Independant vs. Leasing onto a Carrier as an O/O
#53
Board Regular
Join Date: Jun 2006
Location: Rockwall,Tx
Posts: 477
Even with the extra expenses it comes out to about 20cpm more with your own authority than if you are leased to a carrier. That is IF you have a trailer payment. If not than the out-of-pocket expenses are only 8-10cpm more. An independent O/O averaging 1.50 a mile is earning about 20-30k more a year than an O/O leased to a carrier that pays 1.10 a mile and covers all the plates and extra insurance. A carrier paying percentage is not much better than a mileage-paying carrier if they have too much deadhead or haul too many cheap loads. 75% of 1.50 a mile is only 1.10 a mile and doesn't include deadhead for example.
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#54
Originally Posted by DD60
if they have too much deadhead or haul too many cheap loads. 75% of 1.50 a mile is only 1.10 a mile and doesn't include deadhead for example.
Do you really have any idea, what you are talking about? Do you really believe, that "paper numbers", has anything to do with reality? It's not about your "title", it's how it's done! Some will succeed, and a lot will fail, regardless of "business mode" The friend of mine, leased to a carrier, dry box, lowest of a "food chain", 90% drop&hook, home every weekend, and thru the week,, last year grossed $209,000.00 for 95,000 hub miles! 8)
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#55
Board Regular
Join Date: Sep 2006
Location: Mahwah,NJ
Posts: 450
Thats what I am saying also
Working brokers as an independant is no bargain Don't think there is a great load waiting for you after you make your delivery A lot of brokers don't factor in any kind of break time when you pick up in the pm and assume you have 11 hours to drive after you pick up. You lose a LOT OF DAYS if you decide to run legal as an independant while the lease driver is hammering his 1.10 per mile day in and day out.
#57
You need to manage your business, not the other way around. When you run your authority you are a carrier and responsible for all the legal requirements to stay and run legal. You don't have to break all the rules to make good money as an independent. I rarely run 10 hours a day when I am out. I seem to do just fine. I know of others running their authority who also do well for themselves. You don't need to constantly break all the rules to earn a good living. I think you will likely find more who break the rules who lease to a carrier than those who run their own authority. Most independents keep thing pretty straight. There are always exceptions. There is nothing evil about being in business. Some will do well, others will fail. Not everyone is cut out to run their own business. You don't always need to be the chief to be successful. There are plenty of company drivers and owner operators who lease to carriers who earn a very good living.
You can wait for your next load, but you can also book a load while in transit to deliver the load you are currently under. Businessmen plan ahead. It can be a challenge, but you can do it. I start looking for my next load as soon as I get loaded for my current load. If I don't find something which pays enough, I may wait for a day to get something which does pay well, or I deadhead out to a better paying area. That is what I do. Some people haul whatever they can put on the truck quickly, regardless of the rate. They run so close on money that they feel that they can't afford to sit for a day to get a good paying load. They run close on money because they haul cheap freight. I haven't met any who are running their own authority who is running for $1.10/mile, including deadhead.
#58
Originally Posted by GMAN
I haven't met any who are running their own authority who is running for $1.10/mile, including deadhead.
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#60
Board Regular
Join Date: Jun 2006
Location: Rockwall,Tx
Posts: 477
Maybe some of you misread. I was merely pointing out that even some of the percentage-paying companies can have a high amount of deadhead or less-than-desirable rates,or both. I have seen some O/Os run for these carriers and average 1.10-1.15 a mile and think they are doing great. :lol: Some do better leased and some do better with their own authority. Everything doesn't always go smooth and the way you want it to in this biz.
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