I am thinking about joining the expediter industry with a cargo van. So, I have several questions to ask. First, is the cargo van a good choice to start with (driving solo)? What are the startup costs? What is a good company to contract with? How do I set up my new business plan? What would be a good van to start with? or, should I look into a straight truck? Any advice is appreciated.
Need Advice and help
- Thread starter hunter
- Start date
Hunter,
Like you, we are preparing to enter the expediting industry. Here are some resources we've found helpful in preparing our business plan. A lot of it is geared toward 18-wheelers but it can be adapted to other vehicles as well.
American Truck Business Services
Brochure says “We’ll handle the six key elements of your business management so you can concentrate on generating rvenue.” Areas are: personalized budget, bookeeping, monthly income statements, industry comparisons, state and federal tax preparation, unlimited business consulting.
(888) 640-4829 (no web site)
Commercial Carrier University (CCU)
Web site intro says, "CCU provides small trucking company owners new tools to help manage their businesses." Includes how-to manuals on financial statements, business plan, evaluating vehicle life-cycle costs, cash flow management, driver recruiting and retention, and more. Site produced by Commercial Carrier Journal magazine in cooperation with Truckload Academy.
http://www.smallcarrieruniversity.com/
Costs Per Mile Calculator
A useful and simple online spreadsheet for calculating a trucker’s fixed costs, variable costs, total costs, and costs per mile. Part of the Peterbilt web site.
http://www.peterbilt.com/index_our_too_cst.asp
Layover.com
How To Calculate A Fuel Surcharge
Article tells how to calculate the cents-per-mile impact fuel price changes have on you, how to calculate a fuel surcharge, and how to tell your customers about it.
http://www.layover.com/owneroperator/grapevine/0503.html
OOIDA Lease-Purchase Survival Calculator
A free Excel spreadsheet on the OOIDA web site. Tool to use in making your lease/purchase decision.
http://www.ooida.com/trucking_tools/lease_purchase.htm
Partners in Business
A multi-page guide for owner/operators. Includes worksheets and a glossary. Strong on financial aspects of trucking and owner/operator business planning. Site produced by Volvo and Overdrive magazine.
http://www.partners-in-business.com
Like you, we are preparing to enter the expediting industry. Here are some resources we've found helpful in preparing our business plan. A lot of it is geared toward 18-wheelers but it can be adapted to other vehicles as well.
American Truck Business Services
Brochure says “We’ll handle the six key elements of your business management so you can concentrate on generating rvenue.” Areas are: personalized budget, bookeeping, monthly income statements, industry comparisons, state and federal tax preparation, unlimited business consulting.
(888) 640-4829 (no web site)
Commercial Carrier University (CCU)
Web site intro says, "CCU provides small trucking company owners new tools to help manage their businesses." Includes how-to manuals on financial statements, business plan, evaluating vehicle life-cycle costs, cash flow management, driver recruiting and retention, and more. Site produced by Commercial Carrier Journal magazine in cooperation with Truckload Academy.
http://www.smallcarrieruniversity.com/
Costs Per Mile Calculator
A useful and simple online spreadsheet for calculating a trucker’s fixed costs, variable costs, total costs, and costs per mile. Part of the Peterbilt web site.
http://www.peterbilt.com/index_our_too_cst.asp
Layover.com
How To Calculate A Fuel Surcharge
Article tells how to calculate the cents-per-mile impact fuel price changes have on you, how to calculate a fuel surcharge, and how to tell your customers about it.
http://www.layover.com/owneroperator/grapevine/0503.html
OOIDA Lease-Purchase Survival Calculator
A free Excel spreadsheet on the OOIDA web site. Tool to use in making your lease/purchase decision.
http://www.ooida.com/trucking_tools/lease_purchase.htm
Partners in Business
A multi-page guide for owner/operators. Includes worksheets and a glossary. Strong on financial aspects of trucking and owner/operator business planning. Site produced by Volvo and Overdrive magazine.
http://www.partners-in-business.com
>I am thinking about joining the expediter industry with a
>cargo van. So, I have several questions to ask. First, is
>the cargo van a good choice to start with (driving solo)?
