What are we doing wrong?! This is long but the backstory is necessary :)

WWWx3 · Mar 7, 2025

Sons Hero said: ↑

How many miles are you running per week? I have put $4,000+ in fuel through mine in 1 week more than once. But, I drive my own, and when the money is there, I DRIVE it. And, to simply repeat what others have already said, there is not a driver out there that will run as hard as an O/O. I know where my money goes, but I also see what a run pays, and 1 more round is gravy money. Do that repeatedly, it makes a difference. You have several options, #1, listen to @wichris and @Ridgeline , they both know everything you have admitted you don’t. #2, either quit your gravy job, fire that driver and run it yourself, or sell out. Unless you overpaid for the truck, you should be able to pay the loan off against it. Otherwise, the way you are trying to run this “side gig” will bankrupt you entirely
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Yes, we are taking the mass advice of the experienced and going to drive the truck and dispatch. That will allow us to keep one cush job, as a backup, while we build our business. We were slacking a lot but we are not so far in the hole that we can't turn it around, if we act now. I appreciate the advice!

wis bang · Mar 7, 2025

LOTSO said: ↑

Well, looks like OP didn't get the answer that would allow them to just make passive income as a truck owner, so they're gone. I just keep thinking that this insurance is going to stop these people looking for the TikTok/YouTube business model from getting their Authority, but it hasn't. OP's story is another perfect example of why we still have a lot more capacity to flush out.
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Hard to focus while circling the drain!

The past 3 quarters have started a huge flow down the gutter towards fleet size correction.

Cue the next batch attracted by all the used trucks suddenly becoming available and cheap as the downsizing approaches true correction.

WWWx3 · Mar 7, 2025

ElmerFudpucker said: ↑

You say your cost per mile is 2.39 and you say you are losing .17 cents per mile. Then you say this

2.39-.17 is 2.22. 2.22 x .05 is .11 cents per mile. Now you are only losing a nickel per mile. And if you were driving the truck I guarantee you’d make up that nickel. Then you would value your time and what the load demands and you’d probably price it higher. But keep on with only this and only that. It’s a death by a thousand cuts.
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I agree, we've decided to drive the truck and dispatch ourselves. We want this to succeed and know we need to do something different to get different results. Thank you for the advice!

WWWx3 · Mar 7, 2025

rollin coal said: ↑

A lot of things I'm mentioning have been posted already but just to drive home some points. The margins are too thin in trucking for a 1 truck operation to outsource finding loads and hiring a driver while working off leftover spot market loads. You have to run a tight ship even in good times on spot freight. At the end of the day spot freight is a huge money pit for the vast majority of people who attempt it and he ones like you that are so "hands off" never succeed. All your profit (and then some) is going to a dispatcher and driver who both profit regardless what you do.

But beyond that your biggest problem is you are not filling any sort of niche in transportation. So no matter what business numbers you pencil out you're never going to dig yourself out of the rut you're in. And if you're willing to run at a loss for years on end the sharks in this business will be happy to oblige you. There's a massive excess of trucks and drivers willing to work out here hauling freight from point A to B. You need an exit strategy if you're unwilling to get more hands on with the business and find more profitable/consistent freight to haul. Don't let this thing bring you to ruin.
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We are going to drive the truck and dispatch ourself. We knew that some of those loads our dispatcher booked was at a lost but we were too focused on the impact to the driver so we never let the truck sit. When you have an employee, you have to consider the impact on their check if you don't move the truck for that day. True. the driver gets paid while we lose money but it is our company so I feel we should take the loss. I don't want to be a shady employer but I won't be an employer for long, if we don't run this business efficiently. Therefore, if we are driving, we can make the decision to turn down low paying loads, even if it means the truck does not move that day. We are also working on getting some dedicated loads from brokers we run with on a regular. We have a lot of repeat customers. I know everyone is saying go around the brokers but we can't seem to make the connection with a direct shipper. So, for now now we will use what we have and that is solid relationships with brokers. If we can get a regular route that works for us, it's better than pounding the loadboards each day and at least we can plan our routes and money. We will figure it out. Thank you for the advice.

