[GMAN]

I can understand the strain of having several trucks sitting. I am glad you are keeping your overhead down, but it seems to me you are expanding very quickly. You need to be cautious about going too fast. I have known of a couple of people who have basically been put out of business by expanding too quickly. I don't see how you can make any money leasing to Schneider for $0.90/mile, especially paying a driver, even with the fsc. I think you will find some inconsistency in miles with most carrier's right now. The economy is off, but things seem to be improving.

[pepe4158]

I hope this isnt a little off topic, but the point about leasing to a carrier for the 90c per mile plus feul surcharge.
I am very new to getting my own authority and was tempted to just lease on and go that easier route.
What disuaded me tho was the idea that repairs and feul would be my biggest cost.
There is IMO a dramatic difference in feul milage when hauling light 10,000-20,000 pound broker loads I can pick n choose from, and being forced to run company leased on grossed out loads of 44,000. for 90c per mile.
Granted you could refuse these loads with your leased on carrier, but as crapy as companies treated me when I worked for them I tend to believe they have that angle covered and would make my life bad if I was leased to them and complained about beating the hell otta my truck hauling their heavy a$$ loads and not making any $ spending it all on feul.....so in the long run the little extra hassel to get my own authority seemed worth it....welll just my 2c.

[Dejanh]

A very interesting post..Your right, I am spread thin right now...But going to survive. It isn't the mileage pay that is getting me..(BTW .90 + .26 this week)...I have 2 trucks not running right now because 2 are in orientation (I just got my 2nd and 3rd over to Schneider)...My 1st truck pulls for RFK Transportation who pays $1 + FSC (.25 this week)....Problem here is no consistancey to miles.

So if the other trucks were nicely rolling, which they will be by the end of the week...This would not have been near the concern it is right now.

4 out of 4 will be running this week, life will get back to "normal" and I'll get thru this hurdle.

I can see that you a buisiness oriented person who takes advice well and that sits very well for me, i applaud you for that. :!:
I am not trying to tell you what to do but i also like to keep it real and thats the best way to do it, if something is off dont sugarcoat around it, jump on the problem and face it and your current problem is a unstable carrier who makes it seem that more miles you make more money you will bank, in a short period it will work but what will happen after trucks start breaking down. Check companies like Panther which welcome fleet owners, friend of mine did 100,000 miles last year and banked 170,000 with THEIR trailer running straight van in and out of Canada, they are one of my choices comming September that am really looking into. Fedex sits well for some other fleet-owner friends that i have, fuel cap at 1.25 and light loads, if comparing pumkin to them they are deff. a better choice. Get your own authority and check in Rissinger bros out of Peoria,IL, great rates as well....

To have 4 trucks you gotta have buisiness skills, so you have them since you own them, just expand your choices which you have my friend, i've known of NOONE getting to be well of by leasing on to Schneider, potential is there you just have to grab on to it, you have knowlege, use it.... :wink:


Good Luck

[jp207]

Gman and Djenah, thanks for the responses...It looks like we have wandered off the original topic here a bit but I guess that is ok... 8)

My math does work out ok at SNI...I went with them because I know them, having dealt with them since 2002. I agree fully that I grew too fast, and the growing pains have caught up with me. This is actually mine and my fathers biz (I started the biz, he bought into it, because I was doing quite well with 1 truck)....SNI is pretty stable, RFK is the carrier that is not...Don't take that wrong, RFK is a good carrier to work with as far as people and pay rates, but they have a weak support system for the O/O. Most people have never even heard of RFK Transportation I'd venture to guess...

I know I can make more money at a different carrier...I could have leased to Landstar and been marginally better off (??) but right now I am on a huge learning curve...I do know a certain group of fleet owners who are banking it nicely from having 5-10 trucks on at SNI. I know of a man who had 75 trucks on over there...He just retired a multi-millionaire. My ultimate business plan has me owning 10 trucks.

Going back to the orig. post....The Sugar truck is still pulling along just fine..!! Good thing, this allows me to mostly say I have washed my hands of this dealer other than the legal wrangling going on over it...

[Rev.Vassago]

Originally Posted by jp207

I know of a man who had 75 trucks on over there...He just retired a multi-millionaire

He probably won the lottery. :lol:

Actually, he was likely making only pennies on each truck. That's why he had 75 of them. The profit margin for trucking in general is very low, which is why most of these large carriers have a huge fleet of trucks. That is what allows them to charge so little to haul. What that also means is that they have little to pay everyone with.

I would love to see a breakdown of your fixed and variable expenses in this operation you have going. Somehow, I have a feeling that it isn't as rosy as you say it is.

[Dejanh]

Why have 75 trucks LEASED on to someone when you can run your own operations and cut a middlemen out. 75 trucks is a serious fleet capacity and there has to be more to the story..

[jp207]

Originally Posted by Rev.Vassago

He probably won the lottery. :lol:

Actually, he was likely making only pennies on each truck. That's why he had 75 of them. The profit margin for trucking in general is very low, which is why most of these large carriers have a huge fleet of trucks. That is what allows them to charge so little to haul. What that also means is that they have little to pay everyone with.

I would love to see a breakdown of your fixed and variable expenses in this operation you have going. Somehow, I have a feeling that it isn't as rosy as you say it is.

Hahaha....I don't know...I actually never could figure out how he made it either, but he did...He had all nearly brand new Pete 379s for tractors. As to why he didn't get his own authority, i don't know...Maybe it just worked for him?? Different strokes for different folks...??

While right now, I am not into posting my personal finances on here..I would assume you know what operating ratio is, and that most trucking companies are doing well to have an O/R under 93%.....I have managed to keep my O/R around 77%-80% at this time...Still a good chunk yes, and if I could raise my mileage pay I would be better off, but still pretty impressive...And my drivers are averaging 42.5CPM as their pay rate.

[Dejanh]

42cpm on a .90 with Schneider ( whatever the surcharge is)... :shock:
You need to adjust your tactics bro..and fast too....

[jp207]

Originally Posted by Dejanh

42cpm on a .90 with Schneider ( whatever the surcharge is)... :shock:
You need to adjust your tactics bro..and fast too....

I average about .25 cents per mile after paying costs, per truck..Is that really all that bad?? and running on 78-80% O/R???

[Rev.Vassago]

Originally Posted by jp207

I average about .25 cents per mile after paying costs, per truck..Is that really all that bad?? and running on 78-80% O/R???

Just from those figures that you've posted, I can figure out some of your costs.

$0.42 per mile wages
$0.47 per mile fuel
$0.25 per mile to you
_________________

$1.14 per mile before truck payment, insurance, workman's comp, taxes, FICA, maintanance, repairs, etc.

SNI pays $0.90 per mile, plus $0.26 per mile FSC (this week). That is $1.16 per mile.

I certainly doubt that all those other costs only run you $0.02 per mile.

Your numbers don't add up. I'm calling BS.