Cost analysis for expediting

[Bob of SW Ohio]

I assume (always dangerous) that any successful expediter out there has done a cost analysis in relation to his/her expediting business. I think it would be of great benefit for we "wannabes" and "newbies" if you "old timers" could share some of your real numbers. This would allow us to make better informed decisions as to our business futures.

It seems every recruiter and every company quotes different mileage/percentage payments for every class of vehicle and "promises" a differing number of miles per month (but all promise 100% fuel surcharge to truck!). Since the above gives us our monthly income figure, who do we believe so we can estimate a monthly income?

On the expense side, If we are O/O's, we have truck payment, fuel costs, insurance, maintenance/repair costs, state fuel taxes, licenses, etc. Again, how is an inexperienced person to arrive at a working figure?

I would like to hear, for both under 10,000 lb. GVWR vans and 33,000lb.plus straight trucks, the real nitty-gritty in terms of monthly and/or annual income and expenses with as much detail as anyone cares to provide. I realize that there can be all kind of responses as to the million variables involved BUT all expediters are bidding on similar type loads and all have a bottom line that is expressed in net income.

Thanks in advance for any and all advice.

 

[highway star]

I doubt that all companies are telling you that you will get 100% of the fuel surcharge as there are many that don't do that. You will get A fuel surcharge from most.

AS to the rest, you are right about variables.

 

[Paul56]

As a newbie you'd really be best to start out driving for someone else rather than jump in right away with your own rig. If you do start out with your own rig you will be overwhelmed.

Now, you have the opportunity while driving for someone else to keep track of the expenses and income. Pretend that you are the owner and log all this information in a book or preferably a spreadsheet. After one year of doing this you will have some real world data, but do keep in mind that not all rigs will have the same expenses and that your income will vary from company-to-company, month-to-month, etc.

That, for me, is the best way for a newbie to get a handle on the real world numbers.

 

[Broompilot]

Everyone is different, for me had I of driven for someone else upon entering this business I would have bailed. Things started out terrible, but I had to make it right. Scared to DEATH is a good description of how I felt, looked at many options available from selling the truck ( had a buyer ) to my best option the Carrier I am with.

So from my standpoint I do not recommened one to get into anothers truck cause from my hearing what Drivers of others trucks have to say and there bank accounts or no bank accounts they are not making any $ or not enough to support ones self let alone a family.

Now for the question asked, would share info one on one? I will not post it, it is not general info I care to have out here. I do well pay my bills for the business on time, work hard and stay out alot maybee (to much). Gotta do what it takes.

Most of all I enjoy what I do for a living, that to me is just as important as the bottom line. I make all of the decisions without an owner critizing my mistakes and forgetting to compliment me on my success's (Understand why I do not care for enouraging one to drive someone elses truck).

If you cannot afford to get into this business, you most likely will not be successfull. Thus its expensive out here and no ones gona bail you out when things do not go well. So trying to scoot around the truck ownership thing is most likely gona mean failure. Want to do this? Think you love it? Than save your rear off, and make it a long term goal that I feel will guarantee your success instead of just trying to get ones toes wet.

 

[Paul56]

>So from my standpoint I do not recommened one to get into
>anothers truck cause from my hearing what Drivers of others

So what is the alternative to that then?

That all people new to the industry purchase their own new/used equipment to get started at a point when they are still learning and not quite certain trucking will be for them.

That isn't a great situation.

Is there any other alternative that I have missed?

 

[Broompilot]

Paul, not making a living wage is your solution?

This is a business and business opportunity, its not a job. You know one will NEVER be able to save enough $ sharing 40% of the revenue of this business. There are just not enough steady miles in this business. Sharing a very large % of the profits is enough to back up my response.

Please tell me anyone who has become financially well off running in someone elses truck?

 

[LDB]

There is a very good spreadsheet available for free from www.ooida.com as well as lots of other good info. Driving for someone else for a few months while learning the business isn't always a bad idea. You won't make as much money but you won't have as many expenses either since the truck owner is covering all the maintenance, repairs etc. instead of you covering them. Read back at least a year in the general, newbies and recruiter forums if you haven't already. Good luck to you.

Leo Bricker, 73's K5LDB, OOIDA 677319
Owner, Panther trucks 5508, 5509, 5641
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
----------
Support the entire Constitution, not just the parts you like.

 

[Broompilot]

Maybee just reading back one month of the members who announced they were finished might be a better direction of O/O vs Driver of someone elses truck. hmmmm

No financial committment, some of the horror stories we have all read here of owners taking complete advantage of drivers lack of knowlege and this is WISE advice to Newbees entering this business?

