Time for Prime.....

Hey guys and gals,
i am considering buying a truck and have been investigating several trucking company's to partner with. I have heard many negative things about Prime, however, with some of the positive remarks about Prime from "Steve and lo" i decided to call them to gain first hand information about what they were offering to an O/O. Please note that when i called Prime, I had an open mind. I am trying to be completely objective.

These are the details of the conversation: 1.) If you don't lease from them, but buy your own truck, the truck must be a 2005 or newer. ( my assumption is that they do this as a means of trying to force people to lease from them, as the percentage of drivers that can purchase a 2005 or newer tractor is very low)...I told the recruiter that this wasn't a problem for me because i have excellent credit and have cash for a significant down payment. 2.) At that point the recruiter's positive(almost joyful) attitude on the phone changed to compete depression, and she informed me the % pay was 72% plus 100% of the FSC. I asked her what the 72% averaged out to be on a CPM basis, and she informed me it was only $1.10 to $1.15 a mile, and that with the FSC it was a total average of $1.40 or $1.45 per mile.....I didn't say anything to her, but that is completely different than what I've been told ( or seem to understand or misunderstand) from "Steve and Lo" and other Prime people.......(again my assumption was that since her "tone" had changed on the phone, she was subtly trying to discourage me from coming to Prime ((without coming right out and saying it)) by giving me a lowball revenue figure.)

I have tried to do a detailed financial analysis of operating a truck at $1.45 per mile, and from what i can tell, i would just be breaking even....from a pure business standpoint, it just doesn't make sense.....the point of starting a business is to maximize profits, minimize expenses, and to get ahead. As far as i can tell from my research, from the GREAT risk and investment of money and time, i would just be able to average around $1000.00 a week, including having to pay outrageous premiums for health insurance...a good driver at a good company should be able to make that as his weekly NET take home....I've experienced that myself...

I hate to say it. I tried to have an open mind about it, but I came away from that conversation with a bad "gut" feeling. Were they just "lowballing" me because i was going to bring my own truck???

Steve and Lo, i wish nothing but the best for you, and i hope everything is as you say it is for you. I am in NO WAY trying to say you were lying or not upfront with the truth, I'm just trying to report a conversation with a Prime recruiter. Like everyone else I'm just trying to do what's best for me and my family....I wish you all the very best...

Steve, please continue to post your success and various adventures on the road...it is all very interesting....

TommyToe

 

I think your right in the ballpark with your numbers Tommy, I just think your selling it a little short. With Prime, as many have stated, you have to shift your thinking from cpm to revenue. I too have been looking at Prime for about a year now and have really enjoyed Steve's postings. Keep up the good work Steve-o.

Right now I'm in the process of selling my pool service business in the Palm Springs area and heading out on the road. I drove when I was younger and grew up around trucks, so I was kinda raised around the business. I have to get recertified, and while Prime offers that, not sure I wanna spend that long with a trainer as the trucks today are so much easier to drive and less tiring aswell. And, I was trained on a truck with not one, but two gear shifts, so a ten speed or even a thirteen speed is not a problem for me.

Send me a pm if you wish Steve and I'll use you for a referral and if I do get on you can get something out of it.

 

If it cost you $1.45 to operate your truck incluiding expenses then your doing something wrong. I know several lease operators with Prime who operate their truck at a much lower operating expense and that includes the higher cost of the leased truck. If you want their phone numbers let me know and I get them to you, their a bunch of good guys and they will be straight up with you as Steve and Lo have been. Their all making $1000 to $1500 week profit and they can control their lives with that. That's pretty much the difference between them and company driver, company driver does what he's told 24/7. Good Luck in your choice.

 

i might be figuring my expenses wrong, maybe some of the experienced O/O's on the board will offer to break down their expenses for me as a total dollar amount, not on a CPM basis....that way i can get a better handle on what and how much to budget....i'm just in from work and gotta go to bed,,,i'll try to get what i've figured on here later and see what you all think...

 

If they tell me that I'm approved to come to prime besides the drug test is there anyway that when I get there that they don't hire me?

 

On a 100k a year driving miles basis:Here is the breakdown:
Lease payments:.31cpm
Maint.varies:.12-.15cpm
Insurance:.04
Plates/Permits:.02
Fuel:.60cpm rough estimate


Your cost per mile would be roughly around 1.12-15 a mile not counting other expenses on the road such as meals and such. You will still turn a profit,but a SMALL one. Not worth it at all since you would only be paying yourself .30cpm as a lease operator. BTW I doubt that they actually average 1.45 a mile for all miles. Some of those estimates recruiters give are usually way off. You would be much better off buying a good used truck for around 35k and keeping your good credit for emergencies such as a big breakdown.You may even want to consider getting your own authority altogether. Good Luck.

