How do you fleet owners do it??

[mrgoodtude]

So there it is, a truck finally paid for and I swore if I got this one paid off I would never look at another nor would I ever consider running more than one truck..Then I get the call......
The deal of the century has me re-thinking and second guessing the whole fleet thingy.
Yes still with the Fed and in spite of what the majority proclaim my #s are looking as good as the last 6 September's to date.
Suffice it to say barring more than one catastrophic failure I can make this work on paper and my accountant agrees but.....
Quality teams seem few and far and that is a key ingredient to the fleet owners recipe..No?
Not bagging on anyone but I think the mindset of the team operation this day leaves a lot to be desired (specifically when I read the team available ads).
As a fleet owner do you look outside of the local pool to find quality teams?
If so is the training, mentoring and end result worth it???
I would not even consider this for a second... But the writing on the wall sez that all fleets are aged.
Expedite powers are looking forward by replacing majority % of fleets with power only units cuz well Joe expedite won't mortgage the farm for a 250k DR unit but Mr tractor guy will gladly leave his 1 dollar a mile gig to pull Expedite (Hell I did)....
Finally is this the kinda downturn that separates the men from the boy'z? Evolutionary Adaptation, Survival of the fittest?
Is it wise to keep all the cards on the table? like Dave Ramsey sez live today like no other so I can live tomorrow like no other?
Long story short (yeah I realize we have gone beyond) how do you do what you do?
Was it worth it all?
Would ya do it again?
I post this here cause there are a few like minded friends in my boat and we all welcome constructive guidance.
A high stakes poker game begs you to know the players.

 

[mrgoodtude]

Oh one more thing..
Would it be more logical to move toward a tractor (power only fleet) If one aspired to be a successful fleet owner?
I can realistically buy two nice tractors for the price of one str8...

 

[greg334]

Well to answer your last post - yes.

All the other stuff, I defer you to the great fleet owner on this site.

 

[mrgoodtude]

Well to answer your last post - yes.

All the other stuff, I defer you to the great fleet owner on this site.

Where is Dave anyway...(GRIN)

 

[greg334]

Where is Dave anyway...(GRIN)

Which one do you think I'm talking about?

 

[jjoerger]

I'm not a fleet owner but it seems to me finding the quality teams would be the hardest part.
Tractors seem to be in demand everywhere, not just in expedite.
It also seems that it is hard to get an OTR team to take on the mindset of an expediter. They have the "got to keep the wheels turning" regardless of pay per mile mentality.
Good luck.

And as the Colonel says: "Never own more trucks than you can drive by yourself at the same time."

 

[mrgoodtude]

Your right my friend as is the Col...Best to you and the misses...
Course the 2nd truck is a steal....jus sayin

 

[jjoerger]

Give it a try and if it doesn't work out resell the truck at a profit.
Nothing ventured, nothing gained. (Or is that nothing ventured, nothing lost?)
Same to you and your misses.

 

[blizzard2014]

If you run tractors, keep them out of expediting as you are fighting for scraps. I find it much simpler to get hooked up with general freight companies and brokers for tractor loads than it is for expedite loads. Just make sure you get higher paying contracts from good brokers so you can pay your drivers well and still make a decent amount of money. I'd suggest buying your trucks and leasing or buying two reefer trailers and pulling produce. There is good money in that.

If you want to run straight trucks; consider this. You can buy some decent under 26k straight trucks for 20-50k (and I'm not talking about hinos)! You can get at least 1.70 1.80 per mile with these trucks and have teams in them (that is if you own your own company and get loads directly from the brokers or the source)! You take 10 percent off the top for the brokering fee and you split the remaining percentage with the drivers 60/40. You could technically pay the drivers 1.00 a mile and it costs .50 CPM to run the truck. So on a nice 8k mile month the team makes 4 grand. 8k a month is very easy to do if you are hooked up with the right brokers or load boards.

And since your trucks are under 26k pounds there are no fuel taxes to pay, and you can buy more of them because they are cheaper than bigger straights. A lot of the straight truck loads I see out there are around 1000 to 7000 pounds and run direct! The small straight truck with husband and wife team is the only way to go in this current market! That is my opinion!

 

[BillChaffey]

You can always follow Dave Ramsey's advice. Don't pay anything for a few years then offer 50% or less on what you owe.

 

[moose]

I would suggests starting with a well written long term business plan.
here is some good place to start.
call Robert, the new trucks sellsman @ Interstate truck source in Romulus. ask for a phone# of one of his customers.
it is a large fleet owner with 3State, and he is doing very well.
that F/O will be more then willing to fax you over the contract he got.
it's brilliant, and will clear out everything you need to know.
hope that helps, and keep us posted.
G/L.

