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Starting trucking company questions
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neverstoplearning
Posted 6/26/2022 02:05 (#9721396 - in reply to #9721248)
Subject: RE: Starting trucking company questions


SE SD
What are you hauling? I couldn't imagine paying my partner 30% for only doing the dispatching. Dad and I run under the same name, each run one truck and trailer setup. He gets paid the loads he hauls and I get paid the loads I haul. We both have contacts and brokers we deal with. We are our own dispatch. We do most of our own maintenance and repairs. Had a third truck for a while dad owned and had a few different drivers. Always late to start or not even show up. Had trouble explaining that the truck needed to do x amount of loads or trips a week to be able to make payments. Then some had the balls to ask for a raise! Why am I only making 300 or 600 a week? These were decent rates at the time, probably not so good now. Because you're only doing one or two trips a week! No reason can't do 3 minimum, maybe 4 or 5 if you just go. Upside was they were considered part time employees because of this. With employees who only showed up when they felt like it dad never really made any more money. Just enough to cover the costs. Plus all the down time training the new guys where to go and what to do. And more repairs because employees do not care one bit about their machine. Other than is it washed and shiny.

Anyway it became obvious that we only needed one truck each to worry about. It's enough to live on, but not really enough to get really far ahead. Really trying to do more with the farm and have the truck just take care of monthly bills and slow seasons. New Michelin steer tires $800 a piece. Fuel is insane. And parts are either hard to get or so expensive you think twice about their necessity.

If I had to start again I would make sure I had 3 months of fuel in the bank. Anywhere from 25-50% the value of the truck for maintenance on hand. And preferably the truck paid off. And more contingencies for when your planned out loads don't come through. The slow years hurt even worse than these high price expensive years. Try to use equipment that is desirable and relatively easier to liquidate. Be prepared for slow paying customers. 30-45 days is getting more common.

Dad and I are in business together but it was different than your plan because he already had the business. Then I basically signed on but the size of his business didn't change at all. He still makes what he drives. I make what I drive.

Good luck

Edited by neverstoplearning 6/26/2022 02:12
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