Why Owner Operators With Bought Out Equipment Survive A Recession
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- เผยแพร่เมื่อ 29 มิ.ย. 2024
- Why Owner Operators With Bought Out Equipment Survive A Recession
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In this video, Ronen explains 6 reasons why owner operators with bought out equipment can survive a recession vs an owner operator financing their equipment. Join him as he compares pay statements and find out how low you can go with each mile, before losing money!
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00:00 Introduction
00:32 Video Breakdown
01:20 Why are owner operators with bought out equipment able to withstand a recession?
01:32 Lower Debt
01:44 Flexibility to adapt/change
02:36 Control Over Rates
03:23 Reduced Overhead Cost
03:44 Reduced Overhead
04:05 Experience
05:03 Network & Connections
05:15 Mentors
05:44 Passive Income
06:21 Pay Statements
06:51 1st Scenario - $2.07/Mile
09:06 Company Driver Pay
09:57 2nd Scenario - $2.00/Mile
10:12 3rd Scenario - $1.85/Mile
10:59 4th Scenario - $1.75/Mile
12:18 Paid Out Truck - Payments
12:30 5th Scenario - $2.07/Mile
12:58 6th Scenario - $2.00/Mile
13:19 7th Scenario - $1.85/Mile
13:52 8th Scenario - $1.75/Mile
14:08 9th Scenario - $1.55/Mile
14:43 Conclusion
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My truck is payed off, don't own a dollar, 2019 t680, and i still park it , now I'm driving as a company driver, less things to worry about, until the market gets back.
Good luck with your insurance premium when you decide to get back in your truck. Unless,….. you were leased to a company, which means, you were never a O/O.
Good day.😉
Smart
@@Corleone_Napoleone Oh BS on your never an owner operator comment. Giving money away to an insurance company is not the definition of an owner operator. Do you even know where your dipstick is? This is not the 1980's, this is the purposeful implosion of our economy and a lot of guys and companies are going to go down, insurance or no insurance.
@@Corleone_NapoleoneWhy, does the insurance go up after not being in use?
@@Pat_Omar because it takes you as a new client. Take a look at the new entry rates. They are outrageous.
When I first looked over your numbers, I thought I was leasing on to the wrong company. I only get between 1.24-1.55 a mile. I was thinking, man I’m really getting ripped off. How the hell am I still in business? That was the thought going through my head. But once I saw your breakdown, I realized, my situation isn’t all that bad. I really want to thank you for breaking this stuff down. It is really hard to figure out how compare all these videos on TH-cam regarding revenue because the financial setup from one company to another varies so much. I really find your videos very informative and it helps to keeping me sane because you break things down in a very logical, rational, reproducible manner. So I really want to thank you.
I have this saying, life is as simple as “mind over matter.” “If you don’t mind, it doesn’t matter.” I can endure a lot as long as I don’t mind.
Hey thanks for the feedback! Glad to help 🙂
that is so low price per mile i was asking one machine to be delivered in europe mind you they were asking 8 dollars per mile
@@ThePsicocat101 no, the numbers look low but there are a lot of things this company does not charge me for and they also pay for things like all deadhead miles, tolls, a fuel surcharge. They have a network of repair shops across the country. If I need a repair, I can get it done in 24 hours if they have the parts. I also only pay 150 a week for insurance, trailer rental, flatbed securement rental, etc. but most importantly, they have a lot of contracted firefight.
This is why I liked Roman’s breakdown because I get a better perspective and I FEEL alike my situation is not that bad. If I thought I was getting screwed, it would eat at me and I know I would quit.
My equipment is payed off. I dropped my speed from 70 to 60 to increase fuel mpg to compensate for the drop in load prices.
Loving that you paid it off!
Ronen!! You da man!!
You completely and utterly forgot, one major factor, not having to listen to a boss. As long as you have money coming in and a decent nest egg for major repairs it doesn’t matter if you make $500 after everything if that’s what you need to live and you don’t have a boss breathing down your neck telling you what to do and how many days you have to work and what days you get off it’s 1,000,000 percent worth it. I quit i job making three times as much to be able to work for myself and not deal with a piece of shit boss that has a shit life and takes it out on me.
