The Good, The Bad, The Honest Truth of a New Roehl Lease Operator

How on earth are you making any money at 8100 miles per month? I was running 11000+ and was doing okay, but 8100... I think I would have been hungery.

 

I can't understand it I run my butt off. Normally 3000+ a week but even with 8100 you can do okay ya just really have to manage your fuel

 

Now you know why I drive so slow. My mpg is in the mid to upper six range. My business model is set up to treat myself as a driver and believe it or not my average pretax mileage pay to the driver is $.32. Imagine what I would make if I could get another 1000 miles a month.

 

So you are making .32 cpm, I am a company driver making .41cpm. This is why I still am a company driver. I can't see paying .09cpm to just be able to say no...

 

If all I was looking at was the next two or three years then I would be an idiot to go o/o especially with Roehl. I'm looking towards five, ten and twenty years from now. That is part of the reason I have a pm done every other month, that is why I have them do an oil analysis, that is why I don't do band-aids on the truck. I want a truck that will outlast me as a driver. If I never expand this business beyond a single truck, but maintain the truck I have, when it is paid off I will add $480 a week to my bottom line. If I then move elsewhere with higher gross dollars per load I add even more. That all comes from simply paying off the truck.

 

I understand that paying off the truck is the goal with all small business O/O. The problem with paying off the truck or completing a lease plan, is taxes. If you are not spending the profits, Uncle Sam wants a big chunk of them. I know it always seemed better to have the truck payment or trailer payment, and be able to deduct the depriciation, rather than taking it all as profit, and then giving most of it to the government. I also know the pittfalls of trucks as they age. Even with the best possible care they still wear out, seals fail, bearings wear out, rear ends need rebuilt. In a good year, an old truck may only cost you 5k - 7k in repairs, in a bad year it could be two or three times what you would make in payments on a new or newer truck. There is also the lost revenue that comes from down time for repairs. That is a very real cost that most don't factor in also. I wish you guys luck, with your lease, I hope that it works out for you. If I win a new truck in one of these contests that I like to enter, I'll auction it off on here...

 

My daughter just had her school physical. While I was waiting one of the magazines was a trade magazine for the business side of running a private practice. One of the things I realized is that all business has risk and government interference. In our case the purchase/lease of a truck is only the down payment. Most new small businesses fail within the first five years and especially the first year. (This includes all businesses, not just trucking.) In addition, most drivers who do a lease purchase have to for the same reasons they will probably fail. All that said, if you have a little luck, good head for business, determination, courage and work hard you have a chance to be successful.

 

I know what it takes to make a business work, I ran a ISP out of my house back in the days before AOL and Netzero... That was while I still had a real job. I was sales, tech support, accounts receivable, accounts payable... You get the idea. Then I did it again when I started running trucks. Yes hard work and determination do go a long way. But you also have to know your business inside and out, so you know when someone is trying to take advantage of you. It doesn't matter if it is the company that you are leased to, or the mechanic at the dealership, you have to know what you are talking about, or you could loose big. Most businesses don't make it without alot of work upfront, before you ever sell the first item, or haul the first load. I guess I will get off my soap box... I wish all you guys in the lease plan good luck. I am going to keep doing what I do. I enjoy being a company trainer, and that is what I will be comming back to.

 

Paoldschool you and I are on the same page about what it takes to succeed. I spent two years preparing to go down this road and still I'm aware of how close disaster can be. There is a lot to be said for being a company driver and in fact working up through the corporate structure is another path to advancement and success. There are also those who are quite happy just showing up for work, doing a good job, getting paid and going home to the family. To say they lack ambition is disingenuous, they just enjoy their place in life and watching their kids grow up and being with family and friends. The key is to know what type of person you are and where that personality will fit best.

 

I don't see how company's will allow you to drive at that point. Don't they insist the trucks be relatively recent?

My father in law did what your wanting to do. His truck has 2 mill on it. He takes one load per week to Cinn and back to missouri. Makes 700 per week. Leaves on Monday back by Wednesday.

He took really good care of his truck. Now he's waiting for it to die so he can retire. The ac doesn't work. One of the fuel tanks leaks. But he drives when he wants. Not a bad job or income for a man approaching 70.