How To Survive Trucking in 2024: What Has Worked For Us
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- เผยแพร่เมื่อ 26 เม.ย. 2024
- Surviving this freight market is not only about the rates offered on loads, it's also about management of expenses. Here I share with you how we survive trucking in 2024, how we manage the down cycle in freight, and what has worked for us.
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Hey Lady ... I became an owner operator back in 1987 ! I've seen a lot of them come and go ! Big yellow motors ... And a lot of Chrome put a lot of them under ! To survive these days you have got to be your own mechanic ! 150.00 an hour labor rate is hard to handle ! It's no different than it was 30 years ago ... You can't spend more than you make !
Don't beat the hell out of your equipment for $1.29 a mile. Learn to save cash when you're thriving and park your truck when the market wants to starve you.
150? Lol, it's up to 225 hour at some places.
learn to to read and understand what he is saying,im 35 yr old and he makes total sense,your still on that swift lease there buddy.
another bs. Dont compare 1987 junk with modern trucks.
@Everytimeidie37 not the swift lease lol😂
There are two major things if you want to survive in this market:
1. No payments on truck and trailer
2. Major repairs has to be done by yourself
These two things will save you 30-50% of your revenue per year, sometimes even more
bs. How many people can afford that? Our "still on warantee" freightshaker got rear end broken on just 300K miles, replaced at dealer. Who can make this job in a field? Nobody.
@@level80888 sorry what? Rear end is 2k. is that alot?
I own my truck and trailer and I parked them almost two years ago. I refuse to abuse my equipment for peanuts. You can Uber for twelve hours with no government regulations and minimal expenses and still end up with more money than being an owner operator. I refuse to give thousands to the government in permits, the corporations in diesel, and thousands in profit to brokers at my expense.
@@level80888 you have to invest in some tools, that’s what you have to afford. You would be surprised how much money you can save on doing breaks, bearings, seals, electrical, filters, kingpin, shocks, tires, greasing by yourself. Look at your numbers. Or you can ignore it and run the truck till first level 1 inspection.
@@sooperhuman Someone who has run the numbers.
Girl, this is my favorite channel, I’m running my business exactly as you explained. If I’m still in this market I think that’s the right way to go
Great video and information as usual. Thanks
Ready!!! Let's Go!
Such a humble video.
Thank you for your information.
I enjoy your videos and listen to your advise.
Thank you for doing what you do ❤ ... I appreciate you taking the time to talk with us about the industry...
You are absolutely right thank you for all of your information. I don’t usually post anything on your site, but you have been very informative and straight to the point. I was doing my numbers today for the first quarter and I had to look back unbelievable but I’m still out here, I have time on my side because I put the hard work in just fine. This video is a must keep up the good work.
Beauty and Brains!!! Great work!!
Beautiful and smart, we thank you for all that you do
Thanks Miranda. I appreciate these videos and I know many of us do too as well.
Tonnage is also at a 13 month low month after month.
Hopefully, your sacrifice is rewarding
Your content is Golden
Valid Conclusions !
THANK YOU
Good tips.
All strategies will benefit your business. It is unbelievable that we talk about survival and not profits or growth. What will really help is a stop to the Government's intervention in the industry. For example, EPA's rules make ultra low sulfur fuel more expensive and less quality. Sulfur is so much needed for parts lubrication. Tires and Emissions systems are another example of how regulations make the cost of operations higher. Instead we need better freeways and roads, parking accommodations, legal support, payment securement, respect, road safety, decent food and shower, fraud protection and ...
Thank you
This woman is thinking straight and on track. 👍🏻
Agree on being self mechanic makes a lot of sense. Besides, reducing fixed expenses is crucial because it drives down the gross target required to cover them. Not mentioning obvious reduction of variables. Reduce personal expenses and ask you second half to help (e.g., my wife became an IT professional and now helps me adding additional 4.5 gran to our budget). In addition get rid of unnecessary equipment and loans where possible. Basically, less you owe less you need to find for your personal and company expenses. The formula is to follow the market rate: If Average Rate is 2$ then * 24 working days = 1,000$ a day minimum (500 miles a day) = 24,000$ gross = Company expenses and self pay must fit into 24,000$ - less (10%) savings for unexpected expenses and taxes.
