Cargo Van Need Advice! Given a Opportunity I believe.

ARamirez22

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Hello! I was recently doing independent contract work out of my vehicle delivering local packages for a international delivery service here in Austin tx. They were paying $5 per package I delivered. I racked up a lot of money doing that within a week. I was able to rent a Dodge ProMaster for a month with two days worth of work. 112 deliveries a day netted me $560 a day.
The company I am currently doing side work recently dropped the Contractor that was delivering the LTL freight for them due to the contractor taking weeks to get it delivered and they needed the shipments delivered same day. These LTL shipments range to 300-500 miles.
They gave me an opportunity to fill in and see how I do and if I can ensure same day delivery they would consider me for handling all of the LTL freight. They are willing to pay me $1 per mile round trip. Tomorrow I have a stop in Presideo TX. 8 hour drive. 490 miles there and 490 back.
is this something I should get my feet into? I really want to give this a shot. Money sounds good. But not sure if I should continue using a rental and save up to purchase my own cargo van or dodge this all together?
 

studs mckenzie

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with a rental the profit margins may not be there, if you are able to invest in your own van that would be something to consider. this doesn't sound like a bad opportunity to get your foot in the door which could lead to better things down the road. best of luck
 
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danthewolf00

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Ok questions for the op....
Is the rental van going to have unlimited mileage?
Who pays for fuel?
Who pays for toll roads?
Who pays for cargo insurance???
Are there any fees to run for this company?
 
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ARamirez22

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Ok questions for the op....
Is the rental van going to have unlimited mileage?
Who pays for fuel?
Who pays for toll roads?
Who pays for cargo insurance???
Are there any fees to run for this company?
Enterprise is treating me as a business account and are offering me 4000 miles free every month. Rental is costing me 1200 a month but I have been making a bit over 1K in just two days doing local deliveries.

I am paying for fuel.

I have a TX Tag so it's discounted. Tolls have been no more then $10.

Shipments are already insured by the international company.

No fees. Just have to provide my own equipment and ensure them I can do same day delivery within TX. Some days it's only 500 max miles I do. Today I did 1019 miles.

I'm aiming to use Rental until I can purchase a quality cargo van.

And if for any reason if they have a day when no LTL comes in they will provide me with parcels to deliver in the local neighborhood at $5 A stop.
The stops are minutes away from each other. Very condensed. I average about 100-112 a day which equals to 500-560 a day. I started off with parcels then they offered me to try out the LTL side of the business.
 

ARamirez22

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with a rental the profit margins may not be there, if you are able to invest in your own van that would be something to consider. this doesn't sound like a bad opportunity to get your foot in the door which could lead to better things down the road. best of luck
Thank you!
 

danthewolf00

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Look at getting cargo insurance through commercial insurance solutions here on expediter online....its a good thing to have incase their insurance fails to cover you.
 
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ARamirez22

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with a rental the profit margins may not be there, if you are able to invest in your own van that would be something to consider. this doesn't sound like a bad opportunity to get your foot in the door which could lead to better things down the road. best of luck
My other thought was..would it be wise to trade in my personal truck that I’m financing on and trade it in for a sprinter class? I’m pretty confident the work will be there.
I wouldn’t be putting much to the side for a rental to keep it.
like you said the rental is costing me.
 

ARamirez22

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Look at getting cargo insurance through commercial insurance solutions here on expediter online....its a good thing to have incase their insurance fails to cover you.
My other thought was..would it be wise to trade in my personal truck that I’m financing on and trade it in for a sprinter class? I’m pretty confident the work will be there.
I wouldn’t be putting much to the side for a rental to keep it.
like you said the rental is costing me.
 

Mr. Loyalty.

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My other thought was..would it be wise to trade in my personal truck that I’m financing on and trade it in for a sprinter class? I’m pretty confident the work will be there.
I wouldn’t be putting much to the side for a rental to keep it.
like you said the rental is costing me.
A very bad move. Do not mix your personal belongings ( home, car, etc,) in with business! Keep a separate business account, never mix business monies with personal monies!. So your $$printer takes a crap on you, maybe even a repair that you can't pay for. Now what? You have nothing to drive because you hacked your previous personal vehicle for a work vehicle. A very bad move, just like this whole business that you are trying so hard to justify. It has a ton of red flags. Like I said before, run like Forrest Gump from it all.
 

ARamirez22

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A very bad move. Do not mix your personal belongings ( home, car, etc,) in with business! Keep a separate business account, never mix business monies with personal monies!. So your $$printer takes a crap on you, maybe even a repair that you can't pay for. Now what? You have nothing to drive because you hacked your previous personal vehicle for a work vehicle. A very bad move, just like this whole business that you are trying so hard to justify. It has a ton of red flags. Like I said before, run like Forrest Gump from it all.
Not trying to justify. Someone asked for more information and I gave it to the person. That is why I came here to ask for advice.
I was a logistics manager for a station before I started doing my own side work and somehow I ended up here in this path. All of your inputs to this is greatly appreciated. I have a few saying to not pursue further and I have others telling me to give it a shot. If it doesn’t work out I am able to go back to managing logistics as a career. I’m just wanting to try something different! For this company I would be just more like a local courier for certain parts of Texas that they service.
Thanks though on your input about the personal vehicle. Makes sense and you are right. Isn’t a wise choice.
 

ARamirez22

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Fyi if it sounds to good to be true something is not getting told.....
Very true. Well luckily I’m just assisting them at the moment with delivery for the LTL freight till I make up my mind if I wanna be the go to guy for the freight. Before me they were using a company called “Diligent”.
 

ARamirez22

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A very bad move. Do not mix your personal belongings ( home, car, etc,) in with business! Keep a separate business account, never mix business monies with personal monies!. So your $$printer takes a crap on you, maybe even a repair that you can't pay for. Now what? You have nothing to drive because you hacked your previous personal vehicle for a work vehicle. A very bad move, just like this whole business that you are trying so hard to justify. It has a ton of red flags. Like I said before, run like Forrest Gump from it all.
What are some of the red flags you see? Would like to know what I’m missing! Thanks in advance
 

Mr. Loyalty.

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From what you stated, there is not enough profit in it from what you stated the pay is.

Stay away from a $printer. Ridiculously expensive to purchase, operate, and maintain, unless you buy a gas model.
 

ARamirez22

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From what you stated, there is not enough profit in it from what you stated the pay is.

Stay away from a $printer. Ridiculously expensive to purchase, operate, and maintain, unless you buy a gas model.
Maybe I can negotiate with them. What would be a ideal RPM? Currently it’s at $1.00 per mile.

I was looking into a ProMaster or Transit.
 
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