Questions About Prime Leasing

the gold star driver would be ahead of the curve and could be profiting much better than the averaged amount [of] 3%

Correct. But how much more than 3%, right? That's what you have to determine. What's the profit potential for this business and how close to the potential can I come?

So say you're talking about one seriously kick *ss driver like Guyjax who has been driving for 16 years, is seriously ambitious, leased a truck twice, and did it as successfully as it can be done. What is he doing today? He's a very happy and well paid company driver who enjoys his job and gets plenty of time off. He could probably lease 1000 trucks if he wanted to. But after getting the most out of it he could, and that included running team full time and taking virtually no time off ever.....it simply wasn't worth it in the end. Otherwise he'd have 10 or 100 trucks right now. He's certainly capable of it. He knows both sides now and chooses to remain a company driver.

Starcar and her husband owned a truck for years and years and she can hardly come up with the words to describe how happy they are to finally be out from under that burden.

So even if you're on the level of Guyjax and Starcar and things go really great for you you're still only going to make a single digit percentage more as a lease driver/OwnerOp than you would as a company driver. A profit margin under 10% in an industry with high capital requirements, a lot of physical and financial risk, high litigation risk, a CDL to maintain, and no way of differentiating yourself from the competition seems way too risky to me. There needs to be a lot more upside than a few percentage points. Heck, I can cut back on my eating expenses or sell bumper stickers in the parking in my spare time lot to scrape up an extra 5% if I wanted to. Heck, a 6th grader could probably come up with five ways a company driver could increase the money they have left in the end by 5%. You don't need to lease a big rig and start your own company to do that.

So I'm not saying you'll go broke if you lease. You might, you might not. But what I'm saying is your upside potential is so limited it's not worth it. If you want to drive a big rig then be a company driver. If you want to be a business owner, find a business that gives you a tremendous opportunity to differentiate yourself so you can charge a nice premium for your product or services. You want to create big fat profits for yourself, not big fat bills and headaches. We all have plenty of those already!

And now here is Redgator's 2 cents Everything isnt for everybody. And sometimes it is. While leasing may work for Robert it may not work for others. I think basically what all of these long winded post are trying to do is warn the rookies (remember those? The impressionable sponges that visit us to gain insight and knowledge as to which direction they should go and ultimately the reason for this sites existence and why all of us experienced drivers take time out of our busy lives just to be here for. Yea those rookies) not to jump right into that. Because quite frankly not everybody has a good business sense! Now me personally I am not a risk taker. I wouldnt do it. Well unless I met a tall 6'0 175-220 fine specimen of a man with a great smile, awesome personality that had a diesel mechanic license and a CDL A Then hell yea sign me up but til then I like being company. Cause hey this girl right here aint changing no light bulbs lol Its alot of work being an O/O. Too much for me. But it isnt for Robert and 100s of others like him. Some suceed and others fail. We can all go back and forth and this thread can have 100 pages but ya know what at the end of the day you are all fighting a losing battle. No one is right and no one is wrong! PERIOD! So can we all hold hands and sing a happy song? .

And now here is Redgator's 2 cents Everything isnt for everybody. And sometimes it is. While leasing may work for Robert it may not work for others. I think basically what all of these long winded post are trying to do is warn the rookies (remember those? The impressionable sponges that visit us to gain insight and knowledge as to which direction they should go and ultimately the reason for this sites existence and why all of us experienced drivers take time out of our busy lives just to be here for. Yea those rookies) not to jump right into that. Because quite frankly not everybody has a good business sense! Now me personally I am not a risk taker. I wouldnt do it. Well unless I met a tall 6'0 175-220 fine specimen of a man with a great smile, awesome personality that had a diesel mechanic license and a CDL A Then hell yea sign me up but til then I like being company. Cause hey this girl right here aint changing no light bulbs lol Its alot of work being an O/O. Too much for me. But it isnt for Robert and 100s of others like him. Some suceed and others fail. We can all go back and forth and this thread can have 100 pages but ya know what at the end of the day you are all fighting a losing battle. No one is right and no one is wrong! PERIOD! So can we all hold hands and sing a happy song? .

What she said ... except for the part of meeting a 6'0 175-220 fine specimen of a man.

but ya know what at the end of the day you are all fighting a losing battle. No one is right and no one is wrong! PERIOD!

Interestingly enough I don't think it's a losing battle. Really, it shouldn't be a battle. I'd say a healthy debate is a huge win for everyone. That's how ideas get put to the test. If you think you have a great idea, throw it out there for the world to scrutinize and see if it holds up.

