Quick update/Promaster insight/Sorting out Future Plans

[Fender39]

Hello, My fiance and I been a member of the forum for about 4 months, but haven't posted in a while. Since our last posts, we have signed on with a new carrier and staying extremely busy. We couldn't be happier.

Our Promaster is holding up very well too. We've put about 15,000 miles on it in the last month. It has 30,000 total. We drive it pretty easy and average about 18.5MPG overall. We did experience an electrical problem that I've seen on the forum with the battery, Chrysler blamed it on the computer we had in here from our previous carrier. Nevertheless, we haven't had any other problems since uninstalling the computer (knock on wood).

That being said, we are trying to think about our plans moving forward. I've been doing a lot of reading on the forum the past few days and decided it was time to ask a few questions...

Our goal (over the course of 2 years or so) is to become a small fleet owner, operating 3-5 trucks at a time with 1-2 carriers. I have a lot of experience in fleet management from the aviation industry (where I came from).

Currently, we run as a team on the Promaster. Obviously, having one vehicle puts a glass ceiling on overall earning potential. Naturally, a small fleet makes sense. Since I also run another business, being on the road definitely complicates things. I eventually just want to oversee the operation while not doing any of the driving.

I am thinking about hiring a driver for the Promaster (in about 6 months)- perhaps doing some sort of lease-buy arrangement- then moving the fiance and I up into a straight truck- run that for about 6 months then hire another driver/team for that. And keep growing from there...

Our current carrier recommended a straight truck over another van due to saturation in their company. They also said as of right now, straight trucks are averaging 2000-2500 miles/week @ $1.50-$1.75/ loaded miles (this is 80% line haul after their deduction).

My question is this: Since we don't have a lot of industry experience and little experience in a straight truck (approx 1 year), is buying a straight truck in the next 6 months a good move?

Also, do other current fleet owners have any advice/suggestions for us during the research and development stage? Is it even worth pursuing fleet ownership?

I appreciate your advice. Also, I can answer any Promaster questions that you may have.

Thanks!!

 

[K Hefner]

I have a CDL A and am looking to get into the business. I am currently a OTR driver for a trucking company. I would be very Intheerested in driving, I also know someone else that would be interested also. When you start looking send me a private message if you are interested. Thanks. K Hefner

 

[The Enemy]

Some of the best advice I can give to a potential fleet owner is to learn the business yourself first before hiring drivers/buying more trucks. If you are buying a used straight truck, make sure you have money reserves for major repairs when they are needed. A minor/major repair isn't going to be just the price of the repair, but loss revenue due to down time, cost of hotel/rental car for your drivers. There is a lot more to it than just buying a truck and finding a warm body to fill that seat. The other thing is make sure you're OK with giving a complete stranger your vehicle and EXPECT for it to come back trashed. It likely won't happen, but I've seen it happen plenty of times over the years.

When you do go hire a driver, make sure you do a thurough background check on them. Ask them for past fleet owners that they have worked for, and try to contact them. Make sure you have a well written contract drawn up by a transportation lawyer that states everything you and the potential driver are responsible for. Don't have any gray areas that could come back and bite you.

Speaking of drivers, make sure they understand they are a contractor and NOT an EMPLOYEE. Make sure they understand the business and how to make wise & profitable decisions when accepting loads. A good business minded driver can make or break you business.

Doing a small fleet of straights should be a more profitable venture with the right equipment and the right drivers versus a small fleet of vans. Try to reach out to other ST fleet owners on here to get a feel for what your contract should read like and for other operating tips.

 

[Fender39]

Thank you for the advice. Everything you said makes a lot of sense. We will continue asking questions and doing our research before making any moves.

 

[Turtle]

The pattern for most people when they get into expediting is, after a few months they decide they're going to buy more of whatever vehicle they're driving, find drivers and be a fleet owner, and watch the money roll in. After about 18 months they realize what an ignorant, crazy thought that was and begin to understand the problems of owning more trucks than they can personally drive at one time.

 

[skyraider]

Put your money in growth of some kind of a retirement fund, not a bucket with in hole in it. Ok, that was negative, but lots of drivers bite the dust due to being underfunded. Everyone is an expert in expediting even when they have never driven..............egoooooooooooooooooooos....

 

[Mike99]

'
The pattern for most people when they get into expediting is, after a few months they decide they're going to buy more of whatever vehicle they're driving, find drivers and be a fleet owner, and watch the money roll in. After about 18 months they realize what an ignorant, crazy thought that was and begin to understand the problems of owning more trucks than they can personally drive at one time.''


Very true....

 

[geo]

when i started in this with roberts express i thought i would like a fleet of trucks
but after seeing some of my friends having trucks left and having to go and get them
than having to spend money to get them back in shape
decide one truck was fun 2nd truck was a nightmare

 

[Fender39]

You guys bring up great points. I'm definitely in no hurry to buy another truck, just trying to get some ideas moving forward. This is a kill or be killed industry and without the experience, connections and funding, it's really easy to not only go broke, but even go bankrupt.

Thanks again for the advice and insight.