95 percent of bosses are assholes with huge egos. Ive worked jobs for 20 years its the same shit!
The best thing I did when I got into trucking in March of 2023 was that I bought my tractor and trailer cash. I promised you if I did not do that I would be hurting right now. Beacuse the cheap paying freights would put me out of business. So I have a little bit of wiggle room compare to other drivers that have payments. Nevertheless, I'm keeping my head up and hoping for the best.
Another great video! Thanks!!!
Thanks again!
What a great video 👏👏
Glad you enjoyed it!
I love this video.
Thanks for sharing Ronen. I would like to see a comparison with an owner op that does dryvan Hazmat/dryvan tanker endorsement vs Dryvan
Great suggestion!
I own my house and have a rental plus I don’t spend money on the road. Half of my income goes into the savings and checking accounts
Hell yea bro 👍🏻
My equipment is paid for, and it is parked. I am driving a company truck for a carrier as a company driver. I was simply pissing monies away when everything was considered. Much more economical to work for a carrier as a driver right now.
Does anyone really need to watch the video to know why?😂
😂
You'd be surprised🤓
You be surprised😂😂😂😂 how many drivers out there don’t even know their actual cost per miles.
🤣🤣🤣
3,000 miles for $1900 is wild.
Yea,
If Your stuff is paid for and the rates get stupid you can park it and go fishing or do Uber.
The borrower is and has always been slave to the lender.
Like Dave Ramsey says " don't ever borrow money for business "
Thank you
We did it by saving a lot of money when the market was high and getting rid of our debt. That way when the market slows it won't hardly show....
It's funny because that's the mindset everyone in any industry should have.
I agree it is much better to own equipment, but you have to factor in what you paid for the truck/trailer and use that in your numbers because that can reduce your margin in the beginning until you recoup that money because of the high buy in cost, but you would have the peace of mind and more wiggle room than the guys who took loans or lease although they should have more margin(on paper).
Overhead killeth, but cashflow giveth life.
Close to 2 bucks a mile just to operate the truck, so 1.85 on top of that is a good Starting point. Just saying.
Leases are a scam wtf is 800 a week for smh that’s ridiculous.. my truck payment is almost that a month
Insurance $400? more like $1200
The question shouldn't be if OO's that have paid off equipment, are able to survive these rates or what's their breaking point... the question on these oo's minds should be; are you willing to sacrifice so much, being in the road (health, family, hobbies.....) for these crappy rates!! my answer is a big fat NO
A few things, why is Ronen talking about pay per week when the top of the spread sheet says it's for 14 day? Second, none of his calculations include payments to a repair fund or any maintenance. You still have to save up for your turbo or fuel injector going out, a bad sensor needing replaced.... All those things. I can see maybe not putting money into an owner payback fund to pay yourself back for the huge loan you made yourself to buy off the truck and not use a bank but eventually you need to pay yourself back.
The way i look at it is that it cannot get any worse
I own my truck and I’m on the verge of going out of business. Damn truck with emission problems constantly putting me in the shop.
“Engine tuning” hint hint is your friend damn the EPA
@@hoodtrapper16I second this. My truck is pre-emissions...don't go out of business over something half of these trucks don't have to deal with.
Have you loved in to P.P. dorthy tecknoligy? only eaver seen one on the doad but the driver swore by it.
If someone had a say $120k deposit to put on a truck, what would your opinion be, put that on a new truck, have payments, but have a full warranty and low chance of issues for the next couple of years or buy a $120k truck, no payments but potentially have older truck issues.
You can spend $3,500.00 to have a “full warranty” on a used truck. We’ve done it with every used truck and it’s paid for itself every time. Buy a used truck for $50k get the warranty and be out the door for all in under $60 and go buy a trailer second hand cash too. If your business is going to thrive, you’ll make that $120k back plus some then you can upgrade to that new truck cash. Debt is what’s wrecking everyone right now. When rates are low, they can’t even afford their payments. Cash bro cash cash cash, forget the loans, they’re dangerous.
