Attention newbies!!

[aquitted]

To all the people who think they can make A living expediting I did A profit and loss statement from Jan 1 to now and showed in those 5 month's I made $149.00 out of A $32,052.00 gross. fuel was A little over $13,000. truck maint & repair was another $13,000. Insurance $770. Postage $60.00 and A few other things. I have A 24' truck 102' wide with a liftgate I carry A pallet jack and 2 dozen furniture pads along with ascorted straps and bars. If this doesn't convince you I will probably be selling my truck at the end of the year. By the way I have no truck payment. I can do better than this at home doing telemarketing or going door to door trying to talk people into vinyl siding.

 

[Turtle]

Newbies should also be aware of the Rule of Thirds, where one third of the gross goes to operating expenses (chiefly fuel and oil and other costs to operate the daily business), one third goes to the truck (maintenance, repair, insurance), and one third goes to the driver. If any of these thirds are significantly out of whack, there's a problem, and it tells you where to look in order to fix it, as well as how to help in preventing it from happening in the first place.

For example, if you spend 25% on fuel and oil, another 20% on the truck, and then pocket & spend the other 55%, it's a problem waiting to happen. If you buy a used truck without knowing the full maintenance and repair history, or without having it gone over with a fine-toothed mechanic's comb, it's potentially a significant problem waiting to happen.

 

[billg27]

Wow, post #1 almost makes me want to quit driving!! LOL

There are some exceptions to the rule of thirds. Some if us are capable of doing the majority of our own repairs and maintenance. That helps the bottom line. I get Amsoil and Amsoil filters from a dealer buddy for cost. If your capable of doing your inspections and maintenance it add considerable to your bottom line. Catch potential problems before they happen on the road. I spend a couple hours every time I'm home just looking, checking things and being proactive to try my best to prevent repairs on the road. Do your own brakes, oil changes, tire rotations and other maintenance, it's well worth your time and effort.

 

[Opel2010]

Wow! Only $770 for insurance? I pay $540/mo...

Sent from my SGH-T999 using EO Forums mobile app

 

[Turtle]

There are some exceptions to the rule of thirds. Some if us are capable of doing the majority of our own repairs and maintenance. That helps the bottom line.

Yes, but you're still paying that cost, it's just that you're in effect paying yourself a part of that cost. You're still paying about a third to the truck for maintenance and repair, it's just that you're more cost effective about it when you can do your own repairs. And any place you can be more cost effective, whether it's obtaining parts online rather than paying three times that amount from a dealer, or doing your own repairs, it's your personal third that benefits.

The different is, you're doing the maintenance more cost effectively to increase your third, instead of someone who forgoes it completely in order to increase their third, which is what some people do, especially newbies who don't realize they have some high dollar maintenance ahead of them.

For newbies, especially with cargo vans and Sprinters, it's really pretty simple... compared to your car that you toodle around town in, you're putting about 5 years worth of wear and tear into your truck every year you drive it, so every year you'll be doing 5 years worth of maintenance to it. Plan accordingly.

 

[TruckingSurv]

I am newer than new, BUT it looks to me like the real problem is your revenue, not expenses, your revenue appears to be about 50% or less than where I would expect a straight truck to be, not saying that is necessarily your fault (could be lots of factors), BUT I can see where you would want to bail out with that low of gross revenue.

TS

 

[Murraycroexp]

Supply & Demand.........
It's a bit lopsided this year so far. But eventually it corrects itself. The ones that can't, get out. The ones that can, weather the storm and survive. Everyone's story is different so the "rules" are not universal.
Warnings to newbies are certainly one of the steps in these "market corrections". But the weaker members of the herd will fall to the coyotes eventually.
That'll cost you two cents, please.

 

[RonJonCMC]

''I can do better than this at home doing telemarketing or going door to door trying to talk people into vinyl siding." Acquitted, I feel your pain Bro. This is the only job I have ever had where the costs to operate continue to go up, but the pay continues to go down. I'm not even going to try to compete with all the work visa, non-English speaking or writing, overloaded rolling death traps out there, that are operated by teams that live full time in the van and run for 50-60 cpm. One driver is barely functionally English speaking, the other just drives. (BTW, how do you get a U.S. drivers license if you can't read or write English?) Last time I checked all the road signs were still written in English. Just got my insurance premium in the mail and it has gone up $500. over last year for the one year term. No accidents, violations or claims, other than a replacement w/shield 3 years ago. When I started Expediting, diesel was around 2.59,... Yes, that was 2.59 and it was only about 4 yrs ago. Industry standard to calculate your trip time was 45-47 mph average, now everyone expects 50 mph and some even expect you to do 55 mph average. Average cargo van pay I received in 09 was .90-1.00 pm, now they want it run for .75-.85 cpm, and that of course includes fuel surcharge. I never thought I would be one to be in favor of DOT regulation for the under 10k vehicles, but at this point that might be the only thing that will keep me in this business. If I'm going to work for close to minimum wage, I might as well be a Wally World greeter or telemarketer. At least this way, I would be able to see my family on a regular basis.

 

[Opel2010]

One driver is barely functionally English speaking, the other just drives. (BTW, how do you get a U.S. drivers license if you can't read or write English?)

For a regular driver's license one doesn't need to know English. They can take the test with an approved (by DMV) translator. Not the same situation for CDL's.

Sent from my SGH-T999 using EO Forums mobile app

 

[Turtle]

Not just the regular drivers license, but you can take the CDL written exam in about 28 different languages. Kentucky offers it in about 17 languages, including Chinese. It's ridiculous.

