Are owner operators actually broke or they just gate keeping
Posted by Different_Mousse_564@reddit | Truckers | View on Reddit | 116 comments
If you gross 7,000 per week without any truck payments and fuel runs you about 1200 then insurance is 450-600 per week then you pay for plates where is the rest of this money going?
Specialist-Bee8060@reddit
I know a guy who was an O/O and he said the expenses and fuel cost were too much. So he hung it up a few years ago.
Kaioken_khan@reddit
Bro who tf grosses 7k a week I’m an owner operator lucky to make 3k a week these days
AndromedanPrince@reddit
tanker dudes in the gulf are doing well. if im grossing 2k they gotta doing at least 5 if not more.
MADLUX2015@reddit
Your burning more than $1200 in fuel a week, a decent used truck is going to cost 60k+, your going to have a truck payment. Insurance isn't cheap anymore, not to mention fuel taxes, quarterly taxes, etc.
natkingcoil@reddit
Schneider made like 26 million on 1.4B in revenue. They have massive economies of scale with discounts on tires, fuel, repairs, new trucks, etc. a breakdown doesn't put them out of business (like a single truck o/o) and they pay drivers less than one would want to make as an o/o. Still their profit is a paltry 1.9% for q1.
Guys out here thinking it's a get rich quick scheme but for many (most?) it's a get bankrupt/ruin your marriage quick.
I made it for years but I think only because flatbed pays more.
Thepopethroway@reddit
The people making a killing are foreigners running illegally, using fake DOT numbers, and not paying taxes.
forkystabbyveggie@reddit
I'd kill if there was a country I could go to and do this shit. Unfortunately the US is the only one that makes it possible.
whitkneew@reddit
Yeah I wish our fuel bill was $1200 a week smh
LordBuggington@reddit
Do they not look at their receipts when I was driving when diesel was cheaper I was still spending like $700 every 2 days on fuel.
Fluffy-Caterpillar49@reddit
How? I think your lying.
natkingcoil@reddit
650 mi x 2 @ 7 mpg ~$4 diesel? Did you idle at all in there at 1gph?
Fluffy-Caterpillar49@reddit
He said when diesel was cheaper so your 4 dollar figure has to be way off. You have to figure it at sub 3.0
natkingcoil@reddit
Van freight is like 2/mile that's $6500. Also fuel has been around 4 for half a decade but I know all the old timers made bank in the glory days.
Fluffy-Caterpillar49@reddit
He said when diesel was cheaper... therefore cheaper than it is today.and it's like 3.50 average right now.
ValuableShoulder5059@reddit
Best truck I have owned or driven as far as reliability is a 90s to early 2000s international. Pick one up today for 10k.
easymacmac85@reddit
Dry vans and power only arent seeing $7k in 7 days. I could maybe see conestoga, step deck and reefers grossing that much or more. I run out of a ltl crossdock in the northeast going to FL or TX and gross $8-9k in 4-5 days. To California its about $11-12k in 7 days. Dispatchers at this place even have their own trucks loading out of there
LivingIntelligent968@reddit
Being an O/O is more than just driving, you need a financial plan, maintenance schedule , mechanical ability for small repairs, network of repair locations, accounting skills and the list goes on. Biggest issue once you get paid is making sure you allocate funds for future repairs. tires, on road expenses and the capital cost of the truck. It’s not for the faint of heart , there is no real downtime and you need a minimum of 3-6 months of expenses banked in case of a major repair or if you are unable to drive for periods of time due to illness or personal reasons.
Thepopethroway@reddit
Meanwhile LTL guys will net the same and don't do anything but drive
Different_Mousse_564@reddit (OP)
I called ABF Freight in Nashville Tn awhile back he was telling me how two of their road drivers were close to retiring. I asked when will a position be open for it and he said never never like he actually said it twice. Guess that might be the case for the rest of em
barre9388@reddit
Being an owner operator you aren’t profiting much bud. I’ve never met an OO who’s admitted they’re doing well, bc none of us are
Rough-Method8876@reddit
I average 6.5 mpg in an old pre-emissions truck. Fuel costs me more than $1200 a week. Try closer to $1500-$1600. Insurance breaks down to about $350 a week a truck. Maintenance every 12,000 miles is another $250 bill for oil/grease/filters. Miscellaneous parts maybe $150 a week. Then food each week of probably $200-$250. So all in expenses a week is $2400? Then plan for 30% off the top for taxes. So if you're grossing $7000 and take taxes off, you're left with $4900. Then subtract your $2400 in expenses and you're left with $2500 in profit after expenses to go in the bank. Not saying that's how every week or month works…because it varies. But $2500 a week in net profit is still $130,000 a year. If you add in a truck or trailer payment that number reduces to even less. Sometimes far less depending on the truck.
