Three years of own authority costs combined.

Discussion in 'Ask An Owner Operator' started by TallJoe, Dec 25, 2019.

  1. TallJoe

    TallJoe Road Train Member

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    That's good. I'd rather build lego blocks too than feed the likes of XPO's, JB Hunts and Insurance carriers. I am absolutely disgusted with my profits to costs proportions. Those don't make sense at all. I still need to calculate the days worked and nights spent in the truck but these are more likely get closer to 200 days OTR.
    I partially blame it on the dry van. It is an obsolete idea to do Full Truck from point A to point B loads booked from load boards. I am thinking that even handicapped persons can do better than me, provided the have got better freight sources. With this set up, I don't have any edge over anyone. I can't possibly see how I could compete and prove to provide a better service than the other million.
     
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  3. LoneRanger

    LoneRanger Road Train Member

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    Parking in LA on average is about 400-500 per month if you want it close or half that about 60-80 miles away.
     
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  4. TallJoe

    TallJoe Road Train Member

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    Same here, if I wanted to hop on I 294 and commute for 1 hour to South Suburbs, I'd be paying more likely $150-$200 but during rush hour it could be well over 2 hours.
     
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  5. spyder7723

    spyder7723 Road Train Member

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    I think you nailed it with the blame on dry van. If i was in your shoes I'd seriously consider buying a flat. Securement is basic common sense stuff, and tarps aren't nearly af bad af most people claim. Time consuming suue, but definately not what id call hard work.
    Getting a decent rate is just so much easier with a flat or step. Even with 2019s low rates and volume it was very rare that i loaded anything that paid under 1.90 to the truck (after carriers 25%).
     
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  6. starmac

    starmac Road Train Member

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    That depends on where he is and if he has to rent a spot to park a truck when home.
    It is all different, but here we have to have a shop, so I guess you could say that parking cost me 25,800 a year. lol
    My shop does have an apartment with it, so I live here too, and they cover the heat,plus it is a tax write off, so in the overall scheme, it really is not a bad deal.

    Now when I ran otr down south, I did not have any parking expenses over the 5 bucks every once in a while at fontana, which was rare.
     
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  7. spyder7723

    spyder7723 Road Train Member

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    Imo a shop is pretty much required to run a truck. I could not imagine living in an area that land was so expensive I couldn't buy a plot to build a shop with room to spare. 3 acres would be the absolutely smallest amount of land I would own.
     
    Last edited: Dec 28, 2019
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  8. starmac

    starmac Road Train Member

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    Finding land is not hard, finding land that you don't need to spend 30 grand or more to get it ready to pour a slab is a different animal, but there is some. There are some who build there own shop, but many of them are out of town far enough that the costs somewhat offsets it anyway, and you have to have tax write offs anyway.
    Even if I built a house and shop, I would likely be running around 1500 a month during the winter months just for heat. Heck until this last year, I kept 2 shops rented, so I had room to work on other stuff, wish I had the other again now. lol
     
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  9. fishonron

    fishonron Medium Load Member

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    Just Curious and you don't have to answer but how much do you need a month to make your personal obligations?

    I ask this because in 'my' situation I have no dependents, my house is paid off and I have no other debt.

    Would your situation be better if personal obligations didn't play into this or is the business alone (without personal obligations) just ripping into you ?

    Thanks.
     
  10. TallJoe

    TallJoe Road Train Member

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    I have no mortgage on the house either, although I did not save anything this year, so I guess, I need more or less $50K - 60K a year per household to break even. It is still far for me to drown on a personal level.

    It is strictly business though. Freedom is important but any business needs to expand even for one truck and trailer set up...Right now, at this rate, I will eventually wear the equipment down and have nothing left to replace it with, so I can't afford to keep at this for much longer.
    I mean, an owner operator should be able to afford a new equipment replacement after 5 - 7 years of use.
     
  11. Midwest Trucker

    Midwest Trucker Road Train Member

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    how old are your kids? My son is 3 and I value my time with him like I never would have believed before.
     
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