Thinking Of Becoming An O/O

Thanks for everyone’s input. Robert B. You got it. That’s the intent. To buy a truck out right (no loan payment) and signing on with a company. Because Home Time won’t really matter much since all the kids will be grown and gone and with the wife as my ride along partner we would be in a situation that we could run as much or as little as we choose. We’re in our mid 40’s with still having time on our side (hopefully) We want to be able to still spend time together and make enough to make ends meet. The plan isn’t to get Rich, it’s to be happy in life and make a little while we’re doing it.

Hey there Tony. As you've noticed, the vast majority here are opposed to it and for some very valid reasons but let's clear a few things up because I think some of the responses didn't completely understand your plan. Fortunately, the profit margin has increased in the last few years from around 3% to between 6 and 7% which is a nice increase but doesn't make it any less difficult in a competitive market. Leasing a truck from a carrier to pull their freight is a very dicey decision to make but that's not what you mentioned in your opening paragraph. Your intent was to purchase a truck and then lease it on (huge difference) with a carrier which is what the vast majority of owner operators do. The advantage is that you run under their authority, under their insurance (saves money) and gives you access to their fuel and maintenance discounts. That being said, it's still a difficult road to travel with plenty of stumbling blocks along the way.

My suggestion would be to start out on the company side so that you could be making money and learning freight lanes, rates etc and then after a while, if you still have that itch, at least you're more prepared and have gained more education into the markets you're potentially wanting to run in. Dry van is by far, the lowest paying freight. There's a ton of it and lots of competing companies fighting over every penny. The most successful folks tend to steer toward more specialized freight that pays quite a bit more and they don't have to run as hard. However, those folks didn't just jump right into it either. They built their reputation and in a sense, earned their way into that side of hauling. OOIDA has a ton of information regarding everything owner operator , including seminars, webinars and business classes tailored for the trucking industry. It would be your most valuable resource.

Hey there Tony. As you've noticed, the vast majority here are opposed to it and for some very valid reasons but let's clear a few things up because I think some of the responses didn't completely understand your plan. Fortunately, the profit margin has increased in the last few years from around 3% to between 6 and 7% which is a nice increase but doesn't make it any less difficult in a competitive market. Leasing a truck from a carrier to pull their freight is a very dicey decision to make but that's not what you mentioned in your opening paragraph. Your intent was to purchase a truck and then lease it on (huge difference) with a carrier which is what the vast majority of owner operators do. The advantage is that you run under their authority, under their insurance (saves money) and gives you access to their fuel and maintenance discounts. That being said, it's still a difficult road to travel with plenty of stumbling blocks along the way.

My suggestion would be to start out on the company side so that you could be making money and learning freight lanes, rates etc and then after a while, if you still have that itch, at least you're more prepared and have gained more education into the markets you're potentially wanting to run in. Dry van is by far, the lowest paying freight. There's a ton of it and lots of competing companies fighting over every penny. The most successful folks tend to steer toward more specialized freight that pays quite a bit more and they don't have to run as hard. However, those folks didn't just jump right into it either. They built their reputation and in a sense, earned their way into that side of hauling. OOIDA has a ton of information regarding everything owner operator, including seminars, webinars and business classes tailored for the trucking industry. It would be your most valuable resource.

Hey there Tony. As you've noticed, the vast majority here are opposed to it and for some very valid reasons but let's clear a few things up because I think some of the responses didn't completely understand your plan. Fortunately, the profit margin has increased in the last few years from around 3% to between 6 and 7% which is a nice increase but doesn't make it any less difficult in a competitive market. Leasing a truck from a carrier to pull their freight is a very dicey decision to make but that's not what you mentioned in your opening paragraph. Your intent was to purchase a truck and then lease it on (huge difference) with a carrier which is what the vast majority of owner operators do. The advantage is that you run under their

Thank you all so much for taking the time to respond and letting your opinions be heard. We really appreciate it!!

One more thing Tony...

