3 Reasons Owner Operators are Going BANKRUPT!
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- เผยแพร่เมื่อ 28 มิ.ย. 2024
- 3 Reasons Owner Operators are Going BANKRUPT!
Why are Owner Operators losing their truck? Why are Owner Operator losing their home? The trucking industry is coming down from its pandemic boom and a record number of Small Fleet Owners and Owner Operators are going out of business.
In this video, Ronen explains 3 reasons why Owner Operators are going bankrupt and how to avoid it.
Are you an Owner Operator currently struggling to stay afloat? How are you dealing with the insane cost of doing business? Leave your comments below!
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I've been in and around trucking since the 70s. As a Teamster, an owner op, a company driver, long haul, oversize, local, log truck, truck boss, dispatcher and more. I think I can say this about owner operators: with very few exceptions, you will never succeed unless you have your own customers that you bill directly. And you MUST provide them a service that is so outstanding that they are unwilling to consider the guy that is trying to undercut you.
Basically you will have absolutely no live having happy everybody customers, drivers, etc
@@unknowndriver6652 correct, your whole life is in the truck and over the road.
@@broyaradmykaal4557 tell me that i lived 4 years on the road without going home , the problems never end , this is not a jod that you go to work clock for the day and go home for the weekend to have fun.. this is 24/7
@@unknowndriver6652 same here, bought a dually and a gooseneck, paid for my own authority and used load boards and one dispatching service... Always working on my equipment and made enough to pay bills, that's it. Commercial insurance rates went up by 800 per month in 2018 and forced me out. No accidents and no tickets
@@broyaradmykaal4557 800 its nothing i pay 1400 this year, there is money to make or i should say there was money to make the last 2 years now its getting scary tons of companies will go bankrupt the rates now are trash i don't wanna be the next 2 years sitting on my truck waiting to see if a fucking broker wants to pay me more than 1.50pm . Fuck that
I’ve been studying tax laws and international tax regulations specifically towards the trucking and real estate sides for about a month until I finally told myself why am I doing this there are people who have studied this for years, point being I absolutely loved his write off tips “all the groceries your wife buys 30-40% of that is going towards meal preps for your truck” “you buy a dog? Guess what it’s an emotional support animal for your truck” 😂😂 loved that
Wait a minute. You can write the purchase of your dog off??? I spent 1200 on mine.
The thing is... are you studying tax law to help people.... if so, it's a good thing. Yes, there are many others doing the same, for years, but many do it to help the company that employs them, which often involves breaking the the truckers. Lack of tax lore isn't an excuse, but it explains so much on why so many fail.
Parker
You might want to reconsider this.
I've been a O/O for 3 years now. I do not haul heavy loads (>25,000lbs) and have learned to stay within 700- 900 miles of my home State.
Long story short-
1. I write off damn near every little thing I can.
E.V.E.R.Y.T.H.I.N.G!
2. I use a C.P.A.
3. My 2021 income was $184,000.00
Here's the part that will make you cry: also shows how ruthless our president, politicians and the irs really are towards blue collar business owners.
You ready for the reality?
I saw a trucker with 7 dogs in the truck. It was so funny. But now, I realize it is HILARIOUS!!!!
The meal write off is the per diem.
Because most of them are not the sharpest knives in the drawer, exactly, as my ex. We had our own trucking company and I did all the paperwork and he was driving from point A to point B and he thought he was going all the job and I was “sitting at home with my assss warm and doing nothing “ considering I was taking care of our two kids on the top of all the documentations and dispatching.
I recently retired after 34 years trucking mostly as an owner-op leased to various carriers.
I was always excellent at paying my bills on time and usually early, no matter how tight things were at the time. My credit score was always over 750 and even over 800.
Buddy and I bought trucks about the same time. I got my financing at 5.99%, he paid 12.99% = $500 a month difference, or roughly equivalent to one complete set of tires for the truck per year that I could pay cash for and he'd have to put it on his credit card at 22.99%
Don't be like Buddy.
I love how you went off on pick up trucks 😂😂
Monsta Kody was not lying when he said "this whole dam country is a big ponzi scheme" smh. we truly will never be free until you leave this earth. dope content!!!
In my experience the number one reason operators fail is due to a lack of understanding to what their true operational costs are. Knowing your costs allows you to accurately bid out dedicated freightlanes which is the true ticket to success in this current market.
