I don't reply to to many things but I need to add more fuel to the fire!
When you spec out a truck, you spec it out for what you are going to be doing, or the freight you are going to try and go after.. You spec out a stainless steel rear door frame and get the largest dimension opening you can get to try and capitalize on freight with bigger dimensions that your neighbor cannot haul.. You spec out lightweght components on the truck to haul more weight.. You get deck fittings in your box.. Spec components that have optimum warranty.. LED lights all around to save alternator and batteries.. I could go on and on about specs and things to increase your chances of getting a load that your neighbor could not haul, but you spec your truck out to make money.. Dispatch would not be calling you to haul a liftgate load if you did not have a liftgate, so we know it pays better.. Just like the load that is 1 inch to tall to go into your neighbors truck and you get the load because you spec'd out a bigger door frame.. Now if I'm driving your truck, are you going to charge me or take a percentage because you ordered some xtras to increase your chances when I accept the load that is overdimension and needs to be chained to the deck..I have now used your big door and your deck fittings, are you charging me for them??? We have not even started talking about the shower you installed and the porta potty, refrigerator, satellite TV, Micro.,Onan 7K gen., CB Radio ect... All these are tools of the trade to entice the better drivers or to keep turnover down..Do you charge them to take a shower or pee in the truck???
Now lets say the truck grosses $12,000 a month.. 40 % is $4800 a month.
If an average payment is $2000 a month you would have $2800 a month to maintain the truck.. If you put more than $33,600 a year into a truck you need a new truck. This does not even go into the write offs, depreciation, part of your home office, all the little things that go with day to day operations..
Since the owner is giving 60% to the team to pay for fuel, tolls, scale tickets, does he also overmaintain the truck to make sure the truck is running optimum to help the drivers get the most out of there 60%?? Synthetic oil, fuel efficient tires, Air-Tabs, regular overheads, wheel alignments(70,000 mi) balancing(20,000), greasing chassis every week,regular truck washes..
My point is you get 40%, anything else should be the Drivers.. If I run alot of miles you make alot of money... Hey $12000 is low.. $20000 40% is $8000..
I just touched on a little bit.. Being a fleet owner is not about managing trucks, try to manage your drivers and get the good ones or help the ones that need help and educate them on how to take care of your equipment and make it last and inventory the equipment you let them use..You can't charge for Farkles!!
I think you are missing the BIGGER picture. I don't want to imply that fleet owners aren't making money, but you are showing a picture perfect world that isn't there. Using YOUR numbers, you think that the truck is averaging 12,000 each month. For many, that isn't the case.
What about months like Nov,Dec, and July. Truck may only run a portion of those months. Since the owners truck is sitting and they are still incurring costs, where does that come from? If I cut that number in half using YOUR numbers, that owner is in the red. Why? Because you still have insurance, QC fees and other costs while it is sitting.
On to some other costs,
Using your numbers once again, lets see what comes out of that 2800 "profit"
1. Breakdowns This can include a tow all the way to a total engine failure. Just a tow and a basic engine repair can quickly turn to 2,000 plus the downtime. Even on new trucks. Or the posts I see where the truck breaks down but now the truck is parked waiting on parts. Very true the driver isn't making money, but driver costs pale in comparison to the rest.
You imply "buy another truck" Pretty simple until you figure those costs to trade. Could be a 20k to 30k differential. Where exactly does that come from?
2. If a engine blows, that could be 10k to 30k. Again, where does that come from?
3. YOUR prescribed maintenance. Oil changes, tires, and just general maintenance is going to run 10k a year on a 2 year old truck. Again....where does that come from?
4. What happens on the months there is no driver in the truck?
Those costs keep coming. People leave for a variety reasons. It wouldn't always be because the owner didn't have the ability to retain them. Health, family issues and emergencies, carrier issues that are well out of the owners control. Some things could be self inflicted, but certainly not all.
5. What about the truck that is involved in an accident whether it is the drivers fault or not. Payments and all costs keep coming plus insurance deductible. It may take months to recover all or part of those costs. Again......where does that money come from?
6. If a owner suddenly finds himself with a poor performing carrier and has to move, that entails huge costs in transportation, orientation costs, re-lettering trucks, and so forth. Remember, he is carrying the risk.
7. New driver costs. If a new team is hired, you have many associated costs with that. It varies of course from carrier to carrier, but you still have to get the truck there, drug test, physicals, lodging for orientation.
8. Driver quits and one may have recovery or damage costs. Could be a little or a lot. Again, where does that cash come from?
I could go on, but I think most get the picture. I don't believe that for many fleet owners, that 2800 dollars you refer to, goes quite as far as you think. I wrote a post that expands on this a bit more a few days ago. Better think twice before you go down that "yellow brick road" of fleet ownership.
http://www.expeditersonline.com/forum/general-expediter-forum/30917-fleet-owner-observation.html