 

[Ragman]

Kentucky offers it in about 17 languages, including Chinese. It's ridiculous.

Kentuckians speak 17 languages? Wow!

 

[Opel2010]

Not just the regular drivers license, but you can take the CDL written exam in about 28 different languages. Kentucky offers it in about 17 languages, including Chinese. It's ridiculous.

I think that's stupid. As well as that bs when you call somewhere and you get that "for English press one"... y'all know the rest.

Sent from my SGH-T999 using EO Forums mobile app

 

[Turtle]

The reasoning is, of course, people may tense up and not test well when testing in a second language, so they offer the written tests in a bunch of different languages. I can almost see that for a regular drivers license. Almost. But for a CDL where you're supposed to be able to read, write and understand English? It's retarded.

I messed up on the 17 languages in Kentucky. They've added a few in the last year or two.

A couple of quick cursory searches show in Tennessee the written test is available in 4 languages: English, Spanish, Japanese and Korean.

In Ohio the test is available in 7 different languages, but I couldn't easily find out which ones, so I quit looking.

In Michigan the test is available in "many" foreign languages, but they don't say how many or which ones.

In Kentucky we're very cosmopolitan and, you know, with it. The written test is offered in 22 languages: ​Albanian, ​Arabic, ​Bosnian, ​Cambodian, ​Chinese, ​Croatian, ​English, ​French, ​German, Indian (Hindi), Japanese, ​Korean, Laotian, ​Persian, ​Polish, ​Romanian, ​Russian, ​Somali, ​Spanish, ​Thai, ​Turkish, ​and Vietnamese.

But the winner is California, where the written test is available in 32 languages.
Amharic, Arabic, Armenian, Cambodian, Chinese, Croatian, English, French, German, Greek, Hebrew, Hindi, Hmong, Hungarian, Indonesian, Italian, Japanese, Korean, Laotian, Persian/Farsi, Polish, Portuguese, Punjabi, Romanian, Russian, Samoan, Spanish, Tagalog/Filipino, Thai, Tongan, Turkish, and Vietnamese.

In New York, though, where you'd expect something almost akin to California, they're more strict. They offer the written test in 13 languages: Albanian, Arabic, Bosnian, Chinese, English, French, Greek, Italian, Japanese, Korean, Polish, Russian, and Spanish.

But, in New York, the CDL written test is only available in English and Spanish, and the HAZMAT written test is only available in English.

 

[aquitted]

One reason truck maint, and repair is higher than usual is i'm abit overkill when it comes to A repair. When I had a wheel bearing going bad I had them replace both. when I had one idler pulley going bad I had them replace all the idler pulleys. When my radiator pipe was getting corroded I spent the extra dollar to get A stainless steel pipe that wouldn't rust again got rid of those cheap hose clamps and bought compression clamps and replaced the radiator hoses with high pressure hydrolic hose so i don't have to worry about A hose failure. I carry spare wheel bearings and races, spare belts, spare axle seal, fuel and oil filters, headlights and other bulbs, and spare altenator. I have never had A failure that shut me down.
I was doing alot better with the company I first started with they did an 80/20 split with us and always charged good money. but because of the rates he charged the loads were dropping off and so I had to move on to lesser pay rate but more miles. he is still in business but only has a few trucks I have alot of respect for that man for not backing down to running his trucks cheap. If all the other companies did what he did it would be alot better for everyone.

 

[skyraider]

Lost an engine and tranny in 24 months, $5500 total,,not that much, but still,,,no, Im not out there anymore, was not from the above, felt it was time to quit for awhile and smell the roses..

Turtle is right on that 1/3 calculation, works every time.

 

[EASYTRADER]

Your revenue is too low. Could be many reasons why, but that's the deal. My wife and I stay in service all year, unless maintenance takes us out, we take 2 mos off at home, usually around april for taxs and such. However the rest of the year we hit it.

The 1/3 breakdown of revenue is true in most cases. So if you figure you want to clear 4k net you need 12k gross. So in five months you should be around 60k gross. If you grossed 32k you should have pocketed 10k. So something is def. wrong with your plan.

Even if you stayed out of service a lot, on your numbers you still could have hit 2k a month net. Sounds like you are running too cheap or your fixed expenses are too high.

But basically where fuel prices are I you ain't grossing 1.60 per loaded mile, eventually you will go BK.

I used to turn down 90% of offered loads because rates are too low. Anyway, you are right for a solo driver money wise its better to get a class A and drive a tractor running general frieght fr just about any reputable company.

 

[zorry]

Opel, did you ever say what you did with your insurance issue ?
Did you leave progressive ?

 

[Opel2010]

Opel, did you ever say what you did with your insurance issue ?
Did you leave progressive ?

Wish I could leave them, but as long as they monopolized it, where else to go?

Sent from my SGH-T999 using EO Forums mobile app

 

[usaf6186]

For a regular driver's license one doesn't need to know English. They can take the test with an approved (by DMV) translator. Not the same situation for CDL's.

Sent from my SGH-T999 using EO Forums mobile app

Some states even have test in other languages. Jerry Lee

 

[Lawrence]

In regards to capacity - here is information from April Syleconomics Report:

April 2013 Syleconomics

Capacity is continues to lag and has still not reached 2007 levels. It is odd that the Sylectus “spot market” rate is slipping while other transportation sources are showing modest increases in revenues and revenue per mile.