jeffman164
Seasoned Expediter
Thinking about purchasing a few cargo vans and putting drivers in them . Would like to talk to a couple of fleet owners of cargo vans to ask some questions . Please PM me with phone number . THANK YOU !!
Fleet Owners ??
- Thread starter jeffman164
- Start date
Spend a LOT of time reading past posts on owning fleets, van activity and finding drivers. Much of what you need to know has already been posted several times over.
jeffman164
Seasoned Expediter
Just feel that I would obtain more info when talking in person rather than on the net . Dial up as opposed to high speed is a factor but being computer challenged kind of seals the deal . THANK YOU !!
LisaLouHoo
Expert Expediter
DON'T DO IT, DUDE!!!! Oh, wait, too late, LOL!
guido4475
Not a Member
I'm right there with ya ! Imagine if there was a major breakdown as well on a vehicle with a big payment as well.Ouch !!
I actually considered the idea of buying 2 new Sprinters with Midway or Hanvey sleepers at a cost of about 52k each. (not what I would call low cost vehicles) My plan was to find a couple of good H/W Teams to run them on a 60/40 split. But as with many other ideas this one has been put on the back burner for a while.
Why should a carrier not allow CV fleet owners? The company gets a vehicle it needs and a driver without the finances or the will to buy a CV gets a vehicle to drive. I met a driver of a van recently that is as happy as can be running someone else's van.
LisaLouHoo
Expert Expediter
Well, in a perfect world, no one would take on this onus without the proper starting capital; but then there's the catch-22: one might take on vehicles to make more money, investing very little to do so, hoping that the vans will make money to acquire more vans; when the first 2 vehicles are making a little for them, then they start reaching beyond their means to obtain more vehicles, seeing a hopeful glimmer of $$ to come, plus make all the payments on the fleet vehicles. Leaving no room for repair costs, for we all know, if it has wheels, it will break down eventually.I think we have all seen too many try too quickly with too many trucks. Slow and steady, just like over the road. It takes someone YEARS of planning to start it out right, so they are not behind the 8-ball out of the gate. Of course all the planning and saving to pay cash for vehicles plus upgrading them for the comfort, convenience, and morale of the drivers guarantees nothing; but it seems smarter than just going whole hog on the notion on Thursday when one just came up with the idea on Tuesday.
What I don't see too much discussion about here on EO? ADMINISTRATION. I think that too is where some fleet owners get discouraged. Not just securing loads...but managing the banking, contracts, fuel cards, etc. The administration of a fleet can be daunting for even the most prepared fleet owner.
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I do agree that many fleet owners operated on a thin line only to go under when the economy tanked. And there was quite a few.
There isn't alot of discussion on strictly administration because of all the variables. Carriers all operate much differently so what would be applicable at one carrier might not be at the other.
Same with finance. I wouldn't tell someone to follow my advice unless they were running an all cash business. So one has to generalize.
Your mention of locating loads is another. Only a handful on here actually participate or have a working knowledge of how it is done. So you will get some snippets here and there but not lengthy dialogue.
Legal issues kind of fall in to that as well. There isn't a one size fits all to many of these things.
There isn't alot of discussion on strictly administration because of all the variables. Carriers all operate much differently so what would be applicable at one carrier might not be at the other.
Same with finance. I wouldn't tell someone to follow my advice unless they were running an all cash business. So one has to generalize.
Your mention of locating loads is another. Only a handful on here actually participate or have a working knowledge of how it is done. So you will get some snippets here and there but not lengthy dialogue.
Legal issues kind of fall in to that as well. There isn't a one size fits all to many of these things.
LisaLouHoo
Expert Expediter
Very true on all counts.
However, it does need to be pointed out to anyone considering this option:
Be prepared for a mental overload on the administration end. Because of the amount of variables that appear at the onset, those then lead to more.
You have to have a strong mind, will, self-control, and body to venture into fleet ownership.