Hello Miranda 👋 hope you have a Blessed weekend and Blessed future days.
Thanks!
Thank you for your support
Good stuff and yes, common sense.
“Tell me and I forget. Teach me and I remember. Involve me and I learn.” ~Benjamin Franklin
In addition to my previous comment: Being a Self mechanic is crucial but obviously we can’t fix it all ourselves so make sure you have a contact of a mechanic who can accept you on demand, work fast for fair money and who has an access to the used parts. Don’t fid dealerships all the time their prices mostly to high to afford specially when it comes to after-treatment. All that will help you to repair fast, less expensive and get back on road quick so you can recover it all asap.
Great video and this is a method you can use in personal financing and debt reduction as well. It worked for my family, and I can apply it to my upcoming O/O job. Thanks for making the site and videos!
Hey thanks!!!! LEtttsssgooooooo!!!
Waoo your honesty is out of this world.
Second this!
Once again thank you for yet another informative video. I recently paid off my truck which is a little older (2019) than your fancy new truck and I listened very closely about the cost saving things you mentioned which are very helpful. Thank you I look forward to your next video.
2019 is not old
@@stevenwilbanks2865 I hear you, when I bought it back in 2019 it had 173k on it and now it has 767k and it seems like everything besides the engine, transmission, axles, computers and clutch is going out. But it’s a good and tough truck.
I'm actually in the executive transportation business not in trucking but a lot of this make sense for my business as well. I am currently also in the pay down debt obsession to have more free money in the near future. Great information! Thanks
Stop playing and bring back the shades 😎 muchas gracias Miranda 🙌🏼
Your partner, you and your drivers are all doing a great job. Everyones doing what has to happen. Great job!
I am definitely a lucky girl to have an amazing team
@TruckingMadeSuccessful yes you really are. Be thankful and appreciate great people.
Surviving for me involves being a mechanic and body shop guy. Cannot afford to give away money. And along with what you're saying about payments etc. My equipment is paid off so that is sweat equity. I paid off my equipment within a year and a half of purchase. Paying off equipment, is like paying yourself a dividend, as in pocketing the interest. Amortization schedule.
Personally I could and would never pay more than $1,500 a month for a truck.. but that’s me.. I couldn’t imagine paying that in this market.. however, you’re a very intelligent young lady so I’m sure you’ll make it work.. I paid $36k for a truck in 2021. $1,500 was to get it from Canada. 2016 Kenworth with 534k miles.. also I bought a trailer with a total of $58k.. paid all of it off and put plenty for maintenance.. sold trailer. Still have truck with 662k on it… it’s been sitting going on a year now.. I saw the writing on the wall when holiday season 2022 was slow.. may 12th 2023 I parked it.. itching to get back but I think it would be financial suicide!!! Bless y’all out there..
Well, good thing you didn't drive that old truck much. Even if the person(s) you bought from weren't the standard slobs who idle all night, every night, anyone takes a big chance on a truck North of 500k miles. This is the central dilemma. And if these machines were predictably good for 10 years or 1.2M miles, one with 500k or 600k on it would cost more.
I pay 3200$ monthly and still menage to make 8 k a month driving
@rosh3918 Yes, the notion of what constitutes "surviving" is obviously subjective. A lot of people in America, to say nothing of the rest of the world, would count it a big improvement to net $50K/year. That said, it won't take any worker from anywhere long to realize that OTR Trucking isn't one full-time job, but three. Do I exaggerate?
