New Guy from PA

acd118 · Nov 2, 2011

Hello everyone. I am a new guy extremely interested in getting in the Cargo Van/Expediting/Courier business. Just a little background on me: I was recently laid off by the DoD after working for them for 11 years. Before that, I drove Tractor Trailer and Class B trucks. I have slightly more than four years driving eperience as a career (not including my regular driving experience). I have researched a number of threads on here trying to gain as much insight and knowledge as possible before asking questions, and I know that I will get a variety of responses here but figured I would ask for some advice and guidance anyway. I am hoping to find some answers from people who actually have the experience and compassion to help a new guy out and I think I will find some of that hopefully.

I am interested in becoming an Indy, not become rich or build a fleet. Just live decent while providing for my family, as well as take care of business while not having to worry about being laid off. It's kind of a broad statement, but that's pretty much everything in a nutshell. I guess I anticipate running for several different courier companies to get started. There are several in my area which I have already contacted. I have also obtained information on cargo vans (Chevy 1500/2500 and Ford 150/250). I have obtained my EIN and received quotes on the insurance for the truck and the liability that are prerequisites for the companies that I have talked to. I have been to both my accountant and my attorney. I am ready to set up my LLC. I have set up an account with a service garage here locally for truck maintenance and spoke to some IC's about operating costs. I have been instructed to take 45-50% of gross earnings to accomodate business costs such as taxes, truck note, insurance, fuel, truck maint., and emergency funds. I have some money saved up to invest in this business if and when I feel comfortable pulling the trigger.

I hope that I am off to a good start, but wanted some insight on how to obtain loads, charge for runs if I ever get on my own, and how to actually consistently run the business. There seems to be a lot of work in this area. I am half an hour from Harrisburg, one hour from Baltimore, and two hours from Philly. What I anticipate is running small local shipments mainly but adding in one big run per week, say a Harrisburg to Tennessee or a Baltimore to Georgia for example. I have someone who is able to help split the seat time on the longer runs and have them quoted for insurance as well, but mainly it will just be myself.

Again, I am not looking to get rich, just live better then I am now on unemployment and working part time. I am hoping to make $1500-$3000 per week. I am hoping to only be OTR for two days and local for the rest of the week as I am a single father of two. I'm not scared about working a 10-12 hour day or about lifting heavy boxes or being out in the cold at night if I have to.

Without any bashing, does this sound realistic? Can anyone point me in the direction of good load boards that will offer something in the lines of what I'm looking for? Any pointers, advice, words of wisdom? Or how to obtain back hauls? I'm 36 and gung ho, but do not want to make the mistakes that could really hurt if I can avoid them. I also know how to take constructive critism because I now all of you have much more experience in this business than I do, so I rely on whatever I can get.

Any help would be greatly appreciated and thanks to those who are willing to help.

Brisco · Nov 2, 2011

Again, I am not looking to get rich, just live better then I am now on unemployment and working part time. I am hoping to make $1500-$3000 per week. I am hoping to only be OTR for two days and local for the rest of the week as I am a single father of two.

This statement right here is hint that Expediting is not something you should really try......

Others will pop in here and break it all down for ya...just give 'em time, OK.

fastman_1 · Nov 2, 2011

1500 in a van maybe once in a while 3000 in a van maybe once a year. If you have anykind of payments, its gonna be real hard to survive in a cargovan.best bet is a straight truck.and prepare yourself to stay outfor weeks.

hockeypuk · Nov 2, 2011

Yeah the buisness itself is tough as a cargo van being that most companys are flooded with them because of the low overhead required to get started. The being the single father is almost a crusher to this career as with this line of wor being so unpredictable. The numbers you want may be realistic but not on a two day schedule. You will eat up the profit that you may have made to deadhead home. If I was in your position I would reconsider or maybe rethink the otr portion.

Just my opinion....

mjmsprt40 · Nov 2, 2011

Not looking to get rich--sounds about right.

About the other-- not so sure. Expediting seems to be more or less a nomadic lifestyle. There's some of us who work for "out and back*" type outfits, the rest work for outfits where you're on the road until you can stand no more and then bolt for home for a week-- then do it all over again for another couple of months.

