starting up, looking for drivers, questions

[markwilson]

Hello. My name is Mark Wilson, and my partner and I are planning on starting in the trucking industry soon. We have little experience, and want to gain information here to avoid getting taken advantage of in the 'real world'.

We plan to start with one Freightliner 8-class, with D-unit refrigerated, temperature validated box. We are looking at the M112 or Columbia models.

Right now our biggest issue is whether to buy a used truck for around 50-100K, or to buy a new cab and then get used sleeper and box. We realize we'll need to stretch the chassis in order to get this accomplished.

We are dissappointed to know that rates for reefer loads has decreased; however, this might be a good buying opportunity.

If anyone has any advice/experience on how to proceed, or even if you are a driving team (preferably husband and wife) that would like to establish contact, please reply.

 

[davekc]

Hope you are driving this thing yourself and even then? If not, I have a sailboat in the desert I would like to sell you that might be a better investment. There is a reason so many used ones are for sale. No one wants them. For that matter, no one wants a new one. That is why no dealers carry them unless they have been sitting on them for several years.
Dealer isn't going to make a investment on a piece of equipment that will likely be repoed in a short period of time.
Limited carrier movement, carb rules, lower rates, high maintenance verses some of the carrier rates and so on is the reason these have become a poor investment.

 

[markwilson]

so, what in your experience has been profitable?

our research suggests that the reefers still can be profitable.

 

[davekc]

so, what in your experience has been profitable?

our research suggests that the reefers still can be profitable.

As I suggested, I would research this site and be advised that some are making money, but they aren't new people. I am giving you the reality. Many already have a paid for truck. The deck is stacked against you as well just being new. No offense, but many come in with that same thinking and leave as fast as they entered. I would highly recommend doing a lot of research before I would pull the trigger on what you are talking about.
I'll ask again..........are you wanting to drive, or hire someone?

 

[markwilson]

hire, preferably husband/wife team

 

[greg334]

Research doesn't mean a realistic and profitable operating position within the market.

The problem isn't with the rates, it is with the layers that a load has to or seems to go through.

Coupled that with the slide in actual freight that needs a GmP verified system within the custody chain, the investment to enter into the market with even used equipment sometimes can't be justified unless one has a solid sales staff with experience and some inside into the three industries that used GmP practices.

 

[markwilson]

well, I do appreciate experienced fleet owners giving advice. the reason we are entering (and we do plan to use panther, unless anyone has other ideas) is because a colleague of ours has been profitable with four reefer trucks, despite the recent financial downturn. We simply hope to duplicate his model, and build.

 

[davekc]

I would drive one for that fleet owner so you can learn the business. Just finding and keeping a team with your limited experience will be a challenge in itself.
They could easily as well, take advantage of you and you would be totally clueless as to what is going on.
The carrier choice would not be your biggest hurdle.
If your just looking to gamble some cash, Vegas might have better odds.

 

[nightcreacher]

you better take off those rose color glasses,and then listen to what Dave just wrote

 

[markwilson]

well that's what's been recommended to us-- that we hire a younger team with as little experience as us.

Here's an example of why we think we can be profitable and build: let's say we can get a well-running vehicle for around $100,000. With interest rates being remarkably low (banks are giving us anywhere between 5-5.75%!!!!!!!!!!!!) and with those rates likely declining even more in the near future, we estimate that our break-even mileage is only 800 miles/week. If the average panther truck runs around 2000-3000 miles/week, why should we think that the outlook is so gloomy?

yes, we understand we are entering into unknown territory. But we have a colleague who is guiding us, and helping us realize any potential pitfalls. We also understand that the driving team is far and away the most critical component of the entire operation.

I guess I am not understanding, with those above estimates, why we couldn't do well?

 

[nightcreacher]

Im in a dry box,wish I could run 800 miles to break even,and if you think you will average 2 to 3000 miles a week,I ve got some beach front property in Arizona I'd like to sell you
In experienced team,how are they going what loads are good and what they shouldn't do?If you have more money going out than coming in,how long are you going to have that team run your business?

 

[davekc]

The thinking of you "only have to have 800 miles a week" to break even is exactly why you want to run the other way.

 

[greg334]

Dave,
Is it me or are we seeing more and more of this?

Can we count on a solid future with a recovery in sight?

I worked with one fleet owner and got his trucks out of expediting because the volatility with his choices, now he makes more money and spends less time worrying. His experience was about the same when he jumped from his cab in his tractor to this stuff.

 

[davekc]

It seems to be either desperate people doing desperate things, or some that think there is a pot of gold in this with minimal effort. Money can be made, but there are many factors that get it to that point. I think some of it is just the economy.
Restaurants are similar. Money to be made but for every ten that opens, seven of them will fail. Add inexperience to it, and it goes to nine out of ten.

 

[markwilson]

so what is the general consensus on average weekly miles with an expedited truck? I'm hearing from the two of you that it is a struggle, whereas our colleague (with the four trucks and at panther) is averaging 2-3000.

Guess i don't understand why i should be so pessimistic.

 

[davekc]

You may or may not make make 2 to 3k miles per week. What happens when the truck needs repairs or you don't have a team and the truck is sitting? Mileage is a factor but there is a whole plate full of other items that would determine profitability.
As mentioned, I would drive for someone before doing what you are talking about. Either way, welcome to EO.

 

[greg334]

So I wonder how did you come up with that 800 miles a week number?

 

[markwilson]

i guess we just did the math, with an average yearly repair number included. interest rates are low right now. our colleague is sitting at 13% from a couple years back. now it's at 5%.

yes, we understand there is a learning curve. we understand truckers and the trucking industry are a different breed. we understand the truck might be down or the team is a couple of meth-heads. ultimately, we hope to gain useful information from experienced people like you before making a final decision.

but you both have to admit, if there's any time to get in, the current climate is favorable.

 

[Vinnie T]

Id go dry box versus temp controlled

 

[markwilson]

well, our colleague with four profitable trucks is at panther.

we plan to use them.

we are not planning to drive the truck.

from what we have been told, the temp controlled loads get a fixed price, regardless of need to refrigerate