Got money and a plan.

[Matt777]

Hello, I have a few questions. First of all, I have a plan to help my brother pursue trucking as a young O/O. All I want, is a cut of the pay, A mere quarter of it. Basically, hes's working on his CDL, I have the money to buy a 50,000 dollar used tractor, and I want him to grow in the industry. You know, start young. My question is, what would be the best company to go with that would take a no to low experienced driver? Or even how can we get a contract with someone w/out having experience at all? please give me some input. I have the money sitting now. I wanna make this happen. thanks

[GMAN]

I don't know of any carriers who will lease on an inexperienced owner operator. The first thing he will need to do is get 6 months to 1 year of driving experience. Because of insurance requirements that is usually the minimum level of experience required. By the way, you don't need to spend $50,000 to get a good used truck. You can get a good one for about half that amount. If you plan on leasing a truck to a carrier, I suggest going with one that pays percentage rather than mileage. You will usually make more money. As to recommending which carrier to lease to, it depends on what you want to haul. CRST Malone will lease new owner operator with only 6 months experience. Landstar requires 1 year. Mercer and others require at least 1 year of driving experience. Some will also require that you either purchase your own trailer or rent one of theirs. There are some who have started with no experience and gotten their own authority. I don't usually recommend that approach starting out. It is best to have a good nest egg, if you want to buy a truck.

I'm not sure if this is correct or not but if you click on "Truck Driving Jobs" at the top of this page on your left you can see companies that will hire an O/O with no experience at all. I typed in Massachusetts with no experience and it listed 14 companies.

[merrick4]

Hey Mr. Gman, what do you think overall about CRST? I thought from reading on this board they weren't rated too hightly, however I recently read that you use to lease on to them. Do you feel that one can still manage well there?

[Matt777]

Hey thanks guys, i really appreciate the input. Also, with the money that an O/O makes (say $120,000 a year) How much of that is going to al of the trucks expenses?

[tracer]

American Truck Business Services (www.attrucktax.com), an accounting firm that specializes in helping owner-operators, has a useful booklet called "Partners in Business". I picked up my free copy at the recent MidAmerica Trucking Show in Louisville, KY. The book has plenty of sound advice for o/o, especially since ABTS services about 30,000 o/o and can determine trends and "pinpoint benchmarks".

For example, according to ABTS average O/O spends about 68% of gross profit on business related expenses:

Fuel - 39%
Truck payment - 15%
Maintenance - 5%
Insurance - 4%
Licence and permits - 4%
Cell phones and other communications - 1%

This means you get to keep only 32% of your gross monthly profit, no matter how big the settlement check is.

Now, if we assume a COMPANY DRIVER does 9,000 miles a month and get paid 35 cents per mile, he or she will get $3,150 a month in NET INCOME and will have no expenses after that, except taxes. For an OWNER-OPERATOR to get the same kind of money in NET INCOME, he or she has to make GROSS: $3,150 divided by 32% or $9,843 gross per month.

If this O/O wants to work as much as a typical company driver and do 9000 miles per month, the pay per mile would have to be MINIMUM: $9,843 divided by 9000 miles or $1.09. So if you collect $1.09 per mile you will only make the same money as a company driver! This should help you choose the company to lease to as O/O.

If your expenses are going to be average (as in the example above) and you don't want to spend 30 days a month in the truck, make sure the company you lease to will pay MORE than 1.09 per mile gross so that you can make at least more money than a typical company driver. Otherwise, the whole "business enterprise" is not worse the headache it'll take to get it started.

I just applied to Mercer, and they pay 74.2% of the gross but you must have your flatbed or stepdeck trailer (you can lease one thru Mercer for about $500 per month).

[GMAN]

Hey Mr. Gman, what do you think overall about CRST? I thought from reading on this board they weren't rated too hightly, however I recently read that you use to lease on to them. Do you feel that one can still manage well there?

I leased to CRST Malone, which is the flat bed division and operates separate from CRST out of Iowa. I did well when I was with them. They are agent based and your success or failure is more dependent on you and your abilities than the company. I leased to them for about 3 years. If I decided to lease back on with a company, I would consider going back with CRST Malone. A friend of mine just went back with them after going with another company for a short time. He plans on retiring with them. As with most agent based carriers, you will need to be proactive to be successful. CRST Malone is different from some agent based carriers in that they also assign you a dispatcher. You can also run for an agent. You will find those who have had positive and negative experiences with any carrier. There were some things that I didn't like, but you won't find any carrier that you will be content with all of the time. You can make decent money if you are willing to work. Right now things have been slow, not just with CRST Malone, but with everyone in this business. If you plan on making a change, now would probably be a good time since things are beginning to pick up.

