Real life reasons to be careful

[raceman]

I have been reading the threads and there is some very good advice being given my new and experienced folks here. I will share my current situation. Let me begin by saying I run for Express1 and I have two trucks there.By the site terms I am a Newbie Owner. By IRP standards on paper I am a fleet owner. I drove my own truck with Tri State added a second truck there and wanted to go from teams to solo and ended up at E1.I went into this with a varied truck driving background but zero OTR expedited experience. I currently have a truck in a shop in cincinnati with engine problems and a truck in INDY with tranny problems. There is a lot of costs here that I will not go into but be sure to understand there is more than what I lay out here. I own one truck outright and am paying for the other. So there is a truck payment involved. In the last week one truck had to be towed from Terra Haute to Cincinnati. That is a long way but that was my decision. It could have been towed somewhere closer to Terra Haute so the $988.75 would have been less. The work so far is at $996.00 and may go up a hair further. The other truck in Indy so far has cost $49.00 a day for hotel for driver and that will end up at four or five days. I am paying for his meals as well. Again that is my choice you may not do that which would drop that cost but it appears that is about $19.00 a day so far. The transmission that I have ordered was $2650.00 and the clucth goodies were $538.00. The installation and labor has yet to be figured. During this time those trucks earn no money and I am still paying for the two satelites and truck payment and my insurance. These kinds of expenses are incredible. I must say that I had planned on repair and upkeep expense but I will also admit I could not have done this if I had not had some money saved. My everyday running would not have covered this nor would I ever dreamed this would have happened all at once. I post this so that you can see what can happen and why folks are warning everyone. I am a person who thinks and approaches life with a positive outlook and therefore even knowing this could happen never expected it. I could go on for hours about this but will not. I just wanted to share the numbers so you could see what kind of expense can come out of nowhere. I will end by saying this looks expensive but at the end of last May beginning of June I had problems more expensive than this. I covered that under I69 Truck and Trailer. Whatever you do dont do business there. It is a wonderful business and I have not yet looked back and said I wish I would not have done this. I have many times said I wish I had not gone at the multiple truck portion of it but I did. You can make money but I would advice anyone with very little on hand cash, drive for someone else. If you have a weak stomach or weak pocket book be very careful. Outside of those warnings the water is great! Come on in. Just dont stretch yourself so thin as to go belly up if what has happened to me happens to you. It is expensive. There is not a day that goes by that it does not take more than just fuel to run those trucks. Good Luck to all.

The Owner who once went by RACEMAN but due to the outcome of the Nextel Cup, am now just 6.

 

[Glen Rice]

Great posting Raceman. The truth is always hard to right about and you did a wonderful job explaining just how easy it is to go backwards in this business. I've always said a driver can either make you or break you! I'm sure your drivers, including yourself are taking it easy on the equipment. It does however sometimes come up and bite you! You cannot maintain your equipment to well! If you are hands on and understand certain maintenance requirements and the operating function of your truck you will be ahead of the pack! Read everything you can find about problems with your type of equipment. Use any resouce available including the internet and truck publications. The problems one operator has sometimes have effected us all. Well enough of my ramblings. The key to your statement is caution. Drive safe and be profitable.

 

[davekc]

Your situation is not unique for someone with two trucks. I always have figured for every three trucks, one is unproductive. It could be for repairs, drivers time at home, or no drivers. If all three are running, bank every dime you can from that third truck. There will be a day when it rains.
Davekc

 

[Tom Robertson]

Raceman...

We all feel for you in no uncertain terms. Almost anyone owning more than one truck has already been where you are or is very likely to be there in the future. You have just very courageously shared your troubles and at the same time made the point so many of us who have been in this crazy business have repeatedly tried to express to those making the leap. Business plans for this industry based on RESEARCH can and most often look very feasible. But the unknown can torpedo the best built business plan in a heartbeat. Other unknowns are the accident that places your vehicle out of service for weeks because a part needed is either out of productions or manufactured overseas.
Other complications can arise at any minute... illness, deaths in the family, law suits are but a few of the other problems that we all will face at one time or another.
I have always advised anyone who owns one truck, to put aside a $10,000 emergency fund for that specific truck before considering the purchase of the second...that figure doubles before the third truck is added. Once you have about $25K set aside that will usually suffice for additional purcahses... at least up to 8 trucks ( so far anyway)...AS LONG AS YOU REIMBURSE THIS FUND FIRST!
With these funds readily available you can avoid delays when asked "how do you plan to pay for this?"... being able to say... CASH (read: check) will get you a complete remanufactured engine shipped and installed in three days... (personal experience)
If your reply is... I'll have to get a loan... the process could be delayed a week or more...which as you know continues to cost you the owner on a daily basis.
Truly sorry for the double whammy...but I think you can and will weather the storm.