Rough-Method8876@reddit
That doesn't take into account a mortgage, family expenses or anything outside the truck. So this scenario isn't perfect. But it gets you an idea.
Mistresshell@reddit
Yeah but you pay those expenses with your salary that you pay yourself, not the gross profit of your business
Rough-Method8876@reddit
As a sole proprietor, all income is considered taxable as an individual. So unfortunately, whatever the business makes is passed through to the sole proprietor at tax time. So in short, all income is personal salary. Even if you don't take a fixed salary…that income is going to count as salary according to the government's view.
IntelligentCandy8716@reddit
I wouldn't do it as a "sole-proprietor." Form an LLC and hire a good accountant to do your taxes. There are things like asset depreciation that you can claim you lower your tax liability. Hell, your business can claim a net loss and you'd still be able to draw a salary.
Rough-Method8876@reddit
Oh absolutely. Technically I am a single-member LLC. However, for tax purposes the federal government a single-member LLC is the same as a sole proprietorship and is taxed as a pass through entity. Unless they choose to file as an S Corp or C Corp. But that muddies the water slightly. Most single-member LLCs near me file as a pass-through entity. It's just simple. And yes… technically you can operate at a net loss if you…know what you're doing and have a good tax person and accountant lol..
GTFOScience@reddit
S corp doesn’t “muddy the waters” it just splits up your income into 2 bucks. 1 bucket pays payroll tax and the other does not.
Both those buckets go into your bank account.
If you’re making 6 figures you should absolutely consider an s corp. An LLC has some benefits but from a tax perspective it’s quite limited.
Rough-Method8876@reddit
You are correct. I meant muddy, in the way that corps are different structures than SP or SM LLC for tax purposes. Not that it was necessarily more difficult or shady. Thanks for providing your knowledge.
GTFOScience@reddit
Take a closer look when you have time. The structures are the same, s corp is just a tax designation an LLC files with the IRS. I think the pdf was 2 or 3 pages and you mail it to them.
I’m a single member LLC as well.
Rough-Method8876@reddit
S corps do have advantages at tax time as you can save on taxes of distributions. But they do often have much higher scrutiny from the IRS than traditional LLC filings. However, if you're above board…an S Corp filing can definitely be advantageous. Thanks for your recommendation!!
ashdur17@reddit
Im also a single member LLC and dont actually take a paycheck for myself, all the money goes into the bank account, I transfer it to where it needs to go for bills, maintenance, "savings", etc. But I agree with lot of what you said here.
Rough-Method8876@reddit
This is exactly what I do too. But be careful. The liability protection of an LLC can disappear if funds from the business account go directly to pay bills for your personal life. But if you take that income and move what you need from your business account to your personal…it keeps the separation of “church and state”, to use a different turn of phrase. Stupid rules in my opinion but that's just the reality of how the system works. Smh. Thanks for your support!
RealSharpNinja@reddit
Anyone doing SP is an idiot on multiple fronts.
Rough-Method8876@reddit
Technically I'm a single member LLC. But for tax purposes, the federal government classifies sole proprietorship as the same as a single member LLC. I only mentioned sole proprietorship really for tax purposes as an LLC offers many many advantages over sole proprietorship.
RealSharpNinja@reddit
Yes, this is much more normal a statement.
tidyshark12@reddit
Why are you running a sole prop, though? $50 to start an LLC and anyone coming for your money can't get any of your personal belongings. Sole prop does not give you any protection whatsoever.
Rough-Method8876@reddit
Technically on my business paper work I am a single member LLC. However, for tax purposes…the federal government considers single-member LLCs the same as a sole proprietorship. They're both taxed as pass-through income. Meaning all income is the owner's responsibility as if it was their own personal income.
Rough-Method8876@reddit
Unless of course, an LLC chooses to file as an S corp or C corp. But that muddied the water.
Gullible-Syrup-6896@reddit
Are you suggesting company drivers can't have a mortgage or a family?
