Should I Become an Owner Operator?
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- Опубликовано: 28 дек 2013
- Many company drivers wonder if they should climb the ladder and become an owner operator.
With the high operating expenses, particularly the high cost of diesel fuel, the advantages of becoming an owner operator are almost non-existent in the present economic climate in the trucking industry.
A well paid company driver at a decent carrier, may very well be better off financially than an owner operator these days.
Is there enough money to be made to make high dollar truck payments nowadays?
Dave is a 35+ year trucker, who has been a company driver, an owner operator and a fleet owner over the years, gives his opinion, regarding this dilemma of many company drivers.
For more articles and information, check out the section on our website dedicated to owner operators.
www.smart-trucking.com/owner-o...
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My dad just bought a 2000 Pete and started his own business(Triple H Tucking) and he halls grain. Its been go really good for him and he's been making bank.
I think this guy is the most honest guy I have ever seen. THNX
If good drivers keep choosing to run as company drivers, it will not benefit drivers as a whole. the more of us who become contractors, the more leverage we have in the industry. the reason driver pay sucks is because company drivers can't do shit about it except go to a better paying carrier, and there's not that big of a difference between the big carriers wages.
If owner ops encouraged the good drivers they see to get thier own equipment, then boycotting certain shippers, brokers, carriers would actually have a measurable impact.
curating a new population of professional acting and looking owner operators should be the goal of the old school guys, rather than complain about how it's not like the 70s.
Lucas rowe agreed thank you
Owner operator is a scam. You buy a truck with payments only to sign onto a company who will pay you $1.00/mile From this you have to but fuel, make your payments, and everything else.
There are only two ways to do it these days:
1) Company driver
2) Independent Contractor/Own Authority
The latter has big money in it. I know guys who profit $3,000/week pulling reefers without going over hours. They have internet in their trucks where they go on load boards and call brokers and shippers. However, it is a lot of work. Apart from driving a truck, you also have to run a business and know how to negotiate with brokers. The best way to do it: save up some money as a company driver, buy a truck and trailer, and start your own authority. If you are concerned about finding loads - don't be. First of all, there are more loads than there are trucks (especially in the summer). Also, (thanks to the internet) you have access to all of the loads right from your fingertips.
But this guy is right, when you are an owner operator, you are getting the short end of the stick. The shipper pays the broker to deliver a load, the broker pays the company and takes a cut. The company in turn pays the driver pennies on the dollar to deliver that load. And the best part about it - neither the company, the shipper, or the broker have to worry about fuel, maintainance, ect. - all of that falls onto the driver.
driver easy you paid by the hours or by miles very low no prob
owner operator you can go banckrupt or rich , i live in Alberta loads pays a lot more than Ontario , a lot of people makes way more than 10 ground of profit not gross income , some people even have 2 or even 5 trucks ,.
You have to be smart for fuel,repair, which truck to buy and also for especialy for loads a better $ per miles with less miles give you more profit than 1.20$ per mile with a lot of miles
owner operator = business , you have to know how to run business , profit = gross-expenses
Who would first buy a truck and THEN go sign on with someone???? #poorbusinessplan
no no there im not sayin go buy a truck then figure out where get load but trucking is a simple business with too many companies taking us for fools paying 1,20$ per mile , ive found 2$ per mile even 3$ per mile for certain load
Thanks for this. You've helped me make up my mind today.
This guy seems truthful to me. It has gotten tougher out he for owner operators. I would recommend signing with a company to cover some of the cost. What ever you do good luck and be safe.
While there is truth in what he is saying,I still believe there is money in being an oo. Can't be afraid to follow your passion and go for it. Theres oppositions in every investment you do. Thats why we have to take a chance and go for it. If you don't, it will be a life long reget that you never tried. Big ups to this driver for his insights on this subject. Just remember, if risk and no try,then no rewards. Gotta fight to win your dreams. God Bless you all and please be safe out there.
