Hotshot Connect Forum :: GETTING STARTED/ RUNNING ON FAITH

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HEY EVERYBODY! I'M BRAD FROM MS. TRYING TO GET STARTED IN HOT SHOT AND LTL. IF ALL GOES WELL I'LL BE UP AND RUNNING BY THE MIDDLE OF JANUARY. I'VE HAVE MY MC AND DOT. FOUND A 40FT GOOSENECK WITH A POPUP DOVE.I AM STILL TRYING TO DECIDE ON MY TRUCK. EVERYONE I HAVE TALKED TO HAS BEEN VERY HELPFUL.
IF THERE IS ANY ADVICE YOU CAN GIVE ME ABOUT STAYING LOADED I WELCOME ANY TIPS,ADVICEAND WARNINGS.
I BELIEVE THAT IF I WORK HARD I CAN MAKE A GOOD LIVING FOR MY FAMILY.
THANKS

TGPILOT

Probably a Dodge 3500 would do it. But, I suggest looking at a class 4 to a class 7. If your in the planning stage, try and get a sleeper set uo so that you can be DOT legal and save on motels.

Plus the larger truck will handel the loads better.

Tom

bth9461

Hey Brad how far do you plan to run from home and how long will you stay out? This might impact your truck decision.

I started with 1 load board and was dependent on brokered freight 100%. It was tough starting out. Direct customers really help, do you have any customers lined up yet?

Brian

Tom Cobb · Site Admin

I will 2nd TG's recommendation. A medium duty truck can be purchased for the same or less than a new dually. A med. duty will have a commercial warranty based on calendar and usually unlimited miles within that calendar period. A used truck from someone like Ryder can be bought at a good price and some have sleepers. They have a warranty plus you can buy an extended warranty.

Search this website. There is a lot of good info.

May God's blessings be upon you and may He grant you wisdom in your decisions.

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STARTING OUT I AM WILLING TO STAY OUT A WEEK OR TWO AT A TIME. REALLY DONT HAVE ANYTHING LINES UP I WAS HOPING I COUL USE A FEW LOAD BOARDS. AS FAR AS THE TRUCK GOES I AM VERY LIMITED ON WHAT I CAN DUE DUE TO BUDGET AND CREDIT....THE ONLY THING I FOUND SO FAR IS AN 03 6.0 F350 CREW WITH 143K. I KNOW THE REP OF THE FORD BUT MIGHT NOT HAVE ANY OTHER CHOICE TO GET STARTED. WELL I DID FIND A 99 EXT. CAB DODGE WITH 225K FOR HALF THE PRICE.I DON'T WANT TO SET MYSELF UP TO FAIL BUT IM LIMITED. IF I CAN RUN LIKE I WANT I COULD REPLACE THE TRUCK IN A YEAR

Tom Cobb · Site Admin

You will fail with maint problems as with other bad decisions. Stay away from that Ford. It will certainly break you early on.

It sounds like you don't have $10K operating capital to start with. That is a recipe for failure before you start. The LTL business to start out is not going to give you operating capital. If you factor loads you are giving away at least 16% of your income up front. You have insurance and living expenses along with truck payments.

You need to do a business plan and figure out all your operating costs before you go any further. My 2 cents.

bth9461

Brad how much is that Ford? Give us a basis on what you can afford.

TC, is right that truck will break you. It will not hold up, and it will get terrible fuel mileage. It will cost you money every mile you drive. Chevy or Dodge only for duallies.

What trucking experience do you have?

Do you have other income sources ( working wife, rentals, ect), or will this be your only source of income. There is a burn in period to get a decent cash flow going, and making contacts takes time ( better paying freight). I would have folded with out my wife's income. Going into my 4th year and each year gets better.

The more info you give us the better the answer we can give.

