ATTN ALL FLEET OWNERS- # of trucks debate.......

fins_up_fl · Feb 5, 2012

I'm currently just a O/O, with one truck. I'm looking into buying a few more.. "expanding" if you will. However, there seems to be a really big debate.. as in how many is enough, too much, or just plain not enough. I've now heard.. " two will make you.. but three will break you". AND the other way around.... " two will BREAK you, but three will make you..." Any thoughts on this old wise tale?

My thoughts are.... if you had 3 trucks, one is down for some time... your only out 1/3 of your business... where as, if you only have two... and one dies for some time... your out HALF... what are your thoughts? thx

highway star · Feb 5, 2012

I'm just a one truck O/O, so I can't offer anything from experience. But, it's my belief that many of these "rules" you hear come from the point of view of folks that don't really have enough cash to support their business. A fleet owner that lives from paycheck to paycheck is gonna be in a bad spot when a truck is idle no matter how many he has. You'll have a truck down from time to time due to repairs or having to find a driver. The number of trucks you run should be dictated by the cash you have back to support them.

chefdennis · Feb 5, 2012

Figuring from on your Avatar you are driving a TT, but if i did that, id figure highway is hauling freight on a motorcycle...So knowing what you are driving and what you are looking to add would be a great info to provide so that those with those type of units can respond...i own 2 cargo vans and i do pretty good..but that certainly doesn't mean a thing when it comes to 2 ST's or 3 TT's....

fins_up_fl · Feb 5, 2012

chefdennis said:
Figuring from on your Avatar you are driving a TT, but if i did that, id figure highway is hauling freight on a motorcycle...So knowing what you are driving and what you are looking to add would be a great info to provide so that those with those type of units can respond...i own 2 cargo vans and i do pretty good..but that certainly doesn't mean a thing when it comes to 2 ST's or 3 TT's....

Yea, I have one T/T.. .but thinking about adding 2 S/T with teams, and MAYBE one cargo van. Im not to sure about the cargo van yet tho. (haven't done much research about cargo vans...)

Wild Child · Feb 5, 2012

chefdennis said:
Figuring from on your Avatar you are driving a TT, but if i did that, id figure highway is hauling freight on a motorcycle...So knowing what you are driving and what you are looking to add would be a great info to provide so that those with those type of units can respond...i own 2 cargo vans and i do pretty good..but that certainly doesn't mean a thing when it comes to 2 ST's or 3 TT's....

Dennis just spoke a mouthful of truth and wisdom. I am in complete agreement with him. I have been a multiple TT owner in the past and would not do it in the future, just my personal position, nothing to do with the ability to earn. Currently I own 9 Sprinter vans and do quite well with them. Cash behind your operation is definitely the key. I reserve a years worth of operating money ($250,000) and hopefully can survive most storms of the industry. We all have a different approach to the industry and certainly different survival packages. Listening to some of these older more seasoned veterans on here is a wise road to travel down. I learn a lot and speak very little.

chefdennis · Feb 5, 2012

Ok, i have no experience with TT's and or ST's so i will not speak to the type of trucks..but i will speak to "lossing your azz"....Adding multiple units, you had better had "deep pocket"....If I was in your position, I'd add 1 unit and work it and IF i was going to add another, it would be a bit longer in time coming...Funding for a small business man is a make or break deal...1 major repair can put you out of business...the more units you have then bigger that chance....Even with just one truck, a well funded backup bank account is a major deal, adding multiple unts increases the amount needed...and its not just you that takes the hit when things go wrong, its also your drivers....Can you make the payments for a few months when these trucks are making enough to do that or a major repair emptied your bank account?? Depending on each truck to be profitable to cover its fixed expenses is good, but can it also produce enough profit to add to the bank account AFTER you get paid??

If you do this, id do it slow over time and one unit at a time....no matter what type of units you get...oh and forget the CV, if you are adding units, get a Sprinter or that type of unit...

fins_up_fl · Feb 5, 2012

CRAPSHOOTER said:
Dennis just spoke a mouthful of truth and wisdom. I am in complete agreement with him. I have been a multiple TT owner in the past and would not do it in the future, just my personal position, nothing to do with the ability to earn. Currently I own 9 Sprinter vans and do quite well with them. Cash behind your operation is definitely the key. I reserve a years worth of operating money ($250,000) and hopefully can survive most storms of the industry. We all have a different approach to the industry and certainly different survival packages. Listening to some of these older more seasoned veterans on here is a wise road to travel down. I learn a lot and speak very little.