I'm just starting out too.
Question #1
Do you have a CDL License with Hazmat endorsement? - cost $30 plus the DOT physical needed $55.00
Are you trading in a vehicle and using the Cargo Van as your main use of personal transportation? Are you thinking of leasing or buying a new unit or buying a used cargo van?
I just traded in my 2000 Dodge Dakota Sport in on a new 2003 Chevy Express 3500 1 ton - Total price on Van was $21,400 which included an adrian upfitters package with e-track on walls and wooden floor with 2 rows of e-track. - My monthly cost is $368 for 60 months
>What are the startup costs?
vehicle cost if new - $375 to $550 month
DOT physical & Drug Screen $120 during orientation
Nationwide pager preferably on cell phone (t-mobile)$30-$50 month
Qualcomm - $140 month
Insurance - $150 month (cargo/bob-tail)
I'm figuring about $850 a month in operating cost (not including gas & oil or repairs) (Pickup truck & Insurance was costing me $435 a month anyway)
You'll also need Class 10 BC fire extinquisher ($30) Triangles ?
Cargo straps (4) about $12.50 each , Pads $70 a dozen
I also bought an 1400 watt inverter ($70) to run applicances along with a camping jump start battery ($70) so I dont run down battery and waste gas to watch TV /DVD/ lights and fans etc.
What is a good company to
>contract with?
Who really knows? - You hear good and bad on all of them but from what I have gathered from talking to other cargo van drivers and on this forum the top 3... I would think are
FedEx CC, Landstar, and PantherII
How do I set up my new business plan? What
>would be a good van to start with?
Chevy or Ford are most common here.
or, should I look into a
>straight truck?
To start out I would advise you on trying a cargo van for a year or two and if it works out move up to a straight truck and get a driver for your outfitted van.
Pros and Cons
Van (Pro) - less monthly payment
- Better gas mileage
- Dont have to keep log for DOT
- easier access to parking around your house
- can double as personal vehicle
- easier and cheaper to fix most mechanical problems
(Con) - Wont get as many runs since your van can only hold 2 pallets. up to 4000lbs
- on average get paid .72 cents to .78 cents per mile - vs $1.05 - $1.20 per mile for a straight truck.
Any advice is appreciated.
Hope this helps....Good Luck!
Desperate in Ohio....Bored in Indiana....Chewing Cud in Kentucky....Cursing in Michigan....Just passing through Canada!
>cargo van. So, I have several questions to ask. First, is
>the cargo van a good choice to start with (driving solo)?
I'm just starting out too.
Question #1
Do you have a CDL License with Hazmat endorsement? - cost $30 plus the DOT physical needed $55.00
Are you trading in a vehicle and using the Cargo Van as your main use of personal transportation? Are you thinking of leasing or buying a new unit or buying a used cargo van?
I just traded in my 2000 Dodge Dakota Sport in on a new 2003 Chevy Express 3500 1 ton - Total price on Van was $21,400 which included an adrian upfitters package with e-track on walls and wooden floor with 2 rows of e-track. - My monthly cost is $368 for 60 months
>What are the startup costs?
vehicle cost if new - $375 to $550 month
DOT physical & Drug Screen $120 during orientation
Nationwide pager preferably on cell phone (t-mobile)$30-$50 month
Qualcomm - $140 month
Insurance - $150 month (cargo/bob-tail)
I'm figuring about $850 a month in operating cost (not including gas & oil or repairs) (Pickup truck & Insurance was costing me $435 a month anyway)
You'll also need Class 10 BC fire extinquisher ($30) Triangles ?
Cargo straps (4) about $12.50 each , Pads $70 a dozen
I also bought an 1400 watt inverter ($70) to run applicances along with a camping jump start battery ($70) so I dont run down battery and waste gas to watch TV /DVD/ lights and fans etc.
