Should i jump ship as an “indie” or buy a 2nd truck?long!

[LOAD IT]

Henboy,
Check your email. I have been reading your threads and if youre thinking about dispatching from home, consider this: Get 5 trucks under you (yours and lessees), pay 80% gross and keep them all working. This will bring you 100% revenue of 1 truck with no fuel, driver, insurance expenses. Build your fleet in multiples of 5 and you will be comfortable and WORKING from home in no time. You WILL BE working though if you want to succeed. Some would consider what you are wanting to do insane, but they should do this also. Consider it and read my email.

[YerDaddy]

Ain't nothing wrong with being a one man operation your whole career, Henboy. You don't want work@hometime you want free-time @ home with that family. How are the twins? pics? pics of wife?

[Heavy Duty]

How will it make a difference if you still plan on using the loadboards for freight?

mike3fan, It's your name on the door that makes it work.

Seriously henboy read the reports on some trucking company's, use google and look up trucking, trucking first quarter reports. Pacer lost 177 million, Con-Way 144 million, the list goes on and on. Everybody is struggling, not a good time to go it alone.
Keep your cash and keep working and wait til things start to turn around.

[henboy1]

mike3fan, It's your name on the door that makes it work.

Seriously henboy read the reports on some trucking company's, use google and look up trucking, trucking first quarter reports. Pacer lost 177 million, Con-Way 144 million, the list goes on and on. Everybody is struggling, not a good time to go it alone.
Keep your cash and keep working and wait til things start to turn around.

Pretty much everything is in place except I need to yank LS stickers off my door and cancel my lease.They even wanted to approve me as an approved carrier but they need me to first cancel my lease.
Back on the road with them 1 last time and then everything will be yanked off.
Anyone ever dealth with ShippersPoint Home
They want $99/3months, and someone said it is better than OOIDA's membersedge.com.
I have noticed most of the membersedge posted loads are from ITS.
I have also signed up with most of the 3PLs I could think of.


1.My second question is Ritchi Brothers.Since signing on for their Rbidonline auctions I have been watching the auctions online.Anyone ever bought a truck/trailer from them?

[Bigmon]

I got my truck from them. It was previously owned by a O/O so it was taken care of. Some of the trucks are beaten up and some are really nice. I went in person to inspect it first.

Pepe also got his truck there too.

[henboy1]

I got my truck from them. It was previously owned by a O/O so it was taken care of. Some of the trucks are beaten up and some are really nice. I went in person to inspect it first.

Pepe also got his truck there too.

What % of beat up trucks compared to decent ones did you see there?I plan on going to the one next week in atlanta.They sold an 03 Columbia online yesterday for $5500 and I wondered what was wrong with it.Most 2003 flats were going for $3000-$4000.
Is Pepe still running as an independent or did he get married in Asia?

[Bigmon]

What % of beat up trucks compared to decent ones did you see there?I plan on going to the one next week in atlanta.They sold an 03 Columbia online yesterday for $5500 and I wondered what was wrong with it.Most 2003 flats were going for $3000-$4000.
Is Pepe still running as an independent or did he get married in Asia?

Keep in mind too that a lot of the sellers are construction companies and lots of day cabs. My observation is the nicer the weather the nicer the trucks. Ex: I've seen nicer trucks in Houston than Chicago. It all depends too if it's a fleet being sold or trucks that are repo's. There were some 2006 T600's yesterday in Houston from Melton that looked nice. For OTR trucks, based on my experience it's about 20-25% that got my attention. Bottom line is plan on spending some money to fix things. I saved about 12k vs going to dealer. I've spent about $600 on little things to make it right and about $1000 in travel. I don't travel cheap so someone else could do it for about $250.

I don't know what Pepe is up to since he left the board. Steve Booth talks to him once in a while. Last time Steve updated, Pepe was still running around the US getting pulled in a lot, but passing inspection.

[henboy1]

Keep in mind too that a lot of the sellers are construction companies and lots of day cabs. My observation is the nicer the weather the nicer the trucks. Ex: I've seen nicer trucks in Houston than Chicago. It all depends too if it's a fleet being sold or trucks that are repo's. There were some 2006 T600's yesterday in Houston from Melton that looked nice. For OTR trucks, based on my experience it's about 20-25% that got my attention. Bottom line is plan on spending some money to fix things. I saved about 12k vs going to dealer. I've spent about $600 on little things to make it right and about $1000 in travel. I don't travel cheap so someone else could do it for about $250.

