Questions in the grand scheme of things…Part 2

[trobertson]

For current owner operators of vans and sprinter type vans;
Please arrange in order of importance the reasons behind your decision to become an owner operator…

· Higher net income
· The ability to accept or deny load offers and manage your time
· The pride of vehicle/business ownership
· (fill in the blank) What other factors are important to you as an O/O


For current drivers of fleet vans;
If you had the financial resources to own your own Van/Sprinter type van, would you choose to become an owner/operator or would you choose to remain a fleet driver?


Now for all drivers;
Assuming your annual net income as a fleet driver was equal to or within $5000 your earnings as an owner/operator which option would you choose?

Thanks in advance for providing your reponses.

Tom Robertson
A. Blair Enterprises
Louisville/Cleveland

 

[Ragman]

Now for all drivers;
Assuming your annual net income as a fleet driver was equal to or within $5000 your earnings as an owner/operator which option would you choose?

Thanks in advance for providing your reponses.

Tom Robertson
A. Blair Enterprises
Louisville/Cleveland

Five grand? Not worth it to me. I'll stay a driver only, thank you very much.

 

[schwanman]

Current O/O:1. Income 2. Manage time 3. Freedom of schedule
4. Pride
Current drivers: O/O
( key word financial ,credit,etc)
I would choose O/O for all the reasons above. Your business is a reflection of you.

 

[Mailer]

Owner Operator:

1. Higher net income(https://youtu.be/JkhX5W7JoWI).
2. Business ownership(If there's no potential for #1, ....#2 does not exist).
3. Pride(Once above are accomplished, I can say, I earned it).
4. ....And the ultimate goal of all... LUXURIOUS RETIREMENT!
I'll say it again, I will not eat cat foods, LOL.

 

[OntarioVanMan]

For current owner operators of vans and sprinter type vans;
Please arrange in order of importance the reasons behind your decision to become an owner operator…

· Higher net income
· The ability to accept or deny load offers and manage your time
· The pride of vehicle/business ownership
· (fill in the blank) What other factors are important to you as an O/O


For current drivers of fleet vans;
If you had the financial resources to own your own Van/Sprinter type van, would you choose to become an owner/operator or would you choose to remain a fleet driver?


Now for all drivers;
Assuming your annual net income as a fleet driver was equal to or within $5000 your earnings as an owner/operator which option would you choose?

Thanks in advance for providing your responses.

Tom Robertson
A. Blair Enterprises
Louisville/Cleveland

IMO the 3 choices are not exclusive.....
you should have ...

1. The ability to accept or deny load offers and manage your time to achieve #2
2. Higher income.....which will/should lead to....
3. The pride of vehicle/business ownership

 

[golfournut]

For current owner operators of vans and sprinter type vans;
Please arrange in order of importance the reasons behind your decision to become an owner operator…

· Higher net income
· The ability to accept or deny load offers and manage your time
· The pride of vehicle/business ownership
· (fill in the blank) What other factors are important to you as an O/O


For current drivers of fleet vans;
If you had the financial resources to own your own Van/Sprinter type van, would you choose to become an owner/operator or would you choose to remain a fleet driver?


Now for all drivers;
Assuming your annual net income as a fleet driver was equal to or within $5000 your earnings as an owner/operator which option would you choose?

Thanks in advance for providing your reponses.

Tom Robertson
A. Blair Enterprises
Louisville/Cleveland

IMO, it's always about the money. For everyone. The shipper wants to pay less and the o/o wants more and the middle man wants the biggest cut they can get and to get that pay less to the next in line.

The higher the percentage of ROI the more the o/o can maintain the vehicle properly and replace it when the time comes.
Also the o/o can have a better quality of life.

As with any business, making decisions that leads to a greater ROI is critical to the success of that business. Time management is a result of a greater ROI. The less the ROI the more the o/o has to stay out.

For me transparency of the company I'm leased to is 3rd.
What I mean by this is, am I being paid the correct rate of what is being billed the shipper, not the in house brokerage. I know of 3 carriers that make it a common practice, not on every load that I am aware of, that brings in a load to the brokerage then it goes to the carrier at a reduced rate then to the o/o. These 3 are all percentage pay carriers.
It doesn't matter if the o/o is with a fixed rate carrier if they are paid atleast their agreed rate. It could matter when it come to accessorial charges.

As far as close to or up to $5000 difference between being a driver or o/o depends on whether it is a W2 or 1099. In the 90s I was a big truck driver with 2 nationwide carriers. Both were W2 with great benefits, but the RPM difference between the two was .11 pm. Both required 5 weeks out for 5 days off or you lose your truck. Not your job, but your truck. So if you want to take 2 weeks off, clean out the truck. You may or may not get a good truck when you get back. That said, if it's a W2 with benefits and within 5k, I would strongly consider it.
I would have to think long and hard on being a 1099 driver. That net difference could end up in uncle Sams pocket as the expenses are less available to the driver for write off. Depending on income, health insurance premiums (because of Obama care requirements) come into play. That could eat up all or most of that net difference real fast if the driver doesn't qualify for subsidies.
So if a driver was to make a net equal to an o/o, the net net could be way less than that of a o/o depending on individual circumstances due to tax implications and Obama Care. In fact could end up with more out of pocket. On the other hand, a driver doesn't have any risk associated with being an o/o other than personal liability in the event of an accident. Doesn't have to worry about replacing a blown motor or a tow bill. This is not to say that a fleet driver shouldn't look to make the owner a profit.

 

[rollincoal]

Re: transparency

Filtering loads thru a separate brokerage company to skim money off the top is how a lot of companies out here do it. It's pretty much standard operating procedure.

 

[Tennesseahawk]

Re: transparency

Filtering loads thru a separate brokerage company to skim money off the top is how a lot of companies out here do it. It's pretty much standard operating procedure.

