Pros and cons of being a O/O

[ladykw]

OK....
Other than the high price of fuel what are tthe pros and cons of being an O/O?
I know everyone is differant in there thinking so I just wanna know what your thoughts are....
Thanks

[Big_Dave]

Pros:

1. It's your truck, you decide where and when it goes.
2. You don't have to 'fight' with your company to get things fixed when they break.

There's more, but I'll let others elaborate.

Cons:

1. You pay all associated taxes, including the 'employers' share of Social Security.
2. You pay all insurance costs, to include Workmans Compensation (if your state or the company you're leased to requires it).
3. You pay ALL maintenance and repair costs.
4. Record keeping can be a headache.
There's more, but I'll let others elaborate.

[tommy]

NOT simply put, do you really want the added headaches of owning your own truck?? Depends on how much you can get per mile on loads and if it will be steady work..Having the freedom of being your own boss is wonderful, and very fulfilling to a point...The most important question I would ask your self is this


Can you honestly manage MONEY??

O/O is not , repeat NOT for everyone out there
2 examples and not picking or disgracing either one..

Big Dave had a big choice to the sum I think of around $15 -$17 thousand dollars to fix his truck, he is now company man, but I bet soon to be O/O again...


Capt. Chaos was O/O and now company man and says he loves it better than owning his own truck..


You cannot look at it from the $$$ point of view, you must look at it from the point of view if you REALLY can and will disipline yourself with the money coming in your settlement checks. I hate to see anyone get in over their head just to be a truck owner and feel big and important...

This is not meant to sway anyone either way you decide but I am saying it like it is...it is very serious and you could lose everything you own and still owe after all is taken away along with credit you could not repair for many years ..

Whatever road you choose, I wish the best luck in the world to you..

[Preacher]

There are major differences between the two as Dave mentioned. As a leased O/O, I enjoy being my own boss and not having to live life (if you want to call it a life) with a big ring in my nose for some teenie-bopper dispatcher to yank on. For me, making the decision to be an O/O was easy. The most important thing anyone considering going the O/O route must do is DO YOUR HOMEWORK! I can't believe the number of O/O's out there who don't have a clue about what they are doing. Most go out and buy a new, or fairly new truck and trailer with high monthly payments, and then lease-on with a company that pays .89 to .95 cents per mile plus fuel surcharge. Currently that is somewhere around .23 to .25 cents per mile. That makes your total per mile pay around $1.18 to 1.20...IF YOUR LUCKY! And at that rate you might just stay above broke, not to mention all the other headaches. That is why sooo many O/O's go back to company driving. At .32 to .41 cents per mile, your probaly better off.

On the other hand, I've been an independent business owner for most of my adult life. As a business owner I make every effort to continually learn about the business I'm engaged in. Trucking is no different. When I decided to become an O/O I also decided that my time was valuable and worth alot more than a mere $1.18 per mile. So I DID MY HOMEWORK.

First I decided that I did not want a huge truck payment. As a matter of fact, with enough money to pay cash for a used truck, I didn't want a truck payment at all. I spent over a year learning the used truck market before I bought my first tractor. That way I would know a great deal when I found one. I went around and asked alot of questions about engines, trannys, tires, etc, etc. When it came time to buy my first rig, I was able to make an outstanding deal because I DID MY HOMEWORK. I do however set aside $500 or so every month to be able to buy another rig when mine finally gives up the ghost. (probably 4 - 5 years) I also paid cash for my trailer.

Second, I spent alot of time learning about how to properly maintain my rig. I take care of small problems immediately before they become big problems on the side of the road. This means that you must learn to set aside enough money to cover the maintenance. I set aside $7500 as an emergency fund. I also take very good care of my rig inside and out. I detail it (including the engine) about 2 times a month, check for any leaks every time I get fuel, change the oil every 12,000 miles (including Lucas), do an oil analysis every 24,000 miles, and I keep the interior very clean.

