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//// Looking to Run under these terms....What do you think ? ////

A

Andyinchville1

Expert Expediter
Owner/Operator
Hi All,

To date, I have only run local (always in state and within 100 or so miles from our shop) BUT the problem is my local runs don't really pay much in terms of profit.

I started exploring other avenues and ended up finding a company that offers the following :

*Our box trucks do about 2500-3000 miles a week (26 ft. only)
* Drivers are almost always home for the weekend and, 1 or 2 times during the week
* Revenue range is always $5000-$6000 gross to the truck every week minimum. We've gone over $7000 a few times.
If you lease trucks onto my authority, We do a 70/30 split.
* We cover your insurance
* All DOT compliance
* Driver log booking
Your only expense is Truck payment- Driver wage and Fuel costs.
* We can front the fuel if needed and deduct from your settlement.
* We use a factoring company. All paperwork turned in to us for loads by noon are paid to you next day.
* NOTE We do daily settlements not weekly-- helps to keep your cash flowing

They are willing to train us on log books / rules of interstate travel.

NOTE : They claim an average per mile rate of $2.10 and If I run my own authority and insurance(which I have) the split is 75 / 25

How do these terms and conditions stack up against other companies / brokers ....Good, Bad, the same?

Anything else to look out for?

Thanks in advance for any and all input

Andrew
 
piper1

piper1

Veteran Expediter
Owner/Operator
Do your trucks have DOT legal sleepers on them? If not who is paying for the hotel or other legal off duty rest space? Are your trucks in good enough shape to survive a much higher DOT inspection scrutiny? Will your authority survive the extra scrutiny?

Switching from local to interstate means a very different kind of approach to how you do things....and it costs more.
 
piper1

piper1

Veteran Expediter
Owner/Operator
Reading that again, in the era of the ELD, they can run 2500 to 3000 miles a week as a solo driver AND be home on the weekends? Legally?
 
A

Andyinchville1

Expert Expediter
Owner/Operator
piper1 said:
Do your trucks have DOT legal sleepers on them? If not who is paying for the hotel or other legal off duty rest space? Are your trucks in good enough shape to survive a much higher DOT inspection scrutiny? Will your authority survive the extra scrutiny?

Switching from local to interstate means a very different kind of approach to how you do things....and it costs more.
Click to expand...

HI,

The trucks I'll be renting / leasing have no sleepers on them so on the road we'd have to spend some $$ on a cheap motel while on the road....I suppose long term if this gig is good we can get a try figuring out a legal sleeper situation but since the contract calls for a 26' box I cannot simply have a sleeper built into the box (there is a co in Ohio I think that does this ).

As far as condition, that is the main reason we'd be leasing a truck....Newer (Enterprise says they rent 2016 - 2019 trucks....I didn't realize the 2019's were out already!) , and hopefully trouble free BUT if we do have issues on the road, the rep said call the 800 number and a mobile mechanic / tow truck would be dispatched and if the problem takes over a day to fix they put you in another truck and away you go again....For me THAT is a big headache saver (I'd hate to think about a tow bill from some area hundreds of miles out to a shop that'd gouge you as an out of stater....).

Why would my authority have greater scrutiny ?

Maybe initially to save hassles we can run as a leased truck under their authority until we learn the rules of over the road....

I can see the extra cost of food and motels but are there other factors over the road to consider also?

From what they are telling me we get to be home most weekends and once or twice a week so it shouldn't be too bad about laundry etc....just pack enough to survive say 3 days on the road ....after that I guess you could "recycle" in a pinch....

I have courier driven and slept in my car many a time so truck sleeping should be a step up although technically not DOT approved hence the motel potentially (I have heard people say if you log out as personal time then you can do what you want right ? (including sleep in the truck...Of course you'd probably NOT want to say that...maybe just claim shopping and eating and sightseeing instead?).

It'll be interesting to see how this pans out BUT in truth my helper will be the primary on this....I MAY try it occasionally just to experience it and make a few extra $$ in another truck (one that we have AFTER we make a few $$ from this run to fix up our other trucks more to DOT specs).
 
A

Andyinchville1

Expert Expediter
Owner/Operator
piper1 said:
Reading that again, in the era of the ELD, they can run 2500 to 3000 miles a week as a solo driver AND be home on the weekends? Legally?
Click to expand...

I skimmed hours of service and it's seemingly complicated BUT doing "just" 500 miles a day 5 days a week gets you 2500 miles

I wondered how the once or twice home a week figured in but then I realized 250 out , drop, then 250 back haul home is 500 for day.

Per the company, most runs are almost all highway so if the trucks can make 70 MPH for long stretches, then 500 miles should be easily doable within 10 or so hours (my truck is speed limited to 62...The Penske several times over the last year would do 70 per GPS).

I hope the runs that what they give us will make us good $$ in a short time because it's probably hard enough to learn how to keep records legally WITHOUT the extra hassles of learning how to cook the books as well .
 
B

BigStickJr

Veteran Expediter
Retired Expediter
Cooking the books. Tougher than it used to be.,
ELD. Another expense.
Cheap motels. A thing of the past.
Take 6 days of clothes. At least at first.
Load securement. Another challenge. Learn it.
This whole deal, while doable, won’t be as easy as it looks.
That’s why we get the big bucks.
 
B

BigStickJr

Veteran Expediter
Retired Expediter
Just saw that you will pay tolls.
Where are you based out of ?
Tolls today can mean the difference between success and failure.
 
A

Andyinchville1

Expert Expediter
Owner/Operator
BigStickJr said:
Curious. What’s the cost of the rental ?
How you going to pay the driver ?
Click to expand...

Rental $70 per day plus 11 cents a mile after 1000 miles (you get a free 1000 miles per week then after that 11 cents per mile).

Good question on driver pay....I'm not 100% sure

Driver was used to getting $135 per day running Amazon for me ( 10 hour day , 5 stops, 300 miles).

I'll probably have to pay him the $135 or so that he's used to PLUS some for food maybe (although he pays for his own food now so why should that HAVE to change?....Canned foods and a cooler ? ) plus some for motel (have to see what a reasonable amount is....I'll probably base it on a cheap motel like motel 6 or super 8 or something.

I thought about paying per mile also instead of flat rate or maybe pay the LESSER of mileage rate or flat day rate.

Any suggestions ?
 
Ragman

Ragman

Veteran Expediter
Retired Expediter
Andyinchville1 said:
I skimmed hours of service .......

Per the company, most runs are almost all highway so if the trucks can make 70 MPH for long stretches...


.......the extra hassles of learning how to cook the books as well .
Click to expand...
Skimming HOS?

Trucks doing 70?

Cooking books?

Wow!
Smh
 
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C

coalminer

Veteran Expediter
Retired Expediter
If you are going to lease new trucks get the freightliners that have the extended cab sleeper, should be able to get that with a 26ft box and then the need for hotels goes away. That would not be a good thing for a driver that stays out on the road for weeks at a time but for a night or 2 during the week that is doable and legal.


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C

coalminer

Veteran Expediter
Retired Expediter
The extended cab meets the minimum definition of a legal sleeper. The original carrier I used to run for bought only trucks like this and never once has anything been said about it.


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B

BigStickJr

Veteran Expediter
Retired Expediter
A legal sleeper only needs to be 24 inches wide if I remember correctly.
I’d sure hate to pay $88,000 for that truck.
Good truck for what he needs.
 
C

coalminer

Veteran Expediter
Retired Expediter
BigStickJr said:
A legal sleeper only needs to be 24 inches wide if I remember correctly.
I’d sure hate to pay $88,000 for that truck.
Good truck for what he needs.
Click to expand...

Yeah that price is way too high I know when my previous carrier purchased trucks like that they were less than that new.


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Ragman

Ragman

Veteran Expediter
Retired Expediter
coalminer said:
The extended cab meets the minimum definition of a legal sleeper. The original carrier I used to run for bought only trucks like this and never once has anything been said about it.


Sent from my iPhone using EO Forums
Click to expand...

BigStickJr said:
A legal sleeper only needs to be 24 inches wide if I remember correctly.
I’d sure hate to pay $88,000 for that truck.
Good truck for what he needs.
Click to expand...
I stand corrected.....

Can i sit down now?
 
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