Shh... that's taboo.

 

[rollincoal]

Lol. Nobody listens or stick their head in the sand anyways. It's not illegal but really calls into question the seemingly unreproachable integrity of those who do it.

 

[golfournut]

Re: transparency

Filtering loads thru a separate brokerage company to skim money off the top is how a lot of companies out here do it. It's pretty much standard operating procedure.

When I was at one of those carriers, If the rate was on the low end I would ask who the billing customer was. If it was the in house brokerage, more money or no go. Not gonna pay them 30 to 40% + to shuffle paperwork.

 

[dalejrroks]

For $5k no thanks I would stay a driver with a fleet owner. That $417 a month is not worth all the extra headaches and responsibilities that a fleet owner has.

 

[xiggi]

· Higher net income
· The ability to accept or deny load offers and manage your time
· The pride of vehicle/business ownership


Assuming your annual net income as a fleet driver was equal to or within $5000 your earnings as an owner/operator which option would you choose?

This question doesn't even make sense to me. Where does this random figure come from? I'm not sure how it would be possible to only make 5000 more owning your own vehicle even if you had super high repairs one year.

 

[OntarioVanMan]

standard 60/40 owner pays fuel...using $100,000 gross figure as an example...owner would get $60,000 and driver gets $40,000.....only a $20k margin...now take all the fuel and repairs and ins and plates....looking at 10-15k just in fuel....does not leave much for an owner...IF any! $5-6K for ins....owner is in the red. which IMO I've always said...why in the world would anyone be a fleet owner in a CV?.....

Driver walks away with his $40k in hand.... and no Exedrin headache

 

[Ragman]

standard 60/40 owner pays fuel...using $100,000 gross figure as an example...owner would get $60,000 and driver gets $40,000.....only a $20k margin...now take all the fuel and repairs and ins and plates....looking at 10-15k just in fuel....does not leave much for an owner...IF any! $5-6K for ins....owner is in the red. which IMO I've always said...why in the world would anyone be a fleet owner in a CV?.....

Driver walks away with his $40k in hand.... and no Exedrin headache

Which is why I said, for a paltry $5000 net for the year, why would I consider being an o/o.

I wouldn't.

 

[OntarioVanMan]

Which is why I said, for a paltry $5000 net for the year, why would I consider being an o/o.

I wouldn't.

I can't even see a fleet owner making a profit these days unless he is paying the driver a real CHEAP mileage scheme..let alone netting 5k...

back when gas was what a $1.00 - $1.50? and ins was a lot cheaper maybe fleet ownership made sense...but now?.....

 

[Mailer]

".........Now for all drivers;
Assuming your annual net income as a fleet driver was equal to or within $5000 your earnings as an owner/operator which option would you choose?......"

This is a stealthy question indeed, lol.

I choose O/O.


Tax benefits are probably the most important factor in owning the business.

Because of the tax benefits, credits and write offs, the O/O has more potential for the accumulation of business profits and personal investments.

On the surface, the $5000 of the net earnings may not appear much different between being the O/O or the contract driver.

But underneath the $5000, the O/O may already have amassed the profits and personal investments by using the tax benefits before arriving at the $5000 figure.

 

[OntarioVanMan]

".........Now for all drivers;
Assuming your annual net income as a fleet driver was equal to or within $5000 your earnings as an owner/operator which option would you choose?......"

This is a stealthy question indeed, lol.

I choose O/O.


Tax benefits are probably the most important factor in owning the business.

Because of the tax benefits, credits and write offs, the O/O has more potential for the accumulation of business profits and personal investments.

On the surface, the $5000 of the net earnings may not appear much different between being the O/O or the contract driver.

But underneath the $5000, the O/O may already have amassed the profits and personal investments by using the tax benefits before arriving at the $5000 figure.

yes..good point..considering we CVers if we elect mileage deduction get something like .55 a mile deduction for every mile driven empty or loaded...that covers the CPM nicely....

 

[billg27]

standard 60/40 owner pays fuel...using $100,000 gross figure as an example...owner would get $60,000 and driver gets $40,000.....only a $20k margin...now take all the fuel and repairs and ins and plates....looking at 10-15k just in fuel....does not leave much for an owner...IF any! $5-6K for ins....owner is in the red. which IMO I've always said...why in the world would anyone be a fleet owner in a CV?.....

Driver walks away with his $40k in hand.... and no Exedrin headache

According to the numbers you have presented, after figuring the fuel, repairs, insurance and plates. You claim that total at right around 20K. That still leaves the 40K difference for the van owners profit. Owners gets 60K minus the expenses you listed and still has approximately 40K left over for the owners profit margin.

 

[OntarioVanMan]

According to the numbers you have presented, after figuring the fuel, repairs, insurance and plates. You claim that total at right around 20K. That still leaves the 40K difference for the van owners profit. Owners gets 60K minus the expenses you listed and still has approximately 40K left over for the owners profit margin.

You are correct..that is what I get for standing on my head in the morning without coffee and typing....LOL
fuel and ins. alone would be around 20K all depending...repairs and such would still come outta that....Thanks for the kick in the butt on my miscue...Bill

point is...its a wash.....owner walks away with the same as a driver but has all the responsibility/liability and sleepless night

 

[dalejrroks]

I have to say for a CV that $5k with the tax breaks might be a game changer but if you are in a ST or TT then that $5k is not as great of a deal. With the original post having so many avenues it would be hard for us all to reach a common answer of just yes or no. I answered based on me driving a ST for a fleet owner. Which I take the part of the post Now for all drivers to be addressing and it seems most are answering as CV o/o or CV drivers. So even if that $5k was a tax free bonus in my pocket I still would not take it and deal with the headaches the fleet owner deals with.