Revenue Potential of Tractor vs. Straight Truck

guest · Oct 18, 2005

Okay, assume the following:

1. You can purchase a straight truck or tractor that is in good shape and reliable for the same price.

2. You have the license and experience and can drive either truck and having a 53 foot trailer behind you doesn't bother you. In other words you are qualified for either truck and don't have a preference.

3. The tractor and straight truck would be leased to the same carrier and the carrier represents that they have a lot of straight truck and tractor/trailer business.

4. The tractor will cost more to operate than the straight truck because of higher fuel costs and other higher operating costs.

5. You are willing to stay out for three weeks at a time in either truck.

What thoughts do you have on the revenue potential of the tractor vs. the straight truck? What about a single or a team in each of the trucks? Maybe the team would do better in the straight truck and the single would do better in the tractor. Or maybe vice versa.

jaminjim · Oct 18, 2005

RE: Revenue Potential of Tractor vs. Straight Truc

There are very, very few people on this board that would no that answer. The only way to get that answer would be if we were all to share our numbers. And then average them out, and then figure your expenses.

I will start
For a team we average over $4,000.00 gross per seven days out. In a " D " unit. Dead head well under 20%. We go out for 2 1/2 to 3 weeks at a time, and go back out right after the game.

Broompilot · Oct 18, 2005

RE: Revenue Potential of Tractor vs. Straight Truc

Tractor will out Earn straight truck, by how much? Would probably even be offered more long runs.

Problem, expenses these are not cheap to maintaine, let alone fuel. Most tractor drivers I talk with are envious of the straight truck. On the other hand they cannot sit still and wait for a load.

I have noticed that Panther is the king of 53's these guys are everywhere more so than the striaght trucks and vans. My observation.

LDB · Oct 18, 2005

RE: Revenue Potential of Tractor vs. Straight Truc

I'm going to not only read between the lines but also do some presuming. Although the question is revenue potential I'm thinking the real question is net income potential. I don't have hard numbers but as mentioned the cost of fuel is a huge burden in a tractor. I've also noticed that at least some companies, while paying for all miles, pay a lower rate to tractors than straight trucks. All miles paid will generate more revenue but the lower rate will cut the gap. I think a class 8 tandem D unit is the top of the food chain as far as net income potential. It can carry the same weight per foot of cargo box as a semi but at the operating costs of a straight truck. When loaded over 13k it gets paid a premium for weight. I hope I'm correct since that's what I'm picking up in a couple of weeks. Good luck whichever way you go.

Leo Bricker
OOIDA 677319
truck 4958
73's K5LDB
Support the entire Constitution, not just the parts you like.

Tennesseahawk · Oct 18, 2005

RE: Revenue Potential of Tractor vs. Straight Truc

If I had the nads to get back into a tractor, I would. There is so much more potential in a tractor. For example... If you get a D load during the evening that picks up in the afternoon the next day, you have time to find an LTL load(s) going that same direction. There's the potential for making an extra $1+/mi, which is all gravy. You can do the same thing in a straight truck, but it's limited by your box size... and/or your GVWR unless you have a class 8. And, if you have a team, you'll rarely be sitting, as there are tons of freight going to TX and CA.

jaminjim · Oct 18, 2005

RE: Revenue Potential of Tractor vs. Straight Truc

Leo won't you have fairly large extra tax hit when you pick it up? I know that you will make up some of it when it is time for resale. But the tax man taketh away.

LDB · Oct 18, 2005

RE: Revenue Potential of Tractor vs. Straight Truc

The FET is a hit but it's only 46k gvw so you don't get hit with the other tax that I can't recall what it's called right now... something like 2099 or similar and on 52k and up gvw. I'd rather not pay it but between extra revenue for capacity and resale I believe it comes out ahead that way.

Leo Bricker
OOIDA 677319
truck 4958
73's K5LDB
Support the entire Constitution, not just the parts you like.

davekc · Oct 18, 2005

RE: Revenue Potential of Tractor vs. Straight Truc

Alot of excellent posts. Many trucks are built without the tag or pusher and added later to avoid FET tax. A one year waiting period is what is needed. You have to weigh up the difference as to whether you will generate enough income to offset the tax.
Additional run oppurtunities have to be weighed as well.

On the TT vs SS,
I think it depends if you are personally driving it, our using contract drivers.
As mentioned, higher investment, operating costs verses higher income.
Depending on the company, TT will net more than a straight.

If you are hiring drivers, then it is a different situation.
Why?
Because with straights, there are only a handful of companies. Thus, less movement of drivers between companies.
With TT's, a ton of competition with so many deals out there. Many drivers change companies faster than changing their clothes. It becomes a large expense in just hiring and constantly retraining drivers. This is a large industry problem. And, based on the EO front page news, it isn't improving either.
Re; trucking conference in Boston

Davekc
owner
21 years

geo · Oct 18, 2005

RE: Revenue Potential of Tractor vs. Straight Truc

adding the extra axle later to save money is true
but at time you add axle you are still required to pay the tax
but someone is leading wrong way
if a dealer knowing adds the axle he's should say you need to pay tax
good question to ask the tax man or have jeff check it out at eo for the right ans on this question

davekc · Oct 19, 2005

RE: Revenue Potential of Tractor vs. Straight Truc

You are correct in that you would pay a sales tax.
In addition, you likely will have a state charge because the vehicle is being reclassified.

