getting serious doubts

[mirangerman]

As I get closer to running w/ PantherII on Monday, I am really beginning to wonder if I should get into expediting or not.

I'm not to happy to hear that, as someone has said (to summerize what most are saying)- "make as much, or more delivering pizza's than expediting".

Getting quite the leery about doing this for way <1,000/wk as most have been saying has been going on for quite sometime. Sure most have been getting >500mi/wk-<1,000mi/wk, but it sounds like to me that they're doing good getting those #"s. Even my O/O doubts I’ll get anything more than 500-800mi/wk

Beginning to wonder if I should rescind my two wk notice from my old employer and go back, and at least do the two weeks w/ Panther.

Just really getting the jitters- some of the “realities” of this job started to sink in about making enough $$ to run a van and raise a family shortly after signing on the dotted line.

I don’t know guys, I just don’t know

charles

 

[LDB]

Your concern is understandable. At 77cpm for a van the 60% side gets 46cpm. I can only guess at the average fsc for a van but since my D unit is .1205cpm based on all paid miles I'd guess a van at .06cpm for a total of 52cpm. I'd estimate fuel cost at 15cpm leaving 37cpm to the driver. I've either been very fortunate or tolls don't amount to enough to worry about but we could pull 1cpm for tolls leaving 36cpm to support the family. It's a tough decision. Good luck to you.

Leo
truck 4958

Support the entire Constitution, not just the parts you like.

 

[davekc]

I'm not to happy to hear that, as someone has said (to summerize what most are saying)- "make as much, or more delivering pizza's than expediting".

As you have read, the van side of the business is slow.
As to whether you make more doing pizza delivery? It would depend.
I would recommend at a bare minumum to have plenty of cash reserves available. That would apply whether you own or drive someone elses truck.
Davekc

 

[DannyD]

>I'm not to happy to hear that, as someone has said (to
>summerize what most are saying)- "make as much, or more
>delivering pizza's than expediting".


Hiya Charles,

I've done both pizzas & expediting. On a per hour basis, after expenses, it's not even close. Provided you delivered in an affluent area & had a fair amount of deliveries you would make more on a per hour basis running pizzas. The thing w/ pizzas though, is there's only about 3-4 good hours per day to be delivering them.

You can make more TOTAL money by far doing expediting. You may make $300 on a run but sit for a day or 2. If you just count the time it takes to pick up/deliver your run, the per hour rate is pretty good in expediting. When you factor in your sitting time, while you aren't actually working, you kinda can't do anything else, the per hour rate comes down quite a bit.

I'm not sure what your other job paid you & what kind of benefits they offer. I know that when things were going great I was going to get a friend in this business. He was making $12/hour & his insurance was paid ($960/month). He saw those $2-3,000 checks & they sure looked tempting. After running some numbers though, he decided to stay w/ his job. When things were good in expediting it was a close call. When business is slow being at a job like that is probably a better way to go than expediting.

You have some tough decisions ahead of you. Good luck w/ em.

Take care,
Danny

 

[terryandrene]

You'll find that expediting as a driver for an owner will be a difficult way to to support a family. You've chosen the the truck with the least revenue potential and will be sharing the proceeds with another family. You have, however, chosen a good carrier and after paying close attention at your indoctrination, asking all the questions that need answers and with follow-up conversation with your knowledgable fellow drivers, you could have a satisfying experience. You should know in a very few months whether you like this and will invest in your own business to maximize your earning ability.

Although there a some similarities, it's rather foolish to compare the pizza delivery biz with expediting. Sure, you deliver stuff if and when a customer calls; you need your own vehicle; you get paid varying amounts on a job-to-job basis; and, you sit between the busy periods. We do all of the above but we're not a part tme job like the pizza guy.