Read Susan D's post four or five times and let it soak in - that was some great stuff she laid out. It was all on point, and it has the added value of experience behind it.

Absolutely appreciate it all. No advice better than the advice coming from the folks that do it day in and day out. We will continue to expand our knowledge so that we make an educated decision.

Just throwing this out there in case you didn't know, but most companies have a rider policy that would allow your wife to ride with you, even if your a company driver.

Thanks Rob. I didn’t know that. Absolutely something to consider.

Just throwing this out there in case you didn't know, but most companies have a rider policy that would allow your wife to ride with you, even if your a company driver.

Thanks for everyone’s input. Robert B. You got it. That’s the intent. To buy a truck out right (no loan payment) and signing on with a company. Because Home Time won’t really matter much since all the kids will be grown and gone and with the wife as my ride along partner we would be in a situation that we could run as much or as little as we choose. We’re in our mid 40’s with still having time on our side (hopefully) We want to be able to still spend time together and make enough to make ends meet. The plan isn’t to get Rich, it’s to be happy in life and make a little while we’re doing it.

Hey there Tony. As you've noticed, the vast majority here are opposed to it and for some very valid reasons but let's clear a few things up because I think some of the responses didn't completely understand your plan. Fortunately, the profit margin has increased in the last few years from around 3% to between 6 and 7% which is a nice increase but doesn't make it any less difficult in a competitive market. Leasing a truck from a carrier to pull their freight is a very dicey decision to make but that's not what you mentioned in your opening paragraph. Your intent was to purchase a truck and then lease it on (huge difference) with a carrier which is what the vast majority of owner operators do. The advantage is that you run under their authority, under their insurance (saves money) and gives you access to their fuel and maintenance discounts. That being said, it's still a difficult road to travel with plenty of stumbling blocks along the way.

My suggestion would be to start out on the company side so that you could be making money and learning freight lanes, rates etc and then after a while, if you still have that itch, at least you're more prepared and have gained more education into the markets you're potentially wanting to run in. Dry van is by far, the lowest paying freight. There's a ton of it and lots of competing companies fighting over every penny. The most successful folks tend to steer toward more specialized freight that pays quite a bit more and they don't have to run as hard. However, those folks didn't just jump right into it either. They built their reputation and in a sense, earned their way into that side of hauling. OOIDA has a ton of information regarding everything owner operator , including seminars, webinars and business classes tailored for the trucking industry. It would be your most valuable resource.

Hey there Tony. As you've noticed, the vast majority here are opposed to it and for some very valid reasons but let's clear a few things up because I think some of the responses didn't completely understand your plan. Fortunately, the profit margin has increased in the last few years from around 3% to between 6 and 7% which is a nice increase but doesn't make it any less difficult in a competitive market. Leasing a truck from a carrier to pull their freight is a very dicey decision to make but that's not what you mentioned in your opening paragraph. Your intent was to purchase a truck and then lease it on (huge difference) with a carrier which is what the vast majority of owner operators do. The advantage is that you run under their authority, under their insurance (saves money) and gives you access to their fuel and maintenance discounts. That being said, it's still a difficult road to travel with plenty of stumbling blocks along the way.

My suggestion would be to start out on the company side so that you could be making money and learning freight lanes, rates etc and then after a while, if you still have that itch, at least you're more prepared and have gained more education into the markets you're potentially wanting to run in. Dry van is by far, the lowest paying freight. There's a ton of it and lots of competing companies fighting over every penny. The most successful folks tend to steer toward more specialized freight that pays quite a bit more and they don't have to run as hard. However, those folks didn't just jump right into it either. They built their reputation and in a sense, earned their way into that side of hauling. OOIDA has a ton of information regarding everything owner operator, including seminars, webinars and business classes tailored for the trucking industry. It would be your most valuable resource.

Just a thought, instead of your wife riding along, why not have her get a cdl , drive team and that 3 weeks on 1 week off would be very doable.