Everyone should appreciate your courage and wisdom in deciding to make this post.

Let's hear it for the Raceman! Jump back in as soon as possible...we're all pulling for you.

 

[terryandrene]

raceman, your post needs to be brought to the top of the line now and again. Your candor ia appreciated and the content of your post should be required reading in the school of hard knocks.

Terry

 

[blueeyes]

I agree, this should definitely be required reading!
Sorry for your troubles, 6. Thanks for sharing this so that everyone has a chance to learn from it.

 

[raceman]

I want to thank everyone for the comments. I do hope this helps people see the cost that can come from nowhere. I just got word on the labor costs associated with the tranny removal and install. We are looking at another $600 to $1000 added to the figures in my first post.Just know this is a great business but all the planning in the world does not prepare you for a hit this size. Again I share this so anyone looking to do this on a shoe string, be prepared to fall hard if you go at it with limited funds. I have a decent size pocket and this is messing up my sleep. I also want to be sure folks understand that my comment about "ended up at E1" is not a negitive comment. I am very proud to say I run for Express-1 and I am even more pleased with how they have worked with me each and everytime something has caused me to shut down. Despite some of the other things that may have posted on here, I am very pleased and proud to be associated with E1. Back to cost. I just very much think all the newbies need to listen to the advice of others on here and know they may not have all the answers but they have not be kidding about unexpected costs. It is no joke. Good luck.

The Owner who once went by RACEMAN but due to the outcome of the Nextel Cup, am now just 6.

 

[davekc]

I agree and hope you get up and running. Excellent post for those wishing to expand or think it is a perfect world and nothing adverse will happen. I get tired of people who claim to have the perfect business plan, and can account for everything. I don't care what business your in, it doesn't exist. If it did, everyone would be doing it. The best one can do is to prepare as much as possible to weather any potential storms that might come their way.
Good luck, and remember that their are many people here to help you out.
Davekc

 

[Tennesee Trash]

I, as a "newbie",am absolutely listening and have taken the post as factual, real life help. Plans mean a great deal but the best laid plan ..."etc, etc., is tough! This posting means a great deal to me. I learned from it and will use it to make decisions about unexpected repairs.I do not have unlimited funds to play with and must rely on other peoples experience to make wise decisions.
I also recognize the fact you take care of your equipment , driver, and even the company you represent. I admire honesty, good or bad. I myself want to hear the down side as well as the "I made the perfect plan and made a lot of money, never break down....", type.I see what I need to do every time I read a post such as this.

Thank you, Larry , Tn/Trash

 

[Lonleyboy515]

Raceman.

Sorry to hear you have had problems I have similer things happening here.One truck went down last Thursday evening for tranny problems,then on Tues.morning had another truck writen off in an accident.Luckily we still have four trucks still running,it just seems when it rains it pours but we allways seem to weather the storm.The pocket book just gets a little tighter.Raceman goodluck and hope your up and running soon.

 

[Tennesseahawk]

6, you hit the nail on the head. Don't do it! Just don't do it! If you have $20,000 don't buy a $20,000 truck. Don't do like I did either... buy a truck counting on it lasting a good long time, and having no money to boot. HAHAHA

Where's my skateboard? I need to find a driver for it. :+

T-hawk
I like pina coladas
and getting caught in the rain

 

[Broompilot]

This is exactly what the point I was trying to make a few months back when I posted the question RE$1,700.00 a week the average? And I will say I was BLASTED BY MANY. Being a Business Owner most of my Life I understand unexpected expenses, and my last carrier demanded the truck be serviced and records be available, and at that type of revenue and the costs you are incurring please tell me not meaning to be a smart ##### how long it would take to break even? My point being this business must be profitable, and if your not making a truck payment you will be paying for a repair and tow, there is no other way of getting around it except for LADY LUCK and sooner or later even she runs dry. At that amount there is nothing left to save for repairs or replacement of the vehicle. In five years when the truck is worn out or six or seven than what is one to do borrow 90% to continue your going backwards if the numbers do not cover all of the expenses and you and replace and repair the truck. This is not meant to aggrivate anyone, it is just a perfect opportunity to show what really does and will happen and as the thread says it always seems to happen at once. Real life reasons to be carefull.