Owners first got bit with the 1996 Tax Reform Act, which benefitted mega carriers, then with the decline of American manufacturing, and now with ELDs.
still good advice Dave thank you
this guy is a disgruntled old timer , he will depress you don't take his advice on this .
get you about 6 month to a year experience as a company driver and then get a decent used truck and keep up with the maintenance work hard you'll be fine
No, this guy is an old timer that knows what he's talking about and is tired of watching good guys go broke at the hands of crooked carriers. This industry is a crap shoot and I don't advise anybody to gamble the kind of money it takes to own and operate a truck anymore. Especially a guy with a family. Dave
I agree. I don’t understand why everyone runs off to buy a truck so fast.... if you get sick or injured for a couple weeks after a bad week of freight, the down time and expenses would be crippling. I was offered a job yesterday driving a nice pre emission Pete in immaculate shape, with all the bells and whistles, with paid detention after 1 hour. Small company with 25 trucks, and they’re been around for years with nothing bad to say about them. Not only that but it’s a dedicated lane that goes right by my house twice a week. Honestly that’s really hard to find.
thanks for the heads up
Good advice. The glory days are long gone.
This is now almost 4 years later, and diesel prices have cut in half since then. I'm wondering if you still feel the same way? Please do an updated video if you find time, as I am looking into being an O/Op. Thanks for your great videos/advice btw.
Of course he isgoing to advise us not to, we're his competitor.
Well the thing is.....he has a whole slew of videos instructing on how to get into being a O/Op but then says here not to do it. There's so much conflicting info out there that it's tough to make any kind of informed decision.
It's always a good idea to tell people all of the reasons they shouldn't do something even if you're the most optimistic advisor on how to do it. That way they can work out all their hold backs and anxieties before they get started and not while their on it or realize it's not for them. Of course the situation is different for everybody.
Owner Operator is for the truck drivers that are entrepreneurs, which means only a minority of truckers should even think about this market. Before you become an owner operator find a decent amount of clients, and establish a business relationship with them.
Also, I think it would be hard by yourself, you will need more then one driver, as most contracts for transportation will require multiple trucks to fulfill the demands of the company. While a single truck driver may be able to fit the requirements for a small business, but the income generated will be limited. I do not see it as a dead market, but more of a market for those who are well versed in the truck industry, and the marketability to gain clients.
Companies don't pay either.
I'm working my way to become an o/o ...I've been asking around ...and most o/o's I talk to, make good money.
You will sometimes find that no one likes to admit the wages are cruddy. Everyone has different needs and expectations.... what is good money to YOU? How much do YOU need to live? Good money to one guy, may be subsistence living to another... look at your bottom line or potential deal and see if there will be enough money after all the truck bills are paid, for you to live on.
remember guys this is one mans opinion. never ceases to fail how many people can talk bad about what they are doing and try to keep others from chasing the dream of being your own boss, owning your own truck, or just doing this job in this industry. if it is so bad then why is he an owner operator? As with anything, you can become a successful owner operator, but you need to remember one thing. ITS ALL ON YOU!!! it depends on the sacrifice you are willing to make and the amount of hard work you are willing to put forward. research the best options for you i.e. regioanl frieght availability, fuel prices, your lease, your debits and your credits. in order to be a successful o/o it depends on you and your willingness to hustle and remember SAVE SAVE SAVE as an owner operator remember everything is on you...if you are under a load when your c15 decides that it needs a new twin turbo, you have no choice and the bill is coming to you!!! but if you are business minded and a go getter ENJOY being an owner operator is one of the most freeing experiences ever....but it requires work...LOTS OF WORK
Daniel Hayes Think you have the wrong impression here, Daniel. As an o/o, there are numerous variables that will determine success... too numerous to discuss here. www.smart-trucking.com/owner-operator.html The question asked of Dave, who is close to retiring. He's not starting out on a fresh career. It's certainly an individual choice. As you said, IT'S ALL ON YOU!!!! He's just giving some advice because he was asked. 10-4?