Rough-Method8876@reddit
No no, not at all. My scenario posted above is specifically for O/O. I was just saying that because I am a sole proprietor, all income is considered the owners at tax time. So whatever the truck makes is essentially “bring home earnings”. So if an O/O has $2500 in profit each week…you still have to take into account that that money isn't strictly profit. Some of it still disappears for personal expenses not listed in the scenario. Because the federal government considers all business income the personal income of the sole proprietor even if they don't actual use it for themselves in their personal life.
Gullible-Syrup-6896@reddit
I was just being silly.
ChiTruckDGAF@reddit
Where and what are you running that you're getting 6.5 mph?
Rough-Method8876@reddit
I run on the flat roads of the Midwest and have a B model CAT.
boogityshmoogity@reddit
Where does health insurance and disability insurance factor in? Those aren’t cheap and I rarely see them mentioned in O/O itemizations of expenses? What happens if you fall and break your leg and can’t drive for 6 months?
Rough-Method8876@reddit
To be honest, I pay for health care out of pocket. For one, while I was born with numerous health issues…in my adulthood, I've outgrown a lot of things that had bothered me in the past. Nowadays, I go to my primary care physician for routine check-ups a couple times a year and that's really about it. I try and live a healthy and active lifestyle and have been blessed so far to be relatively issue free in my adulthood. As for disability insurance? I rely on my nest egg built from years of work prior to becoming an O/O. I can pay my bills for roughly 12 months without feeling a huge hit. This was a major major goal of mine in my early twenties. To build that nest egg for a rainy day. Knock on wood that so far I haven't had to use it. I hope that is someone out there that can maybe shed light on this topic! I would be interested to know myself.
Ok_Internet_5058@reddit
Can’t you set it up so you pay your taxes after expenses? So instead of paying taxes on $7k you pay taxes on $7k-expenses, in your example $4,900?
Rough-Method8876@reddit
In general, sole proprietors are actually taxed on net income after expenses. However, it's always recommended practice to prepare for taxes as if you were paying for taxes on gross income just in case tax time comes and the bill is more than you expected. In the real world, the business expenses are often tax-deductible and help at tax time. But to get into what is tax deductible and what isn't would require a very long post lol. My scenario isn't perfect. But is kind of that rough sketch. But not a Mona Lisa.
Wide-Engineering-396@reddit
I work about 3 days a week, gross 3, clear about 2200 after fuel and what nots, no truck payment, I learned a long time ago, leased to a great carrier, My insurance is $160 a month bob-tail, comp etc, i ave 6mph on a 04 379 pete cat , i change my oil every month, cause i want too, usually close to 10,000 miles, i do all my own mechanical except over-heads ,
ChiTruckDGAF@reddit
6 mpg. Dang.
Wide-Engineering-396@reddit
Isn't that hard with the right tune and don't hammer on it
Afraid_Fix4130@reddit
$160 a month on insurance? How? That's about how much I pay for my car insurance let alone my commercial insurance and I have a perfect driving record.
Financial-Prize9691@reddit
Bobtail insurance is non commercial. The company he is leased onto pays the expensive stuff.
Wide-Engineering-396@reddit
Correct
TillPlayful@reddit
I have a 2000 freightliner classic with a detroit 60 series. At 67 mph I get 6.1 mpg. 1200 a week in fuel is a legend, like king Arthur or Atlantis lol
Capn_T_Driver@reddit
Some owner-operators are really good at what they do, and others are not.
A lot of O/Os talk mad game, but they’re wannabe super truckers.
Plenty of O/Os are one bad day away from collapse while plenty more are living comfortably.
It all depends on who you’re talking to, and whether or not you think you can trust what they’re saying.
I’ve been on both ends: lived large, made good money, things were easy. I’ve also been one big shop bill away from failure. Somehow, I’m still in business despite making a lot of mistakes along the way.
Main_Section_1641@reddit
Mind sharing the mistakes so others know what to look out for ? TIA
Capn_T_Driver@reddit
1.) I got cocky when things were good and as a consequence I wasn't ready when things got bad. Didn't save as much as I should have, spent more than I should have on frivolity, etc.
2.) My first truck had a proprietary engine, the Paccar MX-13. It was a great motor... until it wasn't. Lesson learned: only buy trucks with motors you know you can get serviced just about anywhere such as Cummins or Detroit Diesel.