@@davidowen9671 totally agree, the depreciation (26%/yr) on these trucks in insane. 200k brand new and 45k for one with 400k miles that is 3 years old. Assuming youre earning a proper trucking living by running 2500 miles a week, thats 400000 miles every 3 years, which means it's time to sell/trade your truck in for something new, and stay under warranty. If the trans goes in your rig, that could be months for a repair. And if you buy/lease new every 3 years, you can slovenly idle all night every night ; )
@starkicker5623 And may I please ask, what do these warranties actually cover? "You tow it to our shop at your own expense, and we get to it when we feel like it ... err ah, I mean as soon as possible." Is this what "under warranty" means? Or, at the other end of the spectrum, are they towing (if necessary) at their expense; paying for a high-quality loaner during the period that the vehicle is down; heck, even a hotel for that first night, and a rental car to get the driver to the location of the to be leased power unit, which they arrange?? See? "Under warranty" can mean a company really standing behind their product. Or it can be just another chapter in a deceptive rip off saga.
So true. There's only 2 sides of a balance sheet.
nice.
You are a most unusual professional lady 🤗
This how you make it in this business cut cost and then when times get better and they will. It will easy for the one who made though the hard times.
Interesting
Here's a few things Ive done to cut expenses as well...
1: performing my own PM's and turning a wrench to save on mechanic expenses
2: Downgrade load board subscription.
3: Meal- prep
4: Fuel only whats needed per load plus and extra $50
5: Shop around. Theres always a less expensive price somewhere.
Hope this adds and help!
Fuel how much needed per load is not cutting expenses, unless get stolen from the tanks😅
number 2 is a bad one. You're seeing the loads 5 min after they get posted.you are getting the table scraps.
Lots of great content and follow up comments! Reading so many different perspectives on this is thought provoking for sure. I guess we have to remember that there is no MAGIC in being successful. It takes hard work, determination, but most of all continuous learning and improvement. None of which happens overnight. I do have one question. Does location play a role in expenses? By that I mean base of operations.
@@Rosstransportllc From the stand point of taxes, insurance and other related fixed costs, does location matter? What about hours of operation? Are you at a disadvantage being on the west coast arriving to the boards 2-3 hours later than the east coast?
Everything looks good on paper but reality always comes knocking.
Sometimes finance companies have fees for paying off loans before their full term. Somewhere between 3-5% depending on how many months you have remaining on your loan. I’d check for that first before starting to bring down the balance of your truck to avoid getting hit with that fee.
Everything you say is educational!
And I think you're a good-looking smart chick with glasses.
Take that!
Whats helped us is that we are a small operation with low overhead.
Tryna catch my breath at the truck payment geesh😮
Factoring at 2.5% is high right now. I love that you are providing the working capital for your company out of your own pocket but, nevertheless, I know there are better rates out there. I would also be curious to know what fuel discounts you all have in place- are they direct with a particular chain or a broad discount program? I think everyone would love some additional detail because you are a trusted source of info
Miranda or anyone, do you know of an app whereby you can take a photo of recipe's and they are used to enter all info into the appropriate forms & records.
A good feature would be to catagoize them into maintenance records for dot.
And other costs like tires, etc.
And the fixed cost.
All of this for bookkeeping & or account as well as creating a maintenance record that can be printed out. Then given to each part as they need them.
Thx for your vids😊
Since I'm a member of NASTC I factor through Orange commercial credit at 2%. I factor only what I want to. I have direct customers that pay in 10 days so I dont factor those. They let you factor as much or as little as you want . No minimums
Business is business. Unfortunately most that fail do not have a business foundation which includes fundamental elements, principles, and core components upon which is business is BUILT and OPERATES. A stable foundation provides the essential framework that ENABLES your company to establish itself, remain focused, grow, and thrive over time. It sets the stage for all business activities, strategies, and decisions.
Hi Miranda 😊
When you get to the point of contemplating unreasonable sacrifices . Maybe it is time to take a step back and see where you erred in the past (when rates were great) that got you here today. The faster you do , the faster it gets fixed. Kindly, throw that stubborn stuff away! Stack cash at all times folks. Even when you think you’re invincible. Realize that you are not. This business goes up and down all the time. Now is the time you should be mopping up all the spoils with your cash at bargain prices. Then by the time this “trucking market” has its upswing and then back to this point, you will be well prepared. Not a worry in how long the bad market will last. Best to you all!