I'm divorced, have been for a couple of years (expediting had nothing to do with it, the marriage went South long before I started doing this). Even though I drive for "out and back" outfits, my schedule would be maddening to a wife who wanted to be able to plan anything. I have to drop what I'm doing and run at short notice, unless I specifically call in out-of-service. Otherwise-- I'm on call, 24/7/365.

"Out and back*" I run for two different outfits, both are the kind where I load in the Chicago area, then take the freight across country. Once the load is delivered, I come back home. Advantage: I'm home right now typing this. Disadvantage: Those dead-head miles back home aren't paid, it's straight out-of-pocket. Ask OVM and he'll tell you straight, those unloaded miles cost plenty after a while.

paullud · Nov 2, 2011

I can tell you my wife and I have been driving together in an E350 and we aren't anywhere close to touching $1500/week. We stay out on the road as well, since May we have averaged less than 4 days of home time a month. The figures you are expecting are way off and if you need a somewhat regular paycheck especially with kids don't count on it, our pay this week is $3.13 and we were out the entire time. The freight can just kind of stop unexpectedly then you are running cheap freight to try and make payments.

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Jefferson3000 · Nov 2, 2011

Yeah, seriously. Heed what these guys are telling you. $3000 a week WOULD be getting rich in cargo van world. I recommend you rethink getting a local job driving a straight truck so you can continue to raise those kids.

ChrisGa23 · Nov 2, 2011

best of luck getting into expediting. If your expecting to make a average to good living you gotta step up to straight truck or tractor trailer. If your set on cargo van dont go with getting your own LLC. Find a company and lease with them and also dont settle with a van any smaller than a 250/2500. Preferred is the 350/3500 Extended or the 2500 Sprinter. But if it were me with kids I wouldn't touch a cargo van.

paullud · Nov 2, 2011

ChrisGa23 said:
best of luck getting into expediting. If your expecting to make a average to good living you gotta step up to straight truck or tractor trailer. If your set on cargo van dont go with getting your own LLC. Find a company and lease with them and also dont settle with a van any smaller than a 250/2500. Preferred is the 350/3500 Extended or the 2500 Sprinter. But if it were me with kids I wouldn't touch a cargo van.

That was the other thing I forgot, if people are telling you to setup an LLC they are giving you bad advice. An LLC will protect your personal assets if you had a driver involved in an accident but since you will be the driver as well they will sue you and the company together, so the LLC will provide no protection.

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acd118 · Nov 3, 2011

WOW!

First of all, thanks for the responses. I appreciate the information even though it wasn't what I was expecting. With all the work that is out there, coupled with the low overhead and the tax benefits, I really thought I was realistic in my expectations. But, that is exactly why I registered on here, to gain the insight of others.

Maybe I am being to optimistic. I figured with loads going from Baltimore to Texas for $1900 and a two to three day turn around (just an example I saw on a load board yesterday), that would be a realistic bring home figure. I have heard that load boards tell you about trips like that to get you to spend your money for access, but that only fills their pockets and you won't actually get runs such as the ones that are shown. But I also think that those who are actually running courier businesses wouldn't be making it without them. I alos find myself wondering why so many people would be in this business if it was so hard to make it???

Maybe I should readjust my thinking and really consider big trucks again. I jsut didn't want a $65K used vehicle and $4K per month in insurance. All the DOT and weigh station stops. But I will stay open to it if that would be the smartest way to go.

I'm still confused though. Air port runs, one or two day expediting, deliveries less than 200 miles away that pay $1.20-1.30 per mile, load boards showing 1900 mile trips at $1.30 per mile and I won't be able to make what I am thinking? Am I missing something? My calculator says 1900 miles at $1.30 per mile equals $2470. One run with my semi retired father who has been driving truck for over 40 years to split seat time with. Even if I take 50% right off the top to run the business, that would still leave me $1235 for that week, not including anything else as far as runs. Am I wrong to think that I could actually get those kind of runs?

Again, is anyone actually using a load board that works? Can anyone offer advice on who to hook up with? I greatly appreciate the help and the responses but I am blown out of the water that there is a courier association (MCAA) and all of these forums, on top of all the courier companies out there if this isn't a successful business.