I disagree. I've always owned my own equipment. Right up till I retired at the close of the century. Now it's not hard to surmise ,I don't know what the climate is like today. I stumbled across an article about Trans Am lease/purchase program. It said you get 80 some odd cents a mile if you do their lease/purchase program. I'll definitely ask,"how would you survive on those wages". Back when I was still driving,I had to have at least a $1.00 per mile to survive. So if Trans Am is paying those kinda wages for lease/purchase driver,yeah,don't do it. I'm pretty sure everything has gotten more expensive now. Here's one thing everyone has missed (I could be wrong though. I didn't read through all these responses). If you want to be a true independent ( on your own completely),you have to get authority to haul. Back in my day,you had to go through the ICC. I never worried here,cause I always leased to a company. From what I heard,you had to prove to the ICC,there was a need for your service. They may only grant you authority in a limited area. I knew 2 drivers back in the 70's . One had authority to run the Eastern Seaboard. The other ran the Southeastern states over to the Mississippi Delta area. They both made good money. They didn't have the luxury of the Load Board on the Internet. They had to use the Load Board at the 76 or TA. Maybe being an O/O today is not that good. I don't care if you want to start a landscaping business. Self employed is risky on a good day. Like I said,I don't know what the climate is like in trucking now. Back in the 70's and 80's,there were lots of O/O. The truck manufacturers knew this. You want proof,look at their ads from the 70's and 80's. Kenworth "Because an owner operator can't afford any less". Had a sweet looking W925 in the ad. Freightliner (after White). "If a man has the guts to go it alone,build him a truck tough enough to take it". Peterbilt. "Class:the alternatives seem hopelessly outdated". Had a really sweet looking 352H cab over in that ad. Point here is,every truck in these ads,were geared toward O/O. Not fleets. Maybe being solo today don't work. Find a friend you trust and run a sleeper team . I knew a few back then. They did great. Right before I leased to Hill and Hill,I traded my White Freightliner in on a 352 Pete. Paid a little over 66 for it. It didn't have all the bells and whistles,but it was O/O speced. Always made my truck note. Some months were tougher than others. If being an O/O is so difficult with no money,how do the guy who lease to Southern Pride stay afloat? Some of these guys have trucks that go in excess of a quarter million dollars (250,000). Top of the line KW or Pete. They'd have 190 to 200 inch ARI sleepers . Tell them you can't make money being an O/O. Back when I was driving,I ran across more than a few O/O that we're sinking . It wasn't because being an O/O was risky,it was because of themselves . I'd stop at the 76 or TA to fuel up and eat. I always say in the "on duty drivers" section (it kept me away from Ma and Pa Kettle and their heathen children). That section took priority of the other parts of the restaurant . These idiot drivers sat in that section too (don't know why. They weren't concerned with time). These morons were just concerned with beating each other to the next coffee stop. You can tell they'd been sitting there forever. Their dinner plate was empty of food and replaced with cigarette butts. I'd smoke maybe 2 cigarettes the whole time I was there. They'd sit and flirt with the waitress. Tell her lies. Their conversation always came are to one thing. I can't make this months truck note. Boo hoo. Cry me a forking River . Gee. Can't understand why you can't make your truck note. If you ever do follow through on being an O/O,don't do like those jagoffs. I've some married people say,"we're gonna have a family,but it's not the right time". Then I've heard other couples say,"there's never a right time to start a family". That's how I look at being an O/O. There's never a right time to it . For that matter there's never a right time to start any business. I met a driller back when I was running the Alaska Pipeline. He was Mr. Nobody like me. He was just another Floorhand. I kept in touch with him through the years. He and wife now own 7 rigs. He has 4 mobile rigs and 3 land based rigs. Think trucking is volatile. Try the oil industry. He said there were time they didn't know if they'd make payroll. They stuck it out. They're doing great. Remember . Free Enterprise is what makes this country great. If you want to be an O/O down the road,great. More power to you. Just make sure you understand the rules of the game. Take a course in accounting also. Trust me. It helps.