Hank's Truck Forum

Photography => Truck Pictures => WAR HORSE => Topic started by: coloradogreen on December 21, 2013, 10:17:16 PM

Title: Becoming an Owner-Operator (Part II)
Post by: coloradogreen on December 21, 2013, 10:17:16 PM
Well, I'm getting closer to putting this all together. For privacy reasons, I'm not going to be getting into the financing of the truck. That's for my own privacy, and parties involved. Suffice it to say, private financing.

Anyway, I've been running a lot of numbers later on the profitability of getting my own truck. Different types of operation, different areas of operation, so on and so forth. Insurance has proven one of the greatest costs. Naturally, as a new venture, insurance is going to be higher. As an agent put it rather succinctly, "the insurance company is making a million dollar bet that you won't wreck." That's a serious bet to make. But, after hunting and hunting, working with different insurance agents and what not, the quotes have become more reasonable, manageable with projected revenue per mile versus operational expenses.

Fuel has been another important point. It's simple, greater fuel mileage means a better bottom line. We'd all love to be working an 8 miles per gallon, but, frankly (Oso), this is unrealistic with current technology without an incredibly predictable and controllable route as well as payload, and equipment needs. I've been working much more conservatively on the projected fuel mileage. Different operations, as well as different trucks, the fuel has been calculated between 5mpg and 6mpg. All reasonably doable in my opinion unless the loads are exceedingly heavy, I'm always running the mountains, and the loads are irregular if I were doing open deck work. Of course, in those situations, one should expect higher rates-per-mile.

Which brings us to equipment. Until a truck is bought, I don't intend on getting much into what I plan on buying. For those interested, you'll just have to hold your breath and wait to see what I get. I will say, I'm looking at younger equipment, though not too new. As with most types of trucking, weight, workability and practicality in design and specs, as well as driver comfort, have all been considerations. Believe it or not, looking to some of the discussion in some of the "build-off" threads might prove useful for those who desire to take a guess at what I'm planning on buying.

A lot has to happen in the next few weeks to get this all set up and ready to go. Right now, I'm still hauling a lot of milk, in fact, I leave tomorrow and I may not be home till Christmas morning. Along with that, aside from a meetings with business folks, along with a great deal of paperwork, making an actual purchase, setting up contracts, articles of organization, etc. etc. all has to happen, as well.

You all might notice I'm being somewhat vague in all of this. That's simple: I like privacy, I don't want to reveal everything that I'm doing for my own sake. If and when things get going, more talk will happen and, all things going well and my plan proving at minimum workable, if not profitable, I can hopefully go into a little more detail. But, when business is good, you never reveal everything.

Mid-January though is my hope for when the truck will be purchased, and as shortly thereafter as humanly possible to have it up and running. After-all, once the truck is bought, it's got to pay it's way.

Hope everyone has been well. As far as what else I've been up to driving-wise, I'll have to do a massive update. There's about 20,000-miles you guys need to catch up on!

Title: Re: Becoming an Owner-Operator (Part II)
Post by: Oso2 on January 07, 2014, 01:28:55 AM
You know, I never even knew about this board before...

Anyhoo, if I might ask, what is your projected gross revenue? Per mile?
Title: Re: Becoming an Owner-Operator (Part II)
Post by: NHRS on January 07, 2014, 04:01:30 PM
Have no idea whatsoever how one calculates the needed revenue in this age.

Back in early times, if you grossed per mile, what fuel cost per gallon, you were okay. That also tended to compensate for inflation.

But, after de-regulation, far too many wantabe's ignored that, & only the very best have survived.

And, even driver-pay-purchasing-power has also suffered. In 1961, 1st driving-job, 4-axles, 60,000 lbs, nickel per mile. Drove that little HRF 180 20 miles to buy a nice 97-cent  truckstop hamburger steak, big pile of fires, little salad, 2 tea rolls, coffee included.

In 1989, as a hired driver again, I drove 7-axles, 400 hp, 97,000 lbs, 30 miles to get the same meal. No, 400 hp doesn't cover 30 miles as fast as a 180 covers 20.