What's the going rate for lease operators?

Discussion in 'Flatbed Trucking Forum' started by Old Iron, Mar 4, 2017.

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  1. Mar 4, 2017 #1
    Old Iron

    Old Iron Road Train Member

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    The company that dad has been leased to for the past 23yrs went belly up yesterday. Long story.

    I've more or less dispatched and did most of the billing for him the past number of years. He retired from the long haul and was pulling freight for my customers.( I wanted to keep handling things in house.)
    The company he was leased with took a % off his cut and handled his IFTA/saftey/Ins.

    So now I need to lease him on with me. What's to going % nowadays?
    I was kind of thinking to have him pay for his own plate, half of the Insurance, drug testing and so on and do forth.
    Then do 10% off the top for handling the mountain of paperwork every quarter? To be honest I have no clue what other outfits are charging.
    I'd like to be around half of the going rate seeing as he's family. But at the same time I HATE office work and that's exactly what I'm getting in this deal.
    That and the biggest retired outlaw around these parts with my ###'s on his door.o_O
     
    Old Iron, Mar 4, 2017
    Old Iron, Mar 4, 2017
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  3. Mar 4, 2017 #2
    scottlav46

    scottlav46 Road Train Member

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    Dude that last sentence made me laugh, the way you put it. Other than that tho I would think the deal you're layin out is pretty dadgum fair. I can't see him gettin a better one, and I know from hard experience that it's always better to quantify a family business arrangement to avoid issues later.

    Still laughing about the biggest retired outlaw with your numbers on his door thing.
     
    scottlav46, Mar 4, 2017
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  4. Mar 4, 2017 #3
    TripleSix

    TripleSix God of Roads

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    Your authority, your contracts, your insurance and plates, your dispatching. Going rate for lease 75-78%.

    Your plan? 10-15% .
     
    TripleSix, Mar 4, 2017
    TripleSix, Mar 4, 2017
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  5. Mar 4, 2017 #4
    Old Iron

    Old Iron Road Train Member

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    Want to hear something fd up?
    He found out after a total stranger on a loading dock asked him what was going on......
    So he stopped by their office north of town and the place was locked up with company trucks parked everywhere. Phones off the hook. Calls one of the brokerage agents he used to work with years ago and rumor is that the IRS raided the place and cleaned out the office. He then calls another owner op who has been there as long as him to get the real scoop and that guy hadn't heard a single thing about it till dad told him.
    If I worked for a man for 23yrs and this is how it went down. That fella would be dieing of natural causes......
     
    Old Iron, Mar 4, 2017
    Old Iron, Mar 4, 2017
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  7. Mar 4, 2017 #5
    passingthru69

    passingthru69 Road Train Member

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    That really bites all the way around
     
    passingthru69, Mar 4, 2017
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  8. Mar 4, 2017 #6
    soloflyr

    soloflyr Medium Load Member

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    Sounds like your dad would be miles ahead if you do it the way you stated.

    2 recent examples of what other companies are doing. United Vision & American Eagle Logistics.

    Buy your own plates, they take 15% off the top for insurance on every load, no cap on this either. If you run $20,000 a month your insurance just cost you $3,000. Then they take their 25-30%, this, percentage varies depending on if you are leased to a company terminal or to an individuals terminal.

    They will tell you they don't make money off the 15% for insurance, but it doesn't take an Einstein to know they do.

    So this is how it breaks down on a $1000 load. $150 for insurance, $212.50 for the company's cut, leaving $637.50 for the truck.

    Don't know about anybody else, but I call that rape.
     
    Last edited: Mar 4, 2017
    soloflyr, Mar 4, 2017
    soloflyr, Mar 4, 2017
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  9. Mar 4, 2017 #7
    passingthru69

    passingthru69 Road Train Member

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    What I have is 70 30 they bought the plates and I use their trl. I bought my own trk insurance..
     
    passingthru69, Mar 4, 2017
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  10. Mar 4, 2017 #8
    soloflyr

    soloflyr Medium Load Member

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    Using their trailer & them buying the plates & that split is a fair deal. These other companies want you to have your own trailer. If you use one of theirs it goes from a rape to a gang bang as they charge ridiculous rates for their equipment, especially on any specialty trailers.

    They didn't much appreciate when I asked them, so tell me how much rent are you going to pay me for using my own trailers?
     
    soloflyr, Mar 4, 2017
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  11. Mar 4, 2017 #9
    passingthru69

    passingthru69 Road Train Member

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    I had that issue with ATS when I had my trl. 75 percent to me. But I had to fight to get the trl use money they charged the shipper, then when I got conned back into pulling towe trls. I told them it cost 6k a month to park my trl.. they flipped
     
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  12. Mar 4, 2017 #10
    passingthru69

    passingthru69 Road Train Member

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    Bennett was bad also, the more axles on the trl. The rate went down, same at Ats
    Butt hurt for the 2 years I was with them
    I have a good gig here, so I think. So that's all that matters lol
     
    passingthru69, Mar 4, 2017
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