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

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

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!

O/O Reap Record Earnings 2018

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!

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.

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.

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.

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

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?

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.

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.

Mouse, Very well put. Thank you!