Freaking out

[hondaking38]

occupational insurance $17.47
escrow $50.00 a week until $1000.00 is achieved...(incase of accident or theft of qc ETc)
also it take approximatly 3 weeks to be paid on the fuel surcharge....the 55% paid after each load is on the base rate , it does not include the fuel surcharge....however, hubby is being paid, 55% of his 60% so you are only getting 5% more pay and fuel surcharge....now i only have two vans, so my advise might be different then someone who owns a dozen....fuel only costs .20 cents a mile maximum...if its costing him more then that then he needs to slow down....at 70 mph i get 16 miles a gallon at 60 mpg i get just over 19 miles a gallon.. it makes a huge difference at the end of the week average per gallon this last week that i paid was $ 3.10 at 16 miles per gallon it costs your hubby about 19.4 cents a mile to drive that van at 19 miles per gallon it only costs him 16.3 cents per mile to run the van..its a huge difference.. so he would be making just over .30 cents a mile profit plus fuel surcharge....thats more then my driver makes on the 45 percent and i pay the fuel..slow down..keep the deadhead down...and most of all keep away from eating meals at truck stops, which easily cost a driver $20.00 a day...it can be profitable..

 

[mikeangel]

Mike gets 8 miles to the gallon. That is it ...... no matter how fast or slow he is driving. Plus he took food and was only stopping once a day to grab hot food quick - approx $5/day. No offense was meant in the one post and it did come across wrong. We do apologize to all who were offended because you were the ones it was NOT directed at!! The above post is now edited and reads like it should have been it the first place.

 

[hondaking38]

ok 8 miles a gallon in a cargo van you wont or cant possibly make any money..period...there must be something drastically wrong with the van....straight trucks average better then that......tractors come within a mile of that...he needs a new or different vehicle...

 

[mikeangel]

We are aware it is really bad gas mileage!!! It looks like an old UHaul van with a spot cut out between the seats to climb in the back. After our 3 months are up, I think we will probably research and check out other owners looking for drivers. Mike has a Class B CDL but we can't partner up because we have small children. So he would be a solo driver..... anyways we have a lot to look into within the next few months. Eventually we would like to probably buy our own van/truck to be an OO but until finances cooperate we have to do it this way. I think a big reason Mike is sooooo frustrated is because he likes expediting but he has been hit with one disappointment after another starting out (lack of being prepared is part of it). He was told he can sleep in the van, so he thought it would have a sleeper of sorts built in. The owner told him the van wouldn't be ready for him until 2 days before he was wanting to leave and when he picked it up, there is no sleeper. So he has been sleeping on a foam slab in the back of the van (which leaks when it rains). He doesn't let the van run at night while sleeping because gas mileage is sooo bad. Now we are finding out how much the owner is making off of him (and the owner down played that - saying he doesn't make hardly anything when we asked about it). I like having the info though. It can only empower you to have as much info as possible (in my opinion). He was led to believe he would be making more and now we feel used because we let this happen to ourselves. We are dealing and will continue to learn though ..... what else can you do!?!?!? (ANGEL)

 

[Tempest]

I hope that was a typo and you meant to say it gets 18 mpg. My Straight Trucks get better milage. I have never told anyone to bail on a contract but if he gets 8 mpg in a cargo van RUN!!!!!!! You would need a .40 FSC just to pay the fuel and while they are out there, the average across the board is about .25

 

[hondaking38]

wow is that owner making some serious coin..probably isnt costing him a dime....cha ching

 

[LDB]

I have to agree on the usually never suggesting it but in this case either having the owner take the 60% side and buy fuel or leave. The owner will likely withhold pay but he's gotten the majority of it in the 55% already. In a few cases cutting your losses is the way to go. Now, if the owner will reverse roles you'll make a straight 32 cents per mile on the loaded miles with no expenses other than the occ/acc insurance. For 3 months you could tough it out on 32cpm and then move on to a decent situation. By then you'll know a lot of the things to look for and to look out for.

 

[mikeangel]

We are not sure where to go .... still have yet to get ahold of the owner. Might just go sit outside of his house until I get acknowledged. LOL!!! Mike just got called out for a run, so I will have to handle this end ..... hate to be the b!tch but I think I might have to have a talk with the owner and see what I can do. That way, if he hates me, hopefully he will feel sorry for Mike (for having to be married to me!!) and not take anything out on him. I would hate to duck out of a contract but we are trying to weigh all our options. The owner had told Mike he should get 12 miles to the gallon but we have figured it out and it's definately 8.

 

[pjjjjj]

Not to say you don't know what you're doing.. BUT..
It might be a good idea to post your numbers just as a second check, to make sure you're calculating it properly, BEFORE you go ranting on the owner..
Just a thought..

 

[mikeangel]

Mike just left on a run ..... I had him take down his mileage when he filled up and the next time he fills up, I will get his mileage again and how many gallons he put in. Will let you know. We had figured it before but of course I didn't keep the figures from that time .....

 

[BillChaffey]

I seriously doubt you will get anything back from Panther, but if you check with the State of Ohio's Isurance Commissioner I think you will find "Workmens Comp" is not required by State law. Also unless things have changed at Panther your "Workmens Comp" Insurance Policy is from "Zurich Ins Comany" and it states in at least 16 point letters on the first page "This is not "Workmens Compensation" and should not be considered as such. When I brought this to Panthers attention and said I don't want it with held from my pay, Panthers answer was "Don't drive"

 

[jaminjim]

Never mind!!