Should a drive semi for 57cents per mile or boxtruck with a sleeper for 50cents per mile
Which one will get you more miles?
This dude is 😵💫😵💫😵💫😵💫😵💫
Why don't you ever do O/O with their own MC?
Because his company doesn't track data on things outside of their own company
The fuel went up with no explanation lol fuel penalties for taking cheap freight lol
How can I contact you? I’m interested in knowing if I could be on your team. I’m in Ellenwood/Atlanta, GA.
💯🎯💯
I gross 20k a month
DSL 3500 month
Insurance 1200 a month 48 states
Equipment paid off .
Home everyday.. some times I stay out 3 days ..
flatbed in tx .
But I’ll say I work harder to get that 20k a month..
What is DSL?
@@jondoe6315 I think diesel
@@Taha83 thanks
Same here I have 4 trucks paid off and just haul local in DFW and Houston average around $20k per truck a month been in business for 11 years flatbeds Stepdeck and RGN
Yeah, I'm netting $3000 to $4000 a week pretty consistently. I don't know what all the hullabaloo is about!
Wow! I have a truck that's bought-out It has been parked since sept.22 due to AB5 if I don't get a job at $$ an hour soon I'm going to restart my business.
What truck do you have?
@@johncalvo1743 freightliner 2014 cascadia evolution
Nice work
Thank you
How about if Owneroperator have paid off truck and trailer and have his own authority and not paying 12% to no one?
How low can he go
Pretty low my friend! I'm in that situation. But I don't understand something...I'm averaging about 2.65 on ALL miles. I've been netting over $4000 a week lately. And I pull power only. The good rates are out there. You just have to think outside the box a little.
@@johncalvo1743 How many years experience do you have under your MC? I'm trying to do PO with brand new MC. Do you recommend it?
@@Taha83 I got my authority about 15 months ago. But I was a company driver on and off for 6 years before that. How long have you been driving?
Started in 2008
@@johncalvo1743 I started in 2018 summer.
💯
they’re ripping that lease driver off 100%
some owners have loyal customers and provide great service and have 0 DEBT.... also you are forgetting CLIENTS ARE KEY if you have bought out equipment and no customers than no good at all
Most drivers are just that , drivers. Many can't make the jump to business person.
Cost to run is more than 2 dollars a mile. PARK IT and wait for those few high paying runs
need to take away the 300 dollar trailer payment from the scenario
"With no repair bills"
Still making money
Too many truck . Crooked brokers . High fuel = you must be crazy 🤪 😜
Again, sound issues. not loud enough...
This dude only talks about leased trucks/drivers.
Insignificant.
probably cant average 2950 a week
Just my opinion. Most people with bought out equipment are running older equipment. That 2800 per week can get eaten up quickly with fuel and maintenance equipment. I tell people the most important thing is get a newer truck with a warranty. The bulk of repair costs my equipment is usually covered under warranty. The second thing I tell people is keeping your monthly payments to minimum. If you can afford to drop cash on newer truck great. Most can't. This is flaw in these calculations. You have to factor in replacement costs. I want haul at less then 1.90 for these reasons. I want a pile of money built up. Once the warranty is up. That's it for that truck. I sell it. Lots of guys will buy it up and get started. I have helped alot guys get started. After 3 to 5 years with the truck I can alot of cash in and keep the payments low.
Also u can live in ur car if u wanna save on rent !
All a warranty does is potentially pay for a repair. This does not factor in lost revenue due to down time. And everyone know when u get warranty work done ur gonna be there for a while
Thanks for your feedback!
I love older trucks cheaper to work on less that can go wrong with them I'll take a pre emissions engine over an emission engine any day
Older trucks are more reliable than you think. I do most of the work on my truck myself, only time I have to go into a shop is if its engine work, and my engine has been rebuilt a few years ago.
I’ve never financed equipment
Not in good times Not in Bad times
theres already freight paying 1.75 , ive seen even worst
You “have seen worse” , I agree, but, not with these fuel prices, insurance prices , not to mention this or of control inflation.😉