This is a full time endeavor that requires a sizable investment in time, effort and money in order to do well. This expedite business investment is somewhat like your IRA, Mutual Fund or other instrument which must be averaged over a longer period of time than one day, week or month. You will have periods where you just recoup your expenses and you'll have periods that will reap huge rewards. The real measure of your success will be at the end of the year when you compare your expenses with your revenue. Most of us have enough of the left over revenue to continue into the next year. With the proper management of your time and money, you will also do well.

We all wish you well at PantherII and hope to meet you on the road with a smile on your face.

Terry

 

[raceman]

I need to jump in here and say something before I burst. I have tried to show this to drivers I have had over time and only one out of seven understood it.

If you look at this business on a day to day basis it STINKS! That is why you need a little bundle of money to help you through the smelly days.

If you simply run all year and then look at what you have made this is an incredible business. It smells GREAT!

I have pointed this out before as have others but will try it again.
Do not get in this business if you are living day to day. You can not make it. If you start out in the hole it is hell to dig out of. If you start with some money to help out with slow days, weeks or months and you save a little a long the way at the end of the year you will see that you have made a wonderful salary and you will also find you made that in a short period of that year and the rest of that year you seemed to be sitting and wondering why you were doing this.

You have only a very few very busy periods and that is where you make big bucks. Some of that gets saved so you can start the cycle over again in the new year. I have had a horrible last 6 months and yet if you look at what was made when all was said and done, I did pretty well. I also did pretty well in what is equal to about 4 months. The rest of the time it seemed to STINK.

Hope this makes since. If not, oh well.


Raceman
OTR O/O

 

[terryandrene]

Raceman:

As usual, you said it like it is, warts and all. We'd al be wise to heed your advice. Thanks

Terry

 

[Loose_Cannon47]

Yep...it doesn't matter how you crunch the numbers, it all boils down to what you have left in your pocket at the end of the year...isn't that why we all work, anyway?

Loose

 

[raceman]

Thanks Terry. I just could not take anymore about the slow freight and so on. You how this is. Day to day cash counting depresses you and it looks bad. Folks have got to get over this.

DaveKC always said it takes a strong stomach. Its takes that a the mental ability to look passed the slow times. Keep focused on the big picture.
Raceman
OTR O/O

 

[davekc]

Doubts are normal when folks are witnessing a slow down.
The old saying "If it was too good, everyone would be doing it"

Folks have had to tighten their belts and when that happens, people are going to complain.
Like any other business, when things turn a little south, we see the worst in drivers and companies.

This is a cycle that many have been through before. For the ones that planned accordingly, they will see it through to the next busy cycle.

For the ones that have mismanaged their business, stayed with a unproductive carrier, or over spent on equipment, it is just a matter of time.

While it may sound harsh, the ones that are still here, are the ones that will capitalizing on those failures. There will be many trucks that can be bought for pennies on the dollar.
It is currently being seen. Repos are up 50 percent over last year.

It comes down to whether you are in the barn, or outside looking in.

Davekc
owner
20 years

 

[raceman]

DaveKC is right on. I picked up the TRUCKPAPER and there where 10 or 12 in there and the prices are getting reasonable.

As you know from my POSTS I am down to one truck. The one I drive. I have a dedicated run six days a week. I use the days hours and SUNDAY to shine my chrome, than God for the run and watch the prices of trucks.

I also see expediters every night where I pick up and boy oh boy are there some nice new trucks with very sad faces in the seats. Folks just got in too deep too fast. I hope that is not the case but it looks that way and sounds that way as they talk of the slow freight.

I will add I have also heard a number of these same drivers explain how they have turned down short runs and two that almost took me off my feet by saying they had turned down dedicated runs which would have run them from the North East side of Cincinnati to Muncie In. upto six times a week. Good Lord guys what are you thinking?

Raceman
OTR O/O

 

[x06col]

Six times to Muncie each week? 140 miles X 2 = 280 per day X 6 days
=1680 a week - 210 gal fuel @ 2.15 = $441 run pays what? maybe $1000
I'd probably leave it alone too.