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THE FORD WILL RUN ME 15K WHICH ILL HAVE TO FINANCE. I HAVE CONSIDERED AN OLDER DODGE WITH MORE MILES ON IT I CAN GET FOR AROUND 8K. I CANT AFFORD TO GET WHAT I WANT. PAST CREDIT PROBLEMS DONT HELP!!! THE DODGE HAS 225K ON IT AND WAS OWNED BY A COUPLE TO PULL THEIR HORSE. I THINK THE TRUCK IS SOLID.I FOUND A 40FT KAUFMAN USED AT A GOOD PRICE THAT I WILL BE BUYING MON. AFTER INS,TARPS,STAPS,DOWN PAYMENT ON TRUCK,AND TAGS I WILL BE DOWN TO A FEW THOUSAND.MY WIFE WORKS AND I HAVE PEOPLE WILLING TO HELP.
IF I AM WILLING TO WORK HOW MANY MILES CAN I RUN A WEEK?
I WOULD LIKE TO RUN A LEAST 2500 AND WOULD LIKE TO DO MORE
HOW LONG SHOULD I EXPECT UNTIL I GET A DECENT CASH FLOW? IWOULD RATHER NOT FACTOR.

bth9461

This will take some time to collect my thoughts on this. But I think It could be do able for you. I will be getting back to you soon. The other guys, I am sure will be adding their 2 cents too. You should not go for that Ford though. A 7.3 would be better than the 6.0.

Brian

bth9461

Your situation is not perfect, but many have started in your position. Determination makes up for many things. I could only stay out for a few days, I am home every weekend, this has been a limiting factor for me.

Getting miles will not be a problem I put in 2000 to 2500 a week no problem. I could easily get 3000-3500 with your ability to stay out longer. The issues to be concerned about are Dead Head miles and getting a dececent rate. The more time you are at it the easier it is to do this.

Cash flow depends on how fast the customer pays and how fast you get them the bills. LTL freight brokers pay the slowest, good ones in 2 weeks, bad ones 45 days, average is 3-4 weeks. Car brokers are faster many COD's and 1-2 week payers. One of my best Car customers (high rates) takes 4 weeks though. Direct customer's on LTL's usually pay pretty fast 1-2 weeks for my 2 best accounts. Starting out it took me 6-8 weeks from the time I started hauling to get the cash flow going. I was hauling LTL's only through brokers. I was able to hold on until then and never factored any loads. Ask about timing on the payment with all new customers so you know what to expect.

Cars are a great source for flexibity of loads you can find them every where and can be combined with a good LTL to give you a good rate. Cars do not pay as well as LTL's, so I use them for filling out the trailer and getting me back home. Practice loading your personal vehcles and come up with a system that works. Your trailer will load high clearance vehicles but cars will require a new ramp system or blocking them up to get them loaded. Make your trailer as flexible as possible. Add a wench when you can for INOP's ( they pay a liitle more).

Load boards I use Internettruckstop, Getloaded.com, Landstarbroker.com (free, Landstar loads only), and Centraldispatch.com (cars), and look for direct customers close to home.

When I started I thought 1500 was a good week and was jumping up and down when I hit 2k. Now I can easly hit 2k and average 2500 per week. I have had many 2800-3500 weeks in the past 6 months, so my business seems to have turned another corner. I do this with a pint size trailer 26k (total CGVW), 31' trailer. So your trailer will carry more freight, you can easily beat my starting numbers. That will help with truck repairs, you will need to start a truck fund for repairs and a better truck.

Shop the truck some more Duramax 03-06, any 5.9 liter dodge, or a 7.3 liter ford. I would go for that dodge over the ford you are considering, but you might find a better deal if you look around.