Third, I DID MY HOMEWORK concerning the type of hauling I wanted to do that would maximize my income, and who I would lease to that would pay me well for my time and efforts. Like I said earlier, $1.18 per mile is NOT worth my time and efforts. I made the decision to run flatbed hotshot freight for a company that pays me a percentage + FSC as opposed to a set per mile rate. I get 75% of 100% of linehaul plus 100% of tarp pay, detention, T.O.N.U., and a FSC. Currenty I average about $1.50 for all miles, with 2500 - 3000 miles each week with no forced dispatch. I usually drive 2 - 2 1/2 weeks out and then go home for about 5-6 days.

If there is one thread in all I have written, it is to DO YOUR HOMEWORK. That sometimes means countless hours in front of a computer on the internet. It means talking to a lot of people and interviewing them. It means being a good listener. It means going to a lot of truck dealers, looking at trucks and asking lots of questions. It means learning some business basics like goal setting, accounting, and writing a business plan.

Being an O/O may not be fo everyone, but it is far more rewarding in the long run. Unless, of course, you go broke trying.

[Capt._Chaos]

Being an Owner-Operator- Too many people do it for the WRONG reasons.

*Want to be able to drive fast & "run with the big dogs" (the cost of fuel has ran quite a few of them out as they lost their trucks to the repo man).

*Want a big, shiny "large car" to throw tons of chrome & chicken lights at right off the bat (sure that stuff looks good to some, but I seriously doubt there's any shippers & recievers that specifically pay extra $$$ for trucks with those items to haul their freight).

Becoming an owner-operator is basically starting your own business, and it needs to be treated as such.

Pros:

*You choose when you work, and when you don't
How much time you take off of work will likely be dictated by your own financial situation.

*You are free to do your own maintenance & repairs instead of waiting for long periods of time for a shop to do it.
Anyone who buys a truck SHOULD know how to do most of their own maintenance & some minor repairs, as trips to the repair shops are very expensive & time-consuming.

Cons:

*You incur more responsibilities as a trade-off for the freedom gained.
There's a surprising amount of clerical work that is associated with running a truck, and good record keeping is important so you know what your true operating costs are. You're also responsible for maintenance & repairs on the truck.

*You no longer have company-provided benefits as an owner-operator.
The things you likely became used to having provided to you (or in part) by the company in the past are no longer there- 401K, medical/dental insurance, paid vacations, profit sharing plans, legal plans, this list can go on.

Medical insurance has become very expensive over the years, and too few think about it until it comes time to pay for their own coverage. It's very expensive, no doubt, but you certainly can't go without it.

401K/ Profit Sharing/ Pension Plans are geared towards helping employees save for retirement, as Social Security doesn't "cut the mustard" any more. As an Owner-Operator, you don't have these benefits and are left on your own to put money into savings and a Roth I.R.A.

Speaking of retirement, it blows my mind how many owner-operators in their 50s haven't even put away one red cent for their own retirement. They obviously failed to realize that the Government isn't responsible for taking care of them after they retire. :angry:

Financially, I did well as an Owner-Operator. What got to me after awhile was the time the responsibilities involved took away from me actually getting to enjoy life & forget about trucking once in awhile.

Admittedly, I had a bit of a problem where I very seldom trusted anyone other than myself to work on my own trucks, and maintaining a truck properly, regardless of its age, can be very time consuming.

I may not be home too often nowadays, but I have learned how to make the OTR part of this industry seem more like a vacation any more.

[springer]

O/O is not just someone who own there truck that is just a owner.O/O means you have your own authority and you own your truck.

Pron
You are the boss.

Con
You are the boss

if it works it you that made it work and if it doesnt it is still you.

Pro
you go where and when you want
Con
you go where and when you want.

For some people that means you dont run as hard as you need to,so on pay day or when it time to oil change you dont have the money.

Pro
it is your truck,no one else drives it.It is your home away from home.

Con
It is your truck,you cost on everything.The only good thing is you can get someone to drive it and you still make alittle money if they dont brake anything.

I know this sound like a bunch of BS but it is some what true,If you are going to buy a truck and trailor save a little more money and get your own authority and really run for your self.It may take a month or two but you will make more$$$s in the end and thats what its all about.

I dont go down the road for less then $2.10 amile most of my loads are about 220 to 230 amile some are as much as 2.55 or 2.60 a mile.

Just always make sure you put half of your check back for break downs taxs tire and what ever else might pop up.

:fishing: