Money with owning your on trk

scottanhelen · Mar 31, 2007

Hi every one just asking can you really make money owning your on trk even with the brake down and the slow seasons and fuel and permits an all those other headaches that come with own your own trk??? Does any one have any advise and suggestions to someone wants to get there own trk and start there business????????????

Please HELP with advise

THKS SO MUCH!!!!!!!!!!!!!!!!!!!:7 :+

:9

greg334 · Mar 31, 2007

Yea a lot of advice but here is one thing that you must absolutly do - Read as much as you can on this site.

I would then write down the questions and start asking.

kangar0085 · Mar 31, 2007

Well of course... why are we out here just hangin out?

scottanhelen · Mar 31, 2007

No we are not just hanging out some of us are working for contractors and want to know from some of you that are owner ops if the 60 % that we are not getting will cover the truck payment, manitance and other fees that go with owning your own truck.

kangar0085 · Apr 1, 2007

raceman · Apr 1, 2007

The answer is yes. But to be very honest with you, if you are asking that question you are not mentally there yet. Trucking like anything in life is as successful as you personally make it.

To make money in any business as the owner you must have a drive, a very strong work ethic and make that business your priority. Add to all that a positive attitude, a willingness to struggle, the ability to swallow your pride at times, and work work work work and a few breaks and you will make very good money

Raceman
Dedicated O/O
OOIDA 741748

x06col · Apr 1, 2007

OMG Raceman, you should'nt type that kinda trash on this site.:+ :+ Folks'll get the idea you have to work at this.:+ :+ An then what about all the empty trucks??

You, are creating a nightmare for some, and probably be hung out. :+ :+

ATeam · Apr 1, 2007

>No we are not just hanging out some of us are working for
>contractors and want to know from some of you that are owner
>ops if the 60 % that we are not getting will cover the truck
>payment, manitance and other fees that go with owning your
>own truck.

The answer is yes...but. Think about it. A fleet owner runs a profitable business (presumably) and pays off his or her trucks with 40% of the gross revenue (under a traditional 60/40 split where driver pays fuel, same with 40/60 and fleet owner pays fuel). If you buy your own truck of similar quality and configuration, you should be able keep 100% of the gross and use 40% (60%)to pay for the truck and its operating expenses.

The "but" is your ability to manage money and run a business. The numbers you are putting up as a driver of a fleet owner's truck will tell you what revenue to expect as an owner-operator. Indeed, such numbers are the best indicator there is. They are, after all, your very own numbers. You won't have to base your expectations on someone else's results.

If you are putting up good numbers now, the 40% should, in theory at least, give you enough to pay for the truck and keep your fleet owner's profits for yourself.

If you are not putting up good numbers now, buying a truck of your own will do nothing to change that, but it will saddle you with debt and expenses that may drag you into bankrupcy.

Even if you are putting up fantastic gross revenue numbers in a fleet owner's truck, don't buy a truck of your own until you have a serious chunk of cash in the bank to carry you through unexpected breakdowns and slow freight times.

ATeam · Apr 1, 2007

Let me add one other point. Diane and I drove fleet owner trucks for three years before buying our own. While the numbers are working out nicely, owning your truck is different in a couple respects.

Before, when the truck broke down or needed maintenance, we would normally put it in the shop per the fleet owner's instructions. If it was in the shop for more than a day, it was for us a mini-vacation opportunity (most times). When the repairs were complete, we would hop in the truck and go with little thought to the money spent on truck work.

When it is your own truck, you alone are the one to determine when and how it will be maintained. That requires at least a little bit of knowledge about trucks and truck service facilities; which can be gained as you drive a fleet owner's truck. As an owner-operator, you may also find yourself a little less willing to leave the shop while they are working on it, and much more aware of the money they charge.

Broompilot · Apr 1, 2007

So true what A Team just said. I do not leave my truck in a facility I do not know and not know means do not trust. All other facts about $ down etc... right on.

But one question to A Team while you drove for all of those other owners how much did the 40% put in there pockets? In three years with what was posted in that time frame seems to ones such as myself you could have paid for at least a truck and half in that time period according to how well the A Teams business model ran in that time spand. Just curious for Newbees who are steered in the direction of running for owners vs paying for there own truck.

According to math if one generated a min of $150,000 gross to the truck over three years would equal 60K a year X 3 = 180,000.00
Now hardly anyone could meet there #s (A Team) but if one had an honest hard working team such as them this seems like a realistic projection.

An awfull lot of loot to give to someone just for the privledge of learning the business and renting a truck. Just how I see it. Guess my business model is just a little more tilted toward my wallet and know one elses.

EASYTRADER · Apr 4, 2007

With a straight truck, as an owner-driver you'll probably net 60k a year, assuming you're a team operation, if you work as a driver for an owner you can expect 45 to 50k (Team Income).

Expeditors talk about all the money they make, but gross income doesn't
mean much. I'm an owner with FECC, available 90% of the time. I expect we'll do better than the numbers posted but we work our buts off.