There's much, much more to being successful than just knowing your operating costs, which includes the salary you pay yourself. The number one cause of owner operator failure is insufficient capital. The second reason is that most O/O's desire the lifestyle more than owning a long term successful business. Speaking of owning a profitable business - I'll bet a weeks pay that if most people who want to own their own truck had the $150,000. cost plus 3 months operating capital in the bank, they would not buy the truck. It then begs to be asked, if not, why not? You have to forecast whether the return on your investment in a truck would outperform another investment opportunity or operating a business in another industry or an associated one. A serious potential business owner should learn about business management and finance first, then trucks and trucking or other type of business that seems viable enough to achieve your financial goals.. Invest in yourself first (gain knowledge), then think about a business.
@@niemi5858 driver pay is 100% part of your operational cost. Everything needs to be factored in, from truck/trailer cost to your cell phone bill. Knowing your numbers allows you to track your $150,000 investment as well. So many carriers in this industry fly by the seat of the pants and do not know whether they are earning or burning money until its to late and they are ready to shut down due to lack of profit.
For some reason once one drives a pickup truck it is hard to ambition something else. Being a truck driver all I can say pickups make your life so easy. Moving tools or parts to fix a truck is a no brainer. However, buying a brand new one that hurts to get dirty is more like a course for finances.
Thanks for being detailed. This is probably one of the best videos I've watched to help owner operators financially.
Thanks for watching! Glad you thought the video was helpful!
We're slowly digging out as an O/O expedited team. Truck/ trailer are paid for. We're on the road 27+ days a month. No pickup back home, but the Xterra is paid for as well. Our biggest issue is cheap freight and high fuel costs which are still way above March 2020 prices
Brotha if your not making dollars your not making sense,you hit the nail on the head
thanks for putting this video out !!!!
Hahahah Ronen the want for a pick-up truck is so REAL lol. I instantly thought of all the 3500s at the yard I park at
It's ridiculous 😂
Going from 18 wheels down to a Toyota Prius must be avoided at all costs
This is my favorite channel about trucking! Thanks you guys
Its because they don't save money for maintenance and surprise fees etc. Or a housewife that spends her husband blind! Those checks look huge because theres no taxes held out, essentially. Divide it in half plus -25% thats what u really made...
That’s some great info - keep up the great work!!
Thanks, will do!
Ronen thank you! Your videos are very helpful. Been in business for 8 years and I wish I had paid attention to your videos 3 years ago before I leased with penske. I didn’t know you guys where out of the gta
Fantastic! Glad you've been a part of our channel all this time!!
Thanks so much for your info, very helpful. You are great person for helping so many families.
Thanks again
My pleasure! Thanks for watching!
Thanks for your help Ronen.
Anytime! Thanks for watching!
In response to Ronen's question about (some) truckers wanting a pickup truck... We spend hours on the road in the largest road-going vehicles. We get comfortable with these big trucks over time, to the point that when we get into a smaller vehicle, we don't feel quite so comfortable. All of a sudden we've lost that high view that we have of the road, we've lost all that extra metal and weight that protects us from the idiots driving 4-wheelers. Getting into a pickup, especially a full-size, or even one that's lifted, gives us back a sense of confidence. We get at least some of that high commanding view that we're used to having, and the extra weight and horsepower inspires confidence.
A second point, and I'm ashamed to say this, is that (some) truckers are better at driving and maneuvering their big rigs than they are at driving a smaller vehicle. And it seems like the smaller the vehicle, the worse it is. When I was a truck driver, I had a 1979 Toyota Tercel. Lunch box on wheels. I had used that thing for delivering pizzas for several years before becoming a truck driver. I knew that car like the back of my hand. But after weeks on the big road, I would often get into that same car, and have the worst time trying to keep that thing pointed in the right direction. And backing that small car up became a challenge after getting used to backing a 53' trailer. To add insult to injury, I was usually only home for 1-3 days, so by the time I started getting to used to the car again, I was getting back into the big rig to go burn up the big road. So, getting into a large vehicle while at home does seem to help with this to a certain degree.
BTW, I'm not saying that all truck drivers or professionals suffer from these issues, but I know that most of us have felt this way at some time or another. I drive a school bus now, so the transition isn't a big deal. Unless I've been on summer break. Then I have I have to spend a day or two getting used to the bus all over again.
@@Curbsidedreamer008 Ever been in your personal vehicle and found yourself trying to hit that big yellow diamond to turn off the parking brake? I can't count how many times I've hit the dashboard in my truck while doing that lol. 🤣
For a new driver, this channel is gold. Thanks for doing that and, hell, I just want to go work for you!
This video is really informative like all other videos though. Thanks, Ronen.
i have learned alot from your videos. thank you.keep them coming.
We will absolutely keep them coming. Thanks for watching Ron!
