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Cargo Van Business

Discussion in 'Ask The Recruiter' started by woodrow, Jun 25, 2011.

  1. woodrow

    woodrow New Member

    I have to start a NEW CREER. I have good credit, driving record, no criminal record and cash to purchase a Van. I'm trying to learn more about this business. Is it hard getting loads, and what type of money i can make.
     
  2. paullud

    paullud Active Member

    It is a gamble as to how well you will do and can be a big risk. It really depends on your knowledge of the freight industry, if you have little to none I wouldn't get involved right now, I would do as much research as you can for awhile then run for another owner to make sure it is something you want to do.

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  3. chefdennis

    chefdennis New Member

    Ok, you have the cash and everything else looks good..now, get out of the "recruiter section" and go read and read and read some more in the other forums....

    This is not a 'walk in the park" easy way to make money...forget about looking for loads yourslf (that shows that you haven't researched much) you should not be looking at getting your own authrority at this point at all...if you have to start in a Cargo Van, buy a used one and sign on wth a good mid size carrier and learn the business before you dump alot of your credit line on a new truck...

    A good mid-size carrier will keep you in loads amd you will learn the business and then you can decide if this is a "lifestyle" you want to continue...

    As for the money..the key is to drive the least amount of miles for the maximum about per mile....but before that you need to learn the business...do you know how much you NEED to make per mile to be profitable?? Do you have a business plan?? (they ain't just for the bank) Do you have to support a household from this business or do you have another income that will cover your household expenses if you have them?...

    Like any business you need to research this and figure out just what it takes to be a sucsess and profitale...

    If you haven't thought about it or are even aware of it, you might consider going to the EXPO (July22-23), you will have the benefit of meeting with current expediters and going to workshops that will help you make a good decision as to if this is a lifestyle (there is that word again) that you really want tot get into....

    Worrying about loads (miles) and income at this point, is wayyyyy out of step....
     
  4. blizzard

    blizzard New Member

    I started 2010 with 1200 dollars in hand and a used van and I have grown that amount considerably. But, then again, I know how this business operates. If you get a van, get a really good used van about 3 years old or so with no more than 100k miles on it. You can get one for 5-8 thousand dollars. Make a few modifications to it like putting a bumper guard on it as I have hit 2 deer within the last 22 months. You should also have e-track and plywood professionally installed and get all of the fluids exchanged on the van as well as all new belts and tires with lifetime alignment before you hit the road.

    If you have the money, i'd get a roof top A/C uint put on the van and a small honda 2000 watt generator to run the ac. Otherwise you're going to be dropping a lot of money on hotel rooms or you are going to have to wait till late at night to get to sleep. You can also ask Chef about his golf cart batteries and how he runs his fridge and microwave. But if you want to take a more conservative approach, you might want to go to work for an owner for a while and get to learn the industry. I worked for an owner for 5 months before I ventured out on my own. It helped me immensely. If you have any more questions, please send me a message and i'll be more than happy to answer them for you!
     
  5. Jefferson3000

    Jefferson3000 New Member

    Oh great. Another van. Sylectus sends out an email welcoming new carriers to the system. I looked up the two newest ones added and between them it was 30 new vans added to the system. Nothing else. Just more and more vans. If you want to be ahead of the curve in this biz, buy something dock high and get your self licensed to drive it. That's where the shortage is right now.
     
  6. Camper

    Camper Banned

    As with almost any legitimate business opportunity, the more capital you're willing to risk, the higher the upside. Cargo vans are a dime a dozen because they're incrediblly cheap to own and run compared to Straights and tractors. However, the earning potential is very limited due to limited cargo space and a glut of vans in service.



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  7. Opirac

    Opirac New Member

    Well get ready for some tough times in cargo van business.Pay is good per mile but since there are so many cargo vans out thereing miles is problem. You will be doing good if you could get 1500 miles per week.Sleeping in cargo van is not comfortable and if you start buying motels you wont make any money. My suggestion to you WITH GOOD CREDIT is to go to straight truck . Get class B license go work for some owner for 6 months to learn xpediting business than buy your own truck hire a driver to be your co driver and you make good money that way. GOOD luck and try to stay away from buying Sprinter van. There are too many reasons why not to buy Sprinter and i would have to spend all day explaining them.LOL
     
  8. OntarioVanMan

    OntarioVanMan Well-Known Member

    You are all correct in one aspect...
    vanning is tough to make a buck these days....BUT....when one crunches the numbers a solo in a straight that runs LEGAL can't touch a vans income when both run the same...

