greg334
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Authority questionCan’t really figure what to call this thread
I am in no way soliciting any business – just researching this idea and market at this point.
I am looking for comments and thoughts about a conversation I had with a T/T driving couple a few weeks ago.
This driver is in the process of getting off the road as I will be soon. He feels that he can make a go at it leasing on trucks (T/T) to his authority for a percentage of the gross of the truck. In turn he will handle all the regulatory stuff; driver qualification, dot stuff, log audits, collect and submit fuel taxes, etc.. The percentage he stated was at 10% or maybe 15% of the gross of the truck.
He figures that a truck will make $2500 a week on the average based on his 20 years of driving and after 10 trucks are signed on, he will be able to draw a salary with a goal of 15 trucks.
Of course there are other services provide, some free with the percentage and others at or near cost – safety and hazmat training, access to load boards for example.
What else he said which I think is somewhat hard to understand that at 15% this includes insurance (truck, cargo and Workmans comp) and cost of the permits. Talking to others they thought that the permits and insurance should be pass on to the owner directly – using the figures of $2500 gross/week * 10% = $250 per truck/week is not enough to cover the cost of both.
After reading different forums about the percentages, etc.. I wonder if 10 or even 15% is reasonable without insurance. I read somewhere that a few companies are getting 25% of the gross of the truck just to provide the lease and these services.
So I am wondering if there are hotshot truck owners who are interested in the idea of signing onto a company for 10 or 15% and your thoughts of what services would be helpful to your type of work.
Thanks in advance,
Greg
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admin
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Maybe IfThis is Not a new concept you are on to here. The avaerage is 80% to truck.
Owner supplies own insurance, IFTA tax, FHUT and I am sure something I am not thinking of right now. BUT what would be a great ideal is 65% to truck and company takes care of insurance also in the package. Alot of owners might go for that. Less hassle for them to have it all took care of in one Package. Just my thinking. Rose
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Tom Cobb
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Who provides the loads to do all this?
I sounds like a full trucking operation minus dispatch and/or broker services. The hotshot or better yet...the LTL freight business is lacking a focused load service. One that is specific to the load sizes they can haul. One that knows that loading dock height is different from big trucks, etc.
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greg334
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Rose Thanks for the suggestions.
Tom; "Who provides the loads to do all this?"
Well this is something I would perfer not getting involved.
Dispatched long enough to know the hassles and my feelings are that I would rather take care of the regulatory obligations instead and give the freedom to the O/O than spend time looking for loads for the O/O and have them rejected by the O/O.
I hear too much complaining now from drivers about bad load offers and the thought is to give the control to them 100% with access to the boards. I understand what you are saying and as I think about this more, I will look into dispatching.
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admin
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There's the ProblemNow, Lets see.
To make this attractive and profitable
There would absolutely have to be a dispatch/load find system to this.
The boards do not post enough ltl freight for an o/o to connect with and most of what is posted on them are ltl for large trucks. (no means to load smaller ones)
And the time looking for freight is another issue with o/o.
No driver wants to spend 2 days makeing aload and another 2 days putting the next one together.
Definitely, going to have to face this issue if 35% is going to be took off the top.
It is a whole lot smarter of an owner to get their own insurance and
Run for someone who takes 20% and finds loads.
Rose
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