Fleet Owner Blues

[ericmoss37]

Small carriers is an idea, but do they get the loads like Panther? I don't think changing carriers is a very good idea. It seems the weekends are slow. My driver got a load on Friday that would have brought his weekly miles up to 1475. The problem is it's not going to be dropped off until Monday so I counted towards next weeks pay. Thanks Dave for your kind words.

 

[OntarioVanMan]

Eric...Keep in mind it's not always the amount of miles BUT the price of the miles you run...Quality over Quantity.

 

[x06col]

Sounds like he is off to a good start for "next weeks" paycheck. Maybe he'll hit $16-1800, problem is, he won't remember the $1800, just the $475. Both ya need to start averaging over a 2-3 or more month period, maybe you'll feel better about things. Like your ground business, there isn't any instant gratification. Ya gotta get the pipeline filled up, then there is a steady income. If they are broke when they start, or behind the power curve, it never will improve.

"Do they get loads like Panter?" Someday, many of you will get past the mental process that there needs to be an Ivory Palace somewhere to prosper in this business. Just not fact. The sooner you "get over it" the better off you'll be.

And yes, it is pathetic to take time off the road, and/or even DH a few hundred to "pay the rent".. Last I heard, it costs $.40 something to send a check by USPS, from ANYWHERE in this country.

 

[greg334]

Man, don't get emotional over this. This is business and sometimes you make mistakes. But again, this may not be good advice but here goes.

1- sell the trucks, buy another tractor and trailer or just another tractor and stick with what you know. If you loss $10k, consider yourself lucky.

2 - if you don't want to take a loss on the trucks, which you may not get rid of anyway, get a hold of one of the US postal service contracting companies in your area and see if you can get those trucks on with them. A couple companies will help you out but remember that they are under strict contract and you may have to qualify as a sub-contractor. Even though they have sleepers, they still can be used for US mail. But I got to warn you, this is not a real solution just a stop gap fix to keep up with the payments.

I think that you are depending on this business to create a cash flow that others have already been established in and it is the worst time to enter this business as a single owner, let alone a fleet owner. The key word is business. If you make a mistake and can't make a go at it with the problems we have, it may put too much of a strain on you and you may sink.

I am wondering if you passed this by your accountant to come up with an exit strategy?

 

[ericmoss37]

Van Man your right about quality over quantity. I am looking at it from a drivers prospective. I am considering four options and I just might try them all. first option is keep things how they are and take the good weeks with the bad weeks. The second option is to pay all miles that are authorized dead head, so if he comes home like he did this time he won't get paid. The third will be 40% of the load and the fourth would be to work out a deal with a driver and make a few hundred a month on the truck and have the driver be the truck owner. When he gets good credit take over the payments. The settlement will still be in my name so I can take what he owes me off the top.

 

[ericmoss37]

Hi Greg I appricate the advice. I will keep it in mind. I think things are going to workout. On the weeks that he does good milage I will make decent money and weeks like last week I won't make much.

 

[alborada]

OVM a like this so much- this is the hit of the week:
Eric...Keep in mind it's not always the amount of miles BUT the price of the miles you run...Quality over Quantity.

Greg334 and your advaices in this thread are the best .
You have good plans for a turne the trucks over the driver and thay to take the paymant but I don't things that some one will like the idea - to saty under your name in payroll.......... this is mission inpossibole - if have a so stupid people it is ok , but other way , no.

 

[ericmoss37]

First of all thats my last resort. Second most of these drivers would have their own truck if they could get financing. Third going from 30K to 40K to 60 to70K a year would make them very happy. On the corporate end nothing would change. I would still be the owner. The driver would get all 56% that Panther pays in advance. Upon recieving the rest of the load I will take $450 dollars out for truck payment. I worked out that the truck cost me $337 a month. I will also start a truck repair fund since I still have ownership of the truck I would have to make sure that it was properly maintained.

 

[x06col]

Frequent, required inspections of the equipment by you WILL be required to insure you don't get total junk back, WHEN you get it back. Without SOME investment there really is no incentive for them to "keep on keep'in on" when things get a little tuff. No investment makes it real easy to walk when someone else is holding the bag.

I cannot imagine 56% of $1.20 per mile plus FSC will float the boat. If the trucks are averaging 1500 miles a week thats about 1500 bucks minus fuel and all other expenses. Probably a good recipe to make someone wanna walk.

It is common to look to being somewhat generous to help yourself out of a bad situation, but remember, most of the paths to disaster, are paved with good intentions.

 

[ericmoss37]

That 56% is just the load advance that Panther gives. They will get the rest less two weeks worth of truck payment since it's biweekly and I will also keep some money to keep the truck up.

 

[x06col]

Whatever. Just remember, IF they are going to be successful, they WILL be, or, they won't be, regardless if it's your truck or theirs. I'd suggest you make them prove themselves before you get into any contract purchase agreement.

