What do experienced O/O's look for in a lease?

2CAN · Jan 17, 2014

fld said: ↑

I am a big believer in watching HUGE red flags. Business is such that no company truly knows how many people that you know or how you can actually affect their business. Bad PR really does go a long way.

I watch what people say and do. That's the biggest indicator in business. It's the biggest red flag that will be put in front of you. I think that it is ignorant that they are making you jump through hoops to go trough all the application process, to then possibly tell you that they are paying peanuts.

When I deal with businesses that do things like, tell me that they will get back to me and never do, I remember that. BIG RED FLAG!!! It's just plain IGNORANT. That just comes down to how you will be treated there. COURTESY and DECENCY are rare things in this world today. But some people in business are just too greedy, self centered, lazy, and short sighted. But how a business presents itself says more about the person behind it than most realize. Here we have the game players.

I am the guy that goes to buy a new car in the oldest clothes that I can find. I make certain that the salesman that wouldn't deal with me sees me come back and pay cash to the salesman that was good to me. Yes, I have done this.

There are plenty of businesses and people that represent themselves as something beneficial, mostly through PR, that are not what they appear to be. I suspect you will find they are hiding something.

Foolish businesses think about what you can do for them, hence this type of rude behavior. When your are ready, let everyone know not to waste their time. That's what I will do.
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I also believe that people should be direct and honest. Unfortunately that is not the case with lots of folks. I don't know if they are hiding something or not. I would rather be told nothing than something that turned out to be untrue later

I will do my best to ask the questions that I need answers to several times and from several angles

Red flag warnings will be heeded

Thanks!

Richter · Jan 17, 2014

2CAN said: ↑

FSC is bases on national average and adjusted weekly. They do have some contracted rates with customers. Not sure of the actual rate.

I have asked for fleet averages and am supposed to see them when we speak next.

Thanks!
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First off you need to know all your average profit for mile. Take into account extra out of route miles you will run. Now figure out what it takes to move your truck. Truck payment , insurance, plates, FUEL, Maintenance, Inspections etc. Figure this out per mile. Now figure this out based on your truck getting worse mpg then expected and fuel at $4.00/mile. Take your profit- this worst case number and see if thats an acceptable rate for you to drive the truck. Divide any monthly rates (insure, truck payment) by 10000 mile to figure out per rmile. (or a more acurate amount of miles you expect to run.) onc eyou get going, try to imporve mpg to get your cost sown to .50/mile for fuel. The will raise your profit a lot.

Richter · Jan 17, 2014

2CAN said: ↑

LOL...point taken

Not sure how large of customer base that they have, but I have been running the same lanes as them mostly and its pretty easy to tell when they don't have a load on!

I have thought about Mercer as well as Landstar. I spoken with any driver that will take the time to talk. Mercer would be a great fit IF they had a larger freight base in my area. Per drivers I have met and what I have read here, they just don't have it consistently. Landstar may be a consideration still

Thanks!
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I used to run for landstar...PM me any questions you have about them

Oscar the KW · Jan 17, 2014

My fuel cost per mile varies between $1.00-$1.30, and that is driving it nice and slow.

Richter · Jan 17, 2014

how do you spend 1.00-1.30 per mile. Even at $4/gallon that's saying you don't even get 4mpg? Why is your truck getting less then 4 mpg?

Oscar the KW · Jan 17, 2014

I run around on 7 axles, loaded I am north of 100,000lbs.

2CAN · Jan 17, 2014

Richter said: ↑

First off you need to know all your average profit for mile. Take into account extra out of route miles you will run. Now figure out what it takes to move your truck. Truck payment , insurance, plates, FUEL, Maintenance, Inspections etc. Figure this out per mile. Now figure this out based on your truck getting worse mpg then expected and fuel at $4.00/mile. Take your profit- this worst case number and see if thats an acceptable rate for you to drive the truck. Divide any monthly rates (insure, truck payment) by 10000 mile to figure out per rmile. (or a more acurate amount of miles you expect to run.) onc eyou get going, try to imporve mpg to get your cost sown to .50/mile for fuel. The will raise your profit a lot.
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I get what you are saying, however it is difficult to project profit when the most important factor is still unknown. Average rate TTT per mile

I have a pretty good grasp on cost as I have been running about the same lanes with very similar freight as a company driver (different co) and learning as much as I can for quite awhile. I take notes of every receipt for maintenance that I get, track fuel mileage and cost per mile, miles per state for ifta reporting.

I have a target rate per mile. I also have a BEP per mile

In addition to this I have fixed costs calculated per day and week based on the amount of days I plan to work per year. I have calculated variable costs based on 120,000 mi per year with a percentage of DH

Are you an O/O? If so what would you expect the company to cover for 18-23% of gross?

Thanks!

2CAN · Jan 17, 2014

Oscar-

I don't think your apples look like my oranges!

Thanks!

kennyvcobb · Jan 18, 2014

I think the most important is if they can keep you busy!So the gross pay of all the o/o in the company?
and can you refuse loads?
And 82% is really common for owner.Actually all the truck companies are similar or same.

snowwy · Jan 19, 2014

skateboardman said: ↑

not wanting to show rates until you are approved would definitely be a red flag. at mercer or landstar they will give you fleet avg.s and let you see load board samples. I would see rate BEFORE I signed up or wasted time in a approval process.

and you should know whats in their lease before you get approved, if they don't furnish that with no problem, run and don't look back
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sammons don't show the board till you've signed up after orientation.

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