I don't know what Pepe is up to since he left the board. Steve Booth talks to him once in a while. Last time Steve updated, Pepe was still running around the US getting pulled in a lot, but passing inspection.

I was looking at that same Houston Auction online, but I missed the ones I really wanted to see.Do you know how much the 2006 T-600 Melton truckls went for?I believe someone can get a better deal when they are a fleet rather than an individual truck.

On the other note, hopefully this prepass that I just recieved will help a bit.

[Bigmon]

The Melton trucks went for 30k. One guy bought a couple of them. You normally get a better price when there is a fleet because the buyers don't get as anxious and over bid. You normally get a better deal on a more expensive truck because there is less people bidding against you. EX: not everyone has 50k for a truck, but everyone has 5-10k laying around.

[henboy1]

I was looking at that same Houston Auction online, but I missed the ones I really wanted to see.Do you know how much the 2006 T-600 Melton truckls went for?I believe someone can get a better deal when they are a fleet rather than an individual truck.

On the other note, hopefully this prepass that I just recieved will help a bit.

I am doing research in getting a 2nd truck in about 3 months.
I am currently on the market looking for a 2nd truck.I have also started going to these public auctions. I am seeing 2001/2002 columbias and some 9400 internationals.I like the look of the 9900I but I guess it is just like a w9 or the 379.I know the freightliners are not the best trucks but I would like an advice on an 2001/2002 aero truck.I will be looking for a truck with an s60 in it that will mostly run flatlands.


Thanks!

[GMAN]

I would advise you to run your own truck for a while before adding another truck. Get used to the extra paperwork and how to successfully run your one truck before going out and buying another truck. Things will look much different when you start having drivers in your trucks. Although there are similarities in running with Landstar as compared to your own authority, it is different when you have no one to back you up. Sometimes you can expand too fast. It is also very difficult to drive and run another truck at the same time. It takes time to find decent paying loads, especially these days. If you plan on staying home and putting drivers in both trucks then it is difficult to have enough profit for the driver and owner with the current rates. I think what you want to do can be good, but I would encourage you to take it a bit slower.

[LOAD IT]

Henboy,
Get the second truck and call me. Load It

[henboy1]

I would advise you to run your own truck for a while before adding another truck. Get used to the extra paperwork and how to successfully run your one truck before going out and buying another truck. Things will look much different when you start having drivers in your trucks. Although there are similarities in running with Landstar as compared to your own authority, it is different when you have no one to back you up. Sometimes you can expand too fast. It is also very difficult to drive and run another truck at the same time. It takes time to find decent paying loads, especially these days. If you plan on staying home and putting drivers in both trucks then it is difficult to have enough profit for the driver and owner with the current rates. I think what you want to do can be good, but I would encourage you to take it a bit slower.

GMAN, your advice is well taken, but I don't think it should take that much intellect to know how to do this paper work stuff.I think it takes business skills and computer savy and once you have it, you can fly out the door to the next step.
Filing for my weight distance taxes online,doing my quarterly IFTA,not factoring and doing credit checks and invoicing is the easiest part but the hardest is finding the good paying freight(you are right about that).I am not jumping now to get the second truck.I am doing my research at the moment for 3-4 months ahead.I don't see how it should take someone more than 3 months to learn this "business".
Just went through my "new entrant review" and it was much easier than what I expected.

I am just needing advice for a reliable truck when I am ready.I have already done a spreadsheet on what I should be expecting.
The driver or equipment will be very crucial, but for now the research on an equipment is what's at stake.
LOADIT, you will definitely get a call from me around FEB.

[Justruckin]

Take it one step at a time, I had 5 trucks and trailers not long ago, and it is not as easy as it looks, trust me. We just closed the doors this past summer.

If you want to add trucks, I would look at finding an owner op with a trailer and start that way, just lease him on. See how that works out for you, especially in this economy, as it is going to get worse here in the coming quarters. As there is still allot of spam waiting to hit the fan, along with higher job killing taxes, commercial loans and unfunded mandates coming down the pike real soon.

Save your money in regards to equipment and get an extra fuel card for that new O/O. I think you will actually make more money that way if you have the freight.

[henboy1]

Take it one step at a time, I had 5 trucks and trailers not long ago, and it is not as easy as it looks, trust me. We just closed the doors this past summer.

If you want to add trucks, I would look at finding an owner op with a trailer and start that way, just lease him on. See how that works out for you, especially in this economy, as it is going to get worse here in the coming quarters. As there is still allot of spam waiting to hit the fan, along with higher job killing taxes, commercial loans and unfunded mandates coming down the pike real soon.

