How not to operate your business

nightcreacher · Mar 5, 2011

Ive been expediting for over 25 years.As in any business you should save for that rainy day.Well,that rainy day came for me,and since I didn't think it would ever happen,I'm now getting ready to work for someone else.A truck I should have traded for new,just had a major breakdown,and It's easier to get rid of it, than put $15000 in it.Being it has a million miles on it,and needs a motor rebuild,since motor is blown up,just going to sell it.Got good job offer,going run solo,that will be an experience just on it's own,running truck load for TRI STATE.Just remember,If you think it's time to get rid of your truck,don't wait til the last moment,this could happen to you,And I know you prepared for this happening,I did too,but not a motor failure.

Jefferson3000 · Mar 5, 2011

Night,

It could happen to anyone. These are uncertain times, times when even the most prepared of us have suddenly found themselves forking out unexpected expenses. It doesn't help when we've just come out of a couple of really up-and-down years, revenue-wise.

Good luck to you. I know you'll bounce back.

mrgoodtude · Mar 5, 2011

Steve so sorry about your truck and the issues you have had to face over the last year..
In retrospect I don't believe you have had a lot to work with running solo/team when possible and when you toss in a carrier change to boot it is a recipe for desperation soup.
Exhale as you can now run for the love of the job without the distraction of "will I make a dollar this week or will the truck?".
Nothing wrong with knowing you will be + liquid at the end of the week no matter how much as it is still a +.
Hoping the best for you
Regards

iceroadtrucker · Mar 5, 2011

IM sorry to here that Steve. However I said it when I first posted on here the 515 EGR Detroit is a piece of Junk.\
No power. Full of Problems.

I told Each and eveyone of you that the old Detroit 60 470 the one I had in the "Bull" was the Best Darn Engine Detroit Built. THe Bull had 1million 225thousand miles on her when I got off him and the motor never had an over head or clutch done on it as long as I was in the Truck. I got on it at 450,000 miles so YES I can drive 10 speed and 13. I put that Truck through Hell while all the perty boys sat there Buts in the south in the winter.

For the folks who drive Volvos Well my cousin works at Volvo Mack, Junk Junk Junk and for a Mechanic saying dont buy or u be in the poor house.
Volvo is Junk. From Electronic Shorts in the Ignition to the Wire Harness having to be replace due to melting wire and chaffing wires to the dum Smog pollution they have on them.
Like I said over a third of the time you will be in the shop and ya people you can quote me on this. The new qual com
gona have a toll on your Ignition wire in the Volvo.
They may have nice cabinite and such and a nice desk but mechanics is what counts that gets ya down the road.

Again sorry Steve and good luck to ya man!!!

John said don't buy a truck just drive thing. Let the worry be some one elses headace.

Peace.

Tired of Running yet Im just getting warmed up.

ATeam · Mar 5, 2011

nightcreacher said:
Ive been expediting for over 25 years.As in any business you should save for that rainy day.Well,that rainy day came for me,and since I didn't think it would ever happen,I'm now getting ready to work for someone else.

It is big of you and kind to share for others the circumstances that took you out of expediting and owner-operating. Most people who get wiped out don't rise to admit it but fade quietly away. Diane and I wish you well as you get back on your feet. It's good news that you found a new driving gig so quickly.

Newbies, ongoing success in this business requires many things, one of which is capital, capital, capital!

I have been criticized for saying this before but I will say it again because I believe it is true. A good long-term goal to shoot for is to build a financial reserve that equals or exceeds six months of gross revenue.

Having that amount put away will get you through major breakdowns like the one Steve describes. It will also get you through a Great Recession like the one we all experienced not so long ago, the negative effects of which continue to be felt by many.

Even if you are driving a brand new truck that is under full warranty, it is not too much to have six months of gross revenue tucked away. There are many other things that can go wrong that could take you out of the business if you do not have it. A lot of new trucks have been lost to the repo man because the truck owners lacked the capital to stay on their feet.

Hightech_Hobo · Mar 5, 2011

NightCreacher,

Sorry to hear of your unfortunate series of events. Don't beat yourself up over decisions made. I am sure this is not the first mistake you've made, nor will it be the last...It is the human condition. (and a sign of the times..)

Between 3 divorces and at least as many career changes I have lost everything I own more than once. Each time hurts at first and then I grab my boot straps and start building again. You are an Expeditor...I am sure that by now, you know the joy is in the journey..not the destination.

Good luck in your new journey!!