[merrick4]

Hey Mr. Gman, what do you think overall about CRST? I thought from reading on this board they weren't rated too hightly, however I recently read that you use to lease on to them. Do you feel that one can still manage well there?

I leased to CRST Malone, which is the flat bed division and operates separate from CRST out of Iowa. I did well when I was with them. They are agent based and your success or failure is more dependent on you and your abilities than the company. I leased to them for about 3 years. If I decided to lease back on with a company, I would consider going back with CRST Malone. A friend of mine just went back with them after going with another company for a short time. He plans on retiring with them. As with most agent based carriers, you will need to be proactive to be successful. CRST Malone is different from some agent based carriers in that they also assign you a dispatcher. You can also run for an agent. You will find those who have had positive and negative experiences with any carrier. There were some things that I didn't like, but you won't find any carrier that you will be content with all of the time. You can make decent money if you are willing to work. Right now things have been slow, not just with CRST Malone, but with everyone in this business. If you plan on making a change, now would probably be a good time since things are beginning to pick up.

Thanks GMAN. The problem is I have no flatbed experience. I need to do something soon because this driving for 28 cents is ridiculous. I mean I know I'm new and all but I haven't been late for a load yet and I don't play around. The thing is they leave you alone where I am which is big for me and I can always get home really easily if I need to which isn't easy as I live in South Florida. But I need to progress. Again thanks.

[GMAN]

CRST Malone will train you in securement, if you have at least 6 months of driving experience. CRST Malone does have a few vans that run out of Birmingham. I believe they run into Florida to some degree. It will be difficult to get out of South Florida for most carriers unless you pull a reefer. Some can do all right staying in Florida. I know they get freight out of Jacksonville and Tampa. When I leased to them, I usually planned on deadheading out to either Jacksonville or Georgia.

[heavyhaulerss]

on that person who applied to mercer.. what do you mean trailer rental will cost about 500 a month? most co that have trailers to lease will have you pay a % usually around 10 % & not a set monthly fee. if you have to pay by the % it will cost you dearly. but that is good, cause then you will get your own a.s.a.p... lol. like i did years ago..

[Mtc_Is_Hell]

Yeah I'm making 28 cpm... Started off with 26 cpm... It sucks to a point, then throw in hhg, Hell they don't even supply the vasiline.

Hey Mr. Gman, what do you think overall about CRST? I thought from reading on this board they weren't rated too hightly, however I recently read that you use to lease on to them. Do you feel that one can still manage well there?

I leased to CRST Malone, which is the flat bed division and operates separate from CRST out of Iowa. I did well when I was with them. They are agent based and your success or failure is more dependent on you and your abilities than the company. I leased to them for about 3 years. If I decided to lease back on with a company, I would consider going back with CRST Malone. A friend of mine just went back with them after going with another company for a short time. He plans on retiring with them. As with most agent based carriers, you will need to be proactive to be successful. CRST Malone is different from some agent based carriers in that they also assign you a dispatcher. You can also run for an agent. You will find those who have had positive and negative experiences with any carrier. There were some things that I didn't like, but you won't find any carrier that you will be content with all of the time. You can make decent money if you are willing to work. Right now things have been slow, not just with CRST Malone, but with everyone in this business. If you plan on making a change, now would probably be a good time since things are beginning to pick up.

Thanks GMAN. The problem is I have no flatbed experience. I need to do something soon because this driving for 28 cents is ridiculous. I mean I know I'm new and all but I haven't been late for a load yet and I don't play around. The thing is they leave you alone where I am which is big for me and I can always get home really easily if I need to which isn't easy as I live in South Florida. But I need to progress. Again thanks.

[rank]

He might make about $30,000 before tax. You're going to take 25% of that? He could be a company driver with Maverick or TMC. He would make $30,000+ and he wouldn't need to buy a truck.

[merrick4]

CRST Malone will train you in securement, if you have at least 6 months of driving experience. CRST Malone does have a few vans that run out of Birmingham. I believe they run into Florida to some degree. It will be difficult to get out of South Florida for most carriers unless you pull a reefer. Some can do all right staying in Florida. I know they get freight out of Jacksonville and Tampa. When I leased to them, I usually planned on deadheading out to either Jacksonville or Georgia.