Save your money in regards to equipment and get an extra fuel card for that new O/O. I think you will actually make more money that way if you have the freight.

This leads me to another question.Justtrucking, when you had your 5 trucks, how did you go about having people lease on to you?.I am definitely not going down that route yet, I am just curious.I am curious to know on the insurance side.Why would an owner operator( with truck and trailer)be willing to lease on to someone like me and be paying about $8k on insurance?Is it not cost effective to lease on to a bigger carrier where he can get free cargo insurance,pay about $80/month for bobtail and Occupational hazard and get their base plate financed?Better yet, go get his own authority if he had to pay that amount.A guy wanted me to lease him on but I said NO, and not with this FMCSA2010 coming up.Is there a trick to this, as far as insurance when someone wants me to lease him on?

[Red Clay Rambler]

henboy,

I have a good friend with his own authority and only two trucks. He and I have kicked around the idea of leasing my truck on with him. He would be paying the cargo/liabilty, not me. If you can find an O/O to pay your cargo/liabilty, you have the sweetest deal ever I suppose. I am starting to see carriers advertising for leased O/O's, offering contracts that stipulate the O/O pays the cargo/liability. Only a very uninformed/inexperienced or desperate poor soul would agree to that deal, IMO. Mostly on craigslist do I see this popping up more often. One carrier even stated the amount per month, calling it a "good deal" (it wasn't), I suppose hoping some unsuspecting newbie wouldn't know any better. Heck, if a leased O/O is paying the cargo/liabilty, why would the carrier even shop for the best rate?

I would consider leasing on with him because we communicate well, he knows how I run and I know what he expects. I would not need furnished plates or cheaper bobtail insurance, thankfully my budget allows me to cover that without assistance. I would probably only consider a deal like that, leasing onto a very small carrier, if I already knew someone.

I agree with you that if you're paying cargo/liability for a carrier you're leased to, you might as well get your own authority.

[Justruckin]

henboy,

You put the owner op under your cargo insurance and pay him 85% (Or whatever you two would agree to) and 1099 him. He brings his truck, trailer, base plate and bobtail insurance. This way is cheaper than buying trucks, just give your insurance carrier a call to see if it affects your rates on your cargo insurance.

When you lease a driver and his equipment on, it is still handled the same way you would handle a driver in your own truck. You still need to jump through all of the hoops, background check, keeping track of his logs, safety, drug tests, etc... You just do not have the equipment expenses, as the O/O takes care of his own ride.

You will need to give him a fuel card, which you will subtract out of his pay. Just make sure you have enough money to pay him and give him advances.

Try this route first to see if you can even keep a guy happy and running. And then figure what it would cost you to employ a driver along with the fun of owning another tractor and trailer. It is allot more expensive to go the route you want to go, with maint., repairs, insurance, etc... Save your money and use a guy with his own equipment, fewer headaches that way.

Good luck!

[Justruckin]

And I have not read through this entire thread, but what are you hauling? Do you have freight already or are you going to depend on the load boards? Who will dispatch the trucks, find the freight and handle all of the paperwork involved with securing a load and setting up new accounts? You will need someone working from home to handle this part of the business, setting up broker and shipper accounts along with billing and payroll. They will need a computer along with a fax, scanner, copier and a phone.

And I think I noticed that you are not factoring? Are you able to pay for fuel for another truck or two, cover any emergencies and make payroll along with advances on a weekly basis? When I hung it up, my average time to pay was out 60 days, that is a long time to carry a company. Because when you get right down to it, that is all we are, a credit company that extends credit to brokers and shippers. And then we have the credit checks, they need to be made religiously for every load you haul for a direct shipper and or a broker. These guys can go t-ts up in the blink of an eye without any notice and really leave you hanging, especially in this economy. I would seriously look into factoring your paper unless you have a few hundred thousand minimum in your bank account. Trust me, that is chump change when you get a small handful of trucks running out here and have to pay for fuel and cover payroll. Think about it, say three trucks, fuel in all of them, payroll, the office gal, your bills, your companies bills, advances, repairs, tires, oil changes, food, etc... Now multiply that out 60 days. And don't expect money to just start flowing in, as you will find it flows out quicker than you can write checks. And those checks are hit and miss, they will tell you the check is in the mail, and you can wind up spending months on waiting for that freshly mailed check.

And stay away from credit cards, they can lead to a slow and lingering death to a small outfit if your cash flow takes a hit.