Brian

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HOPE EVERYONE HAD A GREAT CHRISTMAS. I WAS ABLE TO GET MY TRUCK TODAY AND IT WASNT THE 03 FORD!! A FEW THINGS WORKED OUT AND I WAS ABLE TO GET AN 04 GMC DURAMAX. I FEEL A WHOLE LOT BETTER ABOUT THIS ONE. EVERYTHING SEEMS TO BE ON TRACK.
WHAT ARE YOU GUYS GETTING ON AVG. PER MILE? I DID MY FIGURES AT $1.30 PER MILE--HOPE I CAN AVG MORE

bth9461

If your talking billed miles then a 1.30 will kill you unless you have zero deadhead miles. My operation is different than most, because I run out and then come back home each week. I try to get 1.75 to 3.00 per mile going out. I do not see much 2.50+ pm freight very often but it does happen some. Return trips are usually 1.00 to 1.30 pm. My ALL MILE figure with my smaller trailer is about 1.20 pm after DHing. Thats from the House back to the House. This is why it will help if you find some local shippers looking to use you on a regular bases. My best customer found me while I was dropping a Brokered load of at the business next door.

Do not feel bad about charging as much as you can get. Most LTL freight brokers will negotiate on price a little. Car brokers won't, but if dealing with the Dealer direct they will. When pricing a direct customer don't leave the brokers cut on the table. Brokers usually keep 15-25%. Expenses run high in this business so no rate is too high if some body will pay it.

One of my regular customers uses my full trailer and part of it other times. I priced it at 1/4 1.25, 1/2 at 1.50, and 3/4-full at 1.75. With current fuel prices you should try and get at least 2.00-2.25 pm for FULL LOAD with your trailer. Hot Shot freight should be 2.40+ pm. When building LTL's you should be able to stay over 2.00 pm with your trailer.

DHing will drag your billed mile rate down, you should be able to keep it over 1.50 pm if you keep the billed mile rate up. Coming home will usually hurt your rate, thats the nature of the beast.

Ideally if you can stay loaded with good freight it should be possible to have an All mile rate much higher than mine. Your trailer is bigger and you can stay out longer. Keep in mind though your lack of contacts and being in MS will hurt you to start with. Really try and find a small manufacture within 100 miles of your home, that needs you. This will give your business a real shot in the arm. That company is out there you just need to find them.

One other thing keep track of expenses so you know what your cost per mile is.

Not buying the Ford was a good choice considering their troubled past. I put 194k on my 04 Duramax 3/4 ton before I traded up to a 1ton and have 170k on my 06 now. If it is a 4x4 watch the transfer case seal for leaks. Both truck have been problem free except for that.

Brian

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BRIAN, THANKS FOR THE TIPS. THE DURAMAX IS A 4X4 SO WITH 80K. I WILL HAVE THE TRANSFER CASE CHECKED TODAY. THE ONLY PROBLEM I,VE HEARD OUT THE DURaMAX IS THE INJECTORS. HOW MANY MPG ARE YOU GETTING LOADED? TODAY I'M OFF TO THE TAX COMM. I'LL REGISTER AT 36K DONT KNOW IF TOKEN TAG IS AVAILABLE IN MS.

bth9461

My average per month is 12mpg almost all towing miles. Empty with the trailer 15, loaded it verys with the wind drag of the freight. 14-9 mpg, Average is 12mpg. I run 57mph to 65 mph depending on the wind resistance of the load. I had my transfer case issue at 80k (04) and 95k(06) with the trucks.

At 80k it is just well broke in. Should be ok for a 2-3 more years, then who knows? Some guys have gotten 400k+? Mine is running strong still, I know of 2 guys who had problems at 240k, but both guys abused their trucks.

Stock Truck.

Brian

Tom Cobb · Site Admin

I have 261K on my 03 Dmax. I had injector problems. The 04 and newer models have had the problem resolved. Go to dieselplace.com. There is a ton of info on there that will let you in on all the issues. Some of those guys are always nervous and fearful so just glean the info. The duramax will give you lots of good miles and will out pull anything else on the road. You made a good choice. That truck is just starting to get it's best mileage and power.

Blessings on you.

bth9461

Another thing on mileage is winter blend fuels, it seems that I usually lose about 10%. My 12mpg average is for 170k miles over amlost 2 years.

Brian