My understanding is with waiting a year, you aren't paying the FET tax. I don't believe you can apply a excise tax on a used vehicle.
Thus, a 12 month waiting period.
I believe you would have federal highway tax as well depending on the gvw.

I agree, an article on that would be a good idea. There was a couple of states that made some changes as well, but I can't remember what they were. I think they were western states?

Davekc

2millionplus · Oct 19, 2005

RE: Revenue Potential of Tractor vs. Straight Truc

FriscoMike

Call me and I can answer that better over the phone

2million plus
The "Old Man at Con-Way"

guest · Oct 19, 2005

RE: Revenue Potential of Tractor vs. Straight Truc

Unfortunately, I think the question I posed is academic for most of us because as I understand it most companies want two years experience in a tractor trailer before signing on, as opposed to a straight truck, which does not usually require experience. If you don't have the two years experience, you are probably limited to a straight truck.

I suppose you might go hire on at JB Hunt or Swift and get your two years experience there as a company driver.......................

and monkeys might fly out of my butt!

chetjester · Oct 19, 2005

RE: Revenue Potential of Tractor vs. Straight Truc

Check again.

Panther requires just one year or completion of driving school. I don't think Conway Now has requirements. I do know that Landstar requires 2 years on all their truck types. Tri-State will give you a break on experience, too.

If I'm wrong, I'm so sorry.

Chet

guest · Oct 20, 2005

RE: Revenue Potential of Tractor vs. Straight Truc

You know what, you are absolutely right. I forgot about the waiver of the two years experience requirement (or whatever the period is) if you go to certain truck driving schools.

Sorry about that. Game on.

creekindian33 · Oct 22, 2005

RE: Revenue Potential of Tractor vs. Straight Truc

as long as u have a team in eather truck u will make abought the same expedite is growing rapidly i whould sign my semi on whith expedite it payes most company payes $105 a mile empty or loaded a lot of expedite companies r paying 22% FUEL SUR CHARGE i drove a semi for a couple of years 32 cent a mile is bull sh if the owen the truck an your making 80 cent or more per mile ull be all right if u making less eather get a team or go expedite if u owen the truck u should be pulling at leaset 140 per mile if ue nit making that u need to go to expedite right now whith the econamy the way it is an fuel prices people r only ordering weekly loads loads that can be there over night or expedit ther not paying full truck load prices the can get it cheaper an faster through expedite iv been in expedite fore 4 years now in straight trucks team driving an making big money i whould eather trade my semi in or better yet have my semi strech it cost with a box abought 20 thousan but its well worth it o an one other thing u have to watch who u sign it on whith i whould stay awa frome the name brand companys like panther

davekc · Oct 22, 2005

RE: Revenue Potential of Tractor vs. Straight Truc

>as long as u have a team in eather truck u will make abought
>the same expedite is growing rapidly i whould sign my semi
>on whith expedite it payes most company payes $105 a mile
>empty or loaded a lot of expedite companies r paying 22%
>FUEL SUR CHARGE i drove a semi for a couple of years 32 cent
>a mile is bull sh if the owen the truck an your making 80
>cent or more per mile ull be all right if u making less
>eather get a team or go expedite if u owen the truck u
>should be pulling at leaset 140 per mile if ue nit making
>that u need to go to expedite right now whith the econamy
>the way it is an fuel prices people r only ordering weekly
>loads loads that can be there over night or expedit ther not
>paying full truck load prices the can get it cheaper an
>faster through expedite iv been in expedite fore 4 years now
>in straight trucks team driving an making big money i whould
>eather trade my semi in or better yet have my semi strech it
>cost with a box abought 20 thousan but its well worth it o
>an one other thing u have to watch who u sign it on whith i
>whould stay awa frome the name brand companys like panther

=================================================================

I didn't understand a single thing in your post except you like to drive for name brand companies like Panther.

Davekc

highway star · Oct 22, 2005

RE: Revenue Potential of Tractor vs. Straight Truc

105 dollars a mile?!?!! Sign me up!

kwexpress · Oct 23, 2005

RE: Revenue Potential of Tractor vs. Straight Truc

KW Express
o/o till i die

there is always loads for tractors.I gross over 5k every week with the tractor but I spend 3k a week doing it.

thats fuel,driver pay,maintance.

maintance would be a little bit less if I ran a newer truck but then id have to add truck payments and I aint workin for no bank.

plus there is also the advantage with the semi of pulling different types of trailers.Not so easy to do with the straight jobs

tec1959 · Oct 23, 2005

RE: Revenue Potential of Tractor vs. Straight Truc

Davekc

I think he says in the post's,He'd stay away from name brand company's like Panther.Geezes i can't understand much with the spelling.......