Your factoring solution the way you are doing it can also be paralleled with something called a shareholder loan it’s almost the exact same idea
Monitor expenses and reduce to be at zero debit and reduced risk.
Cant repo stuff when it's paid for!
Cash flow after that.....save on interest over a lifetime is a home+...
Cash is king in this market. Buying cash trucks saved us. Our Cpm is around $1.30
I agree some of your suggestions, but somethings I disagree. I would not wait from a broker to pay me 30 days or so unless quickpay ones with no charge or less than what my factoring is charging.
Second, I believe truck payment is a good debt and let it pay off itself.
Way to be a team player. Reimbursing the factoring fees from your pocket. You have a part time driver too. Maybe a part time freelance mechanic can help too. Just pay him or her for their labor when they’re needed.
Hi Mirinda --- Could you please also talk about how factoring companies operate, I am sure there is a domino effect on them as well. What are their common challenges.
I love this, but what about keeping only new(er) equipment? 3 years to pay of truck = 400000 miles assuming 2500+ miles per week. Based on the used semi market, it seems that most people move onto another new truck at around 3-400000 miles, to reduce maintenance expenses and possibly stay under warranty. A truck in the shop isn't making money. Maybe allocating the reductions in monthly payments from your loans could go into financing another rig and finding another butt that profits 7k a month is a good idea? I'm an armchair financial analyst with binoculars, so I have no idea what I'm talking about.
Paying off equipment early definitely helps with cash flow. However you’re losing the ability to write off payments and interest on the loan. How to file on equipment depreciation is a whole other topic.
But cash flow definitely helps run the company’s business expenses and payroll.
I kind of like your approach. it's pragmatic. important when you're starting or running with new gear. not my mug of Guinness owning new stuff, but used and outright ownership is key with gear. there's plenty of quality well maintained inventory available out there. being mechanically inclined for the pricey small stuff. like changing tires roadside or the other bits that come with open deck work is helpful.
however, an alternative would be to take that extra money that you would pay down on the shiney new truck and put it into the market, particularly the s&p 500 or some other ETF paying dividends and maturing capital wise. you can earn nearly 14-20% on that money in a given year AND take the depreciation on the equipment saving even more cash with the feds tax time. I would much rather earn more money over a period of time then spend more money over that same period of time in hopes that the market will be kind to you and inflation and fuel remains steady. apples, oranges. I guess it's a matter of perspective and preference.
In this video, we wanted you to be more detail.With how you are surviving your operation period. You just mainly talked about how much more payments you are making towards your truck and that is not explaining how you are surviving the market. Owner operators are struggling and they are struggling because of the fuel prices and because of the market rates. Some of the good points that you picked out.Is that your partner and your drivers are operating the truck all the time?So in other words, they are running the operation. team drivers Which is great thanks for your content
Maximizing miles also lowers your cost per mile. I'm always hitting a 34 restart on the road.
The company I work for RXO said if not for brokers the company go out of business. Just woman with glasses that very pretty and smart 😊
Can you make a video to confirm that DAT isn't allowing access for dispatchers. Please
So what are you're saying is drivers need to be flexible to loads. I have seen that the number of drivers sitting at terminals has risen. I think it's still a freight volume problem, not a utilization (driver) problem
Cd consordium out of morton grove il charges 1% no reserve if you can factor $100k a month, don’t get rid of phisical damage. It should be close to 3% of your truck value. If there is major accident you don’t want to loose $100k bucouse you tried to save 3k .
Miranda, do you use your debt for tax return on your business? You maybe able to scale up if is done right
So not only will you be saving yourself fees from the factoring, you'll be compounding those savings by reducing the interest paid on the loan of your truck. The savings on fees and interest should be considerable.
