All Those O/O's Making "so Much Money"

Topic 25004 | Page 1

Page 1 of 2 Next Page Go To Page:
Mouse's Comment
member avatar

Saw this article today about owner operator income hitting a record high income in 2018 at an average of $65k. That's up from $60k in 2017. The expectation is that 2019 will return to more "normal" levels since last year had such a high demand.

https://www.overdriveonline.com/owner-operators-reap-record-earnings-in-2018/

Also, I bet that the median is even lower since probably a handful of drivers moving highly specialized cargo (and therefore able to charge a premium) are probably driving that average up.

Hmmmmm, that really isn't more than company drivers. Heck, there are plenty of experienced company drivers that probably rival or beat that number. And we don't have all the stress of truck payments, repairs, losing money hand over fist every second we aren't rolling, etc. Yep, I think I'll stay in my nice company driver job. :D

Owner Operator:

An owner-operator is a driver who either owns or leases the truck they are driving. A self-employed driver.

Tractor Man's Comment
member avatar

That is one of the first times an article referenced a solid realistic number for O/O pay. They usually use nombers like $260,000.00 per year. Lots of people do not know that GROSS number is nowhere near net pay. Owner operators have HUGE overhead. Just think about the price of fuel you use as a Company Driver alone!

Owner Operator:

An owner-operator is a driver who either owns or leases the truck they are driving. A self-employed driver.

Rainy 's Comment
member avatar
Mouse's Comment
member avatar

O/O Reap Record Earnings 2018

Thanks Rainy! I know I'm young and therefore everyone expects me to inherently understand technology but honestly most of it goes right over my head. Things never work the way I expect them to!

Solo's Comment
member avatar

That is one of the first times an article referenced a solid realistic number for O/O pay. They usually use nombers like $260,000.00 per year. Lots of people do not know that GROSS number is nowhere near net pay. Owner operators have HUGE overhead. Just think about the price of fuel you use as a Company Driver alone!

That's one of the metrics I'm tracking to compare my first year, the amount of fuel I'm costing my company.

They take 25% off the top to cover their operating expenses, then I get my % of the remaining Rev TTT...but I swear, we're authorized 250 gallons a day, and I'm starting to believe I live at fuel islands. These company margins have to be paper thin at times.

Owner Operator:

An owner-operator is a driver who either owns or leases the truck they are driving. A self-employed driver.

Solo's Comment
member avatar

double-quotes-start.png

That is one of the first times an article referenced a solid realistic number for O/O pay. They usually use nombers like $260,000.00 per year. Lots of people do not know that GROSS number is nowhere near net pay. Owner operators have HUGE overhead. Just think about the price of fuel you use as a Company Driver alone!

double-quotes-end.png

That's one of the metrics I'm tracking to compare my first year, the amount of fuel I'm costing my company.

They take 25% off the top to cover their operating expenses, then I get my % of the remaining Rev TTT...but I swear, we're authorized 250 gallons a day, and I'm starting to believe I live at fuel islands. These company margins have to be paper thin at times.

Just did the numbers and 14.17% of the total money (to include the 25% TMC takes off the top to cover operating costs) this truck has generated in my first 3 weeks, has been spent on fuel/DEF.

Owner Operator:

An owner-operator is a driver who either owns or leases the truck they are driving. A self-employed driver.

PJ's Comment
member avatar

Rainy thanks for the link.. I’m offended that article did not mention tankers. We exist toowtf-2.gif That is actually a pretty good set of numbers in my humble opinion.

Bruce K.'s Comment
member avatar

Most drivers that are hot to be a OO need to borrow money from a bank. Ok, then the bank owns the truck. How is that better than driving for a company where the company owns the truck?

Mouse's Comment
member avatar

double-quotes-start.png

double-quotes-start.png

double-quotes-start.png

That is one of the first times an article referenced a solid realistic number for O/O pay. They usually use nombers like $260,000.00 per year. Lots of people do not know that GROSS number is nowhere near net pay. Owner operators have HUGE overhead. Just think about the price of fuel you use as a Company Driver alone!

double-quotes-end.png

double-quotes-end.png

That's one of the metrics I'm tracking to compare my first year, the amount of fuel I'm costing my company.

They take 25% off the top to cover their operating expenses, then I get my % of the remaining Rev TTT...but I swear, we're authorized 250 gallons a day, and I'm starting to believe I live at fuel islands. These company margins have to be paper thin at times.

double-quotes-end.png

Just did the numbers and 14.17% of the total money (to include the 25% TMC takes off the top to cover operating costs) this truck has generated in my first 3 weeks, has been spent on fuel/DEF.

