Just Starting

[Elfire]

also you will need workmen's comp insurance for you or the driver and that ain't cheap

Otherwise, your hired drivers or brokers will work ya and all investments will be wasted.

Ok. Here are some very helpful warning tips I'm looking for. As the owner I've been told I'm required to carry insurance on the vehicle Panther offers, as well as maintenance, work men's comp, etc etc.

I was very unaware that the driver could or would try to 'take' me. I guess I always thought that in this type of relationship both parties would have to do their part or else it would hurt both.

Thankyou guys I'll write this down on my list of questions for "cost" when I talk to Panther next week.


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[str8trk]

To the original OP, answer this question for yourself. "What kind of person would be willing to live in a crappy old van, drive said vehicle whenever and wherever dispatch deems it suitable, pay for the fuel, sleep on an air-mattress, eat lousy food when they could afford to ... Never knowing what the next paycheck might amount to, hoping it will be more than a few hundred dollars"

 

[Elfire]

Me. Gladly. If I had the option to. I understand everyone's hesitance on here. And I'm grateful for the cautionary advice. I currently work in a factory where I am damned to stay here for what seems eternity. All 600 employees around me walk around like zombies because they've given up on ever finding success so long ago that they've resorted to spacing out on the job. Like they're all on auto pilot just looking for an escape. The people here are miserable and overworked, while our bosses scream at us for not doing more. In the last two weeks I alone worked 152 hours. I almost always work 12 hour days 7 days a week. And am willing to prove it. I have to take caffeine pills just to get through the beginning of my shift because management isn't willing to hire anyone to evenly disperse the work. And if there's even mention of union that person is instantly fired for some other reason. I know pain.

I'm tired and the only thing that keeps me going is that there is a solution to every problem. I know that people have successfully been fleet owners so I know it can be done, and done correctly without mistreating their drivers. And I WILL figure out how it's done.

I feel as though this blog is not the best place to go for answers. I need to get in contact with some successful business owners. Preferably fleet owners and experience first hand how things are done. Thankyou all for the help and advice. I'll reply in about a year or so with my results.


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[geo]

one more thing if you hire a driver , have a contract that say what each party is required to do
have it made by a lawyer

 

[xiggi]

You will find most successful fleet owners are on the straight truck side of things.

 

[str8trk]

Just to clarify my earlier post. It was not my intention to disparage van drivers, rather, I was attempting to illustrate that there is simply not enough revenue available in this segment of the market for an owner to take a 40% cut and leave anything meaningful for a driver.

 

[FlyingVan]

Finding good drivers is not that easy, especially in the van segment. And if you find a good one, more than likely he wont hang around too long since there is not enough revenue to split 3 ways, owner, van and driver.

I read countless stories about vans abandoned 600 miles away from owners, vans trashed, and not too long ago, I believe last year a van stolen. The driver disconnected the Qualcomm and disappeared. I don't know if it was found or not.

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[Opel2010]

Oh and to be perfectly honest if I get $100 for the whole month. That's $100 I am richer.


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An old vehicle is an old vehicle. Having someone else to drive it, won't take care of that vehicle as you, as owner, would do. The point is when that Sprinter will break down, you'll have to pay maybe more that you earned from it. I'm not trying to discourage you, I'm giving you facts. I'm a fleet owner, I bought only brand new vehicles and they didn't last more than a year before reaching the repair shops... so, unless you know really well the driver, don't get high hopes...


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[T270_Dreamin]

I know 2 Sprinter shops and repairs aren't cheap for the 08-13 Sprinter compared to the vintage Sprinters. From what I gather here (in the current state of expediting) is that its difficult to manage a van fleet with over saturation, rates and so on, back in 2012 the response might have been different but what everyone is saying is that if you truly want to be a van fleet owner is go out on the road for 100,000 miles for a solid year or year and half and do it so you can learn the business. I myself was a small time fleet owner with 2 vans and I sold off a van recently because it was too much headache for the 20k per year that I made or could potentially make for the trade off in stress managing it and keeping and finding drivers. They come and they go and when they don't manage their money on the road they go broke and quit, or some send it all home and leave nothing left over for fuel, list goes on. No discouragement but I'd say if you had some extra money to invest then try it but if you are making payments on the Sprinter etc not such a good idea. And on a 07- current Sprinter I'd recommend a back up account with at least $5k depending on what could potentially happen mechanically.

 

[Moot]

Here's what I know so far:
- the money is split 40/60 (owner 40) (driver 60)
- I understand deadhead is the drive from one location to another without a load and making little to no gas return. But drivers are reimbursed a portion of their gas per mile.
- Panther pays per mile based upon a variety of situations(team, straight truck vs cargo van vs sprinter, lift gate, hauling amount, bronze silver and gold status, 2 skid vs 3 skid vans.......)
- I understand how the board works, and how drivers are prioritized in order to get everyone work. (First outs, ect.)
- I understand that as the owner it will be my sole responsibility to maintain the vehicle as well as repair, put my driver into a nice hotel, and or pay the new driver to finish the expedite in the event that the van breaks down while on destination. (But couldn't I right these things off on my taxes as expenses)
- I understand that I'm suppose to report my taxes quarterly......
- I understand that it's my drivers responsibility to pay their own gas
- I understand it's my drivers responsibility to report their own income taxes quarterly. (And get some gas expense back if they've been tracking their miles driven).
- I understand that I'm not required to provide my driver with health care until I have a certain number of drivers???????? But I am required to provide my driver a form to apply for Obama care??????? (This needs research as I don't trust this information).
- I understand that the van MUST be in a reasonable comfortable condition, or else the driver can refuse the van altogether.
- I understand good owner behavior as "being involved". I hear a lot of owners just let Panther do everything and never communicate with their drivers. Which I find very stupid.
- I understand Panther reimburses tolls ect...