3.) I took a bad deal on equipment: the trailer I bought was a overpriced, but I took the deal anyway because that was the best option I could find at that time. Had I waited another year, I might have been in a much better position overall. However, the trailer is almost paid off, so in the long run it will probably end up being a net positive. If I could do it again, though, I would have done things much, much differently.
4.) I waited too long to take care of some maintenance items that bit me pretty hard when they finally became unavoidable problems. Case in point: I had a NOx sensor start to go bad, but I delayed getting it replaced. When it finally knocked me out, it cost me five days waiting for my turn in a shop to get it taken care of.
5.) I didn't get the right warranty when I bought my first truck. I only had a one-year warranty instead of a three-year warranty, and that could have saved me a ton of money on a couple of service bills.
6.) I waited too long to learn about fuel cards and their associated discounts. Had I gotten my own fuel card right off the bat, I could have saved anywhere from $6,000-10,000 in fuel expenses my first couple years, which would have been HUGE when diesel was up over $5 and $6 a gallon in the areas I was operating in.
Those are some of the highlights.
Mindes13@reddit
Not trying to maximize MPG by idling excessively, buying the wrong specd truck and other things.
1morepl8@reddit
46k rears and 4.13 gears to run dry van? 😂 Cause I've seen that shit so often.
CakewalkNOLA@reddit
One of the most common mistakes- gadgets and chrome don't pay the bills. They're cool, but they take from your bottom line. Another really simple one is trying to skimp on maintenance costs by going the cheapest route. Your truck is your living, why would you risk it?
1morepl8@reddit
My dad was an o/o and when I was buying my first truck. "kid what payment are you paying first? Mortgage or truck payment? Cause it's the fuckin truck payment. Now the truck is always first."
twistedfister1990@reddit
Spoken like a trooper
Afraid_Fix4130@reddit
I'm a O/O and have been for the last decade, expenses like insurance, repair, parts etc have gone up by a lot and load prices have stayed at the same level as 2012 if not less. I know drivers making more then I do. Personally I'm gonna be shutting down early next year since it's not worth it anymore
Tart-Resident@reddit
I used to be an o/o with Schneider hauling tankers and did pretty good. The main thing is knowing how to do your own maintenance. Change your own oil and grease and do your own brakes. You will save a fortune.
Afraid_Fix4130@reddit
I already do all my maintenance, tires, brakes, oil changes, etc. If I didn't I would have gone bankrupt a while ago. Thing is prices of all these parts have increased significantly. Load prices simply haven't gone up while all other expenses have. Not to mention increased costs due regulations and compliance. I was comparing rates from the last 3 years on my loads and 2012-2018, and I'm making roughly the same per mile or less with higher costs.
Thepopethroway@reddit
It's very demoralizing. I got co-workers who were former O/Os that weren't making money anymore. They went into LTL as company drivers. Their own trucks just sit at home now.
Desperate_Style1547@reddit
Sounds to me like owner operators across the country would need to strike or stop accepting loads that haven't increased their pay to match the inflation drivers feel. It doest seem worthwhile to do these loads if your just going to be broke afterwards. All that time and investment and you were probably better off working some pos 9-5 job that pays 24 and hour
Thepopethroway@reddit
Some of the rates are terrible. Ukrainians/Russians running on illegal logs and not paying taxes make it difficult for you to compete.
But in other ways, O/Os I've noticed seem to generally just be bad at money management. Not keeping a backup fund for repairs. Not distinguishing between gross/net, etc.
The ones that I see doing good are all in specialized hauls.
Financial-Prize9691@reddit
The average O/O isn't making 7k a week right now.
ValuableShoulder5059@reddit
I pulled in $1800 yesterday after wasting an hour looking for my wallet and 2 hours on a tire. And I slept in my own bed at home.
Financial-Prize9691@reddit
Ok, what do you want a cookie?
ValuableShoulder5059@reddit
No, I want the $400 I missed out on. But yes, yesterday was just a lil better then average.
Financial-Prize9691@reddit
Ok, nice flex, I guess. How does this answer the OP's question? Did you just feel that it was important that everyone knows you are a super trucker and get mad money? Is this a dick size thing that I don't understand?
ValuableShoulder5059@reddit
I was just making an example you can gross well over $7000 per week... My typical gross per truck runs about $4,000-$4500. Of that about $1000 for fuel. $1500 to the driver. $500 towards insurances (including employment costs like workers comp). Leaves $1000-$1500 to the truck & trailer which is well below industry average cost of about $2000 per week. But I do most of the work myself, pre buy parts off Amazon, and keep tools on the truck for emergency repairs.
