Team Vs Solo Owner / Operator

Greetings , I have a particular question I would like to ask. Is there any data concerning successes rates of solo o/o verse team o/o? I am part of a HM team. My partner and I have been driving team for a big company for two years now . We have cut our over head down to almost nothing compared to two years ago . We are thinking of becoming o/o now, but in researching it we have found mostly negative opinions . Also any opinion on employee owned o/o company's ? Thank you for any advise. Lori &Gayle.

Lori, what I'm about to share with you is based on my own personal experience - it is my opinion, and there may be some folks who disagree with me, but it is good solid information based on a thirty year career as a small business person.

I was not in the trucking business, but I owned as many as six big trucks at one time. The main thing I learned about trucks is that they are real money pits - I don't care if they are brand spanking new or fifteen years old, you will constantly be frustrated at how much money it takes to keep them rolling. The only truck that even comes close to making any money is a truck that is paid for, and those ones that are paid for require almost as much and sometimes more monthly expenses as those ridiculous notes on the new ones. You can do the math all you want, but I can never seem to make it come out right.

The trucking industry survives on a very thin profit margin, which is why the really large carriers can hold it together easier than the small independent truckers. They have a much larger base of trucks to divide their expenses out over. This business is a game of pennies, but when you are dealing with a couple thousand trucks or more it makes it easier to make the numbers come out, but even then it's tough. Just a small bump in fuel prices can be devastating to an O/O where as the big boys again can divide it out over many more jobs where some are making money and some are losing money and it hopefully comes out in the wash. The small time operators don't have that option.

Then there is the multitude of taxes. Are you aware of all the crazy taxes that owner operators have to keep up with? If you aren't you should definitely do some research into that. There are so many things that going owner/operator adds to your experience, and personally I think it is just a lot more unnecessary stress that a driver definitely doesn't need.

Have you ever kept a running tab of how many dollars worth of fuel you are putting into your company truck? You should try that for about two months straight and get a daily average - then realize that's how much you will be taking out of your income each day just for one expense alone.

Don't ever believe those deceptive adds on the back of the truck in front of you on the highway. Do you know of any other industry that encourages other people to become their competition? Think about that long and hard, there is a reason why all these trucking companies want you to take on the expenses for them.

Sorry, I didn't have anything good to say about it, but that's just the way I see it. Being a company driver gives you a lot of protection from an ever changing business climate, and I think safe is good.

I agree with Old School...and we were O/O's , and drove team for 15 years or so. Its a chicken or feathers business. in 1997-98, we pulled a reefer , drove a 94 long nosed Pete...and did west coast turnarounds....We made gobs of money. But then the breakdowns started, and it siphoned off all the profits made in those years plus some. We were back where we started in no time. And then we started buying newer trucks, thinking we could get back in the money....It never happened. We basically worked harder than company drivers and made usually less than them per year. And now with the new regulations, HOS , insurance rates, fees, permits, etc....it wouldn't pencil out. I usually tell people who want to buy a truck to have 20% down on the truck, pull a company trailer, and put $50,000.00 in the bank as a cushion....cuz it will take about 5 years or less to eat up that cushion...about the time you pay off that wore out truck, you will be out of money, also.

Greetings , I have a particular question I would like to ask. Is there any data concerning successes rates of solo o/o verse team o/o? I am part of a HM team. My partner and I have been driving team for a big company for two years now . We have cut our over head down to almost nothing compared to two years ago . We are thinking of becoming o/o now, but in researching it we have found mostly negative opinions . Also any opinion on employee owned o/o company's ? Thank you for any advise. Lori &Gayle.

Thank you old school and starcar, it is really hard to get a straight answer on this subject. We wanted to do some research first. Gayle owned his own electrical contracting service for fifteen years and is no stranger to the pit falls of a small business . We are being very cautious and we are doing really good as company drivers so there is no hurry. As you may know the majority of truckers stretch the truth so again thanks for shooting from the hip . Truly Lori.

I would never consider O/O with a Carrier, to me its a joke and obvious rip off. I've got family members that run under their own Authority and thats the way to go. I don't know all the details but believe me its worth their while. They pretty much get paid what these Big Fleets are getting. Why would you get paid $1.00 per mile and still have to pay for maintenance and fuel, that's just crazy in my mind.

I'll drive Company till I can afford my Own Truck and Trailer with Insurance and Permits, once that happens I'll get loads from Brokers.

We have cut our over head down to almost nothing

You just gave the #1 reason why you don't want to own or lease a truck. There's very little profit in it. The average profit margin in the trucking industry is 3%. That tells you right there that if things go well for you, you might make 3% more by owning the truck than you would if you drove someone else's. Of course for half of the lease drivers and owner operators out there, they're making the same or even less than they would as a company driver.

Can you imagine starting a business, hiring an attorney and an accountant, getting the financing, handling the paperwork, dealing with the stress, paying for repairs, taking almost no time off, taking an enormous financial risk, and spending every second of your life trying to figure out how to pinch yet another penny just to find out in the end you made $53,000 when you could have eliminated that entire mess and made $50,000 as a company driver?

You're in the best position you can possibly be in as a driver - you're a company team driver. You get the best equipment, the most freight, and the best treatment of anyone in the industry. Your only worry is driving that truck safely and you're making great money. If that's not enough for you guys and you want even more, I would highly recommend becoming a business owner in an industry with great economic prospects, not a commodity service like trucking where the profit margins are razor thin.

I've got family members that run under their own Authority and thats the way to go

....you forgot the word "broke" at the end. Try to pay your bills when the broker won't pay you. Try to find a broker you can trust to keep you moving with good paying freight and then get you paid quickly. Very rare. Maybe your family members found a decent one. I don't know. But I do know this - the competition is cut-throat and the money just isn't there.

They pretty much get paid what these Big Fleets are getting

They probably do. And the big fleets have an average profit margin of 3% after paying the driver AND using their massive size to get volume discounts and better negotiated prices for everything they pay for. So good luck competing with them and beating them at their own game.

You can do the math all you want, but I can never seem to make it come out right.

Exactly.