thank you so much for this video. my friend also told me not to. he said they screw you. and its not good just stay a company driver. so im thinking schneider. any tips and advice is much appreciated thanks
I was talking to a fellow the other day and he said by next year there gonna make it so trucks are all computerized and will only run for 11hrs at a time
My uncle just bought his 2nd truck on less than 2yrs his new one was almost $200K his first one was used. He's not having any issues bough a condo has kids and wife. I think it just take money management skills. And good credit from the start. Also if you plan it out better and have an accountant or know how to manage all of your expenses yourself you'd be able to get a bit of your money back come tax time. Used trucks are worthless so get a low mile used truck. Pay it off ASAP. Then you'll bank manage your miles to a constant level that way your using the same amount of fuel on a constant bases eventually it'll be money in the bank. Maintain your truck keep savings for all that stuff get decent insurance maybe with the company you're leased to of they offer it. Point is there is a way. Try working within the rails and the container shipping industry that's growing ppl will always need to ship things. Find company's that promise you more of what you need.
If you willing to work hard its great to be O/O. Just dont sit or sleep in the truck stop. You gotta move and better you move better you make.
Schneider offers 1.07/mile + a fuel bonus of 40.5 cents/mile. Does that change the equation any? If used trucks are selling for so little, why can't one buy a used truck for pennies on the dollar?
Very good advice . I still hear U.S. drivers talk about it's better to be an owner operator there then being a company driver and they maybe be right. In the U.S their labour laws don't seem to protect the workers, so if you are owner operator you can deal with things that violate your contract in court and use it as a tax advantage, the cost of doing business. A company driver has to lump it and companies apparently write inaccurate statements about company drivers that have left a company and company drivers have no recourse, this would never happen in Canada. All they can do is refer to a resume the list of past employers. So Canada company drivers are better off then owner operators. In the U.S.A not too sure.
I agree 100% . I did the OO gig for seven years, and Im STILL paying back taxes !
I figure I could have saved 100K in the same time frame as a driver. Instead Im dead broke, threw away 60 grand, and now Im starting from scratch. Luckily I found a good paying company and making my way back.
I can't tell you how much STRESS I got rid of the day I sold that thing !
Owner Operator business is a RACKET ! ! !
I'm new to the owner op life and I make out pretty good . 4500 - 8000 weekly gross . it's all about how you wanna work . if you work hard there's money to be made but if your lazy don't get mad when you don't get a check
Did you become a OO right after trucking school?
No I waited 6yrs
Its not wise to become an OO right after trucking school, work for a company for a few years, gain some experience so you know what you need and how you need to plan your budget with the work youre doing
I disagree. I have 2012 Volvo VN670, getting 7.5 mpg, 2012 Reefer Trailer. On some months we gross $30K. Even after you pay driver $4-5K, Truck, trailer & insurance $5300. Diesel $6-7K, Dispatch fees 12 %, still leaves up to $6000.00 profit. You are getting tax brake, driving brand new truck and trailer. That requires about 140K miles a year. If you have to run home to your wife all the time, then its not for you.
You've missed out on repairs and maintenance and the 'unexpected'. Anyone who's been in trucking knows how THAT goes. And not many folks want to work 24/7. So it would take a robot to work all the time and 'not run home' and have some time off. That isn't good money. Also buydown deductible is another cost and worker's comp on the driver. No guarantees for that 140,000/year. You're quoting the ideal situation and that isn't the way things go in the trucking industry. What about the truck payment? Trailer payment? Trailer maintenance? Hauling produce? What about deductible on your driver's claims?
I guess it all depends what company you work for. I have an owner operator that supports a house, wife, 4 daughters, 2 vehicles, lives in Jacksonville, FL for last 6.5 years. All from being an owner operator.
fwupow All excellent points and you are so right. The family of a trucker basically lives on their own.... yes, there's money to pay bills etc., but there's no father around... where's dad? Always at work. And the lifestyle is a killer too. You've nailed it for sure.;)
Just found out this week a former coworker just had his 2nd major breakdown only in his second year of a five year lease.His employer is "financing" the repairs and "leasing" him another truck while his is in the shop.What a "Gem" his boss is.Now he will basically be working for free for the next 1 1/2 yrs.,or have his credit ruined.
it all depends on what you do. Fuel haulers in my local area who gross over 200k a year…can't tell me theres no money in that..I know freight is more difficult but like anything, if you want it bad enough you will succeed.
