Talked to an owner today and he is basically saying he wants just enough money to pay the payment on the truck and put some asside for repairs. He said he is willing to put into writing a 80/20 split where I get 80% he gets 20% I pay fuel get 100% of the surcharge but if the truck dont make much he gets a minimum of $700 a month. What do you guys think? The truck is signed on with Bolt Express.
Is this a good deal?
- Thread starter tbird165
- Start date
I think this is doabale. The truck has to generate a minimum of $3500 per month for the owner's minimum cut. If the truck did $7,000 his cut would be $1400 leaving you with $5600. After expenses you should be able to net somewhere around $4,000,question is can you get information from Bolt as to average monthey revenue to a solo truck plus deadhead. Excessive deadhead could impact you pretty bad but I still think if you don't set your sights too high it would work.
Sign some type of contract spelling out breakdowns. If the truck is tied up for 3 weeks waiting on repairs the owner shouldn't expect his $700.
Sign some type of contract spelling out breakdowns. If the truck is tied up for 3 weeks waiting on repairs the owner shouldn't expect his $700.
targuard86
Expert Expediter
Short term this sounds ok but I'd be worried my owner might not make enough to repair the truck should it break down. We'd all like to make 100% of what the truck makes but in reality we must be sure their is a fair spread of money beteween the company, the truck owner and the driver so they all make enough to justify doing this.
Yes I talked to another company and they told me the same thing that thats a good deal but what good is 80% if the truck is broke down and what little money the truck did make I would have to give $700 no thanks. Plus the truck is old its a 1998. I talked to another company they have an owner who gives 60% of the gross. I pay the fuel but I get 100% of the surcharge and if the truck grosses more than $8000 I get 65%. The company rep said this owner has 4 trucks with them including the one they want to put me in and I wont need my own money to start with for fuel they said the owner would give me a fleet card to start out with and a little bit at a time would come out of my pay to pay back the money I used for fuel to start with. Sounds like a good deal to me. The equipment is better also 1991 72" double bunk sleeper straight truck. I think even though its not 80% this is much more stable and better deal especialy when the company told me that this guy has the money if the truck breaks down to fix it.
Broompilot
Veteran Expediter
This is a decision your gona have to make. Understand this up front 20% is not enough for him to continue to make repairs and make his payments. This is another one of the facts of life of rushing into an investment without proper capitol now he is just gona be happy to get this monkey off his back.
It also spells that he is a poor business decision maker to have his back against a wall like this. Now how can you capitolize? If it is a decent truck and you want to continue forward, than I would proceed as it is a good deal for a smart business person. Just two words of caution get everything in writing including dates of how long your gona stay in this truck. Cause the downside I see is you help him and out and in a few more months he finds another driver at a 60-40 split and your history, so cover your rear. As this without it spelled out in writing could get ugly.
Second, just be prepared at this revenue that if he cannot fix a repair you better be ready to do so,and willing cause remember its your business and your getting a great deal here. He aint makin squat. So for you to get peeved cause he can't fix it just remember he is already broke, and two broke people aint gona get a truck running, and if he does not make those payments your truck is gona go away. Make sure also that you see somehow that those payments are not getting behind and are being made or than again its gona go away. Ask how is he gona be able to afford repairs (I do not see he that he will be able to even if he wants to) also how is the truck gona be insured, registered etc.. this all costs $ and from what I see he has none by your above question. Hope this helps wish you both well.
It also spells that he is a poor business decision maker to have his back against a wall like this. Now how can you capitolize? If it is a decent truck and you want to continue forward, than I would proceed as it is a good deal for a smart business person. Just two words of caution get everything in writing including dates of how long your gona stay in this truck. Cause the downside I see is you help him and out and in a few more months he finds another driver at a 60-40 split and your history, so cover your rear. As this without it spelled out in writing could get ugly.
Second, just be prepared at this revenue that if he cannot fix a repair you better be ready to do so,and willing cause remember its your business and your getting a great deal here. He aint makin squat. So for you to get peeved cause he can't fix it just remember he is already broke, and two broke people aint gona get a truck running, and if he does not make those payments your truck is gona go away. Make sure also that you see somehow that those payments are not getting behind and are being made or than again its gona go away. Ask how is he gona be able to afford repairs (I do not see he that he will be able to even if he wants to) also how is the truck gona be insured, registered etc.. this all costs $ and from what I see he has none by your above question. Hope this helps wish you both well.
