What are some amenities you look for when leasing to a carrier?

Discussion in 'Ask An Owner Operator' started by RafaelBrunet, Nov 3, 2018.

  1. RafaelBrunet

    RafaelBrunet Bobtail Member

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    Thank you everyone for the feedback! Keep it coming! I'm sorry for referring the o/o's as 'my drivers'. I'm just trying to do some research. No sense in offering more money if they're not happy with the company they're leasing with and if the company isn't taking care of them. I'm looking for longevity. I'm trying to build a reliable and safe team to treat like family. Would you rather have 90% or 80% with benefits? I understand some things are standard but I want to go the extra mile and make sure the o/o is happy and his equipment+wallet is taken care of. In the end of the day the equipment's integrity is as important as the o/o himself. I was thinking of composing a list of benefits and adding more as I get more feedback. I think I figured out the rate I'm gonna pay the o/o. I'm thinking of paying 80% gross load pay while paying for fuel taxes, tags, deadhead miles, maybe even oil changes/tires. I'm also including our own dispatch service. What are some other amenities or benefits I can add to the list? These were all I can think of off the top of my head.
     
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  3. Robert85006

    Robert85006 Medium Load Member

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    Rafael, I've been in trucking my entire life (now 50) and I think I can help you. I'm a successful O/O who owns a big house (144 inch sleeper) and I also have my own authority. I currently have my numbers parked, or inactive, with the DOT because I find leasing on with carriers much easier and less headaches for the small percentage cost of time management. I don't think you are wise in paying for oil changes and tires as they help us keep our taxes low as a write off. I'd offer a national tire account discount and/or (perhaps) allowing the o/o to charge his/her tires off and deduct them in installments from settlements until paid.
    I wouldn't set a limit on age of equipment, however, if it is well kept, presentable, passes a level one DOT inspection then why not allow it to run? Some of the most dependable trucks are 20 or more years old and much, much less to repair.
    Call and negotiate deep discounts with trailer manufacturers and see if you can get trucks at a discount also. Volvo, Kenworth, Freightliner and Peterbilt are good places to start.

    As far as benefits are concerned: This is an area where you may want to utilize the services of a good business Attorney. The IRS has a line you cannot cross in dealing with contractors before they will deem you are no longer a contractor and an employee. As a general rule: Once the carrier dictates the majority of what an operator does ie: wears a uniform, paints his truck certain colors, uses company forms, follows company rules and regulations, etc..then they are no longer free to make any of their own business decisions and therefore can be classified an employee.

    Allow o/o to book their own loads from whatever source they can find, not just your dispatch service. Once a shipper is qualified (financially) and they aren't operating out of a parking lot, that shipper can then book loads with your o/o's.

    I applaud you for your due diligence in research sir. Many many people have come before you and done this exact same thing: started a trucking company. Some have success, several have failed. I think it's best to examine both: the successful and the failures and analyze each on their own merits. There will be great days where everything lines up: DOT is happy, o/o's are happy, loads are picked up and shippers/receivers are happy, etc. We all know the other side, just remember to keep at it.

    One thing to keep in mind as you progress on your journey: "No man can fall an oak tree with a single swing of an ax" ---- Building businesses takes time and commitment. Good luck.
     
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  4. 2 CHAINS

    2 CHAINS Light Load Member

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    I get discount tolls . Free pre pass discount shop rates. Access to National Tire account. Discount fleet fuel thats huge. Reinbursed for my tags 35.00 wk or run their tags but prefer my own. Icing on the cake i get to book my own loads off DAT negociate my own rates . No trailer rental fee ( 12000yr savings for reefer)No Cargo Ins fee 15000 yr savings. No factoring 3000 yr savings. Discount fuel 5000 yr savings. Get paid every week priceless. All cost to me 30% great investment company im leased to takes care of the office work . I drive and bank based on my skills as it should be. As i see it the money im saving lowers my op cost which in turn allows me more time with family this yr alone ive had 3.5 months off already still banking operating capital. I drive a brand new Glider of 2 yrs now currently on pace to pay off 2 yrs early. Im good with that. 70% on reefer not the best but i hustle the brokers harder .In the end when truck is paid off that extra hustle will pay bigtime .
     
    Last edited: Nov 6, 2018
    RafaelBrunet Thanks this.
  5. RafaelBrunet

    RafaelBrunet Bobtail Member

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    Wisely worded. I completely forgot about tax write offs, nice tip. I can't thank you enough for the feedback. Adding national tire discount to the list as well as truck discounts! Thank you again!
     
    cway0283 Thanks this.
  6. RafaelBrunet

    RafaelBrunet Bobtail Member

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    Sep 5, 2018
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    I like the idea of no trailer rental fee, no cargo ins fee, and discount fuel card as well. Noting all of them, thank you!
     
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  7. Ridgeline

    Ridgeline Road Train Member

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    I am reading all of this and shake my head.

    Most owners I know don't care about benefits, they want money.

    They want consistency in making that money.

    I would not get too involved with this, the best preforming small carriers who lease are the ones who are making it easy to make the money up front.

    I would put your efforts into making connections for loads, making the owners happy by giving them offers that are better than any other carrier. If you strive for $2.50 to $3 a mile all the time, then you have a reason for them to stick around.

    The only thing that i can think of you can offer is the Ifta taxes are done and submitted for them, nothing else. They pay the taxes at the pump so it is a wash if it is done right.

    Tags?

    Forget that, smart owners will get their own.
     
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  8. RafaelBrunet

    RafaelBrunet Bobtail Member

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    Sep 5, 2018
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    Fair enough, maybe the best way is to keep it simple. ;)
     
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