Hey, Thump, trucker question....

[Big Muddy]

We had a small family get-together last night with some in-laws....one of them is a truck driver for Allied Van Lines, who was passing thru, and stopped by, too.

I overheard him talking to his sister, who is his accountant, and he said it looked like he was going to gross about $300K, this year....I don't know all the details, but Allied does all his scheduling, and he leases the truck from Allied, and pays his own expenses.

He's a nice enough guy, and doesn't appear to be the type to exaggerate, but WOW, I had no idea truckers made that kind of money!!!....day'um, I'm in the wrong business!!!

What's your take on it???

[Chicken Dinner]

I bet there's a big difference between gross and net in that business.

[Arty]

Yeah 1/2 that is fuel and licenses, then there's the truck lease, insurance, tolls, etc etc.

[Big Muddy]

Yeah, but still, half in expenses leaves a net of $150K....I know some local trucker guys who work their azzes off, and bring home only about $60K.

[Thumper]

That is a "loaded" (no pun intended) question and CD is spot on. I'll try to hit the high spots, since I don't know this guy or his level of experience.

I was a newbie and drove a company truck during the "badder than bad" economy. Many truckers were sitting in truckstop parking lots for days at a time while I was driving. BUT, your guy is what is called an O/O (Owner Operator). When I drove a COMPANY owned truck, my company paid ALL expenses except my food and personal expenses. I struggled to make $40-$45,000/yr. and I had a GREAT dispatcher who "loved" me and took good care of me. (of course my dispatcher was female) :D

But, I was a newbie (only drove 2 years) and salary goes up with experience. That said, I made more than most of my peers. An O/O is a whole different ballgame! They average (or did, if my memory serves me correctly) around $100-$150K/yr. BUT ... they have payments on a $100,000+ tractor! They also have to pay their insurance, fuel (diesel is higher than gasoline and a truck gets about 6-7 mpg loaded), tires (NOT cheap), maintenance, tolls (also not cheap for a big-rig), breakdown costs, hotels, living expenses (living on the road eating at restaurants ain't cheap) ... then you have to figure personal insurance (medical, etc), personal/corporate taxes, etc. etc. etc. And that $150,000 gross gets a HUGE bite taken out of it! I've known quite a few O/O's who made big bucks, but after expenses, I netted more than they did! (and remember, I was at the bottom of the gene pool as a newbie) I'd say at the $100,000 - $150,000 gross ... the net would be around $35-$45K/yr. (I may be off, not positive as I'm going by memory).

He "sounds" high at $300,000 for a few reasons. You make bigger bucks with your "endorsements" ... hazardous materials, overweight/oversized loads ... that sort of thing. I doubt he'd have/use those endorsements moving household goods. Add to that, with the housing crash, I'm not so sure the moving business is all that lucrative at this time.

I ain't sayin' it's impossible to gross that (highly improbable though), but his net ain't ANYWHERE close. When I started my company in '89, I'd gross $200,000, but I operated in the red most of the time. An O/O is a rolling business.

[Big Muddy]

That's sorta what I figured, Thump....this guy has only been driving about three years, but he is not married, and STAYS in the road.

[Thumper]

With only 3 yrs. under his belt, I'd call foul. (or b/s to put it bluntly)

Maybe he was talking about his gross EXPENSES! ;)

As for staying on the road, I got 1-day/wk. off ... I'd drive 3 weeks straight, then come home for 3 days.

[Big Muddy]

Yep, seems a bit far-fetched to me, too.

[Chicken Dinner]

Household moving could is a notorious crooked business. So, it may be possible that there's more top side revenue involved than in the regular trucking bidness as well.

[Big Muddy]

Or, maybe he's hiding illegal Messicans in the buffet cabinets. ;)

[DeputyDog]

Or making "special" pick ups and deliveries other than his scheduled stops. I know of drivers who were approached while looking for a legit load about transporting some illegitimate cargo for a pretty good fee. A lot of them who are really struggling with the bills will take up offers like that. At least that's the story they tell when they've been busted hauling "produce" from south of the border that can't be sold in the grocery stores if you know what I mean.