economics 101..trucking

[louixo]

I started trucking in the mid 80's. my first lease was with north american who also taught me how to drive TT. I switched to expediting 5 years ago. the game is the same no matter who you lease to. The company an o&o leases to, has one primary objective. TO MAKE MONEY. the owner operator has the same objective. And rightfully so. Each is running thier own business with the cooperation of the other. Through my trucking years the pragmatic truth has been, that no one is going to hold your hand, or kiss you on the cheek. There is always a ready pool of o&o's out there ready to take your place at any given company. The lease company has to adjust thier size to cover customer needs as best they can and keep everybody moving as much as possible to increase the bottom line. The o&o is looking for the same type of increase, but has no control over the customer communications. I don't know of anyone who has ever gotten rich driving a truck, but you can make a very nice living, and live just about anywhere you want. The o&o's i have seen and still see that have trouble making it, are the ones who go into trucking with too much debt on thier first round, and fall by the wayside, primarily because of poor money management in it's various forms that boil down to.... they spend everything they make or more by using credit. The sucessful ones i have seen year in and year out, do just the opposite...they manage thier money well. Over the years , i have personally seen my revenue, go up or down directly related to the time i was available to run year in and year out. So i'm speaking from experience. Any dispatcher will give the load to the single or team he knows can do the job, everytime, ontime, to keep that customer happy if the dispatcher has to make a choice. If an o&o feels he is not getting the loads he deserves, and can't resolve the problem, he has the option to move on. I think that trucking companies would do well to spend a day on resolution procedures and money management for all new o&os, during orientation. I think it would have been a great benefit to someone like me, when i started out. the secret to trucking is DRIVE THOSE MILES! If you want to get rich, start your own company. I'd like to hear what other o&o's think. I know this is over simplified, but there is not enough space or time to write a book. ;-)

 

[omalljd]

I agree with you 100%. Even though I am fairly new to the Expediting business I have taken the time to do my research and make the best economic decisions. Every industry has business and sales cycles that the employees and owners need to account for.

My feeling is that this is more than just a business or a job. This is a lifestyle. Many people don't like the 9-5 job staring at a computer screen or the high pressure sales environment. I come from the computer industry as a major account manager. I made the big money but I wasn't enjoying my life. I came into this business with very little debt and decided to grow my business over time. I have done this and am now going to put on another unit.

I know that money is the bottom line for most people but I think that many people take for granted the freedom they really have in this industry!

Jeff O'Malley

 

[Larry]

Not having a lot of experience with this industry, I am giving a "qualified" - I agree with both of you. Like any business, you get out of it what you are willing to put into it. It is the 90% perspiration and 10% insperation. I was talking with a driver today that was telling me he was making half of what he made a couple of years ago. He then told me that he only ran local trips now because he could not be guaranteed of return loads. Earning $100 - $150 per day is not going to pay the rent!!!

On the other hand, having retired from a profession that required I supervise 40 people, the LAST thing I would consider doing is hiring on another truck. I cannot imagine the challenges of trying to keep tabs on truck and personnel; trying to make everything run smoothly.

Good Luck

 

[Kyle O]

I appreciate your comments. I am a fleet owner and hire new drivers to the industry. I spend a lot of time trying to teach my drivers a lot of the same things you have written about. In fact I am in the process of TRYING to actually build a text book/drivers manual to help in this cause. I printed your comments and provided them to all my drivers. Thanks Kyle

 

[Big Scooter]

Well said, Louis. I see a lot of O/Os who have been moving on from one expediter company to another, hoping to find more money in the possibility of more trips. That's expensive as it costs time and money to transition from one company to the next. Fact is, the industry is the same no matter who you are leased to, in these present months. I believe that if I stay committed to one expediter company and learn to work through the little problems, the opportunities are still available. The little problems are the same, from one company to the same, aren't they? From what I'm hearing and reading, they are. I try to have patience and not take things so seriously each day. Problems tend to seem more serious when I get antsy about "that next run."
You said it....manage your money. Lots of ways to do that.