 

[BillChaffey]

When I first moved into the Ozarks a sign at the local Sale Barn had advice for getting into the Cattle business. It might also work for you. "Two things needed to get into the Cattle business. #1 $100,000.00 #2 Another $100,000.00"

 

[mrgoodtude]

Give it a try and if it doesn't work out resell the truck at a profit.
Nothing ventured, nothing gained. (Or is that nothing ventured, nothing lost?)
Same to you and your misses.

That was my 1st thought but then I remembered how hard it is to get capital financing these days.
Sale prices don't seem to hurt trucks anymore but unless you have been a established fleet owner for 2 decades or have 20 acres to put on the line you can't get the loan.

 

[mrgoodtude]

If you run tractors, keep them out of expediting as you are fighting for scraps. I find it much simpler to get hooked up with general freight companies and brokers for tractor loads than it is for expedite loads. Just make sure you get higher paying contracts from good brokers so you can pay your drivers well and still make a decent amount of money. I'd suggest buying your trucks and leasing or buying two reefer trailers and pulling produce. There is good money in that.

If you want to run straight trucks; consider this. You can buy some decent under 26k straight trucks for 20-50k (and I'm not talking about hinos)! You can get at least 1.70 1.80 per mile with these trucks and have teams in them (that is if you own your own company and get loads directly from the brokers or the source)! You take 10 percent off the top for the brokering fee and you split the remaining percentage with the drivers 60/40. You could technically pay the drivers 1.00 a mile and it costs .50 CPM to run the truck. So on a nice 8k mile month the team makes 4 grand. 8k a month is very easy to do if you are hooked up with the right brokers or load boards.

And since your trucks are under 26k pounds there are no fuel taxes to pay, and you can buy more of them because they are cheaper than bigger straights. A lot of the straight truck loads I see out there are around 1000 to 7000 pounds and run direct! The small straight truck with husband and wife team is the only way to go in this current market! That is my opinion!

That is the big issue.. Husband /Wife teams are scarcer than trucks..Making $$ is not the issue but teams with an owner mindset are very rare.

 

[mrgoodtude]

When I first moved into the Ozarks a sign at the local Sale Barn had advice for getting into the Cattle business. It might also work for you. "Two things needed to get into the Cattle business. #1 $100,000.00 #2 Another $100,000.00"

Yep and if ya wanna make a million with a truck start with 2 million....

 

[mrgoodtude]

I would suggests starting with a well written long term business plan.
here is some good place to start.
call Robert, the new trucks sellsman @ Interstate truck source in Romulus. ask for a phone# of one of his customers.
it is a large fleet owner with 3State, and he is doing very well.
that F/O will be more then willing to fax you over the contract he got.
it's brilliant, and will clear out everything you need to know.
hope that helps, and keep us posted.
G/L.

Thanks Moose

 

[greg334]

'tude,

I got to tell you that I won't be posting the detailed info because of one member but let's just say a tractor and your own trailer with a company where you can have them handle the paper, is a money maker with just one driver. Having two drivers makes even more money.

 

[mrgoodtude]

'tude,

I got to tell you that I won't be posting the detailed info because of one member but let's just say a tractor and your own trailer with a company where you can have them handle the paper, is a money maker with just one driver. Having two drivers makes even more money.

Greg
I am with you on the logic but thinking forward the lack of new truck sales may change the expedite dynamic.
Will older straights be worth more (make more) down the pike
Or will the era of the straight truck be a memory?
If the latter came to be then I would think the next couple of years may prove to be lucrative if you had a decent truck and could keep a team in it.

 

[jjoerger]

There are new straight trucks on the dealers lots now.
FYDA has 2012 Cascadias for $135k and Freightliner of Knoxville has 2012 M2's for $125k.
You need at least 20% down and good credit to buy one.
To rich for my blood. I'll stick with my paid for 06.

 

[greg334]

Greg
I am with you on the logic but thinking forward the lack of new truck sales may change the expedite dynamic.
Will older straights be worth more (make more) down the pike
...

I understand what you are driving at, I can see it but I myself can't be concern with what ifs, maybes or could bes.

The problem is that this niche market isn't serviced by a few any more and it really isn't about emergency freight as it once was but more like taxi cab freight service. We don't get the premium rates, no van should be moving under $1.50 a mile while no truck should have a rate under $2.50 a mile because the exclusivity of the load however we accept what we get because how this is all structured but more importantly how the we haven't caught up to the past.

Just one thread of recent past proves exactly what I am saying - not mentioning the thread or the member who started it but it is worth noting the content.