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FedEx Freight | MKO Closing....

Canadian Flyer said:
That's what most real-world contracts look like. As far as they're concerned, if you don't like their terms you are welcome to go find someone who meets your expectations.

That being said, FedEx Ground pays very well on the base rate. They do take some of it back (IRP and insurance, probably camera and elog installation too) but they offer the best per-mile rate I've ever seen. And they know it, too, which is why they make the demands they do. But the base rate and capped fuel is all you get from them.

The biggest reason I work where I do, for a lesser base rate, is because Speedy offers a lot of benefits to offset their lower base rate. For example, I pay a fraction of the cost of diesel at the pump because they have fuel in the yard. I get a quarterly safety bonus and an annual profit sharing bonus. And there's a very reasonable benefits package too. Speedy even encourages their owner/operators and their drivers to participate in company functions and we are granted company discounts.

Different companies offer different contracts. So it's up to the contractors to seek out what they want through the job searching process. There can be some room for negotiation in future contracts, but only if you service the contract the way you are asked to. For example, FedEx Ground expects contracts to be serviced every week without failure. And as far as they're concerned, if you have to rent a truck or own a backup truck to ensure that, then that's what you do. You're an independent business operator and they don't believe in babysitting you.

It's kind of a perspective thing. One person getting percentage pay for their loads might look at what I'm doing and ask why I wasn't making more money by demanding percentage. To me, percentage is a gamble because you don't get paid for empty miles when you're paid from load revenue. Someone like you, driving for a big carrier rather than owning their own rig, might question why I bother with all the paperwork associated with running a business when my job is pretty much the same and, by all appearances, I don't get the same level of benefits. From my point of view, as a self-employed person I have much greater influence on my tax returns, and the saved money goes into other things I need.

I hope that explains it a bit. As an owner/operator, it's actually surprisingly easy to contract shop based on what you're looking for in the job, so the ever-prevalent non-negotiable contracts aren't regarded as a big deal. If you don't like the deal, you find another one.

Because, to me at least, if the contract is both non-negotiable and not what I'm looking for, the company doesn't want my services badly enough. And in the world of today where there already aren't enough drivers, my services are in demand.
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Thank you great explanation. Now golden question is it worth it to be Owner Operator?
 
How sweet my 2 favorite trolls following me around again talking to each other not smart enough to realize i have both on ignore for a reason.
 
Crazy Trucker said:
How sweet my 2 favorite trolls following me around again talking to each other not smart enough to realize i have both on ignore for a reason.
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Don't flatter yourself... I respond to other posters too, but you wouldn't know that because you have me on ignore. :27:
 
Crazy Trucker said:
Thank you great explanation. Now golden question is it worth it to be Owner Operator?
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That depends on you. If you're willing to put forward the extra effort involved in running a business and you find the contract that works for you, I would say it is. There's a certain level of freedom involved in owning your equipment, and to an extent a level of pride.

There are definitely times it can suck. Breakdowns are expensive, and you're best served trying to stay as far ahead of maintenance as possible. But there's something to be said about being your own boss. Sure, the company tells you what to do, what's expected of you. But you are in charge of yourself.

I prefer it, myself. And I've worked both ways.
 
Canadian Flyer said:
That depends on you. If you're willing to put forward the extra effort involved in running a business and you find the contract that works for you, I would say it is. There's a certain level of freedom involved in owning your equipment, and to an extent a level of pride.

There are definitely times it can suck. Breakdowns are expensive, and you're best served trying to stay as far ahead of maintenance as possible. But there's something to be said about being your own boss. Sure, the company tells you what to do, what's expected of you. But you are in charge of yourself.

I prefer it, myself. And I've worked both ways.
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I meant financially.
 
Crazy Trucker said:
I meant financially.
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Financially speaking, it's definitely a crapshoot. The viability of being an owner/operator largely hinges on the individual knowing how and where to spend money on his business. A one truck operation requires budgeting.

Once you are able to get on firm ground with a contract that you like, having a few thousand dollars tucked away in case repairs are required is a must. That said, it doesn't take long to earn that money if you're willing to work and not spend on frivolous stuff like chicken lights and chrome.

Finally, your finances are in trouble if you don't have a good truck. And this is the real crapshoot here, particularly with modern equipment. But if you do your homework when shopping, going for something a couple of years old with a reputation you can track will lead you to a truck that should work for you.

It's not certain that you will succeed. Like any business venture, there's a margin of error and you have to take a leap of faith. If you don't like taking risks, going into business for yourself is a bad idea.

I'll give an example. Last week, my week ended early when my truck threw a code and went into limp mode. I was very fortunate that this happened at my home terminal. I limped the truck to the local KW dealer and went home. Turns out both of the NOX sensors seized. $2500 in parts and labor to fix. Fortunately, I had that covered, but a less cautious person who spent the money would be in trouble. A company employed driver, however, doesn't have to worry about this sort of thing unless there's no replacement truck to drive.

It's as financially viable as you make it, really. I wouldn't work in automotive, margins are too low there.
 
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