No committment is almost gona guarnatee ones failure. Where am I missing something here? Once again show me how many successfull drivers for owners vs O/O and the % of there success.

This is solid advice to newbees to steer them in a financial successfull life? Leo you posted how you had Three trucks paid for how did you accomplish this? Certinaly by not starting off driving for someone else, more in line by saving before entering this business and sheer determination to succeed and saving your $ from your labor and not sharing it with some owner. This business as I already stated just simply does not create enough miles or income to support two different people an investor and driver. Am I wrong?

I do not care to give advice where the % is higher for failure than success, just cause one WANTS TO TRY IT, vs people who are serious about success. If you are serious about success and reading this than you will be willing to sacrafice to save knowing what your fruits will bear upon accomplishment of your sacrafice to secure a better future for yourself. Thats my advice Paul to your question, save if you want something, make a goal and accomplish it.

Something wrong with that? Or this the I gotta have it now. No committment no sacrafice and someone with this plan is planning for what? Nothing? Maybee, Maybee Not another whats wrong with this business, owner, carrier, truck, everything but looking at oneself and questioning I was not willing to sacrafice and planned to fail since they had no plan at all.

 

[LDB]

while they learn the business and decide if it's for them.

The income is much less when driving somebody else's truck but so are the expenses. The owner should be paying for all the truck expenses so the overall net to the driver will be closer to what it will be if driving their own truck. If they can't afford to drive somebody else's truck for a few months they probably can't afford to buy their own truck either. The main point is there are situations where driving somebody else's truck for a few months isn't a bad idea.

For some people driving somebody else's truck for their whole career is also a viable option. Every situation is different and has to be evaluated on it's own merits.

Leo Bricker, 73's K5LDB, OOIDA 677319
Owner, Panther trucks 5508, 5509, 5641
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
----------
Support the entire Constitution, not just the parts you like.

 

[davekc]

As I have always said, I still support the idea of driving for a owner if one isn't experienced in this business. There are numerous pitfalls that can put one under. Several miscues in a row and it can be difficult to recover.
The only issue with owners is to take your time and find the right one. Some are good, and some aren't.
While not in the majority, there are owners out there that are active in locating loads and keeping their trucks moving. In those cases, a team in many instances will out earn another team that owns their truck.








Davekc
owner
22 years
PantherII
EO moderator

 

[Paul56]

>Paul, not making a living wage is your solution?

I never said it was; however, those entering into a new business are advised that their income may be low or nothing during the first few months of business.

They are well advised to be financially prepared to ride out this period as their business becomes established.

>This is a business and business opportunity, its not a job.
>You know one will NEVER be able to save enough $ sharing 40%
>of the revenue of this business. There are just not enough
>steady miles in this business. Sharing a very large % of
>the profits is enough to back up my response.
>
>Please tell me anyone who has become financially well off
>running in someone elses truck?

That depends on your definition of financially well off. I'm not suggesting that anyone who is ambitious and savy stay with a fleet owner, but rather that they get their introduction to trucking that way.

It is a way of easing into the business and learning before making the financial committement their own rig requires. Since the opportunity to ease into the business is there why not take advantage of it for a few months or even a year or two?

 

[ATeam]

Leo said, "I'd never tell anyone it's wrong to buy their own truck if that's what they want to do. I'd also never tell anyone it's wrong to drive somebody else's truck for a few months while they learn the business and decide if it's for them."

I agree.

Allow me to add room for the drivers of fleet-owner trucks who stay on for a year or more and use the income they earn to save up for a truck of their own. Yes, you are splitting the revenue with the truck owner, but it is not for no good reason. The owner is providing you with a truck you can use to earn money. That is no small thing.

For people who are up to the task, entering expediting by driving for a fleet owner is one of the best opportunities in America today.

It gives you the chance to sample the business before committing to it heart and soul. It's kind of like dating before getting married. If the opportunity proves wrong for you, you move on to another before making a regretable committment.

It gives you the chance to learn the business and profit from the coaching a good fleet owner can provide. That enhances your chances of success when you buy a truck of your own.

It requires very little money up front and if you manage your earnings well, it provides the opportunity to get out of debt and save up money faster than you can in many other endeavors.

Running for fleet owners also provides a safety net for owner/operators. If something like theft or fire rendered our truck unavailable, we'd hop right back into a a fleet owner's truck and run it while we had our next custom truck built.