Theres still money too be made as an owner operator if you have the heart, business sense and some mechanical knowledge too maintain your own rigs (an old WELL maintained rig trumps a new rig every time) being in the right niche also is a big factor. My old man and I run our own authority and operate our rigs. Yes getting too the top isn't easy but direct customers and contracts should be any opener operator's goal and dream when also running under their own authority. Sure. We still have to use those "thieving" brokers and deal with shippers cut throat rates constantly but through our constant efforts and reputable work we've gained loyal direct customers and contracts. We run flatbeds & step decks. Trucking gets harder and harder too make it, but if you go into it with all your heart it can still be a very lucrative career like it has been for us. Keep in mind that it isn't easy we are home every weekend but that when a lot of the real work begins! MAINTENANCE and UPKEEP of your own equipment. Learn and keep learning. Avoid those cutthroat shops and mechanics as much as necessary. Learn too be independent! Thats just my two cents, we make a wonderful living and thank the lord for blessing us every day!
Also I can't say it enough times, safety, safety, safety be safe and responsible drivers....80k lbs is a lot of weight. Be safe, do good and the rewards will come!
What you call your two cents worth is truly very valuable information. I hope everyone reads your letter. Drive safe! Dave
I don't know who posted the video but kind of curiouse as is to what he is hauling I think there is still pretty big money in being an owner operator you just need to be smart and know what type of trailer you will need for the big money would like to hear back from who posted this cause I would like to get into being an owner operator
So you think it wouldnt be a good idea to become a owner operator signed on with a big company without your own authority?
Is that a Jimmy powered 359 there?
I like this guy. I think he is saying buy a used one and cross your fingers.
any of you hauled hazmat tankers? i was owner/operator hauling containers for 4 years...no money at all a lot of corruption ended up selling my rig and becoming a company driver and made 75k my first year...but work was plentiful then..now im struggling to get hours. a buddy asked me to try chem trans hauling tankers resins and polymers...over 150miles you get $3.00 per miles under 150 miles you get 67% of the load...they have plenty of work..says minimal net is 2500 a week after deductions...should i go for it?
+Phukk EU Sounds good, how many empty unpaid miles per week? Also 67% of how much? Dave
Agree... Money is not here. The only reason I stay is that my stuff is all paid for, and I enjoy the freedom. And then the equipment, it is junk, 500,000 mile disposable trucks. Just no longer worth it.
I was thinking of saving up $80,000 and buying a truck for around $80-$90,000. I want to put 50% down and make double payments a month to pay the truck off sooner. The truck would be bought separately, but leased on to a trucking company. The other $40,000 would be for emergency costs. The truck practically would be my home. I own a car that is paid for. My personal yearly expenses are only $3,000. No wife, or kids. Do you think I would be on the path to being a successful Owner Op?
marianasreality Yes sir I do, as long as you lease to a good carrier and the truck you buy is a good one. Good luck. Dave
***** I have been thinking of buying a used log truck and running one for someone else while i rebuild my truck so its like new and putting it in with a logging company here it depends on weather and in the weather you can haul 5 days a week be home every night and profit $20,000 a month per as a contractor for another logging fleet and 10,000 as a driver for someone would my plan work good?
ok here's one thing you over looked... let's say you refuse to do a load.. (doesn't pay.. or they need you to do a favor..and you don't do it) those dispatchers will take it out on you... you'll either get crappy loads that no one wants to do.. or they don't pay what they should. and they can keep you like this for awhile... it's not right but it's the ugly truth of what goes on out here.