And I wouldn't say no one is right or wrong. Facts are right, by definition, and people should try to use facts to back up all of their opinions. Incomplete facts, assumptions, or heresy is wrong in this sort of debate. This isn't philosophy or art - it's business. It's about profit and loss. So there is definitely a right and wrong and at the end of the day it will show up clearly on the bottom line.

Smart business strategies make logical sense. They should hold up to tight scrutiny.

I'm trying to get this debate back on track and see if others can throw some facts on the table to add insights into what we have so far. I love the business world. I love debating business strategies and analyzing why businesses succeed or fail. I watch shows like "Ramsey's Kitchen Nightmares", "Shark Tank", and "The Profit" all the time because I'm dying to learn more about what makes businesses and the people who run them successful or not.

What I'd really like to hear are some sound business strategies from those who are leasing or considering it. Raw numbers. Differentiation strategies. Opportunities you think you can take advantage of and ways you'll avoid the mistakes that have caused others to fail.

Why do others fail? Do you have numbers, reports, or studies to back that up?

What are your biggest strengths? Are they enough to overcome the hurdles that have caused others to fail?

Try to back up every statement with hard, cold facts.

Let me tell ya - for those who haven't competed in the business world, it's cut throat. I promise you will have competitors that jump out of bed at 3:00 a.m. seven days a week and the first thought they have is, "How can I bury my competitors????" They will show no mercy. They don't want you to exist at all. They don't feel the pie is big enough to share a piece with you or anyone else.

Most of us have had jobs all of our working lives. Few of us have run businesses. The first time we get into business we think owning a business will be kinda like having a job except you're the boss and you get to tell others what to do. You buy a restaurant so you can eat all you like and have others make the food and clean up after you. You buy a bar so you can drink all you want with your buddies for free. You buy a big rig so you can drive it where you want to, when you want to, and make the big bucks doin it - all the time lookin smooooth rollin down the highway.

The part that people get blindsided by is the intensity of the competition.

We're not used to competing at work. We go in, do what we're told, and go home with a paycheck. We don't go to work wondering who is going to try to get us fired every single day. Can you imagine a workplace where management gave gigantic bonuses to anyone who could get someone else fired or make them quit? It would be a lion's den! Everyone would be at each other's throat! Well that's exactly what the business world is. It's kill or be killed. And you'll be going up against the most intelligent, well educated, competitive, aggressive, and experienced foes out there. People with 10 times the money, education, connections, and experience you have.

So how are you going to compete? How are you going to beat them? In the trucking world those types will often average about a 5% to 7% profit margin. Can you do better? Is it worth risking your financial life to try to beat them at their own game, knowing the potential for winning is only a few percentage points better than not taking any risk at all?

If your answer is, "H*ll yeah!!!" then go for it! It might work, it might not, but you definitely have the temperament to be a successful business owner. But temperament won't be enough. You have to have the smarts also. Your competitors aren't just ferocious, they're intelligent and experienced. They've seen a million new competitors try and fail. You're just the next in line to take a shot. You have to be able to withstand their best shots time and time again. And you can be sure they're not going to quit competing that way until you're eliminated from the business world completely.

I love a challenge. I love an adventure. I love to learn. I hate doing things where the outcome is certain. I enjoy taking risks. But I choose my adventures carefully. I don't take risk for the sake of taking risk. I want the reward that comes with it. It needs to be well worth it. There are as many business opportunities as there are ideas in the universe. You have the freedom to go in any direction you like. Make sure your choices make sense. Make sure they accomplish something big for you - something worth the risk.

I find it funny that people are making comments on this thread and have no idea what they are talking about. I believe this post is about primes leasing program. How many leases have u done Brett? Because quite frankly you have no idea how Primes lease is. You talk about the bonus money they give you for signing a lease and you constantly mention miles. I'm lease operator. Miles don't mean anything. It's the revenue that matters. And you don't get a bonus for signing a lease. So once again unless you have done a lease through prime then I doubt this thread means anything to you.

Everything I have said I have backed up with proof of how you can be successful. I'm still waiting on yall to say something based on fact about why leasing from prime is bad because everything I have seen has been based off of opinion.

Everything I have said I have backed up with proof of how you can be successful. I'm still waiting on yall to say something based on fact about why leasing from prime is bad because everything I have seen has been based off of opinion.

Have I met you before? Be honest. I have my suspicions about who you are.