👋Another great video, Ronen! Thank you! 👏
Ur advice is extremely valuable
Thanks Ronen for all this information 1 truck only but following all this i hope i can have success! Thanks 🙏
Thanks Ronen, you are a good dude🤙
Anytime! Thanks for watching KB!
I'm glad i came back to this channel.
Welcome back Willard!!
I really enjoy this video thank you
Very informative thanks for sharing
Good Stuff,Great Tips😄👍🏿
Excellent information…..you are a great gentleman…i watch your all videos and implementing as well…god bless you…..
So nice of you! Thanks for watching!
Great job bro be strong
Thank you for this .
Thanks for watching!
Fantastic video!
I survived 7 years. I stopped this year due to not being able to find a driver to drive my truck while I recover from back problems. If it was for that I would of still be okay. I’m okay now but I won’t be going back the way the market is now. The truck prices are outrageously expensive now. I might go back once things are under control. I had a pick up truck before I had a truck. I made sure my personal financial stuff was straightened out before I brought my truck. The only thing I owe money for was for my pick up truck and basic bills.
I own a pickup truck but I bought mine in 2007 and paid it off in 2013. With just routine maintenance it's still going strong.
What
That's great!
Are you using it as a business vehicle?
The pickup truck thing is hilarious, it also applies to contractors and trades people. It must be some kind of marketing success or lack of manhood lol
It's because they played with pick up truck toys as kids
Ronen u r BEST bro👍👍👍🙏🙏🙏 big thank you from Miami, Florida. Your channel is the best in TH-cam
You're the best! Thanks for watching!!
Man this guy is a freaking genius..... So dam true on everything you saying. Number one reason over paying for unit will double monthly note. Then leasing on to a company letting them overcharge you for unnecessary stuff. Then next having too much overhead too many bills thinking you going to make so much money only to find out that first year that your taxes is in about all your money that you've earned. Then you make more money spend more money is not the way to go. If road and etc is costing you the money you make ( more than like it will) give it up. Plan is to profit more than y spend. Yep that's it
so true, gotta be able to find that great deal when purchasing your truck
Thank you!
You're welcome!
Always been interested in the haulage business in the US compared to the UK - owner operators are a VERY small proportion of the industry in the UK, particularly semi trucks (less so dump trucks and similar)
I laughed when you said Wet Dream of a pickup truck. LMAO.
Very very helpful thank brother 👍✊💯
Anytime! Thanks for watching!
Very very informative video. 👍
I love Ronen, he's so unintentionally funny.
He really is eh? 😂
Ronen you are genius in this industry. ❤❤❤
You are very kind! Thank you!
Great info mannnn
Appreciate it!
Taking notes like crazy, thast me right now, imnew in the truckjng industries, im working fir a company and probably will stay here for 2 years and I’ll open my own company, if everything goes as planned maybe ill have my first truck sooner. Overall ill like to thank you for this videos and im g,ad that ive found you before opening my company. Once im well informed i can make better decisions. Again thnaks for this educational videos
Excellent presentation
Thank you! Cheers!
It's very refreshing to have someone so honest and transparent about the business there's so many lease to own ripoff companies out there I've been researching lease to own and I don't think I would go with anyone but ET transport
We always try to be as transparent as possible on our channel!! Thanks for watching Richard!
Excellent content!!’n 👍🏼👍🏼👍🏼👍🏼
Thank you!!
In any business the lesser items or equipment you finance is your way out as long as you purchase resaleable equipment..
I’ve never owned anything but a pickup. We camp a lot and that’s why (for our family) a pickup makes sense.
Some people NEED a pickup, but most people just WANT one!
I just bought my truck, we rushed, i think we are paying too much and we had no idea what we were getting jnto but so far we put alot of everything into our truck. This December we are going to file our first taxes. Just starting out is hard.
Fingers crossed for you! Starting out is definitely hard, but it's a step in the right direction. Stay safe out there!
It’s funny 4:45… it’s not just truck drivers that want a pickup truck ! all Americans want a pickup truck. Ford f series is #1 selling vehicle in the USA, and possibly - earth…and has been for about 50 years straight…. Which is why you should own Tesla stock . The cyber truck will destroy them. People like to be able to haul a lot of crap DIY, and not have to rent a truck or hire someone else every time they want to buy a fridge, or get a load of sand, or ( you fill in the blank)
This is not a game. If you cannot work on your truck with your own two hands, the probablity of you going out of business increases substantially. If you are out here relying on mechanics to keep your truck running, you will go broke quick when systems get neglected and then compound. And a crap delete will only hasten your demise. Turbos and heads are not cheap. I drive a 2003 Buick Park Avenue, I keep it in tip top mechanical shape, and would not hesitate taking it cross country, as I would my 2008 ProStar.
