Take it or Leave it

[roadee]

First off thanks for all the info in my previous thread, I have learned alot from going back and reading as well as talking to recruiters.
I have been presented with an opertunity,and it is the only one of its type that I have received or heard of, here goes:

Drive for a carrier for 90 days @73cpm,I pay fuel and get FSC, its the carriers truck. If I feel its the right move for me then I can lease/purchase my own truck, if not I walk away.

Being new to expediting I think its a good way to learn the business w/o going in on a truck $$$$$ and finding out its not for me.

Has anyone else heard of a simular deal or started out this way,
the carrier is listed on EO.
Any opinions will be appreciated,
Thanks Roadee

 

[LDB]

You don't want to lease a truck from the entity responsible for securing and putting loads into the truck. 73cpm sounds like the 60 side of a 60/40 split. Do you get 100% of the fsc? How is the fsc calculated? Those are important points on a deal such as this.

 

[Tennesseahawk]

LEAVE IT!!! .73/mi comes out to 1.168/mi for the truck @ 60%. That sounds like a weak rate with no surcharge. You'll come out with little or nada in your pocket.

You can do much MUCH better!


If, in fact, the fsc isn't included in the 73%, that's a lot better... depending on how much the surcharge is. Only problem with company trucks tho, is that they'll most likely push you into forced dispatch.

You can still do better.

 

[terryandrene]

The first thought that comes to mind is the 90 day trial run is a good thing to get your feet wet and test the expedite waters. The tough choice that none of us can advise properly is the lease/purchase because we don't know the terms of the lease agreement as well as the carrier does nor as well as you should.

Logically, it would seem that you will have two lease agreements to sign; one with the carrier for the use of you and your truck and another with the truck owner (the carrier?) for the ownership of the truck. Some questions to seriously consider:

Are you bound to this one carrier for the duration of the lease/purchase agreement?

If you choose to leave the carrier, does that void the truck lease and cause the loss of any or all of the monies you've applied to the purchase?

Is this a new truck with warranty inplace or an old truck that might not be leasable at another carrier?

Do you have any assurances that you will continuously earn enough to cover all of your overhead?

If you miss a payment or two because you have major truck repairs and can't work, will you place the lease in jeopardy?

Have you compared this lease with the purchase of a truck from any number of sources and sought traditional financing from a Bank?

 

[roadee]

Sorry about the lack of specifics, what i was tod was 73cpm ,Ipay fuel I get 100% FSC = appx. 93 cpm as told to me by the company,
Is this realistic or is someone pumping me full of sunshine.

The thing that worries me is IF I lease with this same carrier the rate is only $1.02 pm + FSC which sounds low??

let me know if i need to wash my rose-colored glasses or throw them out!

roadee

The points brought up about the lease are things i've never had brought to my attention, I appreciate the "tips" which I will inquire about on monday.

Anything else I should ask this carrier, as I'm beginning to think this is to good of a deal

 

[LDB]

You need to tell us who the parties are but it's not sounding good. You need to read back at least one full year in the general, newbies and recruiter forums. You will find discussions on rates, splits, carriers and numerous other topics of importance. Your post implies the fsc is 20cpm. What is that based on? How is it calculated? When does it change? Are you saying you would get $1.02 per mile plus 100% fsc? You pay none of the truck expenses? If so, that's a good rate. You've got to give us more information than you're giving to get any sort of useful input.

 

[roadee]

the firm is "Transportation Designers"

I get 73cpm, I pay for fuel, I get 100% fsc, as told to me by the recruiter comes out to 93cpm, this is ONLY for the 90 day period.

if I stay on the rate is $1.02pm ,I pay for fuel, I get 100% fsc.

I don't know the lease price/ins/or terms of the contract.

Sorry, but with trying to read thru a years worth of input, and analize it in a sensible manner will take me a month and my financial clock is ticking

 

[terryandrene]

If your lease/purchase cost comes out of the $1.02, you won't have much left for yourself.

How can you possibly ask anyone for advice when you haven't a clue what you are getting into. I'm the last person wanting to burst your bubble, but you need to have a knowledgable person read your leases and advise you BEFORE you enter into an agreement.

 

[roadee]

My Mistake I was hoping that there would be some straight shooting guidance from the thousands of threads of information,not meaning to sound pessimistic but the thread "titles" don't help narrow the search

If I knew the finer points of expediting,I would ask them to prospective carriers...and I wouldn't be in the "newbies"

If I could have bought:
"1001 Questions to ask every Carrier in order to make sure I'm not making the financial mistake of my life"
while strolling thru Barnes and Noble I would have..... but it wasn't there.

Think of it like this.... what information would YOU give or what THINGS would YOU tell a relative/family member to ask a recruiter? what carriers would you not recommend?

I know each situation is different, but there can only be so many open-ended answers.

Sorry about the rant but ....how did you learn starting out? trial and error or a mentor, .....have a great day and enjoy tomorrow

 

[LDB]

I spent 3 months reading these forums. I understand you hear a ticking clock but I'd caution you that even if you did get a crash course it wouldn't be as beneficial as a well studied well thought out plan. If something looks to good to be true it probably is. If something requires a rush decision it's probably not the right thing as rushing into anything isn't a good idea. Figure out something you can do for a few weeks while you take the time to properly research and study this career field so you can make a good decision not just a fast one.