💪🏾
Does doing your own factoring require capital via a bank loan ?
❤
Hey Mame so question what would a student fresh out of Cdl school would probably make a week in trucking now in this market 2024?
I think if you own your equipment out right...no payments...you can survive this market
Unfortunately we could only do so much with these low rates to cut down on expenses and a lot of us small carriers are one major breakdown away from bankruptcy
You and I have way different ideas on finance. Pay off your smallest most expensive loans first. Attack them one at a time not all at one time. It will make you a fortune!
She is smart and beautiful
Very well said and it works mostly in developed countries. While in the opposite in developing countries with the same 10% interest rate on commercial truck loans and rather than paying the banks if you invest it in the stock market, you will easily earn around 15 to 20% and after certain duration earn back the money and pay it off along with the same surplus money is left for reinvesting or put back into the business.
i factor with rts and i cant go around them ,all big brokers wont pay you direct if you have factoring without release notice
I'm looking forward to hearing your thoughts on my factoring inquiry email. When you have a moment, please advise. Thanks in advance!
You just saved JB Hunt.lol. LOL😅😮
This is common sense when things are going bad cut your expensive duh 😂
Miranda, my advice to reconsider investing those 3000 into something else than paying off the truck faster. Take into consideration that the inflation is only going to increase and in 2-3 years and my guess after so many wars we’re in and we gonna be in(south korea, taiwan) the dollar will become worthless, look what happened to deutschmark.
I don’t know, just my 5 cents)
Due to inflation...I will need 10 cents.
To place a value on this, you have to calculate the accrued interest. And how much you are saving by paying off early. Any amortization calculator will help you make that decision. Saving like $20,000 is significant
By the time the truck will be paid off, it will start loosing parts on the road, unfortunatelly-the load for 60months is just suicide in today market, I would returnnthe trucks that were just paid off little from total amount, and buy it on the cheaper cost today! The bank is happy to see you brinking him cash on q equipment that was 30% higher in price+their interest-so actually the truck works for the bank qnd the driver today.
That s right. Paying off the truck earlier is not the best idea because of the opportunity cost. Any investment that yelds more than 10% annually is preferable and a real money saver.
10% interest leaves the finance company screwed if inflation goes to 20 or 30%. Though of course, with fractional reserve lending, a bank simply creates most of the money they lend out with keystrokes on a keyboard.
Hello, what is format of you course, video recording or live?
its pre-recorded
You don't have zoom classes...?
No I do not do zoom
Thinking you can have a new truck payments , with company drivers, and run the spot market, that did not work before COVID, and it’s a horrible business model now too. My CPM is .92 before I pay me, and I own 2 paid for trucks w/ my own authority and no other debt business or personal. No way a company like this can compete with guys like me out here.
@@ProtectorsofLibertyinTrucking there is no such thing as cheap freight. I book loads that makes my business profitable, and I’m based out of FL, been doing it over a decade and have always made a great living, way better than a company drivers wage and running way less miles. Usually a 100,000 miles a year. I do the majority of my own maintenance and do not outsource any of the work of other parts of the business. Never have used a factoring service or dispatch service. I only run brokered freight in the dry van segment.
Yeah it's hard to compete with an owner operator that can rebuild his cat engine in his backyard for 10k and run it for a million miles on his pre eld peterbilt. Good luck on the 7k monthly payments tho. You got this.
No I'm not comfortable with someone else driving my truck when I'm on hometime unless I empty every time I go home which is a hassle. They better be paying me very well if not I'm out I'll go drive for someone else who is in a better financial state.
Miranda, you clearly know much more about this business than me. That said, I don't quite understand why you would invest in a brand new Freightliner roughly 6 months ago during one of the worst freight recessions in recent memory. Was there a reason why you did not purchase a used truck for considerably less? Six months ago prices on used trucks were way down due to the poor market conditions. Just trying to understand.