Because it is more than "just a few vans".
However, it does need to be pointed out to anyone considering this option:
Be prepared for a mental overload on the administration end. Because of the amount of variables that appear at the onset, those then lead to more.
You have to have a strong mind, will, self-control, and body to venture into fleet ownership.
Because it is more than "just a few vans".
LisaLouHoo
Expert Expediter
It's a blast dude! LOL!
Just keeping in mind: "it's part of the deal it's part of the deal...."
Nearly overwhelming at some points, but it all gets smoothed out so long as a cool head is allowed to prevail and take each issue one at a time when they arise.
That is easier said than done at times.
Just keeping in mind: "it's part of the deal it's part of the deal...."
Nearly overwhelming at some points, but it all gets smoothed out so long as a cool head is allowed to prevail and take each issue one at a time when they arise.
That is easier said than done at times.
transporter
Expert Expediter
ok i will cast and opinion contrary to most. why not be a driver for and owner? owner has all expenses including fuel. you just drive and wait for next load watching tv or whatever. driver gets $ .35 a mile. no not a lot per mile but a few years ago werner paid new highers 26 cents a mile and that was a tractor.
i dont know what they pay now. yes this is ASSUMING driver is kept busy.
i dont know what they pay now. yes this is ASSUMING driver is kept busy.
idtrans
Expert Expediter
I tried it and forget it 1 driver quit because he ran to hard ! and the other driver I hired was a total moron **** near destroyed my van and then left the van 900 miles away parked wrong at a truck stop !
FORGET IT ! And if you do try it best of luck to you trust me you will regret it I bet on that LOL I know I regret trying to own a fleet.
Fleet ownership is certainly not everyone's cup of tea. It use to be easy to buy numerous trucks and be profitable with little effort because the profit margins were considerably higher.
It is a much different day now. If one is to make the jump, you better have a clue of what you are doing and not be under capitalized or you will find it to be a very unpleasant experience. With a little searching, you will find some of those horror stories right here in the EO archives.
It is a much different day now. If one is to make the jump, you better have a clue of what you are doing and not be under capitalized or you will find it to be a very unpleasant experience. With a little searching, you will find some of those horror stories right here in the EO archives.
greg334
Veteran Expediter
One reason why I am against van fleets in carriers is the problems related to their margins and the lack of freight during downturns.
Something has to give in a downturn, it isn't the owner or the carrier but the driver.
I am amazed how one can make money at 77 cents a mile while paying the driver and having to pay out all the 'fees' and still carry a note on the van. Where is their profit at or is it the case of the Ford Effect (where they have lots of vans and collect pennies to accumulate funds)?
Something has to give in a downturn, it isn't the owner or the carrier but the driver.
I am amazed how one can make money at 77 cents a mile while paying the driver and having to pay out all the 'fees' and still carry a note on the van. Where is their profit at or is it the case of the Ford Effect (where they have lots of vans and collect pennies to accumulate funds)?
These statements should apply to all fleet owners and anyone who owns a business. If you are under capitalized and over extended you are doomed to failure. A fleet owner of vans, straights or tractors needs to have enough operating capital to cover there expenses for several months regardless of how much a vehicle brings in.
transporter
Expert Expediter
it can be more problems than it is worth for the owner, for all the reasons stated above. but looking at it purely for a driver i still think it is a viable option until you get your feet wet. 35 cents a mile and no expenses. thats better than some semi drivers make with no logging.
would i put a driver in a truck----probly not. to many idiots out there
would i put a driver in a truck----probly not. to many idiots out there
I don't do vans but if I did, it would only work with loading them myself with no carrier involvement. Even more so at that .80 a mile range. A run through the calculator shows a slow bleed of revenue verses the cost to operate.
Or.......ROI............ Some say that doesn't exit.
The margins and capabilities are different on straights and tractors.
Or.......ROI............
Some say that doesn't exit. The margins and capabilities are different on straights and tractors.