I find it funny that people are making comments on this thread and have no idea what they are talking about

I find it funny you signed your financial life away and can't come up with anything better than mocking me. How about something like your unique business strategy, differentiation strategies, business advantages, or anything of that nature? How about the facts & figures I was hoping to see? Or maybe you feel you have a better chance of successfully mocking me than you do proving your theory about leasing a truck?

Here's a challenge to anyone who is up for it. A person with a sharp business mind:

Have you seen the show "Shark Tank" where entrepreneurs try to convince billionaires to invest money in their company?

I want to hear what you would tell an investor on Shark Tank if you were looking for them to put up a $100,000 bond and become your partner so you could lease a truck today. How would you convince them to become your partner? What would you say to convince them that you're going to turn a worthwhile profit so they can make money their money back and then some? What numbers would you present to them? What strategy would you present that would set you apart from the competition?

Remember, these investors don't know squat about the trucking industry. Couldn't even tell you how many wheels are on an 18 wheeler. But lo and behold they did scrape up a few facts. One of the Sharks says to you,

Driver, I think this is a crazy idea. The trucking industry has a 3% profit margin. The costs are astronomical, the litigation risk is high, it's a dangerous job so the physical risk is high, you could lose your license, you could come down with an illness (diabetes, epilepsy).....I don't know Driver. It sounds too risky to me. How do I know you're going to turn a nice, reliable profit for years and years to come so I can make money on my investment?

Now I'm hoping you won't say:

I find it funny that people are making comments on this plan and have no idea what they are talking about

You're going to have to do a whole h*ll of a lot better than that to get someone with a sharp business mind to cut you a check!!

And for fun, think about this....maybe you're already swimming with Sharks? I mean, a company just convinced you to go into business for yourself. You're now leasing a truck from their truck leasing business and hauling freight for their freight brokerage business. You're now a customer of theirs and they're turning a profit off of you. How do you know they didn't just dump the unprofitable and risky parts of the trucking business on you (owning trucks and hauling freight) while keeping the less risky and more profitable parts for themselves (freight brokerage, logistics services, leasing, reselling parts & service, reselling insurance)???

Because let me tell you something - a smart business owner never gives up a worthwhile and profitable business opportunity. Making money is too d*mn hard to pass on it. They expect every transaction they make will ultimately lead to better profits. If a trucking business doesn't want to own and operate their own trucks you better believe there's a d*mn good reason for it. They're certainly not redirecting their profit streams into your pockets out of the goodness of their big wonderful hearts. Though I must say their marketing people can be awful convincing.

Maybe I'm wrong, maybe I'm right. It's your job to convince the sharks I'm wrong. Convince them that helping you lease a truck would be a solid business investment for them.

Ok, who's gonna present their idea to the Sharks?

I'm still waiting on yall to say something based on fact about why leasing from prime is bad because everything I have seen has been based off of opinion.

My friend....if this is an example of how "observant" you are, you're in real trouble. I've given a ton of facts:

1) The profit margin in the industry is 3%

2) Everyone hauls the same freight from the same companies using the same trucks, same fuel, and under the same laws. Therefore it's nearly impossible to differentiate yourself

3) Here's some more facts - there are approximately 3.5 million trucks in the nation. 97% of all companies have fewer than 20 trucks and 93% of companies have fewer than 6 trucks. If there's so much money to be made owning a truck and hauling freight, why are there over 1 million tiny companies instead of a handful of big ones? Why can't anyone grow their fleet at a respectable pace consistently even after 50, 60, 70 years in business?

4) Here's another fact - companies are leasing you a truck because they don't want to own, operate, and maintain the truck. Why? Well why do businesses exist? To make money! So if a business doesn't want to do something, it must not be making them a worthwhile profit. So they'll let someone else do it while they keep the more profitable parts of the business.

Seriously Robert....give me something with substance.....a convincing business point for leasing a truck. I don't want to hear, "I already told you" or "You don't know what you're talking about". I want to hear what you'd tell an investor who was interested in becoming a business partner with you. The man is sitting here ready to cut you a check. All you have to do is convince him he'll get his money back and turn a profit from allowing you to lease a truck.

Once again this thread is about Primes lease. Not the industry as a whole. So Brett, your "facts" need some work more geared toward Prime specifically. I don't see how anyone can critique something in which they have not done. You might have heard things from other drivers about Primes lease but you have no idea how they ran their business. You can't take one persons opinion about something and automatically assume that's the way it is. If I believed everything I heard about the trucking industry I would've never came to the business in the first place.