True, Ive spoken with a few Fleet Owners, And gotten many tips. The veterans are very helpful. Thats why Im looking at ALL area's, incl. Vans... My thoughts are that if I spread myself out too short with only one type of truck, I might miss something. However, if I have a small fleet of all three types of trucks, I may do ok. And NO, Im not looking to be the next Bill Gates. LOL. I do try to learn from others when I can. I never have a lack of questions, LOL All of you advice is much appreciated.

davekc · Feb 5, 2012

Lot of good advice. The largest driver of failures can usually be found with poor management skills or being under-capitalized.
Much depends on your resources and abilities. The amount of trucks really matters little if you have the mentioned reserves behind them. What does matter is the type of people you have driving them. You could easily spend as much time on one truck as you would five if you contract out to the wrong people. This becomes even more of an issue if you are driving or have a second job. Failure to monitor whats going on and assuming too much can lead to bad things. Ask me how I know on that one.
When I first entered as a fleet owner my biggest mistake was not paying attention to what was going on because I had a full time career going on at the same time in another unrelated industry. Just a case of getting stretched too thin.

osumike33 · Feb 5, 2012

As someone in my first year of doing this (owning only, not driving), the two best pieces of advice I can give would be to pay yourself as little as you can afford to, building up company reserves; and try to get the most responsible people you can find to work with and drive your truck(s) or van(s). It's important to get the right equipment, even more important to get the right people to drive them.

cheri1122 · Feb 5, 2012

The successful veteran fleet owners here [DaveKC & Bruno come to mind] have a lot of valuable advice. One other thing, though, besides having enough money in reserve and choosing the best drivers, is having the knowledge that experience brings: especially when it comes to repairs. Choosing the wrong shop can take a lot more from your reserves than need be - learning who to trust is a huge help. Until you gain that experience, it's good to know who to ask for recommendations.
My philosophy is that you don't need to know everything, but it sure helps to know who does [in their own area of expertise, at least] while you're learning.

davekc · Feb 5, 2012

cheri1122 said:
The successful veteran fleet owners here [DaveKC & Bruno come to mind] have a lot of valuable advice. One other thing, though, besides having enough money in reserve and choosing the best drivers, is having the knowledge that experience brings: especially when it comes to repairs. Choosing the wrong shop can take a lot more from your reserves than need be - learning who to trust is a huge help. Until you gain that experience, it's good to know who to ask for recommendations.
My philosophy is that you don't need to know everything, but it sure helps to know who does [in their own area of expertise, at least] while you're learning.

Like button....

Bruno · Feb 5, 2012

cheri1122 said:
The successful veteran fleet owners here [DaveKC & Bruno come to mind] have a lot of valuable advice. One other thing, though, besides having enough money in reserve and choosing the best drivers, is having the knowledge that experience brings: especially when it comes to repairs. Choosing the wrong shop can take a lot more from your reserves than need be - learning who to trust is a huge help. Until you gain that experience, it's good to know who to ask for recommendations.
My philosophy is that you don't need to know everything, but it sure helps to know who does [in their own area of expertise, at least] while you're learning.

Thanks Cheri, as it not as easy as some may think. I think that 7 to 8 truck is the way to go for a small fleet owner. Our goal is to get to 50 trucks in the next five to ten years. But, I have a family helping me too, my wife and two boys that both have their CDL.

geo · Feb 7, 2012

at one time i wantn't to have 4 or 5 truck's but after friends with that many trucks had problems decide that one truck was fun more would be whole lot of headaches
also it is hard to drive and run trucks
have to have some one run the trucks for you at home

davekc · Feb 7, 2012

geo said:
at one time i wantn't to have 4 or 5 truck's but after friends with that many trucks had problems decide that one truck was fun more would be whole lot of headaches
also it is hard to drive and run trucks
have to have some one run the trucks for you at home

Certainly agree. In todays world it is a tough gig to drive yourself and run a fleet at the same time.