Free Advice

Free Advice for the American trucker.  By J.W. Lessing, February 5, 2009

The economy is stupid, yes we know. Millions of Americans are hurting financially because they've lost their jobs or their businesses. The trucking industry lost 95,000 owner operators in 2008 and the down turn is still going on at the time that I am writing this article. It's a worldwide thing, we've been told; O.K. but that does not help either because we all need jobs to feed our families.

We are getting calls from you every day and every week, and the question is always the same. Can we still get into trucking as an independent owner operator and make ends meat?

And the answer is always the same, "yes you can, if you work smarter not harder".  What does that mean? Well, for example we have been asked so many times, "what kind of trailer I should buy? I can get a great deal on a 48' dry van."

Well, of course you can get a great deal on a dry van because dry goods are not moving and everybody is getting rid of their trailers, or they're getting out of the business because he or she can't make it.  

Look, this is why we said; work smarter not harder. You need to specialize in some kind of commodity which is not affected by the economy - something that is still moving.

Think about it, people are not spending money, or they simply don't have the money to spend anymore. But, people still need certain things to survive. Let's point some items out so you get the idea. They don't buy furniture right now, it can wait for better times, they don't buy fancy car parts, they can wait, they don't buy electronics if they don't absolutely need them etc. etc.  You get the picture. All these dry loads including building material are not there anymore or they are reduced 50%.  Guess what, the big trucking companies have this already under control and hauling the remaining dry loads for pennies on the dollar.

So what can you do? Like we said, "specialize". First, we had too many owner operators going out of business; this hole needs to be filled again. Second, what do people still need that they can't live without? 

Food, dry food, refrigerated food, frozen food, fresh produce, etc.

What kind of trailer should you buy?  The answer is, of course, a 53' 102 reefer.  The produce season in California is right around the corner. It always pays top dollar going to the east coast. And, coming back you can haul dry food products or beverages. We know that the loads coming back paying nothing and it will sometimes only cover your costs.  This is why you need to know your cost per mile to make an intelligent decision when accepting a load.

Think about it, if your cost per mile is around 85 cents per mile and your round trip makes you $1.50 per mile, you still earn with 10,000 miles per month $6,500 before taxes. You're not getting rich with this kind of revenue; however you will still make a good living and can easily wait until times get better.

Give us a call if you need help. Call 602-864-8056