I look forward to some more responses. Thank you all.

acd118 · Nov 3, 2011

Puck, forgot to tell you thanks for your response. It is nice to hear that you can actually make what I am thinking. Just to clarify, I will be planning on working a minimum of five days per week. However, I only want two of those days to be OTR. My dad is semi-retired from the teamsters and he will be able to help out on the long runs. It seems to me that when we were driving truck, him and I could make it to Tennesse and back to PA in less than 24 hours, including docking, unloading, and paperwork. We both drove down to Douglasville, GA and back in less than 24 hours. Chicago was the same way. So the way I figured, if we get some of the runs that are posted on some of the load boards at least once per week, we should be good and I can spend the rest of the week local here around York and Harrisburg PA.

I also didn't see anyone respond on anything about load boards or how to get loaded. About back hauls or having some capital that I have been saving for years to invest into getting this started.

I guess I just wanted to reach out to you becasue it seems like you were the only one to say it is possible. That and you are a Harley guy as well. I have a 2011 Street Glide all done up.

paullud · Nov 3, 2011

acd118 said:
WOW!

First of all, thanks for the responses. I appreciate the information even though it wasn't what I was expecting. With all the work that is out there, coupled with the low overhead and the tax benefits, I really thought I was realistic in my expectations. But, that is exactly why I registered on here, to gain the insight of others.

Where are you seeing all this work? The term low overhead is relative to the freight industry but make no mistake it has caused many to go bankrupt in the past and it will continue because people are only looking at the best case scenario. I have thousands of dollars that have been spent to get started which I am taking a big risk that we will get back.

Maybe I am being to optimistic. I figured with loads going from Baltimore to Texas for $1900 and a two to three day turn around (just an example I saw on a load board yesterday), that would be a realistic bring home figure. I have heard that load boards tell you about trips like that to get you to spend your money for access, but that only fills their pockets and you won't actually get runs such as the ones that are shown. But I also think that those who are actually running courier businesses wouldn't be making it without them. I alos find myself wondering why so many people would be in this business if it was so hard to make it???

Load boards will not only take examples of the best freight they have had in the last 10 years and act like it is a weekly event there are some that make the loads up completely. If you have $20 to burn go sign up for cargosoup.com, they will show you plenty of active high paying loads and after you pay them and get access you find they have no loads. When I say they have no loads I'm not saying they only have a few, I mean ZERO, none in the entire country. Do not go by anything you see advertised on a load board unless someone let you look at the loads through an active account. Yes, there are many people in this business but many are semi-retired and are doing it for fun or they have another income to cover the slow times.

Maybe I should readjust my thinking and really consider big trucks again. I jsut didn't want a $65K used vehicle and $4K per month in insurance. All the DOT and weigh station stops. But I will stay open to it if that would be the smartest way to go.

There are many expenses that go with the larger vehicles but the pay will be increased as well. I'm getting ready to jump back in a truck because things have slowed down a bit in this market and there just isn't enough money right now.

I'm still confused though. Air port runs, one or two day expediting, deliveries less than 200 miles away that pay $1.20-1.30 per mile, load boards showing 1900 mile trips at $1.30 per mile and I won't be able to make what I am thinking? Am I missing something? My calculator says 1900 miles at $1.30 per mile equals $2470. One run with my semi retired father who has been driving truck for over 40 years to split seat time with. Even if I take 50% right off the top to run the business, that would still leave me $1235 for that week, not including anything else as far as runs. Am I wrong to think that I could actually get those kind of runs?

Your calculator will only calculate the numbers you put into it. When you add mileage figures that are to high, expenses that are to low, and never account for issues it looks good.

Again, is anyone actually using a load board that works? Can anyone offer advice on who to hook up with? I greatly appreciate the help and the responses but I am blown out of the water that there is a courier association (MCAA) and all of these forums, on top of all the courier companies out there if this isn't a successful business.

No one is saying you can't be successful in this industry but we are pointing out you are not going to be getting the numbers you expect. There are a few good load boards but as stated before many are dishonest or complete frauds.