 

[raceman]

BP seems to be right on here. This is why I posted my troubles. I am in a situation that others may not be and that is why I have tried to show what a blow this can be. Having both trucks go down is very expensive in repairs but that gets realy expensive when you also have no income while they are being fixed. Many folks have put the numbers on here. You must have some pretty big dollars in your pocket to do this. Tom R. has laid it out very well and I have seen others try to explain it. In the past I have been positive and answered questions on here without giving any thought to the persons bank account. I am very guilty of that. I have many times this is not for a person with a weak stomach nor a weak bank account. I will also say that because of what I do and what I am doing in this business I am very happy with 1700 or more per week. My break point has been and continues to be 1500 a week. If that shows up I am not happy and it gets into my pocket. A perfect week of 1700 or more is fine with me. Everyones situation is different. I will tell you that in June I had $11,000 in repairs due to being taken by garage called I69 Truck and Trailer. That is an old story. This month has cost me well over $6000. If you can not afford for this to happen, I suggest you do not make yourself one of those that has the home mortgaged to pay for the truck. If I did not have other funds and income this month would have killed me. Bottom line. Go back and read the POST by Tom Robertson explaining costs. He is on target. This is not worth going into the poor house over. Stay safe and be smart.

Raceman
Owner Two Straight Truck.
Part time driver of one of my trucks and local TT.
15mon.OTR Expediting
1 yr local Expediting
Line Haul TT 2mon.
OTR Straight Truck Plt to Plt off and on 5 years.
Based in Cincy Ohio
Currently run Express-1

 

[davekc]

Very good advise. If I have said it once, I have said it 100 times. One must know what it REALLY costs to run their truck(s). Bad things can happen when you don't. Save as much as you possibly can.
Davekc
owner
20 years

 

[Broompilot]

Thank you both now I can put the dumb hat away that I felt I had to wear knowing that I was so close to the break even point that I was only working for the truck, love the truck dont get me wrong. My family supported me getting into this and I feel a strong obligation to support them financialy rich we are not but I will not settle for crumbs I want expect and will make a good living at this no plans on being a millionaire soon.

 

[davekc]

BP; You got yourself in a situation but were certainly smart enough to get yourself out before it did become too late. I am glad that you found a much better home. As you found out, the best business plan doesn't do much for you with a under performing carrier.
Davekc
owner
20 years

 

[Weave]

I might be at risk of repaeting myself, but I say it time and time again. There are tons of aspects about expediting to love. But the bottom line always is, "If you ain't getting the greens, you are going to get the blues."
-Weave-

 

[ATeam]

It is a
>wonderful business and I have not yet looked back and said I
>wish I would not have done this.

Here! Here!

I have many times said I
>wish I had not gone at the multiple truck portion of it but
>I did.

We've found the business to be wonderful driving just one truck. We have no plans or desire to own more than one after we become owner/operators in the near future. The simplicity of a one-truck expediting business is much of the businesse's appeal for us. Things get complicated real fast when you have multiple trucks and drivers on the road. Such complexity has no appeal for us.


You can make money but I would advice anyone with
>very little on hand cash, drive for someone else.

Amen! Key word there is "cash on hand." Expediting is a fantastic opportunity for a person of ordinary ability to start a new career. Good money can be made driving a fleet owner's truck. That money can then be saved to become an owner/operator with cash reserves.

If you
>have a weak stomach or weak pocket book be very careful.

That advice applies to anyone entering any kind of self-employment. And if you are planning to become a truck owner with a weak pocket book, you are running against the advice of virtually every business advisor out there. Yet people do it again, and again, and again; thanks partly to truck dealers that sell trucks with the expectation of getting a bunch of them back. They build the down payment and financing agreements in their favor so they make money if the truck stays on the road or if it comes back. They have no incentive to care if the buyer makes it or not.

>Outside of those warnings the water is great! Come on in.
>Just dont stretch yourself so thin as to go belly up if what
>has happened to me happens to you. It is expensive. There is
>not a day that goes by that it does not take more than just
>fuel to run those trucks. Good Luck to all.

We agree (wife and me team drivers). The water is great! With good research done ahead of time, and the ability to manage money, many people can find a happy and successful home in expeditng.