Can I make a living at this????? (Pt.2)

DooWop · Apr 2, 2003

Posted a message on tax tips for expediters forum. Essentially it said my tax preparer thought that I'd clear only around 19k a year after all expenses and taxes on truck revenue of approx 85k as a solo expediter. He based this on several TL leased owner operators he prepares taxes for, (not expediters). As retirement from the first job/career draws near I want to get my ducks in a row. Crunch time is on the horizon!! Would anyone on the forum feel comfortable telling what their net is after taxes and expenses?
If not I can appreciate your reluctance to do so. Thanks to all either way.

Regards

DooWop

cruizer · Apr 2, 2003

Your numbers are flawed - as an expedite unit , especially a newbie ,
25 - 40K would be your annual numbers .

Van payment , Insurance , fuel , misc expenses , and living expenses on
the road should all be carefully accounted for .

Good Luck

Lawrence · Apr 2, 2003

I think he was referring to a straight truck - not a van.

Lawrence,
Expediters Online.com

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Fkatz · Apr 2, 2003

DooWop,

I dont know where he gets his figures from but after expense it sould come out to somewhere around 25-30% of the gross. in a "D" straight truck, Because of 1 item that you do not consider when figuring income, the Diem Pay, and this could be around $7800 bucks if your out around 300 days per year, which is not considered in income. only for tax purposes, the other is if you take the standard mileage deduction, 100,000 miles adds up to $36,500 as a deduction, again only for tax purposes,
the average driver with a "D" unit will average around $85-100K per year, plus be out all year, 300-320 days logged.

So on the tax return you would show very little income or a loss because of these two item. if both taken, instead of actual expenses.

Fuel , tires , oil maintenance, tolls and etc.
so I would say that the average profit is between 25-35 % really cannot put a $$ figure on it

Fkatz

RichM · Apr 9, 2003

One of the things that I like to look at when figuring income is what I call tangible income and intangible income. Tangible income is what is left for you after expenses and reserves are accounted for.Sometimes it doesn!t seem to be very much. However intangible income is what expenses you are saving by being in the the expediting field vs the 8-5 world. You have no commuting expenses,your meals on the road are tax deductible to a degree,you have no expensive clothing to buy and maintain,your personal automobile expenses will be much less and your auto will last much longer. In many cases people that are in the corporate world spend 20% or more of their take home income in order to earn that income. Hope this make sense.
Example is my personal Automobile is a 1997 Ford that I bought new and as of today has only 45,000 miles on it and is in excellent condition becasuse I am out on the road and the car is not used. If you commuted 40 round trip miles to work each day thats 200 miles a week or about $20.00 for gas, times 50 weeks equals $1000 a year coming out of your take home income from your job.Thats just to get there and come back at night. So think about what you can save by working from your home and then add that to what you anticpate taking in. I mentioned reserves earlier,it is a good idea to put a certain percentage away each week to cover unexpected events.We all run into them where you may need several weeks off etc,also think about a maintenance reserve. I have often wondered why the various expediting companies don!t have a plan wheras a certain percentage could be held back from your settlement and put into a bonded maintenace account.That way you would never see the funds until you needed them and they would be there.

ATeam · Apr 10, 2003

RichM makes an outstanding point. If drivers totalled up the day-to-day costs of sitting home, perhaps they would not complain so much about being out all the time.

Dkalasz · Apr 10, 2003

Thing that has always bothered me is people being willing to accept that you need to work 24/7 in order to make a living..an over the road driver SHOULD be able to work 3 weeks on 1 off and still make a nice living.. Home time family time personal time is of high value..

now if we could just start getting paid for things like sitting at shipper/reciever's customs downtime when dispatch hasnt had time to hunt you a load..then I bet alot of us could find a bit more time to be dad fish and hell just be human.

vince123 · Apr 10, 2003

I work for an o/o and last year I netted over 30k, so I guess you can make a good living, more if you own and drive for yourself:7

teacel · Apr 11, 2003

Vince, if you don’t mind me asking, what was the gross you made for the whole year? I think you said you made 30K net working for an O/O last year. Expediting must have been real good to you last year? Glad to see some expediters are doing okay!

ATeam · Apr 12, 2003

I get confused by people that say being home is important and then seek out driving jobs that put them a thousand miles away. Saying I want to be an over-the-road driver but I don't want to be away from home seems a bit like saying I want to be a pilot but I don't want to fly. We're drawn to expediting not as a job, but as a lifestyle. You can travel a lot and make money at the same time. We like expediting BECAUSE it takes us away from home. Expediting is made to order for teams who like to drive and travel. We're looking forward to getting started.