Frankly unless your are retired from another job already or you make
less than 50k in combined income now, I wouldn't recommend this as a career choice.

davekc · Apr 4, 2007

The picture isn't quite as clear cut as pointed out earlier in this thread. Just assuming that a driver would have this extra 40 percent doesn't really tell the whole story.
Most fleet owners absorb all the costs of a truck in operation, including when it isn't. What happens when a driver(s) gets sick? The costs and payments keep coming.
Alot fail in this regard. Sometimes of their own doing, and sometimes not.
What happens when the truck is down for weeks with a repair? Much different scenerio if you own the truck.
A fleet owner can possibly put a driver in another vehicle right away, but a blown engine could require costs of 20,000 or more. Not including, lost income, possible lodging, tow bills ect.
Then again, it may never happen....but there is a cost associated with risk.
The other often over looked area is the purchase and ending value of a vehicle. A big chunk of that 40 percent you think the owner may be keeping, may be coming off the end of that vehicle.
Take my word for it, there would be a whole lot more fleet owners if it was just a matter of the owner keeping that 40 percent.

Davekc
owner
22 years
PantherII
EO moderator

LDB · Apr 5, 2007

Dave makes a very good point. One doesn't pay for 1.5 trucks in 3 years out of the 40% unless that truck magically never requires oil changes, new tires etc. that all trucks need. There's also insurance, qualcomm etc. that comes out of the 40%. It won't use the entire 40% but a significant portion of it will be gone. Carefully managing resources should allow someone to set aside perhaps 50% of the cost of a new truck in 3 years but not 150%.

Leo Bricker, 73's K5LDB, OOIDA Life Member 677319
Owner, Panther trucks 5508, 5509, 5641
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
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Support the entire Constitution, not just the parts you like.

TeamCaffee · Apr 5, 2007

Our goal when we bought our truck where to pay off Daimler Chrysler off as soon as possible. Now that we have that done and no longer are paying any interest and only gaining interest it is unbelievable how quick you can build your savings. Our plans now are to run our truck as long as possible and save for our next truck.

Broompilot · Apr 5, 2007

Holy Cow. All that preaching and I just might be correct for ONCE. Now theres someone who thinks just like me and PAID THERE LOANS OFF. Profits people Profits.

Dave, Leo, got a better come back than a newer paid for truck? I would love to hear it.

Team Caffee you already know but my congrats to you. It is possible, now you do not need an owner, only patience to let ones savings grow and study this business as I did before getting into it and than putting ones business plan into play rather than just the oppisite of what society and everyone else says ( I GOTTA HAVE IT NOW ) My hats off to Team Caffee this is a successfull proably the most successfull TEAM operation out there.

Now who needs an owner, impatient I gotta have it now. Yes I said that & stand by it. Sharing profits STINKS..... There is no need for it when one should save his nickles and dimes and do it with out a partner. The only thing that sails in partnerships is the SHIP not the PARTNER.

davekc · Apr 5, 2007

Not whether it is a better come back, but it is one that is realistic. When you entered the industry Broom, you had a significant down payment that very few have. Secondly, you and Teamcaffee have been in the business longer than the typical industry average.
So there are exceptions as you have demonstrated, but that is much different than what would be the "norm" in expediting.
When looking at truck ownership, less than 10 percent carry a truck to term. That is what I am basing my observation on.
Talk to any truck dealer, and probably one in ten can't even qualify to buy a truck.
And of course, there is the learning the business aspect for someone new. Some can grasp it rather quickly while some never do. That is another post in itself.

Davekc
owner
22 years
PantherII
EO moderator

Broompilot · Apr 5, 2007

Dave you made my point all to perfect.

Society has GOTTA HAVE IT NOW.... Sacraficing all profits at any cost.

NO ONE GAVE ME A DIME TO PUT DOWN ON MY TRUCK! If anyone thinks it cannot be done, I did it by SWEEPING FLOORS AND CLEANING TOILETS after I got off of work. Janitor in my day job, and one on my own in the evenings.

Hard work IT WILL PAY OFF.

Look what I have instead of jumping into this to soon and driving someone elses truck and profiting them and not myself. Thanks for showing me I have something to be proud of.

People save your $ and keep the profits yourself, driving for someone else is most likely gona put you in the poor house or away from this business. There are exceptions but I have never seen anyone work harder for anyone other than themselves. Wana do it, commited to do it? Than start saving. Can't wait gotta start tommorow than do not take my advice there are pages of people wanting your labor and time to sit in there trucks? Know why the market is flooded? Not cause of people buying there own trucks thats for sure.

davekc · Apr 5, 2007

I agree with you up to the point that a driver will go into the poor house driving for someone. I may be an exception, but I am active in what my trucks are doing and do help and if not locate loads to keep them constantly moving. I would feel very comfortable saying that my drivers out earn a large percentage of owner operators.
Pretty much the reason I keep the same teams for long periods of time. With the exception of a few teams, we have only had former owner operators that owned their own trucks.

Davekc
owner
22 years
PantherII
EO moderator

LDB · Apr 5, 2007

I'm sorry but I have to stick to my position that for almost everybody it is far wiser to drive somebody else's truck for 6 months and learn about the business than to jump in feet first. You won't make as much money. You won't have anywhere near as much at risk. I'd wager that 98 out of 100 times the one who drives 6 months and owns 54 months is going to have a higher net worth than the one who owns the full 60 months.

There are exceptions to every rule. You are not the best example to use though because you came in with significant prior business background. Most don't have the knowledge base you came in with. Most have a base of UAW and other areas that doesn't equip one as fully as prior business ownership. They didn't have to make the payments on the physical plant and equipment. They just had to be there and do the required job. They can succeed. Some do succeed. More fail to succeed than the group that puts in time in a truck prior to the pressures of payments etc. that face an owner. There's no substitute for experience.

Leo Bricker, 73's K5LDB, OOIDA Life Member 677319
Owner, Panther trucks 5508, 5509, 5641
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
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Support the entire Constitution, not just the parts you like.