Financial-Prize9691@reddit
Yes, that is what I was trying to get across to op. My average truck Is 5800 gross for the year. I don't run particularly hard unless there is real money to be made. I have 4-6 weeks a year I hit 10k plus but this particular week I'm only going to hit 3.2 k and I'm just sitting around on Reddit.
From what you posted, you understand it's not how much you make, it's how much you keep.
To answer the OP there is a difference between an O/O that does his own maintenance and light mechanical and the one that takes his truck to shop for every little thing. I had a former O/O that insisted on having a dispatch service that charged him a 10 percent, he also had his Loves Fleet Card that gave him $0.15 a gallon of of fuel, because he liked Loves. I tried to get him to switch to my discount card program which gave me 15% discount and he flat refused to even look at the numbers. $0.15 off of $4.00 gal fuel is $3.75 a gallon, 15% is $3.40 a gallon. Well he liked Loves. 3 years later I have a small fleet and he is out of business.
ValuableShoulder5059@reddit
I buy fuel wherever it's cheapest or closely reasonable to. I haul bulk so I purchased a light tractor and trailer. I'm almost 4,000 lbs lighter then some of my competitors, so I haul 8% more legally - free money. I also take the scenic route often. Van guys fret about a hundred pounds off on an axle... Try 14,000lbs over... (that one was accidental, but 🤑)
Meowuth@reddit
what's the overhead
Financial-Prize9691@reddit
It's hard to put a number out that you can use, there are so many different types of trucking. On the truck I drive, Dryvan, in the south (great fuel prices), super regional, driving 9 months a year:
2023 145k 2024 146k 2025 130k est
Maint Account: 20k
Company still owes me 20 k from start up.
Meowuth@reddit
I seen another commenter say that the net profit might be around 2500 a week...
Does that sound about right maybe give or take $500
Financial-Prize9691@reddit
Understand I am not trying to show off. I'm just giving you info from my personal experience. There are tons of O/O that work harder or smarter than I do. I am not killing it out here.
Driver pay comes out of profit as an expense if you are running a business and that also includes my employer side taxes. I pay myself a W-2 so that is taken out quarterly. I have a set salary regardless of what the truck makes.
I think that is a good number. In 2023 I think I was only 1600 because I was still making payments. Remember, as an O/O, just because you are not driving doesn't mean you are not working. I only drive for 9 months a year, but I work for 11.5 months a year, I do all my own light mechanical, accounting, taxes, etc.
Meowuth@reddit
Thank you for that insight,
I'm 33 with good credit, I've got about 8 years experience so it'd be worth it to get payments on a truck and give it a try.
I don't think I'd have an issue with any of the logistics or accounting side of handling business but my gut is telling me that the market environment right now might not be the best.
Or maybe not very forgiving especially for someone like myself trying to start out.
your thoughts?
Would now be as good as any other time to try and start out, and there's always going to be that risk involved.
Or is the market right now really not a good time to try and start out
I appreciate your time
Financial-Prize9691@reddit
Apparently I hit the Reddit limit with my reply so I'll try a shorter answer.
There is always risk. There is never a good time to do anything. If you wait for the "right" time you will never start. Plan, asses risk/reward and then decide whether to do it or walk away.
I recommend starting with OOIDA's spreadsheet on trucking expenses to help you make your decision. You need to know how much you need to make a mile, a week, and a month. You need to calculate your fixed and variable costs.
Meowuth@reddit
thank you, I'll give the spreadsheet a gander 👀
Financial-Prize9691@reddit
Oh, just a thought. When you're calculating your expenses don't calculate your income over 12 months calculated over 11 or 10 and your expenses over 12 months. That way you will still have breakdowns and unexpected events covered.
Illustrious_Crazy491@reddit
35% of profits or more into a savings account for breakdowns or maintenance. Tires and unexpected failures cost alot, it costs more to be out of service.
illdoitlaterokay@reddit
This is how bad its gotten just in a few years. When i started I'd be crabby if i only made 7k for the week.
Q7017@reddit
Highly depends on what they pull and what contracts they have or don't have.
An OTR owner-op with a van/reefer is going to have a very different experience and income than an owner-op with a hazmat tanker and dedicated contracts.
smtwn829@reddit
Permits, maintainence, app subscriptions for jobs, food on the truck, home payments, spouse, kids.