 

[geo]

best way to do this is to be retired from somewhere else and you have a base income coming in
and this make's good extra income
and takes care of slow times
and this is a different life stlye
and is not for everybody
if i had do this all over again i think would drive a dump truck
for someone else
i love freedom of coming and going as i please

 

[raceman]

X06, maybe I am missing something. If folks are saying how bad they are doing, no miles, no money, don't know how much longer they can keep the truck. That dedicated run would look pretty good I would think. It is a hell of a lot more than what they claim they currently make.

I guess I don't get it. But then again I thought I had lost my mind during a conversation with my then 19 year old daughter who was not working, needed money and at the time McDonalds was offering $10 an hr. I suggested she take a job there for a while and she too pointed out she was better off broke than making $10.00 per hr.

Hmmmm? I guess I did not get it then and I don't get it now. Why accept work when you can have no work. I am missing something.

Raceman
OTR O/O

 

[Loose_Cannon47]

The bottom line is how much you end up with in your pocket at the end of the year...if you can afford to turn down the offer, then by all means do so...but if you're running on empty, ANY money is better than NO money...

Loose

 

[davekc]

I think the major issue is that many have already overspent. When things were good last year, many were spending all kinds of money on trucks. Instead of running smart and effecient, they are praying just to make a truck payment.
I sound like a broken record, but for the most part, this is a ALL cash business. This has been the case since 2001.
Why?
Because all costs have increased and the rates are the same since that period.
When at MATS this year, I see folks financing trucks well over $100,000, and many up to $180,000
What are people thinking?????
They seldom will be in a position to pay off that equipment.
I have yet to see any realistic figures from any carrier that could support that kind of investment.
As mentioned, I look forward to the slow times because that is the best time to invest in equipment.
As Terry calls it, much of the carriers numbers are puffery. They are for a ideal setting.
That $100,000 truck with now 100,000 miles on it(maybe), I will buy for $30,000 to $40,000.
We have had as many as 15 trucks and with the exception of a handful, we bought everyone of them for pennies on the dollar.

The whole point of this is, either pay cash and have decent cash reserves, or take that $10.00 an hour job at McDonalds.

Davekc
owner
20 years

 

[Doggie Daddy]

>The bottom line is how much you end up with in your pocket
>at the end of the year...if you can afford to turn down the
>offer, then by all means do so...but if you're running on
>empty, ANY money is better than NO money...
>
>Loose

sorry loose,but i don't happen to agree with your statement. no matter how rough it gets out here,i will NOT run the company's frieght for free. if i'm going to do this, it will be for a rate that pays the expenses and also pays us for doing it.DD.

 

[RichM]

Dave puts it very well.If I recall right I believe there is a forum member who was going to take delivery of a real large car expensive unit and have it at the Matts show.Perhaps he saw the writing on the wall as I see from various posts he is still driving for a fleet owner.
With the cost of doing business that have risen drastically over the last 2 years it certainly makes sense to keep your capitol outlay to a minimun.

You can research and think you have a businnes plan but when other factors that you have no control over such as increased competition,world wide political events etc that hurt the overall economy can ruin a small businness owner.

Like Dave says, repoed trucks are here going for very low prices and the individuals that went whole hog are left with ruined credit and so on.

 

[Loose_Cannon47]

DD, no one said anything about hauling freight for free...if you don't make a profit, then there IS no money in your pocket...that was my point...but ANY profit is better than no profit...if you can make money in expediting, with your truck parked, and not make money hauling freight, you're in the wrong end of the business...just my nickle's worth...

Loose

 

[x06col]

Raceman: You are right. But, why tie a truck and a driver up all week for what I anticipate would be chump change for six days a week. On the other hand, I have a dedicated run going begging for someone to run it each week. RT Cinci - NYC. Takes 4 days pays the truck $2100. Everyone says NYC????? PEEEWWW, NOWAY. Four day week,excellent revenue, always busy. You are right, we both don't understand.