I'm considering driving a Cargo Van (E350) for an O/O with Conway Now. Conway is not recruiting new owner operators with cargo vans presently but O/Os are recruiting drivers. Much of what I read is discouraging about cargo vans and income potential. If I stay on the road at least 4 to 5 weeks average, can I make enough money to live frugally on the road and send a couple hundred a week home. To gain something you must give up something. The idea of no logs and no weigh stations appeal to me but I don't know if it is worth 30-50,000 a year lost income. I'm just trying to learn the business now and would rather drive a cargo van but I'm worried about freezing weather, eating hotdogs often and being stranded with no money or fuel. Will cargo vans become eventually become obsolete as expeditors? I'm trying to do my homework and research before I take the plunge. It appears that the only way to know what my potential may be is to take the plunge. I hope the pool has water in it. All comments and advice will be appreciated. Private messages welcome. email [email protected]
Conway Now
- Thread starter dawgtown
- Start date
IMHO, if you have a reliable van and your company can keep you busy with good runs, you have a 60/40 split with your owner with you getting the 60% and you pay only the fuel and tolls, you will keep about 24k a year after those expenses. Out of the 24K will come your other personal expenses like telephone, food, etc. Less than that amount is certainly possible; more than that amount is not likely.
MillerTime
Expert Expediter
Not in response directly to the Conway Now question,but to jg-are you serious? The owner that I drive for pays 60% of the freight bill,all fuel and maintenance,and also reimburses me 50% of my meal and motel expenses,when needed. He also takes care of FICA,Medicare and my federal/state income tax reporting and has my tax papers ready for me by the second week of January. I know that I am his employee. I also know that my gross pay in each of the last three years was between $58,960 in 2000 and will be over $63,000 for 2004. To tell someone that they can expect $24,000 or less just doesn't seem right. How are others paid? By the way,yes,I do drive a van,and I know that he pays each of his drivers similar rates,whether in a van or a truck. Kathy.:* :*
Sounds like you have an unusual deal there... most deals that I've heard of pay 60% and the DRIVER pays the fuel. There's the difference in your figures and theres... Seems to me like a fleet owner would not be making much with a van if he paid 60% PLUS fuel.
Dreamer
Dreamer
BigRed32771
Expert Expediter
With a van rather than a Class C or D straight truck, the finances might work out well enough to let the o/o pay on that basis.
Despite all the recommendations that newbies drive for someone else for awhile as they learn, the income wouldn't work out for us. Whether it was 60% and I pay fuel, etc., or 40% and owner pays that stuff, the numbers didn't work for us. In order for us to be able to afford to go into expediting, we had to take the plunge the whole way and get a truck of our own. At least during the learning curve we'll be making all the revenue instead of just part.
Doug
Despite all the recommendations that newbies drive for someone else for awhile as they learn, the income wouldn't work out for us. Whether it was 60% and I pay fuel, etc., or 40% and owner pays that stuff, the numbers didn't work for us. In order for us to be able to afford to go into expediting, we had to take the plunge the whole way and get a truck of our own. At least during the learning curve we'll be making all the revenue instead of just part.
Doug
MillerTime
Expert Expediter
Dreamer-figuring that $60,000 is 60% of $100,000 and if the owner were running at a 25% expense ratio,that still leaves $25,000 profit for the owner multiplied by five vans($125,000) plus the big truck that he owns and drives($180,000)totalling $305,000 minus his expenses ,permits and taxes,including on site,part-time employees. I believe this is still profitable,or he would not be doing it the way he is.;-) Kathy.
MillerTime
Expert Expediter
I think you've heard of it now. Perhaps I should clarify that we handle specialized expedited freight and run mostly west and south of Detroit,that he has been in business since the early 1980's and has retained all of his customers that are still in business,as well as those who have consolidated with others. Thanks,Kathy.
Kathy, I certainly was serious with my reply on solo van driver income. I don't know what ConwayNow pays for loads, but a solo driver can't drive much more than 100,000 miles a year, about 70,000 of those miles will be loaded IF HE IS LUCKY, and he'll get 60% of that loaded pay. Then he has to pay fuel for ALL 100,000 miles that he drove, loaded or not, and I'll be surprised if his net is much different than what I first stated. Your situation is entirely different; most independent contractors get 60% of revenues, plus fuel surcharges and a little for detention and fingerprinting, but they usually pay all fuel and tolls, and of course their personal expenses. If any independent contractor solo driver operating an owner's van has consistently better numbers, I'd like to hear it.
Your situation is unique, and most expediters would love to have it. But I think most newbies in the "typical" expediting scenario need to know that they just can't make a fortune....it is just too hard to rack up enough paid miles, even if they are willing to stay out forever.
Your situation is unique, and most expediters would love to have it. But I think most newbies in the "typical" expediting scenario need to know that they just can't make a fortune....it is just too hard to rack up enough paid miles, even if they are willing to stay out forever.
I currently work for a smaller LTL/Expediter the company has 2 cargo vans, and 4 straight trucks. He is paying 65% in your own van, and 60% in his you pay fuel/tolls. Needless to say, all the drivers fight over his vans (hey, I can't run a van for 5%!) I recently bought a straight truck before I spoke with him about pay. Big mistake, same split, 60% in his, 65% in mine. Now he is upset that I won't run my truck (hey, 5% is only 5000 a year, insurance and 2 tires is all that'll cover)
Know anyone that will sign a 22 foot truck? it's kinda old, a 94.
Know anyone that will sign a 22 foot truck? it's kinda old, a 94.
Hi Dreamer,
I don't know if they are running really well or not. Truth is the two I spoke with earlier this week were kinda p.o.'ed about the .80 cent rate. The one guy said that he was going to take a major cut in pay...as usually half of is loads were a $1.00 per mile. They didn't say anything had changed about how many loads they were getting tho..
mcbride-
--What goes around comes around--
I don't know if they are running really well or not. Truth is the two I spoke with earlier this week were kinda p.o.'ed about the .80 cent rate. The one guy said that he was going to take a major cut in pay...as usually half of is loads were a $1.00 per mile. They didn't say anything had changed about how many loads they were getting tho..
mcbride-
--What goes around comes around--