Antony9991@reddit
Home payments, spouse, kids are personal expenses..
StolenRage@reddit
They still have to be covered by what the O/O is bringing in.
pseudoexpert@reddit
But that’s true for any job, O/O or not
ursisterstoy@reddit
Fuel definitely costs more than that. It’s one of the biggest expenses.
RedlineM5@reddit
You can't run general freight imo too much competition. I do something specialized. The carrier I'm leased onto has good fuel discounts. My truck averages 9mpg. I think it really depends on the O/O. Some people just aren't cut out for running a business. I know O/O that are barely scraping by and guys killing it.
Chiknlitesnchrome@reddit
I have no idea where you’re only spending 1200 a week in fuel. You driving a hybrid or what? lol 😆
RedlineM5@reddit
I average that a week in fuel. I have a 2023 Cascadia. I average 9mpg.
lovemesometitties69@reddit
I run containers out of Baltimore and once a month for about 4 days i do flatbed locally for the same company. We run about 150-200 miles a day or less. I spend like 150.00 a day on fuel and do 5k a week and when i do the flatbed along with the containers i do about 7k (when i do flatbed its about 100.00 a day on gas because we're running really short distance).Before i had my own authority my insurance was 300.00 a month but now i have my authority and it's 1200. Truck note 2000.00 a month. You see problems when you spend what you make. Then you blow your transmission clutch and there goes 5k easy. Rates are terrible right now stay local. When covid was around people made hella money otr 🤷🏿♂️
BlackImpulse_@reddit
Owner ops are not averaging $7,000 gross per week right now, unless they run dedicated freight that they have been committed to for a while. And even then, customers are often looking to save a buck. Nobody is “killing it” right now. Some specialized freight contracts are probably a bit more safe from being bid out cheaper. But general freight, it seems as soon as you get to a point where the freight becomes comfortably profitable, someone swoops in cheaper.
If running the spot market right now and you were averaging $7,000 per week, they are likely putting a lot of miles on the truck. So you’re either looking at a newer truck with a high payment, or an older truck that’s going to have a lot of maintenance costs (and likely not great fuel economy) running a lot of miles.
Insurance isn’t getting any cheaper. Tags, ifta, 2290, elog payments, trailer payments & repairs, paying % to a company if they are leased on, possibly paying for somewhere to park the truck, they may pay for their own load board subscription(s), owner ops have to worry about saving for taxes, etc. most of the time when you own truck(s) it feels like the whole industry is standing with their hand out
It is possible to make a decent, maybe even a good living as an owner op driving your own truck. It takes financial discipline, and being in the right situation.
ValuableShoulder5059@reddit
I'm 50k in debt. 35kish accounts receivable. 2 trucks, 2 trailers. Yes, I'm paying some interest at 11% on 20k of that.
Parts and shop rates kill. Truck dealerships are the worse.
Individual-Dark-5022@reddit
I ain’t broke. I’m making good money but then again I don’t have a wife for children so there’s that also I’m good with the business. I went to school and got my masters in business and finance so I’m filled with like all that stuff. I don’t know if that matters or not, but I make good money.
Jumpy-Tale2697@reddit
The education and being good with money makes a huge difference. People in this industry are not good enough with business and that’s why so many fail… it’s sad but it’s the actual truth
Moist_Tortoise@reddit
If your gonna become an O/O try doing local instead of OTR
Different_Mousse_564@reddit (OP)
That’s my goal it’s just the money today never seems to make any sense man
Zanurath@reddit
If you are grossing 7k a week you are running hard in current market and getting good paying loads fuel cost will probably be around 1800 or so per week at LEAST. Insurance if you have a long and perfect record is still at least 1500 a month to maintain the limits required by most shippers and brokers. Then you have to set aside at least 500 a month for just maintenance without breakdowns (spread the cost across the months to see how much its actually costing you compared to earning you).
You are also making a HUGE assumption on the no truck payment. Old cheap trucks do not run very well and there is a reason big fleets get rid of them when the down time and repair costs are losing more money than the truck payment which is not a small amount of money. A not beat to shit truck will run you a good 60k at least with a minimum 2-2.4k a month payment on excellent credit with current rates. Even then you have to set aside money for repairs because that's just the business so another 1k a month set aside.