HT Hobo

ATeam · Mar 5, 2011

iceroadtrucker said:
For the folks who drive Volvos Well my cousin works at Volvo Mack, Junk Junk Junk and for a Mechanic saying dont buy or u be in the poor house.
Volvo is Junk. From Electronic Shorts in the Ignition to the Wire Harness having to be replace due to melting wire and chaffing wires to the dum Smog pollution they have on them.
Like I said over a third of the time you will be in the shop and ya people you can quote me on this. The new qual com
gona have a toll on your Ignition wire in the Volvo.
They may have nice cabinite and such and a nice desk but mechanics is what counts that gets ya down the road.

I'm not going to say anything to iceroadtrucker his Volvo rant. I will instead offer to readers that Diane and I have been driving a Volvo truck since July, 2006. We bought it new and now have 570,000 miles on the odometer. The new Qualcomm unit was installed in January.

None of the mechanical or electrical issues mentioned above have happened to us. As with all trucks, we have had mechanical issues of course but nothing that we consider severe enough to shy away from Volvo the next time around.

We drove Freightliner trucks and one Western Star before getting into our Volvo. The Volvo has never had to be towed. We have been in the shop with it far, far, far less than we were with the other trucks. Our Volvo is by far the most reliable truck we have ever driven.

When I mention the next time around above, note that there may not be a next time around. We expect to easily get a million miles out of our Volvo and hope to get a million and a half. Our career in expediting may be over before the truck wears out.

TeamCaffee · Mar 5, 2011

I think with a new truck it is best to be even more cautious as to many people get wrapped up in I have warranty. While warranty is a good thing it often takes longer to get a truck fixed or they do not fix the truck like we would like. While we do not have to pay for the repairs we will still be down usually in a hotel and our fixed costs continue. I agree with Phil the better our reserves or the better our chances of surviving a catastrophe like Steve has experienced.

Steve good luck to you and maybe you will do better without the stress of keeping an older truck on the road.

iceroadtrucker · Mar 5, 2011

Class 8 Tractors.
Ask I know a person you can ask her about her class 8 volvo and when the Ign system went out due to weak Ing wiring and what kind of fun it was when the whole truck goes dead. she is on here. go to the want adds and you will see here there advertising for a co driver. she is out of CA.

When your truck passes One Million 225 thousand miles and no overhead no new clutch. Make sure you post it on here. I will be the first to congrads to ya.
so U have a 9 , 10 speed or 13 or the automatic?

There not very many Trucks that can lay claim to what I have stated the Bull did. Not many at all.

No new Clutch No Over head run.

cheri1122 · Mar 5, 2011

Steve: life is full of surprises, innit? Just remember that some of them are really good ones, and keep on truckin till then. You are a pro, and have made it through worse, you'll be fine. And we'll be here to keep you company!

nightcreacher · Mar 5, 2011

Kevin,mine was 1st edition egr,not the 515.THey did have many updates to it.I cracked a head,first real truck trouble in 980000.Replace clutch at 880000 miles,and actually could put new head back on,but with 980000 miles,should just rebuild rest of motor,and since who know when trans and rears will go bad,just better just to get rid of truck.To finish rebuilding motor going to take another 8500 bucks so just going to get rid of it.
Mike,I did run solo for a little, but still did over 200000 bucks last year.Phil,thanks for the wishes,nothing ever gets me down,I'm not quitting,just taking a different direction

nightcreacher · Mar 5, 2011

Just like a box of chocolates,wish I thought of that lol

jaminjim · Mar 6, 2011

Dang Steve hope everything works out for you, it is a real bummer when you take a financial hit like that all at once. I had a similar problem but mine came in the nickel and dime category. Well more like $2,500 here and $1,500 there every six or seven weeks. Luckily I sold my second truck in between breakdowns. My first truck did it's best to bankrupt me. After paying $1,500 to get it fixed I drove about 15 miles to the house to remove all of my stuff, and then started towards Detroit to trade it in. Broke down 6 miles from the house. $2,500 later I got it to AB for trade in. First six months with the new truck I evenly split the time with the mechanics.

I know the difference between gross income and net income, but if memory serves me right, haven't you grossed over $200K most every year? Too many steaks? Too many toys?

nightcreacher · Mar 6, 2011

Ya Jam, I could sell one of my toys and fix it,but like I said,almost million miles on it.I'm to old to be working for a truck payment.Im going work for guy I met.My pay will be close to what I was netting,and I won't have to worry about who's fixing what.He has a fleet of trucks over at Express 1,is buying a tractor to put on with Tri State.I should be ok,just going to have to get use to running solo.

