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Skyline

Skyline

Expert Expediter
Owner/Operator
Off topic but relevant: five years ago I sold my gas station, auto repair and convenient store. We could not compete with the big boys anymore, because they sell their fuel at below cost and make money with their big convenient stores. No one makes money at the bottom on fuel anymore. Its considered a means to get the potential customer into your store. So my choice was simple, expand or sell. I made the best choice and sold. Big corporations are destroying the little guy. This is just reality and we have to live with that.
Here is my point. Owners operatorship has dropped from about 65% to approximately 35%. Did you know that the Teamsters were started by owner operators? So to those that always bring up rates in every discussion. Have you as a fleet owner ever thought of your roll in this rate declining enviroment? Fleets and especially big fleets are a major player!
Now, I will kickback and enjoy the responses! Ha.
 
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OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
Skyline said:
Off topic but relevant: five years ago I sold my gas station, auto repair and convenient store. We could not compete with the big boys anymore, because they sell their fuel at below cost and make money with their big convenient stores. No one makes money at the bottom on fuel anymore. Its considered a means to get the potential customer into your store. So my choice was simple, expand or sell. I made the best choice and sold. Big corporations are destroying the little guy. This is just reality and we have to live with that.
Here is my point. Owners operatorship has dropped from about 65% to approximately 35%. Did you know that the Teamsters were started by owner operators? So to those that always bring up rates in every discussion. Have you as a fleet owner ever thought of your roll in this rate declining enviroment? Fleets and especially big fleets are a major player!
Now, I will kickback and enjoy the responses! Ha.
Click to expand...
Nice and they call me a pot stirrer....:)
 
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davekc

davekc

Senior Moderator
Staff member
Fleet Owner
Skyline said:
Off topic but relevant: five years ago I sold my gas station, auto repair and convenient store. We could not compete with the big boys anymore, because they sell their fuel at below cost and make money with their big convenient stores. No one makes money at the bottom on fuel anymore. Its considered a means to get the potential customer into your store. So my choice was simple, expand or sell. I made the best choice and sold. Big corporations are destroying the little guy. This is just reality and we have to live with that.
Here is my point. Owners operatorship has dropped from about 65% to approximately 35%. Did you know that the Teamsters were started by owner operators? So to those that always bring up rates in every discussion. Have you as a fleet owner ever thought of your roll in this rate declining enviroment? Fleets and especially big fleets are a major player!
Now, I will kickback and enjoy the responses! Ha.
Click to expand...

It is a market driven business. And it is true that the simple numbers are pushing single operators out of the market. Or, they have to run older less maintained equipment to survive. A walk through any truck stop will show that. With higher operating costs and folks operating at or below rates from ten years ago, not hard to figure out. Large fleets survive because they can spread that cost and risk where a single operator is pretty limited. That is why most carriers have removed or widened the age restrictions on vehicles. They can run the numbers.
 
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OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
Just my Opinion....the lower fuel costs are hurting some fleets as the profit was made on the FSC...calculated at what 7-8 mpg? now exceeding 10 mpg....that was a profit margin..and some carriers fudged the numbers balancing the linehaul rate with the higher FSC.....many times I had a .60 linehaul rate with a 50-60 cent FSC for the $1.20. Now that has shrunk to almost nil.....those carriers are left havig to go to customers to explain a huge raise in the line haul rate....at a couple carriers you couldn't find a fleet owner willing to go 60-40 with the driver paying fuel...as that was a revenue source...Personally I was making out like a bandit with the higher fuel as most of my cost was paid....now it is coming out of my pocket....
 
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