Yes. The reason was that this truck was ordered 2 years ago and a non refundable deposit was placed. We decided to take delivery of it 8 months ago because we had 45k in maintenance on our used truck in 3 months and we couldn’t operate that junker anymore
@@TruckingMadeSuccessful now I get it. I remember you speaking of the truck repairs. That's quite a burden to bear. I think your plan to push through is clearly well organized and researched 😊
How many trucks are you running?
4 atm
My truck and trailer is paid off it’s easy to run 2 loads a week and not give my profit to the fuel man
Damn that cost doesn’t even cost that much anymore price on truck drop 50%
I parked my 9 trucks and laid off the drivers until the market changes.
Good presentation. Try to get rid of credit financing. These interest payments are enslaving.
Agreed! Trying to get rid of debt asap
You have a pre-calculated loan on your truck. This is not a simple interest loan. I'm assuming, since I didn't see the amounts change due to lower interest as the principal reduces. It is nearly impossible to survive if you cannot secure a proper loan. Your true interest rate is insane.
At 3900$ for 60 months...234,000$ total to buy the truck at full term.
That's one heck of a truck.
P.S.
The government really needs to crack down on pre-calculated loans as they once did in the regular vehicle market. People used to be tricked into buying vehicles like this. But the government says "Hey its a commercial vehicle loan. It's up to the corporation buying to figure out what they want or don't want." 8f the government wanted to help trucking make pre-calculated loans illegal.
Sorry folks. There ARE good suggestions here, but having a 24-year-old, or older truck so that elogs are not required and no exhaust after treatment system is not among them. In fact it is a double dickhead thing to do: (1) driving tired (no other reason not to have elogs; who would possibly want to hand tally this; mark odometer at state border crossings, etc., etc); and (2) running an engine in rest areas and truck stops without the after-treatment is a second complete bastard thing to do.
And bear in mind, the country had half the population and half the trucks 40 years ago.
I had a broker not pay me $2500 I sent it to collections got paid almost $2000
I would be interested in driving for your company.. I have 10 years verified with no tickets... Multiple trailers ... How do I get in touch with you ?
At the moment we are not hiring but feel free to reach out talkabouttrucking@gmail.com
This is how I'm staying afloat. I drive a 1996 kenworth w900, which is fully paid off. I do most minor repairs myself. It has crappy MPG but no monthly payment and low cost to insure, so the operational cost is fairly low. Then I'm leased on to a large company that moves containers, so no cargo insurance or trailer rent. And since I'm on paper logs, my company likes me and gives me priority over most guys with e-logs.
I still follow Miranda's videos even though I'm barely affected by the spot market, mostly because it's Miranda and I can watch her videos all day.
Sorry folks. There ARE good suggestions here, but having a 24-year-old, or older truck so that elogs are not required and no exhaust after treatment system is not among them. In fact it is a double dickhead thing to do: (1) driving tired (no other reason not to have elogs; who would possibly want to hand tally this; mark odometer at state border crossings, etc., etc); and (2) running an engine in rest areas and truck stops without the after-treatment is a second complete bastard thing to do.
And bear in mind, the country had half the population and half the trucks 40 years ago.
You are smart and keep it up❤
@@davidowen9671 It’s not bad because intermodal guys don’t really drive that far anyway. Paper log isn’t rocket science either.
@davidowen9671 lot of stupid assumptions there. First off, no I don't run paper logs to drive tired. Paper logs only help with flexibility so even if I get held up at a shipper or whatever I can still make it home and not have to shut down 30 miles from home. Second, I'm regional intermodal so I very rarely have to sleep at truck stops. Your comment only tells me that you're probably sore about something. Bark all you want, I'm not losing any sleep.
@gilbertoavina6156
Well Sir, you are spot on right there. And any sensible person must be irritated and disgusted at the guys who idle next to them (obviously Phoenix and Vegas in summer, etc., are exceptions). Such people drastically reduce quality of life out on the road for decent men. BUT throw a pre-after-treatment truck into the mix, and yes, there is a rolling nightmare.