Do what ya gotta do.

 

[alborada]

Exelant answers x06col!!!!!!!!!!!! I am agree with you 100%, this is a good plan but I am sure this is not will work, because if you can't not find a good drivers now- you can't not find a good guy for a contract like this ........... Don't forgat this is expedidet to is not a Fed Ex Ground it is big differance b/w this . But only can said - Good Luck to ericmoss37 every one from us need this luck in this difucult days............

 

[morningstar55ny]

ok. all you O/O out there...... lol
good morning..... whoa wait... its noon now isnt it??? lol
alrighty then nooners........ heh
welp....... i have a ?
I am a driver for someone whom is one of Panthers largest fleet owners..... i been with this owner now for a yr and half....and am a very loyal driver when treated right. *smiling*
anyways.......
there is a girl I know.... whom use to team with me..... and 1 day i came across her truck parked at a truck stop ... so i parked next to her... we sometimes connect over the cell phones and see if we cross paths to meet for coffee what not.....
well i park next to her truck..... her windows had the covers up .. and the truck was running.... but she was not in it.i knocked... no answer.... ok
so i called her..... and asked ..... where r u ??? she says....... she is out shopping with a friend whom came and picked her up in a car...... i said ahhhhh ok..... when r u coming back??? your truck is still running here ...... she said..... oh i dont know..... maybe tonight or tomorrow.
I am like shocked....... i asked..... but what about your truck??? arent u gonna come by and turn it off?? she said....... oh nahhhh i never turn it off.
GGeezzz laweezzzzzzz....... let me tell ya'll this has been buggin me for months and months....and i cant help wonder.. how often does she do this???
should i tell our owner.?? we work for the same guy...... i do not like being a tattle tale..... but with fuel cost..... my thing is..... i will look out for my O/O cause he looks out for me.
when its not freezing outside...... or extrmely hot out to sleep..... i wil lturn off the truck.....
me being a female solo driver..... i do take precautions about sleeping with windows nto being open .. unless they have the screens in them....
anyways....... what is ya'lls feed bk on this ???
is it ok to mention my O/O fleet owners name here>???? LOL

 

[Tennesseahawk]

That's a tough situation to be in. On one end, you have an irresponsible friend. On the other, a fleet owner who both of you run for.

I suggest you call your friend back up and warn her to stop spending the owner's money, or you'll have to let him know. Suggest to her to start paying for fuel if she doesn't know what it's costing him, or if she doesn't care.

Sounds like she needs to buy fuel regardless. Otherwise, she'll never be anything but a ditsy steering wheel holder without a lick of common sense.

 

[morningstar55ny]

That's a tough situation to be in. On one end, you have an irresponsible friend. On the other, a fleet owner who both of you run for.

I suggest you call your friend back up and warn her to stop spending the owner's money, or you'll have to let him know. Suggest to her to start paying for fuel if she doesn't know what it's costing him, or if she doesn't care.

Sounds like she needs to buy fuel regardless. Otherwise, she'll never be anything but a ditsy steering wheel holder without a lick of common sense.

your right.......
well she and i are not like. life long buddies or anything as such......
i been trying to figure out a way to let me boss know..... with her knowing i rated on her.
i just cant believe she is doing that.
and here i am in Iowaaaaaa lol where its freezin...... i had my truck runnin for a few hrs ..but i turned it off..... for a while...... its daytime and the temps r up somewhat.
and its not that bad in side here..... im warm.
the truck needs a break anyways...... lol

 

[cheri1122]

It seems that an owner who is paying for fuel would know how many miles the truck ran, empty and loaded, so should be able to figure the amount of fuel needed, no? And wouldn't he/she question the excessive consumption?
If the driver were a friend, I would ask them how they could be so careless of other folks' money, even if it meant making them an ex friend- because that kind of attitude makes it harder for those of us who treat the owners (and their equipment) with respect.

 

[ericmoss37]

The funny thing is some people are different. I just got off the phone with a guy that was happy as hell to gross $600 dollars a week. I guess things are pretty bad in Ohio? On the other hand I have a driver that thinks he should be making $1000 dollars a week and taking home at least $800 dollars.

 

[greg334]

I understand where you are going with this but I got to say I hope your plans include lawyer fees to make sure that you are covering all your liabilities here. I mean when you start getting in to payment take overs and such, you may run into a problem with the bank on sub lending with credit getting tight.

 

[davekc]

I am surprised the owner didn't notice a big difference in fuel consumption either through purchases or fuel tax report?
Additionally, they can log on to the owner web site and see the truck is on.

 

[kwexpress]

lease purchase is not a good idea the last one I did was with a guy I met 3 years ago and when he got the chance he still stiffed me for $1,200.