WWWx3 · Mar 7, 2025

Bean Jr. said: ↑

Last year you averaged $777 per week for fuel? You should be doing great if your revenue is $5,000 per week. I get a huge discount, and still fuel is $1,440.
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I am gathering that our biggest issue is the driver fee we are paying and deadhead. We are getting $5k a week but we need to reduce empty miles. Our deficit right now is also due to the fact that we just purchased the Freightliner a few months ago. That was a big recent expense that will take time to recover from. Which is why I said I don't think we are doing so bad, at this point, that we need to shut down the business. However, if we don't get to operating at a surplus per mile, we will be at that point. Insurance is our biggest expense, after fuel. We shopped around and got the best rate we can get on insurance.

Espressolane · Mar 7, 2025

@WWWx3

Some things you can do right now that could help you turn this around.

Join OOIDA. They have a bunch of educational courses and resources on the web site. Most are not available to non-members. This includes some basic spreadsheets and other financial tools.

Look for your state trucking association. They are there to assist trucking companies. Find out what they have to offer.

If you are using a credit card to buy fuel. Stop.
Look into something like NASTC or Multiserve. Yes it’s going to have a membership fee and may have a few other requirements. They will pay for themselves in a few months of use.

Last item. Consider taking the truck into a lease agreement. Since you are going to be driving, then a place like Schneider choice or Landstar as examples. This will provide you with an income while you learn the basics. After you have learned things, figured other things and built a cash reserve, then you might be ready to run on your own numbers.

Sons Hero · Mar 7, 2025

WWWx3 said: ↑

We are going to drive the truck and dispatch ourself. We knew that some of those loads our dispatcher booked was at a lost but we were too focused on the impact to the driver so we never let the truck sit. When you have an employee, you have to consider the impact on their check if you don't move the truck for that day. True. the driver gets paid while we lose money but it is our company so I feel we should take the loss. I don't want to be a shady employer but I won't be an employer for long, if we don't run this business efficiently. Therefore, if we are driving, we can make the decision to turn down low paying loads, even if it means the truck does not move that day. We are also working on getting some dedicated loads from brokers we run with on a regular. We have a lot of repeat customers. I know everyone is saying go around the brokers but we can't seem to make the connection with a direct shipper. So, for now now we will use what we have and that is solid relationships with brokers. If we can get a regular route that works for us, it's better than pounding the loadboards each day and at least we can plan our routes and money. We will figure it out. Thank you for the advice.
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It’s cheaper to leave that truck parked than run at a loss.

WWWx3 said: ↑

I am gathering that our biggest issue is the driver fee we are paying and deadhead. We are getting $5k a week but we need to reduce empty miles. Our deficit right now is also due to the fact that we just purchased the Freightliner a few months ago. That was a big recent expense that will take time to recover from. Which is why I said I don't think we are doing so bad, at this point, that we need to shut down the business. However, if we don't get to operating at a surplus per mile, we will be at that point. Insurance is our biggest expense, after fuel. We shopped around and got the best rate we can get on insurance.
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Give it 1-2 years, and if you have no claims, insurance should be 30% of what it is for you now. That’s what mine did after several years

Ridgeline · Mar 7, 2025

WWWx3 said: ↑

I agree, we've decided to drive the truck and dispatch ourselves. We want this to succeed and know we need to do something different to get different results. Thank you for the advice!
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Stop saying dispatching, you locate loads and take them, dispatching thing to direct a driver to work.

WWWx3 said: ↑

I am gathering that our biggest issue is the driver fee we are paying and deadhead. We are getting $5k a week but we need to reduce empty miles. Our deficit right now is also due to the fact that we just purchased the Freightliner a few months ago. That was a big recent expense that will take time to recover from. Which is why I said I don't think we are doing so bad, at this point, that we need to shut down the business. However, if we don't get to operating at a surplus per mile, we will be at that point. Insurance is our biggest expense, after fuel. We shopped around and got the best rate we can get on insurance.
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You really need to learn how to manage all of it. I know others can explain this to you but I won't, I just throw it out.

If you do not know what your costs are, if you don't have a solid source of work that you can work with and if you can't understand how to figure out your BEP with either front end or back door dead head miles, then you will fail.

Midwest Trucker · Mar 7, 2025

Where are you based out of? What lanes do you typically run and what type of freight? How often does the truck return back home to its base?

Do you factor your invoices or run on your own money?

Stringb8n · Mar 8, 2025

If you go to Landstar, you may pull your hair out while you learn their system. I hated it, absolutely despised it my first probably three months. All good now, though.

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