Truck Driver and Trucking Forums

Go Back   Truck Driver and Trucking Forums > Trucking Forums > Archive > Layover's Lounge (Archive)

 
 
Thread Tools Display Modes
  #1  
Old 01-06-2001, 02:21 PM
frankmitzen
Guest
 
Posts: n/a
Default O/O's per mile pay

I would like to know how O/O's can work for a company that pays .83-.86cents per mile, and then tell people they are making money.With the fuel cost the way they are it cost approx: .70cents a mile to operate. That covers insurance/plates/payments/maintenance and not much of that. That leaves .13-.16cents per mile for a wage. [MUST BE SOME VERY UNDERSTANDING WIVES THAT ARE HOLDING GOOD JOBS.]$ .86X100,000 miles=$86,000.00 gross. Where is the profit?
  #2  
Old 01-06-2001, 05:39 PM
kwhopper
Guest
 
Posts: n/a
Default For a SHORT TIME

They can not work very long before the bills catchup to them. Many do not realize there are good paying hauls out there. Tonight there are 2 loads from New Stanton PA to Dallas Tx each 19000 lbs paying $1.30 per mile pulling company trailer also 1 rush from Carlisle PA to Wixom Mi pays $1.84 per mile, again company trailer. So who would work for .80 per mile.
  #3  
Old 01-06-2001, 05:51 PM
icantinaturner
Guest
 
Posts: n/a
Default You're right as rain

I think the people talking about making big money as an O/O haven't really discovered the difference between gross, settlement & net income. Some are running their butts off and still barely surviving.

Unless someone is doing something unique (like you & Big Joe) I think there are three phases to running as an O/O for a generic company:

Phase one is quitting a company, getting that large car with minimum down payment, running your butt off and talking "big money" -- at least until tax time.

Phase two is getting a CDL for "Mama" and teaming with her in the large car -- still making peanuts.

Phase three is falling behind on payments, meeting "Repo Man" and going back to being a company driver.

I think the average O/O is lucky to make near what a company driver with a good company makes, even with a modest truck and the company paying plates, permits, some ins., lumping, tools, fuel surcharge, etc. I doubt that very few O/Os come close to a busy trainer for a good company and none close to union guys when you factor in retirement.




  #4  
Old 01-06-2001, 06:27 PM
kwhopper
Guest
 
Posts: n/a
Default I suppose

Well I have driven for 28 years been an O/O for 20 ordered my 6th and likely last truck picked it up today.
Managed to pay them all off no repos, have money in the bank , nice home.

  #5  
Old 01-06-2001, 07:16 PM
samthehamm
Guest
 
Posts: n/a
Default Own Authority

Is it not practible to get your own authority with A flat bed?With the computer it is so easy and cheap.You know the most likely customers.Looks to me the best way to maximise net profits.
  #6  
Old 01-06-2001, 07:50 PM
icantinaturner
Guest
 
Posts: n/a
Default That is because...

you are an intelligent guy.

Did you go with a top-of-the-line rig, zero down and 5 year financing? Did you blow your big settlement checks on chrome, chicken lights, a new pickup truck, a bass boat, a Harley and trips to Vegas?

I think you probably started out smart, set money aside for contingencies and built up to where you are now. No? =0)
  #7  
Old 01-06-2001, 08:15 PM
icantinaturner
Guest
 
Posts: n/a
Default Could be Sam

I don't have the guts to go that route.

Bear in mind that with your own authority, everything trucking related is performed and/or paid for by you. You pay plates, permits, lumpers, tolls, deadhead, etc. You (or someone you pay) perform as dispatch, receptionist, bookkeeper, fuel tax reporting, and virtually every task performed by a trucking company. You must figure all the expenses and what your (or your spouse's/partner's) time is worth while performing the tasks, then reduce your net accordingly. For example, you spend 4 hours staring at the load boards and/or on the phone trying to scare up something. Does $100 sound fair?

The nearest I've come to having my own authority is running on percentage. I paid everything. It's funny how I could selectively recall the $1.85 load while forgetting that I deadheaded 350 miles to get it. I eventually learned that 75% of nothing is nothing...

I'm not saying that and O/O can't turn a profit. I do agree with Frank that most leased to generic companies (such as I am) aren't making the big bux and if they don't handle their money wisely, are probably near going under.

BTW, I quit smoking the day after your Harvard post. I hope I can make it. Thanks
Mike =0)
  #8  
Old 01-06-2001, 09:17 PM
samthehamm
Guest
 
Posts: n/a
Default Own Authority

You don't think that the companies are doing all the above for free.Most have stockholders to satisfy.Yes you would have to do more than just drive.And mama would have to get in on the act.That is with A one truck operation.I would hope that you would plan to grow.Every company out there started with truck number one.
I was A motor cyclist found that if I sold five I could get mine free.Ten and I got one to ride and one to sell.I had A couple of hundred in my shop when Polly got cancer.I owned the truck and trailer.That pulled them all from the port.Never pulled for anyone except A buddy who owned an airport.Pulled wrecked airplanes and choppers.Pulled the one from the Callipso when Costeuo boy wrecked it.
The chute gets steep on the outgo.
I still remember how it works.I am letting age and disability be my excuse.Polly has had it with her part in running A business.The stress did not help her health.I counted on the kids carrying on.They like me with my dads business wanted no part of it.Trucking was the best rest that Polly and I had.You guys don't know how well you have it.Would not trade that experience for anything.35 years it lasted.Three kids raised.Home paid for.
  #9  
Old 01-06-2001, 11:49 PM
trucktrash
Guest
 
Posts: n/a
Default o/o

Been O/O for 20 yrs. I wouldn't advise anyone else to try it , but it has worked pretty well for me. Everything is paid for and I run when and where I want. Cost me about .35-.40 cpm to run an older truck, so I make as much or more than most co. drivers. Sure envy the union guys retirement, but I could never be an employee regardless of how much it paid. I look at trucking as a lifestyle that has allowed me to do things that I could never have done by holding down a regular job. I logged 181 days away from home last year. I feel sorry for the guys that have to stay out 2-3 wks. and then get 3 days off. How do they have a life? I stay home till I get bored, and actually want to go back to work. For me, it's a paid vacation. Life is good; sure hope it lasts.
  #10  
Old 01-07-2001, 06:40 AM
frankmitzen
Guest
 
Posts: n/a
Default authority

I looked in to getting my own, and it's to expensive; with all the federal requirements that are required. Plus all the extra paperwork that would be my responsibilty. I'll stay a independent contractor.
 

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Do Most Drivers Prefer By The Mile Pay? kevink Layover's Lounge (Archive) 6 09-13-2006 12:57 PM
$1.05/mile+, NOT broker freight! sealord Layover's Lounge (Archive) 1 01-27-2004 01:28 PM
pay per mile ces201 Layover's Lounge (Archive) 22 12-28-2003 01:52 AM
Cost per Mile over_drive Layover's Lounge (Archive) 1 12-15-2002 11:51 PM
$1,500 a mile tbone2 Layover's Lounge (Archive) 4 01-10-2001 11:04 AM


All times are GMT -4. The time now is 02:22 PM.


Powered by vBulletin® Version 3.8.2
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright © 1996-2012, Layover.com All Rights Reserved