And to let you know, and this is back before the fuel spiked over $2, we needed to make a minimum of $1.55 a mile clear to break even on our trucks and pay our drivers. And that was for all miles, empty and loaded. Anything over that $1.55 went into the company, anything under, it came out of my pocket. When rates started their collapse and fuel hit $4 we were pretty much finished. We sold all of our equipment off except my truck and two trailers. I just sold the last trailer a few months back and am damn glad to be out of trucking. It sucked the life out of us both financially and emotionally along with my health.

[Justruckin]

And here is another thing... I am sure this was not mentioned but it is a problem you MAY run into, especially in this economy. Your DOT number will be new, some brokers/shippers, but not all, will not put freight on a new guys trucks. Nothing against you personally, but there are more than a few outfits out here that are fresh start ups that are ripping off brokers and shippers. They are holding freight hostage, and there are more than a few guys making a living like that right now. When the word gets out, they start all over again with a fresh DOT number and address. Just something you should be aware of.

And then we have your insurance, it will be high to start, as they will want you to pay your dues, both literally and figuratively, roughly $8000 (if you are lucky) up to $13,000 a year depending on who you use. Look at Progressive for bob tail and liability, they do not handle cargo, so shop around. And this may lead to a problem if you lease on trucks, it varies between insurance carriers. And stay away from OOIDA insurance. Many of the larger carriers that broker freight will not honor OOIDA cargo inurance. Land Star, PRIME and England are three that I know of right off the top of my head.

You have allot of work to do and allot to learn.

[GMAN]

GMAN, your advice is well taken, but I don't think it should take that much intellect to know how to do this paper work stuff.I think it takes business skills and computer savy and once you have it, you can fly out the door to the next step.
Filing for my weight distance taxes online,doing my quarterly IFTA,not factoring and doing credit checks and invoicing is the easiest part but the hardest is finding the good paying freight(you are right about that).I am not jumping now to get the second truck.I am doing my research at the moment for 3-4 months ahead.I don't see how it should take someone more than 3 months to learn this "business".
Just went through my "new entrant review" and it was much easier than what I expected.

Running your own trucking company isn't rocket science, but it does take time to learn what you need to know to be successful. I have owned a number of businesses over the years. I never learned everything about any of them in 3-4 months. In fact, running a successful business is a continuing learning experience. I wasn't just talking about filing fuel taxes and basic paperwork. It isn't complicated, but does take time. If you plan on driving one truck yourself you will find that it takes much more time than you probably expect to find decent paying loads. It can be a full time job just finding decent loads. Things change once you start dealing with drivers. Your operational costs will increase significantly when you start dealing with drivers. Some will take care of your equipment and do their job. Others seem to do anything they can to cost you money. You will need to meet your payroll whether you have been paid or not. Things break. Tires blow. Some drivers will steal. You need to expect that you will spend more on maintenance when you have a driver in your truck. You will also need to expect that drivers will want to get an advance from you. Fuel will need to be purchased. Your insurance costs will double when you add the second truck. I am not trying to discourage you from expanding or buying a second truck. I have had as many as 91 people working for me. Things do change once you start hiring people. If you don't plan on factoring there are some brokers and carriers who offer quick pay for a discount on the freight bill. Not all offer this, but many do. Some charge more than most factors. If you don't do either then you will need sufficient funds on hand to pay your driver, buy fuel, take care of any maintenance issues and make equipment payments for at least 60-90 days. Frankly, I don't think there is enough profit for the owner and driver to make a decent living with current rates, especially if you have equipment payments. You will do more deadheading and haul for cheaper rates than we did only a year ago.


I am just needing advice for a reliable truck when I am ready.I have already done a spreadsheet on what I should be expecting.
The driver or equipment will be very crucial, but for now the research on an equipment is what's at stake.

If I were going to expand I would primarily look at 3 trucks. Freightliner, International and Volvo. Volvo is the most comfortable truck on the market today. You can buy a Freightliner for less than most most other trucks. I have had better service out of International than any other brand that I have owned. There are other models which could serve you well but will likely cost more money. A T600, 387 Peterbilt might work for you and they would get decent fuel mileage, but you may also pay a higher price than the first three that I mentioned. When I look for trucks I have a few basics that I need and anything else is a compromise. I look for value and price. Some things I won't compromise on when it comes to buying a truck. One thing that I would advise you is to NOT get hung up on any single model or brand. Look for value. That doesn't mean buying the cheapest or most expensive just something that fits the job. For instance, you will want a different truck pulling a van than if you plan on pulling flats. Now is a great time to buy if you have the money.