ATeam · Mar 6, 2011

jaminjim said:
I know the difference between gross income and net income, but if memory serves me right, haven't you grossed over $200K most every year? Too many steaks? Too many toys?

jaminjim makes a good point and it applies to many contractors and drivers, not just a few.

At our carrier's headquarters last week, Diane and I sat in classrooms with a number of contractors and drivers. Many of them had been with the company for years. Some went all the way back to the Roberts Express days.

Yet common among them was a financial condition that put them in the ranks of the working poor or worse. These people have the same equipment and credentials Diane and I do. Some had decades of experience in trucks. But for all the work they have done, they have little or no money to show for it.

Also in the rooms were drivers who are not in the ranks of the working poor. Having the same credentials and equipment, they found ways to increase their financial net worth over the years.

Yes indeed, a team can gross over $200,000 a year in this business (over $1 million in just five years!), but if you have no money to show for it after a few years of working, are you wise to continue?

The more you do what you are doing, the more you will have what you have.

The less you manage your money, the more it will rule you.

The choice is yours. Do you want to be a prosperous trucker or a pauper on wheels?

davekc · Mar 6, 2011

Sorry to hear Steve. Hopefully it all works out. You are right, undercapitalization is the biggest killer for a owner operator. Can't be stressed enough. On the upside, your truck likely still has a reasonable value. We are guinea pigging the new emissions engines and are less than impressed. Every issue has been tied to the EGR or DPF system. Becoming a close call to overhaul existing equipment when they get to that higher mileage.
With regards to the Volvos, we leased several of them for a project outside of expediting and were reasonably trouble free.
Biggest issue seemed to be a lack of service facilities. If the trucks were out of warranty, than that is less of an issue.
Most of the Volvo problems were electrical and steering in which there was several lawsuits, but those were on early 2000's models.

jw-bama · Mar 6, 2011

sorry to hear about your troubles. regarding volvos i bought a volvo 770 in 1999 with the auto shift drove it for 990,000 miles put one injector in the cummins redtop and had no electrical problems at all. sold it in it for 25,000 in 2005 to a local guy and he is still driving the truck. talked to him last week he had put a clutch in it and new brakes.i guess i just got a good one.huh

LDB · Mar 6, 2011

Steve, as usual you come in here and give balanced and level information that's useful and helpful to newbies and old timers both. I'm sorry to hear of your troubles. I'm sure you will do well in whatever you do.

melanieanne · Mar 6, 2011

It's all who one Drives for. If we can't make $1400.00 min a week total gross per person teaming for an Average, With Equipment with all the Bells so to speak and Quals then its not worth being out here. We take good loads and the Bad loads so we make the Pay. One good load for the week pays the Equip and then the other loads is for our pay to make it worth while. The person we drive for Supports this 100%!! If your Driviing for some one that only cares about their bottom line, then they don't care about their drivers. Consider them selfish, and you need to get away from them before you go in the poor house. U know who U are as U never seem to be able to make enough money so that u can go home for home time. We ran for one OOP that was like that. Never Again. Bottom line is \over the road you should make enough. So that u can take take time off to go home. Don't there are Taxes you got to take out if your 1099 ect ect.
Good Luck Steve we wish you well in your new adventure.

nightcreacher · Mar 6, 2011

melanieanne said:
It's all who one Drives for. If we can't make $1400.00 min a week total gross per person teaming for an Average, With Equipment with all the Bells so to speak and Quals then its not worth being out here. We take good loads and the Bad loads so we make the Pay. One good load for the week pays the Equip and then the other loads is for our pay to make it worth while. The person we drive for Supports this 100%!! If your Driviing for some one that only cares about their bottom line, then they don't care about their drivers. Consider them selfish, and you need to get away from them before you go in the poor house. U know who U are as U never seem to be able to make enough money so that u can go home for home time. We ran for one OOP that was like that. Never Again. Bottom line is \over the road you should make enough. So that u can take take time off to go home. Don't there are Taxes you got to take out if your 1099 ect ect.
Good Luck Steve we wish you well in your new adventure.

Takes more than 1 good laod a week to pay the truck expenses.If your driving for someone running team,and making 1400 each,your owner is going broke,he just hasn't found out yet.It may seem owners don't care,but some just dont know how to express themselves.There is only so much money to go around,even for someone like me,whos truck was paid off,and I'm trying to sell it for wholesale minus cost for fixing it.My co was making 25% thatcause I only paid myself 15%,40% is actually all that can be paid for drivers wages.Oh and by the way.I'm not broke,just not going to fix a 7 year old truck with almost 1000000 miles.