save the time effort and money go get a co. job... where at the end of the day.. you say this broke on the truck fix it hand the key in.. and walk away.. otherwise your problem
its been 50/50 i have been oo for 2 yr. i just got my authority a mouth ago let me tell you if you are not hook up with a person or a company when you start your authority you can l loose the next mo that not a joke. just owning a truck is it's cutting it, you have to own the truck and trailer. just talk to some one that had their own authority or still have it DO NOT talk to some one that never had it. they wont know shit but will act like they know what they are talk about.good luck
There is still money to be made as an O/O. It all depends on the person and how hard they are willing to work. The last study done in 2014 shows only 40-50% of all freight was moved in America by truckers. The other 50-60% needed trucks to move it.
I'm just not sure why you tell others to not be O/O. Also... Why do you still drive your own truck?
This is not to be an ass, just curious.
+garrimic3 Right now my truck is parked because I can't find anything but cheap freight. Out of all the guys I know, only one is still making good money as an o\o and his deal won't last forever. They never do, sooner or later some load broker will come in and slash the rate. It's the nature of the business right now. Hopefully that will change. Dave
garrimic3 I'm convinced this guy is lying. He is the only person I've ever seen with his views. If what all he says was true there would be no truckers.
I average 1.07 a mile after cost . it's slow right now . but the guys knows what he us talking about . it's not easy . after trailer and fuel and everything sometimes I only make 800 bucks for the week . in December I made a few 3500 dollar checks . but that's not always the case . and I can assure you you don't want to know how hard one has to run to clear 3500 after fuel the gross on that was 7300 on that check . so unless you can do 3 trips to newyork aweek from Chicago and back . you will not make that amount . running easy is about 1600 . and if a major break down happens your done. wanna be a owner . Pay your self 32 cents per mile . and save the rest . don't be getto rich and spent it.
Well your Pete there is a highly un aerodynamic BOX. Which means bad milege. Get something like a Pete 372 they get 10+ mpg pulling a load.the downside is that your driving a football helmet.
dont buy a truck..do the math first and u will see that the numbers dont add up..no money in it.
Not true I know a lot of owner ops in BC that do well even with the high cost of fuel.
Your right theses are lies
come to mercer or land star you get 1 2 even 3 if you have a lowboy
well I'm thinking of being a
o/o in a year or so. i got my eyes on a 1997 pete lol. I'll pay around 5 to 10k. save up around 10k for major repairs and keep the rest in my pocket. and rinse and repeat...
I wonder if he feels differently now that fuel is under $3 and loadboards pay over $2/mi
No I don't because the cost of fuel will always continue to rise at a rate beyond your control and load board rates are based on supply and demand, something else beyond your control and a sustainable business can't operate successfully on those variables in an industry where the profit margins are now razor thin. The shippers now control the rates and they shop for the cheapest truck to maximize their profit margins. Want to bet over $100,00 on a scenario like that? I don't. Dave
(((((i know a owner operator in torrance , california . he work for the port . and he's always broke )))))))) 🤔🤔🤔
I'm about to graduate truck driving school here in the next few weeks. I would like to put money down and buy my own truck (Owner Operator ) instead of driving a company truck once i graduate. Is that a good idea? Advice please
You could go OO, but what do you know about the trucking industry? Your answer will determine whether or not it will be a good idea.
Gaining knowledge and experience is the best way to be profitable in any industry. Good luck, what ever you choose.
Thumbs up.
@ Hondacivic1992- What company pays and owner operator $ 1.00 a mile? You better look around cause they pay more then that!
Companys pay insurance and plates, and theres a fuel surcharge, if your smart about it you can make the money, just got to treat it like a business and not blow your money, it can be done for sure
Nate Orescanin Depends on so many factors, when it comes to owner operator success. We reviews the variables at www.smart-trucking.com/owner-operator.html
yes it does depend on many factors, I love the videos, informative for drivers just getting in the industry, great job
AMEN.Rates are simply too low.
