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hello..does anyone own a trucking company

Discussion in 'Off Topic Threads' started by lovethesport, Jul 18, 2013.

  1. lovethesport

    lovethesport Member

    Joined:
    Oct 28, 2009
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    looking for insight into the cost of operating a semi truck...fuel cost, maintenance costs etc.
     
  2. Hookedonshooting

    Hookedonshooting TS Member

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    Mar 22, 2013
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    I own a logistics business. Your question is pretty broad. There are fixed costs and variable costs to be considered. Fixed costs (ie truck payment) are relative to the year and type of truck you purchase. I m not versed on what truck to buy. But like bying a gun, you need to determine what type of hauling you plan on doing just like you wouldnt buy a trap gun to shoot skeet. Are you planning on being long haul OTR? Regional? Local? Intermodal? Etc.. Your variable costs are tied to the type of truck as well. IE fuel consumption, year of truck with respect to repairs, PM's (preventitive maintanance), tires, plating (where u gonna run), and insurance are variable costs that someone on this site might be able to answer more definatively. All companies the hire owner operators pay fuel surcharge relative to the DOE's fuel index. That is if you go that route which alot of truck owner do verses gong at it alone which is tough nowadays for a number of reasons. If you want more info on that realm let me know and i can go on. Wont babble further if you dont want/need this type of info. Mike
     
  3. grntitan

    grntitan Well-Known Member

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    Location:
    IL(The gun friendly Southern Part)
    What are you wanting it for? Are you currently a truck driver? Do you already have a company set up to lease on to? Will they pay your base plates and permits? Are you buying new or used? These are some of the questions you need to answer which will help in the answer you get.

    Keep in mind, if you buy a big truck, you don't own that truck, it owns you. You will have to work more and harder as an owner-operator to cover your expenses. You will have to roll a vast majority of your income into maintaining the equipment, fuel costs, insurance etc etc. As a company driver, when you fuel up at the end of the day, you can go home and leave the truck issues with them. When you own it, you live it. You get off work you go home to do routine maintenance. If you are a new driver, many companies shy away from leasing on an owner-operator without a certain amount of experience thus the questions on your experience.
     
  4. Hookedonshooting

    Hookedonshooting TS Member

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    Mar 22, 2013
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    grntitan is correct. Like owning a rental property. when repairs are needed, you can have someone else do it, but it eats at your wallet. Tough ass job being an owner operator. And you better have business skills or have someone who does since there a shitload of paperwork and accounting to keep straight.
     
  5. mark54

    mark54 Member

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    Jan 29, 1998
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    138
    Also take into consideration what year truck you buy, because of all the pollution add on crap.

    mark54
     
  6. Stl Flyn

    Stl Flyn Well-Known Member

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    Depending on what type of terrain, and loads you haul will make a difference also. Local, or OTR driving can make a difference, as to the amount of stopping and starting. Gearing combinations, along with power, can make a difference in cost of fuel consumption, also, wear and tear. At $4.00/gal. or more, it makes a big difference when you are talking 5-7 miles per gallon consumption rate.
     
  7. lovethesport

    lovethesport Member

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    Oct 28, 2009
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    I, am more interested in the business side of trucking..i have an oppurtunity to get a contract to pick up and deliver scaffolding material...the company is willing to pay $ 75 per hour plus 24% fuel surcharge..

    I have access to a lot of owner operators, who will be contracted to do the actual driving..

    I am trying to understand if there will be profit left for me from this 75 and what is the amount that an owner operator will charge me for moving the loads..

    my apologies upfront, but i am at the beginning of the learning curve

    thank you
     
  8. Stl Flyn

    Stl Flyn Well-Known Member

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    What number is the surcharge based off of? Per hour is kind of tough. Hard to determine what exactly that is? Does that include wait, and load times, delays, as far as pick-ups, and deliveries? Flat bed securement times, and pay for the driver if tarping is required? So many different variables as to what that hourly pay is actually paid on. Will the contracted O/O be paid on a hourly rate also? If so, will he paid from the time he gets in his truck, till the time he returns back to park it.

    Sounds like Hookedonshooting, would be able to help you figure some of the costs, as I would think that he deals with brokers, and bids, seeing he is in Logistics.
     
  9. trim tab

    trim tab Active Member

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    Las vegas
    If you are considering buying or leasing a truck and being an "Owner Operator" I would suggest you pass. If you haven't had any over the road experience that is another hit against you. Not like it was 20-25 years ago. Whole lot of questions to answer before youtake that plunge as to who you going to lease to, insurance, how paid, maintenance etc.
     
  10. happytrapper

    happytrapper TS Member

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    Jun 28, 2010
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    Best to forget about it. If you could make money at it someone else would already be doing it.If someone see that you are making money doing it ,they will be trying to cut your rate to get the haul.
     
  11. AveragEd

    AveragEd Well-Known Member

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    Location:
    Mechanicsburg, Pennsylvania
    I know less than nothing about owning or operating a Class 8 truck but can tell you that a very intelligent friend of mine who wanted a big change from his years as controller for a home building firm leased a two year-old tractor for one year to try out the business. He leased himself to a local firm hauling full loads on a regular set of routes at what then was a good compensation by comparison to other offers.

    At the end of that year, he went back to bean-counting. He loved the freedom but so much of what he earned had to go back into the truck that he became disillusioned.

    Ed
     
  12. slayer

    slayer Well-Known Member

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    beautiful northern michigan
    A friend of mine went into the trucking biz after an early retirement from Gm. He first started with big vans then went to box trucks. He's into big money now by his own admission. I really don't know much about the specifics, sorry but he says the smaller trucks are much more profitable to own and use. Bill