Much of what you claim to know and understand, especially what the carrier tells you, can only be learned by doing it. The old saying that the learning curve takes a turn through your wallet is accurate. More so for an inexperienced person becoming a fleet owner. With the hours you put in each week at your job and hopefully you get OT pay, you probably could afford giving fleet ownership a try. You seem determined so I say go for it, as long as a certain financial loss won't destroy your family.

Good luck and make sure the carrier will lease on the van you intend to buy before you buy it age, size, GVWR etc

 

[Moot]

I was very unaware that the driver could or would try to 'take' me. I guess I always thought that in this type of relationship both parties would have to do their part or else it would hurt both.

Not only could drivers "take" you, many carriers, law enforcement, repair shops, shippers/receivers, etc. will also "take" you. The trucking industry is rife with unscrupulous people looking to take you for a ride.

 

[geo]

when I started with Roberts Express, I wanted to have 10 or 15 truck. After, I saw what happen to a few friends , decide one truck would be fun, more would be a night mare

 

[JohnMueller]

Elfire;

There is much truth to the advice you are receiving here. Many of the responses are being provided very candidly by experienced Expediters - Moot, Str8Trk, FlyingVan to name a few. I really agree with Str8Trk's statement about fleet owners of cargo vans - "often" there just is not enough money for the vehicle owner and the driver. Vans are the most adversely affected vehicle by fluctuations in availability of freight. Vans also are the vehicle which has the least cargo capacity both by weight and by volume. To aid your research please visit any load "board" and count just how many loads are 2 to 3 pallets or less that weigh less than 3500 pounds - let's call this number "X". Now look at that same board and count the number of loads - let's call this number "Y". Take X and divide by Y. The quotient (answer) is the percentage of loads available on the board for cargo vans. I'll be bold and guess that it is less than 1 percent. In Expediting cargo van loads surely far exceed more than 1% of a carriers loads if we are speaking about an Expedited Carrier. I used this scenario to demonstrate how limited cargo vans are in the ability to haul freight. There are many cargo van operators (owner-operators) that do very well in the Expedited Industry.

There are opportunities for new fleet owners in this industry. I suggest you study and research straight trucks and tractors in the Expedite industry, or perhaps only tractors for the truckload industry. Read, study, research and study some more. Put together a feasible business plan. Research carriers and find a home before you purchase trucks. Find potential drivers before you purchase or take delivery of the truck(s) and then finally purchase the trucks. I can't tell you how many times in the past 30 years someone tells me "I bought this truck and I'm looking for a place to put it...."

You surely have the correct attitude to succeed. Proceed intelligently.

Thanks,

 

[Blood]

ok
no 1 why would he belive a recruiter as there nothing more than used car sales people. if they don't make there quota getting in new hires there fired!!!
no 2 why in the hell would one want to run out and buy a depreciating asset not knowing the business or even if they would even like the industry. i see people buying shiny toys all day long weather it's vans or big rigs. most of them loose there homes and there asses because have no revenue saved up hell one break down can put you out and no exp is a disaster waiting to happen.
no 3 how do you know that you'll enjoy sleeping in a van it sounds all fine and all but i don't know of anyone that would want to even think about sleeping in a van when it's 100+ out or 40 below out sure there's heaters and portable ac units those thing add up

 

[Blood]

oh yea and if you hire a driver for your van do you really think that there gonna TAKE CARE of YOUR VAN. hell no most of em won't take care of it!!!

 

[Blood]

be a company driver for a year and learn the business. and run the van like it was your own!!! insurance fuel economy maintance breakdowns all come into with profit and loss.
personaly i think the sprinter van is one of the worst choices that anyone one can make.. as there's lack of customer support for it meaning that you can't take it to any shop and tell them to fix it like you can a ford or a gm. and when it does break it will cost you out the ass to fix it!!! i love the sprinter vans to but there not worth the headaches to me

 

[T270_Dreamin]

be a company driver for a year and learn the business. and run the van like it was your own!!! insurance fuel economy maintance breakdowns all come into with profit and loss.
personaly i think the sprinter van is one of the worst choices that anyone one can make.. as there's lack of customer support for it meaning that you can't take it to any shop and tell them to fix it like you can a ford or a gm. and when it does break it will cost you out the ass to fix it!!! i love the sprinter vans to but there not worth the headaches to me

If I was too lazy to find parts and qualified sprinter mechanics I probably wouldn't like the Sprinter either. Fortunately these things are available in most major cities and sometimes in abundance.

 

[brokcanadian]

Unless you need something hard to get, like...a starter or alternator

 

[T270_Dreamin]

Unless you need something hard to get, like...a starter or alternator

Alternator replaced already (why take a chance after 150-200k). Carry a good spare starter after a recent break down in Chicago during a 0 degree cold front. Portillos next to hotel sure came in handy, nice walk in the snow/ice to grab dinner. Next question.

 

[jcochristoph]

Another example of belittling someone with a diffeering opinion.... "... lazy..."?
And good luck with your efforts" finding" knowledgeable , honest, "qualified" sprinter techs/service centers anywhere (emphasis on knowledgeable)

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