TheGuitar1962 That's for sure. (Dave)
Ive been driving for 10 years and have YET to meet an OO making good money. Not one
Should someone buy a NEW truck and run own authority? Uh... NO! Not if they are new (less than a few years) to the industry. That's financial suicide. Now... There are ways to own your own truck and be successful. Freightliner... I think it's SelecTruck is one way. It's $999 down and $999 a month for 2 or three years. Yes, they are fleet trucks and yes they may or may not have been abused by countless rookie drivers, but a thorough inspection will get you a good, dependable truck for pennies on the dollar vs buying a new one. Own authority? Not this mountain boy. I know guys who do it and are successful, but I'll stick leased on with a smaller outfit that keeps my left door shut and my wheels rolling. If you've got to have that new 379, you go boy! Best of luck to ya! I did it the hard way and I DO NOT recommend doing it this way...
Leased a truck with a big company, finished the lease, financed the balloon and paid it off early. I ended up paying almost 200K for a T660. I made a living in the process, but just barely. There has to be a better way than that~!
We'll if it's not any money in it why are the major companies still surviving someone please explain to me cause I don't understand
When you own one truck if it's not moving for whatever reason your not making money but add 10 trucks to your fleet and now chances are one or more is gonna be making money around the clock so things like brake downs or fuel for truck one is being helped paid for by truck 9 thru 10 and so on if that makes since.
Do you still think that being an owner operator is a bad idea now? I mean driver's are in a shortage the new generation doesn't want to drive. I think in about 10 years from now the shortage is going to be outrageous. Please chime in and let me know what you think now that 5 years have passed since this video has been put out. P.S I have a friend who lives in Florida and she just started her own business and she is loving every minute of it.
If you can find the right people to pull for, it's still a great job. The problem is finding those people. Few appreciate what we go through on a daily basis, our costs, and are willing to pay for it. Today shippers want the cheapest rate they can find and that's not a good business environment for an O\O. Dave
Smart-Trucking.com well what if your pulling for yourself. Just curious cause I am just starting to get my feet wet.
I believe this guy has his own business or trucks and tryng to recruit drivers to drive his trucks... lol I mean come on petes r expensive trucks so if u don't have the runs to afford those trucks them yeah u will sink and sink fast. I mean i think it's better for a man or woman that's trying to become an o/o is to been have been in the game for a while and really learn the maintenance and the whole trucking game and don't go out and buy an expensive truck i say work ya way to it when u get good contracts and build yourself in the business......
Because most trucking companies want to run drivers like dogs making pennies on the dollar. That's one of the main reasons for accidents. Or second a good driver won't stay and take that too long so they go and recruit students till they wake up....
oh come on, how can you say there is no money in this business? there are various things you can ship and maybe the price has dropped in certain areas, it hasn't in others. you might just have a biased opinion to try and discourage competition.
But ill never find a well paying company that has pete 379s thats y i want my own :(
The reason big companies don't have peterbilt 379 is because they are unsightly hunks of metal which make farting noises and get 3 mpgs. I know plenty of people who make bank with their own trucks (some even save up to start a fleet)- most have volvos which average 9 mpgs. Those Kenbilts and peterworths belong in museums and junkyards - and not on the road. Driving in the 21st century is akin to riding a horse to work.
I know of plenty of companies with 379s in they're fleet.
if there's no money why are u still an O/O how come u don't become a company driver
o/o never tell u its good but they have 1 truck and then want another and another
Because they want less people become o/o so there is more jobs for them
So this guy on this video is saying their is no money in being an owner operator ? So I guess he has no money him self. SUCKS to be him then lol he should sell his truck.
Mike, I banked my money when there was good money in it. But the smart money knows when to get out. Dave
Not if you a Pete
damn lie
How so my friend?
There are a few factors in starting a successful freight brokerage. One place I discovered which succeeds in merging these is the Ajana broker blueprint (google it if you're interested) without a doubt the best resource i've seen. look at all the amazing information .
Because owner ops are out here makng a fucking killing.