 

[roadee]

thanks
I'll keep that in mind, if......... I can find a job,that will let me sit, reasearching my new career on there dime.

Things being what they are, I don't (unfortunately) have the time,

thanks for the help
Any "books of knowledge" that might be useful?

 

[are12]

"Think of it like this.... what information would YOU give or what THINGS would YOU tell a relative/family member to ask a recruiter? what carriers would you not recommend?

I know each situation is different, but there can only be so many open-ended answers.

Sorry about the rant but ....how did you learn starting out? trial and error or a mentor, .....have a great day and enjoy tomorrow"

Roadee,
When we got into this business, the only thing we knew was what Jim was told by talking with expediters at the truckstops or when he passed them on the road, he would yell out to them and most of them were happy to answer his questions. So, I guess you can say, we learned by trial and error. Once we got into the business, we would talk with any expediter's we saw along the way. We did not even know about this site until after we were already in the business. No offense to anyone but sometimes I am grateful for that! Sometimes people make expediting more complicated than it has to be or they can be very negative and we try and stay far away from people like that.

If someone in my family wanted to get into this business and buy their own truck, I would ask them, "Are you nuts??" Seriously, I would never recommend a lease/purchase, I have never heard anything good about them.

If you are not interested in buying a truck right now, why not run for a fleet owner? Fom what I have read on here, it seems you would make about the same with a 60/40 split as the deal you are being offered. This would give you a chance to learn the business and see if you like it.

If you would rather buy your own, sit down and figure out what it would take to run your household each month. Then you will need to look for a used truck and figure out what your monthly payment would be and the cost to keep the truck on the road. (I would not recommend a new truck, just in case you do not like the business) If you like the figures and think that it is within reason, write up a business proposal and take it to your bank. (That's the way Jim and I did it) I would also recommend that you be willing to stay out for at least 3 weeks at a time.

Since we have only worked for one company, it is impossible to make any recommendations on other companies. And as for what to ask a recruiter, that would all depend on which way you planned on doing things -O/O or driver.

I wish you luck in what ever you decide to do.

 

[RichM]

There is a female poster that usd to run for Transportation Design,goes by the screen name of Bam Bam. She is probably at home awaiting the birth of a baby but she might respond to E mails or PM's and discuss this deal with you. You should be able to locate her in the members list. Personally I think you can do better but it is an opportunity to decide if you like the expediting life style.

I along with others can remember getting $1.16 per mile on a GM discounted load in 1988.

 

[Moot]

Roadee, some excellent advice has been posted here, especially Arlene's. Read her post a few more times and if you still want to do the lease/purchase thing then go for it. If you mind is made up then its a done deal. Good luck! Pay an attorney to read the lease and explain it. Let us know how it goes.

Old trucker's saying: "Don't lease from the man with the strings in his hand." Many trucking companies supplement their bottom line by lease/purchasing trucks over and over. I remember one back in the late 1970's that probably made more money off their lease/purchase program than they did from hauling freight.

 

[roadee]

Thanks for the help,
I will sort through it and make a decision, I guess the biggest problem is I don't see a lot of Expeditors in these parts so its not possible to hang at the stops and play Q and A.

I know that translates to not "going by the house" as well but that is the nature of the beast.

I have gotten some good info and will make a list of Q's to ask to get more indepth answers.

roadee

 

[terryandrene]

Roadee;

It seems obvious that you are looking for a job, something each of us needs. Expediting as an owner/operator is not a job, it's a business! You'll have to know the intricacies of running a small business as well as driving a truck to become a successful expedter business owner. It's not as simple as someone may have led you to believe.

In addition to understanding the answers to the questions I posted above, take a look at the many questions in this link that is on the home page of OWNER-OPERATOR INDEPENDENT DRIVERS ASSOCIATION - REPRESENTING TRUCKERS:

Swimming with Sharks

 

[BillChaffey]

Roadee,
I am CLEARLY learning by trial and error. So far more error's. I would suggest you go to Expedite:NOW.com and read the #8 part series "Business Planning for Expediters" by Phil Madsen. I have read it and reread it but I'm a slow learner and need the repetition to learn. Best of luck to you which ever way you decide to go.

 

[roadee]

Terryandrene,
I just got done looking at the "swimming with the sharks" on OWNER-OPERATOR INDEPENDENT DRIVERS ASSOCIATION - REPRESENTING TRUCKERS (found it in another thread by LDB)

The interview the interviewer has most,not all of the specifics I have been looking for.useful questions to ask

Last I'm looking for a career, for all intensive purposes I've had 2 careers in 24 years... a job is easy and checks the box(I've done those part-time during my career,
Unfortunately the last career move/change(that I'm currently in) was due to economic downsizing.

I guess the bottom line is I make an informed decision based off the facts..... knowledge is power, drive safe out there

 

[Moot]

I guess the biggest problem is I don't see a lot of Expeditors in these parts so its not possible to hang at the stops and play Q and A.
roadee

There are plenty of expediters in your neck of the woods. They're just pulling log trailers. I at one time "expedited" pulp logs just up the street from you in Mizpah.

 

[roadee]

Yeah, I worked for one of the places the loggers delivered.
Nuff said about that side of the biz, when it was good it was good now its not a pretty picture.

load pays the same(by the weight) for the O/O so not much moving.