I think that is on target. Many just hold onto the wheel and expect the world to come to them. You have to be more of a bean counter than the shirt and tie guys in the big offices. You have to spend a lot of time researching things, like what tire will give me the best bang for the buck and has the lowest rolling resistance to conserve a little more fuel. Should I buy that "real" truck or get one that will cost me the least to keep it moving and keep my fuel costs lower? Thinking outside the box to minimize expenses, yet keep equipment in best shape. Not thinking "no matter what I spend, it's a deduction".... let's see if this makes sense... I will spend $1 to save $.20 in taxes. Gee, that's smart!

Rates are what they are. Not much anyone can really do in the broad scheme of things. We may be able to influence them a little, but not much. However, operational costs are something we all can influence, and usually quite a bit. Those that can adjust will make it. Those that can't, well....

John Wayne said it well.... "life is tough, it is tougher if you are stupid"

 

I know some owners who will buy more equipment rather than pay more taxes. I have one friend who just runs less so that he doesn't pay as much taxes. He still keeps about the same amount of money but doesn't run as hard and doesn't gross as much. It works for him.

 

Thanks for the welcome GMAN. I been lurking for quite a while and I really enjoy this forum.

I started trucking back in '63 and we're all aware of the many, many changes that have affected this industry, especially the o/o segment of it. As owner operators, we are some of the hardest working, most under paid people in this country. We sacrifice family, security, workers benefits and a normal home lifestyle to keep this county afloat.

We have made trucking companies, brokers, dealers, insurance companies, truck stop owners, government agency's, parts suppliers, etc., filthy rich because of our dedicated service to this industry. While far too many of us are on the brink of bankruptcy. And this can't all be blamed on o/o's not being good business people.

When we take a close look at the facts, the laws and practices are designed to drive us out of business. SAY WHAT YOU WILL.... I REPEAT- the laws and practices are designed to drive us out of business. Most everything government has done has been against the o/o.
Everything big business has done, from fuel & shop prices to supporting legislation has been opposite of what is good for us. You get the picture so far.

Now I said all that to summarize with this. How can we, as a group fight back. "Stop cutting our own throats". The lowest freight rate should be 4.00$ a mile with today's economy. Owner operators should clear (after all business cost) $120k per year, running legal. I know this all sounds like pie in the sky dreaming, but think about it. As o/o's & company drivers, if you'll work for peanuts, that all you'll ever get, peanuts. That is until
big business figures out how to get you to work for just the peanut SHELLS.

We're gone from home 9, maybe 10 months out of the year for 50k, 60k, while others in business make $250k+. Smell the coffee people, they need us more then we need them. Once we're history, freight rates will fly up past $4.00 a mile. :banghead:

 

I think you just made a huge amount of friends here at CAD with that statement!

 

kotflb... I think the majority of the problem is o/o's that think they need miles to survive, not revenue. Think of all the suckers that sign on to swift, CR england etc... that need 13,000 miles a month just to survive, and have to drive with a team driver 20k miles a month to pay down debt.

We have to educate our fellow drivers as best we can.

 

I agree Allan5oh. As large as the trucking industry is in itself, the o/o segment is the only business that ask the customer what they're willing to pay verses telling them what we charge. Even the independent tire repairman tells us what he charges, he doesn't ask what we'll pay him. It's indeed a mindset, and we have put the buggy in front of the horse.

Why so many of us are willing to work for 1980 wages in this economy only goes to prove that we don't understand how business or money really works. If more of us would realize that the value of our services is directly related to the price of AN OUNCE OF GOLD, we would see just how cheaply we are working for. The mindset that the dollar a mile for a backhaul (BACKHAUL: A brokers play on words to get you to work for peanuts)
is OK in some circumstances is akin to shooting oneself in the foot on the promise that the blood and pain won't show up till next week. Its still gonna hurt like h*ll, just not today.

 

Why are they willing to work for peanuts? Because most, not all but most, company drivers can't make as much as they do in trucking anywhere else. Trucking is a bottom of the barrel industry. Like it or not, most people can do this job. Drivers work for what they're offered because it's still their best option.

The vast majority of O/O's don't make any more than company drivers do. They're in the same boat. They've invested their own capital to make company wages. If they can't figure that out they're probably not qualified to do much else either.

The small number of drivers or O/O's that could actually make good money doing something else, are probably not working for peanuts. The fact that rates are where they're at is a testament to how few of these types there really are. The peanut eaters far outweigh them.

 

You are correct, kotflb. I have made a few brokers speechless when I tell them what I get on a particular route. They give me a rate and then I tell them what I get or need for that run. Sometimes it works to get the rate up and sometimes it doesn't. The problem is there are too few who are willing to do that. There are too few who value the service they provide. For some of these cheap loads to fly off the loadboards these people cannot be negotiating on price. They must be just taking the first offer made just to move the truck. I never worry about miles. The more miles you run the greater your operating expenses. The more miles the quicker you wear out your equipment.