teacel · Apr 12, 2003

Not long ago Expediting was a very good money making field, in the transportation profession. People got into this because a driver could make some really good money. Now (in my opinion) people today are getting into Expediting for all the wrong reasons, and I point the finger at the way the recruiters do their job. I’m not saying all recruiters, but there are some that paint this picture to our elders as a paid vacation, and to the younger drivers also paint the wrong Picasso. That isn’t it at all, the work is hard and the hours are long. Why work all your life, then retire, sign on as an Expediter, and have to work harder than you did your whole life, or why work for a dream that will never come true? There are a good number of drivers that are still raising a family and have to work twice as hard and put in twice the hours because of the people that get into this PROFESSION thinking it is a paid vacation, or that this isn’t a job! This is a job and a very hard one at that. How about this --- Your at a lay over for day 3 and it is now 11:00pm. You have been up all day doing your thing. Your tired and getting pissed for not having a run and the stolely goes off. You have a run 400 miles away and only have 6hrs to get it there. You take it because!!! Not a fun time, but this happens a lot in this profession. Being an O/O is a small business and must be treated like one, for a driver to be a success. This may help you understand the thread you posted in the Newbie section about the article on CWN. The only thing I can say to you is, If you think this is a way to get a free vacation, and not a job, you are in for a rude awakening. You just may be one of those 100 people you were asking about in the other thread! Maybe you were drawn to this profession for all the wrong reasons, and that is why you are confused and may also explain the line of questioning in the other thread. It may be a good thing for you to learn all this now. Some people invest 100K in a truck and then become one of those 100 people you speak of. LOL!!!

vince123 · Apr 12, 2003

grossed just under 40k, thats with bounus. i didn't just do expiditing for my owner last yr, he has some trucks as inhouse carriers and i did that for about 5months, it paid by the hour, with overtime

Dkalasz · Apr 12, 2003

>I get confused by people that say being home is important
>and then seek out driving jobs that put them a thousand
>miles away. Saying I want to be an over-the-road driver but
>I don't want to be away from home seems a bit like saying I
>want to be a pilot but I don't want to fly. We're drawn to
>expediting not as a job, but as a lifestyle. You can travel
>a lot and make money at the same time. We like expediting
>BECAUSE it takes us away from home. Expediting is made to
>order for teams who like to drive and travel. We're looking
>forward to getting started.

I got into expediting years ago when the money was good. I still believe that home time is very important unfortuantly not enough drivers place a dollar value on there time..this is a job a bussiness most of us are out there earning a living not traveling for pleasure. sure I see the sights and enjoy that but it isnt the reason i drive. I drive for money and my goal is and always will be to make as much money in the shortest amount of time at the lowest cost.

If wanting to have a life and be a driver is wrong I guess I am wrong

teacel · Apr 12, 2003

You didn’t have any deductions? If you have or had deductions your net would be a lot less. Don’t know why I ask that Q. If I’m not mistaken tax as a rule of thumb, come to about 33% So if you grossed 40K, and netted 30K, how can I do that??? Sound to me like this owner pays all your expenses for you. Does he by your lunch and dinner too!!! ( just a joke) I’m just jealous. You must have a big family to only pay 8 or 9K on a 40K gross. I just wish I only had to pay 20% in taxes and could find an owner to pay all my expenses. LOL

vince123 · Apr 12, 2003

had a lot of drductions, my wife started her own business (beauty salon) and with 3 kids, we had a lot to write off. dont think it'll be the same this yr, but looks like we're gonna do ok

sodbuster19 · Apr 12, 2003

vince123, i also live in the chicago area, does your owner need any drivers? my e-mail is [email protected] I would like to talk to him/her if he needs a driver

vince123 · Apr 12, 2003

i will pass on your e-mail to my owner and we'll see what happens

RichM · Apr 12, 2003

Tony makes some excellent points in post 12 on this thread.This business is about hard work,very iregular hous and should not be considered a way to see the USA and make money at the same time.Too often recruiters will build up their fleets with Semi Retired folks that only take the easy daytime runs that have no hassle. They then refuse the middle of the night offers, and you who needs to pay bills etc get called for this run and can!t afford to refuse it.I think the only expediters that should be on board are the ones whose livelihood and income depends on the company that they are leased with.I had a call today (saturday) at 0730 to do a trip that took all day and of course I did it because I need the $. Would a retired guy get out of bed on a Saturday morning for $250.00,I don!t think so but at the same time He or She could take a decent $1000 trip away from me..

louixo · Apr 15, 2003

When one thinks that some retired guy should step aside, so that there would be more loads for younger drivers is really flawed thinking. That retired guy or gal is just excercising his right of free enterprise, the same as any other driver. He or she has the right to work in this industry or any other, and compete on thier own terms.That´s the american way. Competition. That retiree may be working for many reasons, but the reasons are thier own. No offense to those who think that way, but it´s always been a philosophy of mine that if one wanted more money, they have to work harder. No big secret. I used to drive 18 wheelers. The most money went to the LTL guys that drove and did inside delivery, and loaded and unloaded thier own truck.Hard work, but good money. Expediting doesn´t offer that diversity. If you want more money, go to a differnet type of trucking, don´t expect others to move aside so you can get the cream. Those hard jobs are still out there, if one is so inclined.

newthead · Apr 16, 2003

RichM,
Sorry, but I have to disagree with you a bit. I DO understand expediting IS hard work and should be treated as a career and not a vacation. But, c'mon, it is also a way to have a cool career where you get to see much of the country and enjoy the thrill of the open road with a huge degree of independence! I toil in vain with crappy pay and no real travel as a courier but I even enjoy THIS job. So much MORE for an expediter!

That proverb says: Do what you love to do and you will never work a day in your life.

Sean