Cargo Van Starting a van fleet

[RIPLY]

Good Evening,

Have been trolling the forums for months now and have started to get more serious about an idea. Several years ago I owned a small dump truck business hauling blacktop for several state/federal highway jobs. Never drove, just hired drivers (had both good and bad). I changed jobs, moved states and ended up selling my business. Now I am looking to get back into the transportation industry and the expediter van idea has peaked my interest.

I have this idea to buy a van, or 2, and be a fleet owner only, not having me drive. I have read through the forums and know the margins are slim, at times there is more capacity than demand. I get it. I am blessed to have a full time job that pays my bills, so it is not as if I need to live off the profits from day one. I just enjoy the trucking industry and running small businesses.

So am I nuts? Is the headache of having a driver not worth the 40% cut (given the whole 60/40 split model) of which I still have to pay expenses?

Thanks for your thoughts.

 

[Ragman]

Sounds like a recipe for financial ruin for both you and any potential driver.

 

[Living the dream]

Before you become a fleet owner drive over the road for a yr with a company that you will lease your vans too. That way you will know how well there freight moves an treats there fleet owners an drivers. I my self pay my van drivers .80 per mile. All dead head pay an wait time go to the drivers. The drivers responsible for paying all fuel cost an tolls. I cover maintenance repairs as long as the repair is not by drivers abusing the van. An all my drivers have a contact that they sign stating it.

 

[Moot]

So am I nuts? Is the headache of having a driver not worth the 40% cut (given the whole 60/40 split model) of which I still have to pay expenses?

It's difficult from reading just one post to determine if you are nuts. I will wait for several more posts before passing judgment. I do believe anyone who would drive a van for an owner for more than 6 months might be short a quart or two of oil. Anyone who owns and drives a van in expediting has some serious mental health issues. It is difficult enough to make it as a van owner/operator. Splitting the gross pay between the driver and fleet owner doesn't leave much for either party.

As a van fleet owner I would guess most of your drivers would be new to this business. Some my like the lifestyle and go on to buy their own van. Others will realize vanning isn't as glorious as we have portrayed here. You will be dealing with a constant turnover of drivers. Most likely you will be taking time off from your regular job for cross country trips to retrieve abandoned vans. New drivers won't have any experience in this industry and will less profitable. You have no experience in this industry either to mentor them. If you are serious about this, take LTD's advice and drive for an owner to learn this business.

BAN THE VAN

 

[xiggi]

Anyone who has been trolling these forums for a few months would most likely know the answer to the am I nuts question and not have to ask it.

 

[RIPLY]

Moot, I was hoping that you would reply. I assumed the margins would be tight and the turnover of drivers was my concern too. Thanks for your input and helping make the wise decision to stay the hell away.

 

[Mailer]

Good Evening,

Have been trolling the forums for months now and have started to get more serious about an idea. Several years ago I owned a small dump truck business hauling blacktop for several state/federal highway jobs. Never drove, just hired drivers (had both good and bad). I changed jobs, moved states and ended up selling my business. Now I am looking to get back into the transportation industry and the expediter van idea has peaked my interest.

I have this idea to buy a van, or 2, and be a fleet owner only, not having me drive. I have read through the forums and know the margins are slim, at times there is more capacity than demand. I get it. I am blessed to have a full time job that pays my bills, so it is not as if I need to live off the profits from day one. I just enjoy the trucking industry and running small businesses.

So am I nuts? Is the headache of having a driver not worth the 40% cut (given the whole 60/40 split model) of which I still have to pay expenses?

Thanks for your thoughts.

Most successful entrepreneurs are nuts!

You had doubt. Identify and correct it until it's no longer there. Then you can decide what to do with the fire within you.

Good luck.

 

[Moot]

Moot, I was hoping that you would reply. I assumed the margins would be tight and the turnover of drivers was my concern too. Thanks for your input and helping make the wise decision to stay the hell away.

I'm not suggesting you stay the hell away but you really need to do some more research before starting a fleet. I believe your biggest impediment to being a successful van fleet owner is your lack of experience in the expedite industry. You have previous experience with a small dumptruck fleet so you know how cutthroat and unethical the trucking industry can be. Carriers, brokers and experienced drivers are apt to take advantage of you. Inexperienced drivers will be clueless and so will you when it comes to teaching them.

 

[geo]

what city do you live in ceva uses , other than o/o check them out
if they are in your area they will near airport
if you need a sprinter van or 2 can help you out with that to

 

[Worn Out Manager]

I love being an O/O in my Transit. As far as having small fleet, I'd put my money in lottery tickets first

Sent from my XT1080 using EO Forums mobile app

 

[Moot]

As far as having small fleet, I'd put my money in lottery tickets first

Or you could give davekc's giant roulette wheel a spin.

 

[crich]

Vans can be profitable if you drive yourself.as far as a fleet of vans well if you are leased on and paying qc fees,insurance and maintain the vehicle then that driver turnover will kill you. expenses do not stop when you have an empty van.