 

howdy boys and girls! sorry it has taken me so long to get back here and explain how i came up with my figure...any way, here go's....

...if anyone sees any mistakes in overestimation or underestimation, please feel free to inform me....i am extremely prone to mistakes...........also, the figures below assume working 40 weeks a year(being home 1 week a month)

Weekly minimum expenses (excluding fuel)
1. i want an annual net income(bring home) of $36,000.00....assuming my current tax bracket, and in consideration that i will be responsible for both sides of my fica, i'm estimating $51,600 divided by 40 weeks = $1290 per week

2. Health Insurance....signing up for a Health Savings Plan, $600/mo premium plus $400/mo going into the savings part, = 1000 per month....$12,000 divided by 40 weeks = $300 per week

3. truck maintenance is $10,000 annually (including tires....help me out on this one...i'm guessing) = $250 per week

4. IFTA, road use tax, bobtail ins, liability, etc (help me out on this one, too) is = $300 per week

5. truck payment $1500 per month= 18000 divided by 40 weeks = $450

6. fees for bookkeeping, satellite radio, OOIDA dues, etc, etc,...$22.75 per week

GRAND TOTAL $ 2,612.75

Therefore, if i want to just make the absolute bare minimum and run the "Fleet Average" that Prime talks about, which is just around 2500 miles, it averages to $1.045 per mile......i'm sure some of you will think that this is GREAT, well i dont........from their quoted $1.10 per mile plus FSC, it leaves me with 5cpm for saving for a truck, saving for retirement, etc.....

I welcome any and all comments.......oh, and by the way, if you include the price of fuel for those 2500 miles ( assuming 6mpg and the local price per gallon of $2.899) your cost per mile just jumped to $1.5287.....so by their own standards, I'll be LOSING anywhere from 7 to 12 cpm from the above stated costs.....

However, if you work the numbers a little harder, you will see that (obviously) the more miles you run, the better....again assuming the above costs and averaging 6mpg:
1. 2750 miles, it drops to $1.434 per mile( remember, this is the bare minimum you need just to keep your head afloat)
2. 3000 miles....$1.354
3. 3200 miles....$1.30
4. 3600 miles....$1.21

One point i would like to point out....this is running my own truck at Prime, not leasing....

All the best to you and yours,
TOE

 

If you get there and your blood pressure isn't in line with the DOT requirements......or if you are diabetic and don't know it.....or if you lie on any of your paperwork.......and that's about it.

Tell em' Steve & Lo sent ya! LOL

They don't automatically disqualify you.....especially on the BP.....you get another chance the 2nd day......if you can't get it down.....you gotta go home for a month and come back and try again.

 

Sorry Jack5.....but the Insurance, Plates, & permits are ALL figured into the lease payment.......My expenses are averaging......this is fixed and variable expenses included.....right around $1.00 mi. And my revenue is running from $1.47-$1.58 average per week.

I had a quickie load into Chicago night before last......48 empty miles.....115 loaded......$574.00.......then got my next load 14 miles away that same morning......677 mi.....$1247.00+....it was a drop and hook....got it off Friday....grabbed a weekend load to NE for Monday....out of the Atlanta area....1300 mi.....Just under $1500......and those are on top of the load that got me up around the milwaukee area that was somewhere in the neighborhood of $1000 for the week.....all told.....a little over $4k.....for about 2800 mi.....

Like I've said.....this might not be good enough for some.....but, I'll take it.......

 

3. truck maintenance is $10,000 annually (including tires....help me out on this one...i'm guessing) = $250 per week

4. IFTA, road use tax, bobtail ins, liability, etc (help me out on this one, too) is = $300 per week

5. truck payment $1500 per month= 18000 divided by 40 weeks = $450



You shouldn't have to pay for liability insurance unless you have your own authority.That is usually the company's responsibility.Bobtail ins. and collision ins. is around 40-60 a week depending on the value of the truck.Road use tax or form 2290 is 550.00 for the whole year. Ifta can range from 100-300 every quarter depending on how much fuel you buy and in what state.Those three would come out to an average of 50-75 dollars a week,not 300.00. Truck maintenance can vary from 10 to as much as 20k if you need a big overhaul.Doesn;t Prime charge 600.00 a week to lease their truck? That would be 2400.00 a month,not 1500.00.