    Now a team straight could with the right carrier really scoop up the bucks...
     
  9. BillChaffey

    BillChaffey New Member

    Mr. Ontario Van Man, proud Canadian, Moderator:
    Could you expand on your comment "BUT when one crunches the numbers solo in a Straight that runs legal cant touch a Vans income when both run the same."
    Do you have some real figures from Straights and Vans to show the comparison?.
    Using three Companies advertising in this months Expedite Now, the average is $.36 per mile more to the straight with out FSC which I would expect would be more to a Straight.

    I have a class B with Air, Tanker & Haz Mat. Seeing the difference in $ would be a big help. Thanks.
     
    Last edited: Jul 4, 2011
  10. Dakota

    Dakota New Member

    You also have to take into account a solo straight is limited in the miles they can run per day due to logging. And FSC doesn't even come close to offsetting fuel costs


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  11. OntarioVanMan

    OntarioVanMan Well-Known Member

    That is just one factor Dakota....plus the difference in fuel mileage pretty cancels most of the difference in the FSC rates leaving just the line haul rate....now if one works for a carrier that pays all tolls then there is no difference there....and then the fact we vans can change a tire on the side of the road...we can get towed by AAA for a nominal fee.....we can finish a load quicker and cut miles by not sticking to truck routes.....
    we can replace our van in a day...and don't have to wait for days to get in the shop usually...

    oh and Bill I ain't running for no .80-.90 a mile either....most CV loads pay aver. about 1.05 and higher....all in...
     
    Last edited: Jul 4, 2011
  12. OntarioVanMan

    OntarioVanMan Well-Known Member

    Guido..is one ex straight driver that could give some numbers....
     
  13. Dakota

    Dakota New Member

    If I got back in the business, I'd pick a van anyday over a straight truck....Unless I had one of those high dollar sleepers with the kitchen and shower/toilet etc AKA Motorhome
     
    Last edited: Jul 4, 2011
  14. OntarioVanMan

    OntarioVanMan Well-Known Member

    I can see the point there might be a shortage of straights..BUT a solo can only run a maximum of hours...40-50 cents a mile difference just doesn't pass the mustard for me...
     
  15. guido4475

    guido4475 New Member

    It is a no -brainer, the difference in a van vs a s/t.I am making the most money now, in a van, that I ever had made since 89.In 2008, while in a straight truck, I grossed $137,000 running myself into the ground as a solo with Polly Express.Great numbers! But, After the $65,000 in fuel for the year, $30,000 for maintenance and expenses, amongst other things, It didnt leave me with much, if anything at all.That is one of the determining factors of why I am in a van today.It is a move that I should of made a long time ago, if not started as a van.A totally different world, so much less headache and stress in so many ways..I hauled 2 loads last week with good miles, under 500#, and they paid $1.67 a mile...Loving every minute of it..
     
  16. OntarioVanMan

    OntarioVanMan Well-Known Member

    I mean do the math...how many hours can a solo straight realistically drive in 1 week? 70 hours right? so how many loaded miles can one expect to drive? minus fueling time loading time, unloading time....
     
  17. Dakota

    Dakota New Member

    Actually it's less then 70 probably closer to 50
    10 hours a day for 5 days and then a 34 hour reset
    figure a max of 450 miles a day
     
  18. OntarioVanMan

    OntarioVanMan Well-Known Member

    That is my point.their income is limited by the law...and then toss in the "I don't wannas"...

    Back to the math....even if a solo (legal) did 60 hours of driving a week at the dispatch speed of 50 mph...that max's out the income at 3,000 miles per week....assuming its an exclusive carrier....@ a 1.50 a mile is $4500 per....
    With an equal business flow...a van driver can do that 3,000 in about 4 days and 3 days left over....
     
  19. Dakota

    Dakota New Member

    I agree :)
     
  20. OntarioVanMan

    OntarioVanMan Well-Known Member

    Now everything changes if one drove for DaveKC and a couple others where you could be doubled or tripled up a few times a month...that would bump up the bottom line and cut the total miles required to drive....Hence...Drive less, make more..:p
     

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