I mean, at the end of the day it's easiest to logic that owners and lease ops in particular make no money by working backwards from the companies side.

Most freight companies are making around 5% margins. If they are keeping the 15-20% off the top plus they are also charging you out the rear for your lease how exactly do you think you can turn a high profit? Even if you own your own truck you are still losing that chunk before it even makes it to you. You can't split 5% and suddenly both sides are making wads of cash - someone is going to lose on that. It amazes me how many drivers will tell you that their dispatcher holds the good paying loads for them and gives the poor loads to company drivers. That always gives me a hearty laugh because each and every one of these large truck companies would be out of business if they operated that way. They are always, always, always going to prioritize high paying loads for company drivers.

My opinion is the only way to run a hefty bottom line is if you can break into a specialized area. Think something like moving priceless pieces of art from one museum to another. I'm sure that whatever companies are contracted to transport Smithsonian exhibits are paid exhorbitant amounts because the museum wants to know everything will arrive in the condition they left. If you are just moving any old stuff from one place to another you will always be in competition with these large companies who can afford to take a loss on some loads in order to secure customer loyalty. But breaking into a special area would require years of curating contacts and a single screw up and you're done. That's the way it goes with any kind of business - the less specialized you are the less you make on margins. You have to provide something unique in order for people to be willing to fork money over.

Owner Operator:

An owner-operator is a driver who either owns or leases the truck they are driving. A self-employed driver.

Dispatcher:

Dispatcher, Fleet Manager, Driver Manager

The primary person a driver communicates with at his/her company. A dispatcher can play many roles, depending on the company's structure. Dispatchers may assign freight, file requests for home time, relay messages between the driver and management, inform customer service of any delays, change appointment times, and report information to the load planners.
Tractor Man's Comment
member avatar

Mouse, Very well put. Thank you!

smile.gifthank-you.gif

Page 1 of 2 Next Page Go To Page:

New Reply:

New! Check out our help videos for a better understanding of our forum features

Bold
Italic
Underline
Quote
Photo
Link
Smiley
Links On TruckingTruth


example: TruckingTruth Homepage



example: https://www.truckingtruth.com
Submit
Cancel
Upload New Photo
Please enter a caption of one sentence or less:

Click on any of the buttons below to insert a link to that section of TruckingTruth:

Getting Started In Trucking High Road Training Program Company-Sponsored Training Programs Apply For Company-Sponsored Training Truck Driver's Career Guide Choosing A School Choosing A Company Truck Driving Schools Truck Driving Jobs Apply For Truck Driving Jobs DOT Physical Drug Testing Items To Pack Pre-Hire Letters CDL Practice Tests Trucking Company Reviews Brett's Book Leasing A Truck Pre-Trip Inspection Learn The Logbook Rules Sleep Apnea
Done
Done

0 characters so far - 5,500 maximum allowed.
Submit Preview

Preview:

Submit
Cancel

Join Us!

We have an awesome set of tools that will help you understand the trucking industry and prepare for a great start to your trucking career. Not only that, but everything we offer here at TruckingTruth is 100% free - no strings attached! Sign up now and get instant access to our member's section:
High Road Training Program Logo
  • The High Road Training Program
  • The High Road Article Series
  • The Friendliest Trucker's Forum Ever!
  • Email Updates When New Articles Are Posted

Apply For Paid CDL Training Through TruckingTruth

Did you know you can fill out one quick form here on TruckingTruth and apply to several companies at once for paid CDL training? Seriously! The application only takes one minute. You will speak with recruiters today. There is no obligation whatsoever. Learn more and apply here:

Apply For Paid CDL Training

About Us

TruckingTruth was founded by Brett Aquila (that's me!), a 15 year truck driving veteran, in January 2007. After 15 years on the road I wanted to help people understand the trucking industry and everything that came with the career and lifestyle of an over the road trucker. We'll help you make the right choices and prepare for a great start to your trucking career.

Read More

Becoming A Truck Driver

Becoming A Truck Driver is a dream we've all pondered at some point in our lives. We've all wondered if the adventure and challenges of life on the open road would suit us better than the ordinary day to day lives we've always known. At TruckingTruth we'll help you decide if trucking is right for you and help you get your career off to a great start.

Learn More