I'm still standing after 15 yrs, its been a tremendous struggle, ur right most do fail, its a mystery...
Not really a mystery but a designed and intentional planning by the government. Today's regulations thwart our efforts to maximize our time, enabling us to really go get that freight on our terms.
You are the best..!!
Thank you!!
First let me say like always this is a great video. What are your thoughts on purchasing a used truck 3-4yrs old all cash with plenty money left for maintenance?
You ever tried hauling semi truck tires and semi truck parts in a car?
Well done
This market is not normal year and fuel is something they can't control .
Mega carriers first one, second brokers,third mechanics
Didn't mention that you have to be driver for at least 1+ years before you start that owner operator path, because it gives you a chance to learn about the driving and industry in general, and get yourself a good down payment and reserve fund
Pretty sure he mentions that in other videos. My thought is 3 but I wanna say he says you need 5 years before buying a semi
I have a dodge 4x4 dually. But I also have a excavation company and I do hard rock mining…. Not just a driver
I’m a Mobile Tire guy. This video gave me a lot of insight into my target market. I’ve noticed a lot of these guys are absolute broke and want crackhead level prices…. Now I understand lol. Thanks for the content. Thumbs up man
4:42 I’ve never wanted to own a pick up truck 😂
Im a 50 year old who has worked in the energy business for most of my life. I’m thinking of leaving said occupation. I’ve saved a lot of money. I could get into the trucking business without any financing. I’ve always been good with my finances. I would like to be a o/o but the fear of what I don’t know is what scares the hell out of me. Do I sit on my ass and retire or do I do another ten years and be a trucker?
Never retire. The day you do, the heart attack and inflation clock starts.. Both are deadly. The Good Book doesn't mention retiring. I am of like minds. I don't work in trucking but I plan on paying cash for a box truck sleeper (with the wide box & swinging doors like on a full size trailer) and hitting the road for as long as possible. I say do it!
Jerry
If you have no bills or if you have manageable bills ( very low), then I would say that you may find success in American Trucking.
There are so many liars (in and outside this industry) who exaggerate profit potentials. I've been in this deadly game ( oh yes it is!) since 2004. Been a Company Driver, % Contractor and the past 3 years an O/O; btw paid my rig off in 2 yr 4mos time.
This year has been the worse and now I see myself quickly depleting my savings just to stay afloat (mind you I have no rent, no car $/ insurance etc) but I do have two credit card payment debts from previous truck repairs.
I plan to bear down thru December 2022 and entering 2023-
I may have to park her for awhile.
If I were you, I would stay in your current energy business job. At your age, until you are 65 years old, will be the biggest income years of your life ( right? ).
RETIRE...Do not do anything in trucking...Run ....dont do it
Pick ups are because most truckers are country boys and country boys love them pick em up trucks
I have a suburban 1500 that I love and I bought it for 6K used and in great shape . it tows my boat as well as my camping gear just fine .
I was looking to start a new O/O with a older truck for 45k with less than 300k miles, but no one wants to loan to me, I'm a young guy, but I knew most of what you said. would like to know who to finance through, also running under schneiders authority for their benefits.
If you're young and have no financial burdens then you should be able to save that amount (as a company driver) in a year then pay cash for a truck. Do not get a loan considering on how unpredictable the trucking industry is - fuel, freight rates, expansive or hard to find parts for your truck making you sit and wait to get it repaired etc. If it doesn't work out you still have to pay back that loan.
Make your own decision, just telling you my opinion.
I finnaly bought a pu out of necessity affter owning my rig for 10 years needed some thing to haul larger and or dirty parts. It was not even my second choice for another vehicle. Also only bought basic pu no bells and no whistles. Daughter asked where the window switch was ? Told her to push down on the crank then told her to keep turning it. It took a little bit for her to figure it out.
It sounds like your daughter is not very bright
It’s one reason they don’t do research; they just do it and cross their fingers that it's going to work out for them
We are truck drivers. We want a rig to call our own. Our PMV needs to be a sweet Pete as well
9:05 Finally, a video that makes sense. If you are going to buy a truck, 'shop around' for the best deals/offers. If you're going to buy a truck worth $200,000 or more.... make the companies compete for your business, because that is what it is. You're the owner/operator, and you're the one that is going to use that vehicle to earn income. The truck and finance companies only get money IF YOU AGREE... and seriously, they make no money if you go with someone else.
From what I've seen, across this entire video, is a lack of commonsense and research by owner operators. You are the one buying the truck, for income.... so why should you dance to the tune of finance companies? You're providing income to them, at least until the finance is paid off.... make them want to help you, on your terms.
