Only sure bet is no bet at https://www.youtube.com/watch?v=7RAPIlytbzs
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Flat rate???
- Thread starter aimeejos
- Start date
I used to think like that, my truck is paid for so I can earn less. I am now thinking that is not smart. My time is still worth the same. My costs, other than truck payments are going up. Older trucks are liable to need more repairs, which cost more now than 5 years ago. Paid off trucks are making their biggest profits, which are required for building up a replacement/repair fund.
Rates have not kept up with the realities of the costs. Doing the same work, for less money, to my way of thinking, makes no sense.
jamom123
Expert Expediter
I agree Layout, when i asked about the new flat rate i was told i could run more loads and get more miles because there's no more negotiating with dispatch. Either accept it or deny it. I said so more loads, more miles, more wear and tear on my truck all for less money! Yea that makes sense.
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Also, keep this in mind. You MIGHT be able to run for less without a truck payment etc. What happens when you buy a new truck? IF you pay cash, maybe you can afford to run cheap, any kind of payments? Nope. Does anyone believe that when their business expenses go up their rate per mile will magically go up? Is that possible with so many willing to work for peanuts?
Looking at the numbers it is amazing how the new truck can often cost less then the old truck.
Better fuel mileage and less in maintenance costs each month. There can also be the piece of mind of having a reliable truck to drive and not constantly worrying if the truck hiccups that something is going to break again...
Better fuel mileage and less in maintenance costs each month. There can also be the piece of mind of having a reliable truck to drive and not constantly worrying if the truck hiccups that something is going to break again...
You are absolutely correct. The problem I see with a new truck is the debt. I don't want it. Rates are not stable, mainly dropping. The economy is shaky at best. Much of the new, required equipment, is unproven.
A new truck would be great in many ways. My business model makes it very difficult to invest a quarter of a million dollars when the rate of return on that investment is not stable. The regulatory environment today also causes worry for such a large investment. As does age.
Deville
Not a Member
What amazes me is how good of a mechanic I have become. I was always pretty handy, but never had any "formal" training other then watching other people do it.
My mechanical know how and tool set has grown by leaps in bounds the past 10 years. I am at the point that I can repair or replace pretty much anything short of a full engine tear down.
I credit most of this from you tube and trucking forums. being able to watch a tutorial on you tube on my phone/tablet while under the hood and then get support from a forum as I go especially on some of the more complex electronics that these trucks have is a huge plus.
Now if I could only learn how to weld.
Daffyduck528
Expert Expediter
Ditto. I haven't been doing this that long but my skill set has shot way up. Especially converting from a driver to an owner operator.
I agree with you and it has been a difficult decision each time we have purchased a truck.... With that being said from the time we have got into trucking about 30 years ago the comments have been the same. Deregulation is coming, it came and went still buying trucks, rates are going down each and every year and we are still buying trucks, the sky is always falling and some how are another companies stay in business and O/O stay in business and thrive.
If I was 30 years younger, it would be a much easier decision. I have 5 years, or less, to work. That must be taken into consideration. I don't believe the sky is falling, but our rates are. Our records bear that out, very clearly. The cost of a new truck continues to rise. I could, and still may, stay in this business. The choice, the decision, is harder than I wish it could be.
We will looking into several options over the next several months. We are still planning on looking at new trucks at Expo. All decisions must be made with as much information as possible. We know where the rates are at. Right now we don't know what our carrier is planning. There have been some major changes, there made be more coming, we have no way to tell that. I need more information than I have. So I get what I can. The rest only time will tell.
Choices of this magnitude cannot be made in a vacuum.
jamom123
Expert Expediter
I'm under 30. With a truck payment and rising cost, not including the bills at home I'm really going to have to weigh my options. I hope things work out.
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Most likely. 30 years younger I would have had kids around and this is NO business to be in if you have kids at the house.
Daffyduck528
Expert Expediter
I'm probably 30 years younger than most on here. My age is the reason I want to start a fleet. I'd like to have a few years off the road to have a family, maybe raise a kid or 4. Then jump back in a truck once the kids are off to start their lives.
Everyone is different and everyone's business plan must suit what they need. I wish you luck. My original plan was to start a fleet, that has changed due to many circumstances and reasons. Some my fault, some not. From what I am seeing, right now at least, I am kinda happy I don't have a fleet.
I am not knocking what anyone does. That is their business and mine is mine. All sides of the problems should be presented. With any luck some one can benefit from what we all post. It is important to know all of the pros and cons. There is no single answer.
For us it is all or nothing. We either end up with a new/different truck, or get out of the business. I doubt there is anyway we could work out driving for an owner.
Daffyduck528
Expert Expediter
I really do understand what you mean. If I was in a different situation I might would decide to do something differently. For me the name of the game is quantity. Fedex did away with quality in the past few moves so the only way I can be successful is to have more trucks that can run on slimmer margins. Where I'm at now is deciding what's the balance between how nice the trucks need to be and how much money the drivers need to make and how to diversify between surface units and white glove. Also, finding drivers. The EO pool is saturated so where to go if you can't get anyone from here. It's not an easy task. I loose sleep. But I usually make it up while driving.
No easy answers for sure. What you are talking about is just some of the reasons I am kinda happy I never did put a fleet together.
jamom123
Expert Expediter
Hey Daffy do you own your current truck?
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