Good fleet owners are a good thing for expediter wannabees, expediters and the expediting industry.

That said, having run fleet-owner trucks for three years, we are sure happy to be in a truck of our own.

 

[ATeam]

>Please tell me anyone who has become financially well off
>running in someone elses truck?

That would be Diane and me. We ran fleet owner trucks for three years. In that time, we saved much more than we spent and built up enough money to make a sizable down payment on our new truck.

Yes, you are splitting earnings with a fleet owner but you are by no means giving your money away. The fleet owner is putting you in a very expensive truck that he or she insures and maintains. In my view, that is a fair trade for the money the fleet owner receives from the split.

Now that we own our own truck, we sure do like seeing 100% of the gross flow into our bank account. But we also see all truck expenses and the liability and risks of owning one. With fleet owners, if the truck were stolen or destroyed, it would be a simple walk to the the next fleet owner's truck. If our own truck was stolen or destroyed, it would be a whole different picture.

Given the risks they take, the money they invest and the time they put in, and the crap they have to put up with, fleet owners earn every penny of their 40%.

 

[Bob of SW Ohio]

Thanks for all the great replies and information. I especially liked the suggestion to check out the OOIDA webpage as it provided much good info. I still have numerous questions but I will pose them as a new link.

THANKS AGAIN!

 

[Tennesseahawk]

Where to start...

I don't see a lot of success from ppl who drive for others, other than husband/wife teams. Not to say there isn't any, but it's not glaring at me on the screen. Only way a h/w team makes it is cause everything they make goes into one pot. Having said that, I make decent money driving for someone, but that's both due to my carrier, and the fact that the wife is the breadwinner of the household.

If I were the main income for my family, there's no way I could save towards my goals. And that's a big thing for ppl to think about getting into this. If you drive solo in someone else's truck, or team with a non-spouse partner (including bf/gf), there isn't going to be much to put away if you plan on buying your own truck. Maybe $100/month, maybe less. And maybe, you'll take money back out of your fund to cover for slow times. If you have bad credit, plan on a long time scraping.

If you do have decent credit, and know expediting is right for you, I'd say get your own truck as soon as you can... but ONLY if you know you have the COMMITMENT and financial discipline to make things work. That means whatever the truck makes needs to take care of the business first. Build up that cushion of $10,000 or so, pay the truck off, then start planning how to spend the money you make (or give it to the wife like I do ).

Broom is the only one I know of to make it with no experience. He only had determination and funds to keep him going for a good length of time. Dieselfreak is the exception to the rule, as far as having no money to start with, and being successful. Again, these two had commitment and discipline.

I remember a skit from SNL, where the guy playing Doug Henning said, "In the world of magic everything is an illusion." For the most part, the same could be said of expediting. No one gets rich quick. Most of the ppl getting into it have little or no credit. So their dream of getting their own truck, based soley on income, after driving for someone after 6 months or a year is just that... an illusion.


"If I claim to be a wise man, it surely means that I don't know." - Kansas

 

[ATeam]

Tennesseahawk's point about the difference between husband/wife teams and solo drivers or not-same-household teams is an important one. Husband/Wife teams are highly sought in this business for the reasons Tennesseahawk mentions.

Regarding committment, allow me to add that committment and competency are not the same thing. Both are required for success in expediting.

You can be the most self-confident and enthusiastic person in the world coming into expediting, and know in your heart that you are going to absolutely make it work and nothing will drive you out of the business. But if you lack the business skills and sound judgement successful expediters have, you are likely doomed to fail.

 

[Tennesseahawk]

I pretty much agree with Ateam; only I believe business skills can be learned along the way, whereas commitment(self-confidence) is a trait that's set at an early age, and harder to change.

"If I claim to be a wise man, it surely means that I don't know." - Kansas

 

[RichM]

Hey Hawk,how do you find those Female Breadwinners????

 

[cheri1122]

And does she know that you refer to her as "the" wife?

 

[Tennesseahawk]

Rich... I actually found her using ICQ, and browsing local names. She had a msg on her profile saying "Looking for a gentleman." Boy did I fool her. LOL

Cheri... yes, she knows. I call her Lady and Woman all the time. Used to call her Wench, but stopped that awhile ago. She doesn't care, cause she knows the respect is there. Names don't mean anything unless there's something attached to it. And those are a couple of the pet names I use. Oh... my 3 yr old daughter has taken to calling me "young man" lately. I get a kick out of it everytime. :7

"If I claim to be a wise man, it surely means that I don't know." - Kansas