Glad you enjoyed the video. Thanks for sharing!!
If one is going to borrow money to buy a truck then this is good advice. What I always seem to wonder about is if the same potential borrower had the money to buy a truck for cash plus 3 months operating capital in the bank, would that same person buy the truck? If not, then why not? What doesn't make sense to me is that every O/O I've talked to say "no way". Which then leads to the question - why would they borrow the money and take on a serious financial liability to achieve the same goal?
I know you've made this video already but could you go more indepth on initial cost like ifta taxes who does that do I or the accountant how much did it cost for you just more on that I'm rather new and have always dreamed of being owner operator and your advice is law to me because it seems like good solid Hard won advice
Always great information Ron.
Thanks 👍
Good video
Thank you!
A guy at work who decided otr wasn’t for him because he sat too long . He then decided to try local but now he’s not making enough money so he decides to buy a used 2018 freightliner from the company with over 700.000 km and paid $110k for it and took out a high interest loan to pay for it .
The fool- sorry
But he has made a damn bad bad bad bad decision.
He will cry soon....
Wow.
Loads we were taking from Swedsboro to Brooklyn NY 3 times a week $1300. Now going for $700-800. $240 tolls. No thanks. Customers refuse to adjust. It’s crazy.
I'm really thinking about doing this. I don't have any personal bills, no house, no pickup truck to pay off. As of right now I really just pay to feed myself and not much else. I have more than enough money for a down payment on a decent used truck. Just gotta figure out the market.
I'm same situation looking for a truck :)
Another great video but you should post the links in your video descriptions
They are!!
lol free mentor is here, am collecting all imfo to open a truck s-crop, but do i really need to take cdl 1st, haha
Where would you get a loaded trailer from when you go to test drive a truck your about to buy?
I recommend that you do not work for the percentage of the freight because they can fudge the value
Yeah we need to talk
Never owned a pickup truck in my life. Became a truck driver and all of a sudden I really want one now and I don’t even know why lol
Good information I do not understand the pickup truck fetish that truckdrivers have, you bobtail into the yard and there is a lineup of pickups along the fence you come in the yd on a weekend and all the tractors are sitting and pickup are gone a lot of times the pickup is worth more the semi and then the tax discussion when talked about most operators or drivers will tell you that what you are writing off is illegal included the meal allowance and how the government is going to get you, very puzzling
18 years trucking, and I still don't have a pick up truck. I will always drive my mini-van
I plan on being an OO in 5 yrs, planning on buying a brand new truck out right no payments
Sounds like you have a great 5 year plan!
Nice to not have anything to worry about but how about building credit.
@@AngelSanchez-dw4gs currently my credit score is 740, alot of places are telling me thats good enough but still building more
I wanted a Pickup Truck for some time. I drive a car. With the car I have more range allowing me to work in farther locations. I have coworkers who complain about gas and have huge gas guzzling vehicles.
Most transportation companies use the right vehicle for it intended purpose. Trains and Trucks are used to transport cargo. If they need to move people, they use vans, Uber and buses.
People don’t understand that and it causes more expenses and maintenance problems. Most people drive like Subway trains but don’t have the power and braking systems. Subway cars have multiple traction motors, huge disk brakes and electric brakes. Cars only have one engine and small brake pads. Subway trains are designed to accelerate and decelerate fast. Most cars aren’t. A pickup truck with no load is like a freight train with one empty flat car. Just doesn’t make sense unless it’s a fun second vehicle.
Seems like expenses of dpf & def shutting down your truck, waiting for emissions parts on backorder, etc would be an item on the list
I'm sure you could make it if you dedicate every single day of your life to this job, but most are not willing to become a slave to this industry.
100% That's how you pay off a truck in a bad market. Even gotta pinch pennies on the paid off rig now too.
Is it legal to hook a loaded trailer to a truck your test driving?
I have been a company driver for about 15 years. Have recently inherited my brother's 2006 long nose freightliner. With 1.2 million miles. Very well maintained he's a mechanic as well works on his own trucks. No leaks of any kind anywhere just needs tires to get rolling because it has been sitting for a little bit. What do you think? I have no house payment no rent payment it's just me and my dog I'm divorced and I'll have no truck payment. Worth it?
Do you do lease to own trucks at ET?
Wow I surely messed up
😂😂
What do you think about doing Hotshot with containers or Hotshop general in 2023?
Choose what numbers work best for you. They charge whatever they want, they pay whatever they want. But wait - there's more.
Roben, when are you going to go live?
Good question! Not sure yet.