So let's run that math, very optimistic 7k a week gross with 3 on 1 off is 21k a month gross, from that we subtract 5400 for 3 weeks of fuel, 1500 for insurance, 500 for maintenance, 2400 for truck payment, and 1000 for repairs. Leaves you with about 10k after basic expenses and I left trailer payment off of here.
10k a month sounds great until you realize that 7k gross a week is someone showing you their best week from 3 months ago. They are not showing you how next week from that they got 3k for the week because most O/O are either tied to a company or using brokers and have no reliable income at all. Throw 2 of those 3k weeks into a month where you still worked hard but couldnt get the great loads and suddenly its 2k gross for the whole month.
At the end of the day being an O/O is ONLY worth it if you have personally know someone who is shipping out material and you are running their freight for them. If you are working under a company you are not an O/O but just a worker who got suckered into taking on risk. If you buy a truck and try to run off load boards you will make more money getting rid of the equipment and just working as a driver for the same hours.
Different_Mousse_564@reddit (OP)
This makes sense
xDoomKitty@reddit
Idk why you think grossing $7k a week on only $1200 in fuel is normal or common.
Different_Mousse_564@reddit (OP)
Your right 😂
RappingRacoon@reddit
Bro I’ve seen the checks 😂 they’re not gate keeping shit .
Emotional-Payment430@reddit
Unless you’re really specialized, you gotta work with the rates. You can’t be spending money on real fancy trucks you gotta turn some wrenches. You have to understand the business side and taxes. Please when you’re having a great year, put the money back cause you’ll be lucky if you get two good years back to back before you have a major repair. Also look at your address are you in a high cost of living place? As a truck driver you should be able to easily move and save that cost of living.
Mindless_Pandemic@reddit
I know too many poor O/O who are now slaves to the truck to repay all the loans to keep fixing the thing.
altaccount90z@reddit
Yeah, many people lack understanding of this part. Not just loans, maintenance cost can eat you alive. I worked with an O/O, and the man finally was telling me he had finally been in the green after paying for new tires ( $6,000), not to mention his insurance and tractor payment, and paying to have the company name on his truck. Well, anyways, as he's going on about how amazing it was to be an O/O and the "freedom" he claimed to have, his DEF system shit the bed while we were in the Eisenhower tunnel in Denver. That bill for the tow alone to the shop was a few thousand dollars. Plus the work on the truck and hotel cost, he ran himself into $20k+ in debt and went on about how he can't ever tell his wife he had to keep all his money in some PayPal account if I remember correctly because of how much debt he had.
People need to understand luck plays a huge role in trucking. Trucks can break, contracts can end, Diesel can go up and shit weather can throw you into a negative week and the bills don't stop either.
Mindless_Pandemic@reddit
One of my guys bought a used truck and within a month the engine ate itself. He had to get a loan for what he just paid for the truck to get a reman engine installed. He might as well had bought new truck for what he now owes in debt for everything
MediocreAd9550@reddit
They might be gatekeeping from their perspective. If you're an O/O and truly want to make money, the only way is to be more than just a driver or any other singular skilled trade person. The more money you spend out for someone to do something for your business, obviously it's going to hurt that bottom line. The real money is made when you seriously track every penny.
TruckerBiscuit@reddit
Hell no. I make good money as an O/O driving for Prime but folks don't want to hear that around here. Discounted fuel, insurance, service + contract freight. I'll probably make $4k this week after expenses before taxes, based on what I have on the books already and my next load (probably the last I'll get in before the Weds cut off).
O/O isn't easy obviously but you've got to be smart about it. I'd make more this week if I wasn't in Florida right now having to haul shit-paying outbound freight.
ResidentComplaint19@reddit
For me, repairs wipe out a huge part of profit. Just a pm is anywhere from 600-1000 every 2-3 months. I can always do things myself, find cheaper parts of if I order after market, but I’d much rather be back on the road in a day or 2 so I’ll end up dishing out 3500 for a clutch actuator or 1200 for a fucking nox sensor because I don’t have the software to clear codes.
Extreme_Environment8@reddit
I work 4 months per year during harvest and can easily add 80k to my savings account
illdoitlaterokay@reddit
It depends on who the o/o has for customers. If they have stable work then its whatever some make more some make less. If youre maxing out your risk taking on loans and credit cards to pay fuel and repairs while taking scraps on the spot market youre likely to fail or at least have a very very rough go of it until you can break even, possibly years later. And thats not even bringing in the biggest risk which is the eventual lawsuit.