 

[Moot]

Consider the next 3 months to be an educational experience, albeit an expensive education. Track Mike's loads, pay, fsc, fuel price, loaded miles, empty miles etc. as if he owned the van. Use .77/mile as the rate, 2 cents less if he is not Canadian qualified and 16 miles per gallon fuel consumption.

After 3 months if he still likes expediting and you think the two of you can make a go of it, buy a van. Continue to do research, have some money for a down payment and a cash reserve.

I personally can't see how a person can make a living driving a van for an owner in this business. The rewards of ownership are greater, but so are the risks. Hopefully in a few months you can make an informed decision.

 

[arrbsthw]

SORRY ABOUT THAT -my hubby is fired up ...... we did some editing and took out some stuff. Let's just say he is frustrated and not meaning it towards everyone. We still appreciate any assistance.

I don't see anything wrong with the 2 post from mikeangel.
I know it's been edited but after that ( I didn't get to see)
I really see nothing wrong.

 

[arrbsthw]

ok 8 miles a gallon in a cargo van you wont or cant possibly make any money..period...there must be something drastically wrong with the van....straight trucks average better then that......tractors come within a mile of that...he needs a new or different vehicle...

We get 6.5 / 7 miles per gallon in a TT. 8 mpg is terrible
for a van imo.

 

[dabluzman1]

Wow, you two have made a terrible string of decisions.
As others have stated, LEARN, from this 90 days.
Before you go off and invest in your own van, you need to invest in some
classes of basic business policy and proceedures.
There are plenty of folks who can give you valuable advice on this site ( not I ) who
work for Panther.
Putting yourself blindly into a business you know little or nothing about will not bode
well for the two of you.
Make what you can these 90 days, read alot of past posts here on EOland, hire an accountant and attorney, and make a business plan.
Does this sound like its a serious vocation, well it is.

The frustration of being unemployed makes people sometimes do irrational things.
At least you have some reasons for being testy.

Others on this site think theirs dont stink and ........yeper tawks tu da rest o uns wit der stoopid EObonics.

They have no excuse.

You can make some money in expediting, but you have to understand the business and have a plan before you stick your neck out.

Good luck and keep smiling.

 

[dodgeboy]

This job isn't easy. I made some of the same mistakes when I started driving back in 06. Thankfully I ended up with an excellent owner out of Michigan (mike I will omit his last name knows who he is and always paid me on time). What it appears like to me is that your husband is driving an older van that for whatever reason is getting terrible fuel mileage (you will not make money getting .8 miles to the gallon)! I'm sorry if this offends some of you owners but I am going to advise your husband to get away from this owner as fast as he can. What I suggest is that you wait until your next settlement clears and return the van to the owner in good condition. Then you should shop around for a better owner; one that has vans that are getting at least 16 miles per gallon.

Also, I am going to give you some advice about "going it on your own!" Do not (I repeat; do not go it on your own until you have working capital)! You are going to want at least three grand in savings before you "go all in" and decide to start your own business. Another thing; do not buy new!! I can't stress this enough (Panther is a great company and will take vans as old as the year 2000). The best way to ensure long-term success in expediting "in a cargo van" is to eliminate that monthly payment. You should work for an owner for at least a year (and save a pre-determined amount of money each month) that you will use for the purchase of a very good used cargo van. There are some very good cargo vans that you can find in the Chicago area for around 4 thousand dollars that have been fleet vans (well maintained and they will generally have 100 thousand miles on the odometer). This is nothing as you yourself will probably be able to take that odometer reading up to around 700 thousand miles if you maintain your truck.

I made the mistake of jumping into this full throttle. I bought a van and after the down payment, e-tracking- bulkhead, gps, and a few other things, only had 400 bucks in operating capital when I signed on with Panther. Guess what; my van broke down the first year and I was never able to catch back up again. I was juggling so many bills that they finally consumed me and I ended up losing my van and ultimately bought one for cash (which is the van I run now)! So, please think this though, learn your freight lanes "every company has different freight lanes" and make sure you have very low "fix expenses!" If you have any questions about Panther and their system (ie., where the good loads are and general tactics to find loads) please send me a private message. That is my advice to you and may good bless you and your husband.

 

[davekc]

Dodgeboy,

I would say that is a pretty darn good post. Way too many folks jump in being under capitalized. Much of many successes are tied to luck and how well their carrier can run them.
You struggled through with operating a van. Now imagine that same issue with a straight truck or a tractor trailer.
A simple breakdown can run into the thousands and yet some are "picking cigarette butts" off the ground and wondering why they are broke.
For new folks, this isn't the time to jump in unless you are fully funded for the adventure. Even a simple accident that may not be your fault could shut you down for several weeks. What happens if you became ill?
Do you have the funds to carry you through those types of incidences?
For a tractor or straight truck, I still recommend at least a $10,000 reserve for these types of things.
Just like any business, don't jump in on your last dime.

 

[BillChaffey]

Mr. Davekc,
if you don't mind, in your opinion-what would be a reasonable amount of time to expect to earn back the $10,000 reserve in this current economy with a Straight Truck. Not counting the everyday operating expenses, (as in truck payment, Ins, Fuel, ect, ect)that are part of the operation.

 

[davekc]

It would depend on whether a team or a solo. A team would generate it must quicker obviously but much would depend on the company and how much you are running. We have been running well, but I just read another post with someone doing 3 loads in three weeks. It is really tough to put a exactly number on something like. But, I certainly wouldn't start without it. There are too many variables that can change things. I would say a couple of months if one has no bills, and it stretches from there. Then you start getting into ones personal finance and habits to arrive at a quess.