of trucks.

 

I'm a shipper, what's the difference???

 

I own my truck and trailer. I am leased to a carrier. Lithuanian out of Chicagoland of all people and places.

Personally I am very content and happy with my arrangement. I do very well in my opinion based on what I read from others posting here and other places. I dont have to hunt for loads, the only paperwork I do is logs, send in bills and tax related things.

I'm paid based on a percentage of the line haul. I know exactly what the haul pays, I only run loads I want to run. If its not paying enough or I just dont feel like doing it,.. I can sit and wait for something I like more.

I dont know how much different being a solo O/O would be (Besides paperwork, booking loads, insurance etc).

Personally I think its more the new O/O's that actually do have their own authority that jumped in with both feet with out having a real business plan and now have bills up to their neck and are taking anything they can just to keep money coming in. Sadly, I dont think they will survive,.. but much like the mega's and their endless supply of disposable trainees, there will always be a new batch of people buying trucks and trying the O/O route. Some will make it, others will fail and maybe try again with the knowledge they gained the first go around.

This is trucking. Its always been about supply and demand.

Hurst

 

Thats why I lease on.

If I had 4 - 5 trucks to mitigate the expenses.. then sure,.. no problem. But its just me,.. leasing is a more affordable option for me. At least with the limited experience that I have. I may change my mind 3 - 4 years from now. But today,.. this is where I am comfortable.

Hurst