Hey GMAN, I called CRST and I have to stay where I am for one more month (I"m only here 5 months) I don't see why I'm expected to stay where I can't make money, but I digress.

Anyway I asked the dispatcher a question that she couldn't answer and I was wondering if you knew. I asked if I could rent a penske truck instead of buying my own. I figure that that would be the smart thing before I buy a truck and find out that flatbedding isn't for me. I don't see why it wouldn't but I just think it would be smarter to do it that way. What's your thoughts on that?

[GMAN]

You will likely need to speak with someone in operations or safety about whether you can rent a truck from Penske and take it to CRST Malone. In thinking about it, I don't see why you couldn't. It will be a very expensive way to get started. Whether you decide on pulling a flat bed or van, if you plan on being an owner operator, you will need a truck. One thing to be worked out will be fuel taxes. I believe Penske does the fuel taxes when you rent a truck from them, but you should find out about that before making the leap. You can get your base plates and permits though CRST Malone or on your own. It is less expensive to get them yourself. I am hesitant to mention this, but CRST Malone also has a lease purchase program. Although I think it is one of the better ones, I would not recommend anyone do a lease purchase. I think that if you want to become an owner operator, you need to just buy a truck and go for it. If you have doubts, then perhaps this isn't the right time for you to make the move. If your concerns are about pulling a flat bed, you could always go to work for an owner operator who is leased to CRST Malone. Some pay percentage, others mileage. I have always paid my drivers percentage. I feel that is the fairest way to compensate a driver. There are good and bad owner operators. Some manage their businesses well, others do not. You would save the cost of renting a truck and avoid the costs associated with leasing to a flat bed carrier by first driving for an owner operator. You can track truck expenses without having to pay anything out yourself while you learn how the company works. CRST Malone has a number of owners looking for drivers. If you lease to a flat bed carrier you will need to purchase tarps, binders, etc., When buying new, it will cost around $2,500. CRST Malone will finance that for you when you lease on to them. I believe Landstar will do the same thing. Some of the other flat bed carriers will probably also finance your initial costs for securement equipment. Sometimes you can buy used equipment for less money. Most flat bed carriers require owner operators who lease on to them to either purchase or lease a trailer. CRST Malone and Landstar both charge about $165/week for trailer rental. It is less expensive to buy a trailer than rent, but if you are uncertain as to whether you want to pull a flat, it is a much better way to go. Again, I would seriously consider finding an owner operator to drive for before I would rent a truck. You will probably make as much or more money. You should be able to make from about $700-1,100/week as a driver for an owner operator who leases to CRST Malone. Until you get accustomed to securement, you may be on the lower end of this pay scale. I am also talking about those who pay percentage.

[tootie04]

GMAN is right We drove for an O/O leased to CRST Malone and Bo made around 800 to 1200 a week.....

tootie

[Teal 95 KW]

I have to ask why you would have your own truck, and be content making $30k net a year? If that was the case, I would take a job working for $10.00 an hour and be home everynight if that was the kind of money I was wanting to make. Or, take a local driving job for Ben E. Keith paying $14.00 an hour and be home everynight. If I can't net $60-$75k a year then it's not worth it.

[LOAD IT]

Hello, I have a few questions. First of all, I have a plan to help my brother pursue trucking as a young O/O. All I want, is a cut of the pay, A mere quarter of it. Basically, hes's working on his CDL, I have the money to buy a 50,000 dollar used tractor, and I want him to grow in the industry. You know, start young. My question is, what would be the best company to go with that would take a no to low experienced driver? Or even how can we get a contract with someone w/out having experience at all? please give me some input. I have the money sitting now. I wanna make this happen. thanks

Sounds like you will be the brains in the operation, you will need to get your brother trained and then you should go the route of Steve Booth if you want 25%. The pie is only so big so if you lease to a company for 70-80% and you take 25% then brother and truck only have 60% of the original 100% to operate and live. Not a good recipe to bake a pie. Get your own authority and customers, lease on 4 O/Os immediately at 75% of gross and you will be sitting in the catbird seat soon. You will be stressed and aggravated, but you asked for it hahahahahaha!

Pie, did someone say pie? Mmmmm

[RostyC]

LOAD IT, nice to see you posting again, you have some good info.

[LOAD IT]

LOAD IT, nice to see you posting again, you have some good info.

I've been lurking lately, not posting because this site takes over my free time. Wife doesnt like that!!!!