What is a good company to
>contract with?
Who really knows? - You hear good and bad on all of them but from what I have gathered from talking to other cargo van drivers and on this forum the top 3... I would think are
FedEx CC, Landstar, and PantherII
How do I set up my new business plan? What
>would be a good van to start with?
Chevy or Ford are most common here.
or, should I look into a
>straight truck?
To start out I would advise you on trying a cargo van for a year or two and if it works out move up to a straight truck and get a driver for your outfitted van.
Pros and Cons
Van (Pro) - less monthly payment
- Better gas mileage
- Dont have to keep log for DOT
- easier access to parking around your house
- can double as personal vehicle
- easier and cheaper to fix most mechanical problems
(Con) - Wont get as many runs since your van can only hold 2 pallets. up to 4000lbs
- on average get paid .72 cents to .78 cents per mile - vs $1.05 - $1.20 per mile for a straight truck.
Any advice is appreciated.
Hope this helps....Good Luck!
Desperate in Ohio....Bored in Indiana....Chewing Cud in Kentucky....Cursing in Michigan....Just passing through Canada!
Thanks for the tips and links. I do have a CDL with hazmat. I plan on trading in on the van to lower the price of the van. Would anyone advice a diesel engine for the van? What about the Sprinter Van from Freightliner? I would guess that one sleeps in the van to keep costs down? What is the average monthly income one can expect from the van? Thanks again.
I am so glad to see a lot more careful planning going on with new people getting into trucking or becoming owner operators. Best thing to do, as I have stated before, is to start out modestly and work your way up. A-Team, you have to start out somewhere too- looks to me like you are reading the fleight and service manuals to a Boeing 747 and without having flown it seem to know it nose to tail. Fly it- trucking takes a LOT more than book smarts. Sometimes that's not such a good thing either. There will be a lot of unplanned frustrations, trials, and tribulations on the road that there will be no website links to under the truck on a cold Feb morning. This will not matter if you own the truck or not- Johnny truck owner won't be there to help you a lot of the time.
BIGBOY has posted his facts up to this point, along with the research he has done thus far, and has asked some very good questions. There have been some mixed responses to his questions, bad with good. My motto towards some of the negative responses to him- none. Now he is going to give it a try, and all his honest effort.
Best advice to both BIGBOY and A-Team? Don't complicate the uncomplicated!
-Weave-
BIGBOY has posted his facts up to this point, along with the research he has done thus far, and has asked some very good questions. There have been some mixed responses to his questions, bad with good. My motto towards some of the negative responses to him- none. Now he is going to give it a try, and all his honest effort.
Best advice to both BIGBOY and A-Team? Don't complicate the uncomplicated!
-Weave-
Weave,
Do you actually believe that the thought has not occured to us that if we go into expediting we might have a bad day once in a while? Give us some credit. We're not stupid and we're not wimps. Don't hold the fact that we're thoughtful people against us.
Our start date is firm and our fleet owner is putting together our truck now. Long after we're in the trade, we'll continue to read everything we can get our hands on about it. We've always worked hard to master our selected fields of endeavor. This career will be no different. Also note that we have no intention of starting at the bottom and working our way up. In expediting, there are people who make a little money and people who make a lot. We're going to model our business practices and decisions on those who make a lot, so we can become top earners in as short of time as possible.
Do you actually believe that the thought has not occured to us that if we go into expediting we might have a bad day once in a while? Give us some credit. We're not stupid and we're not wimps. Don't hold the fact that we're thoughtful people against us.
Our start date is firm and our fleet owner is putting together our truck now. Long after we're in the trade, we'll continue to read everything we can get our hands on about it. We've always worked hard to master our selected fields of endeavor. This career will be no different. Also note that we have no intention of starting at the bottom and working our way up. In expediting, there are people who make a little money and people who make a lot. We're going to model our business practices and decisions on those who make a lot, so we can become top earners in as short of time as possible.