Work for someone else and make more. Really?

UK PROFESSIONAL DRIVERS FORUMS OWNER AND FLEET OPERATORS FORUM (INTERACTIVE)
1

Hi guys,

I’m really curious about the replies to people thinking about buying a truck. I get it must be a massive headache finding somewhere to park it, TM CPC, repairs, staying legal, lease or buy etc etc…and that’s before you’ve gone and knocked on doors to find work. Then after all that, you’ve got to do a day’s work driving.

However, I can’t understand how the firm I work for is a subby and managers to do all of the above and pay me and I presume still turn a profit as they’re buying more trucks.

I heard someone say it’s a case of “Go LARGE or go home”…run loads of trucks or none at all.

My firm has less than 30 so in no way a big player.

Just curious how it works. Would I buy a truck? It’s wandered through my mind as a daydream but nothing more.

2

Build5:
Hi guys,

I get it must be a massive headache finding somewhere to park it, TM CPC, repairs, staying legal, lease or buy etc etc…

and that’s before you’ve gone and knocked on doors to find work. .
.

For a start you have those the wrong way round

3

chaversdad:

Build5:
Hi guys,

I get it must be a massive headache finding somewhere to park it, TM CPC, repairs, staying legal, lease or buy etc etc…

and that’s before you’ve gone and knocked on doors to find work. .
.

For a start you have those the wrong way round

Okay. So turn it around until it fits your narrative. I know you understand what I’m getting at.

The basic question is -

My small firm who sub contract to a larger firm who hold a contract with a company, my small firm (the subby) is able to pay me after all the above overheads.

How?

If as a lot of poster’s say there’s no money in it, how are they managing to pay me every week and run their business and run pretty nice trucks?

I’m genuinely interested.

If the group consensus is not buy and work for someone else (who is probably a subby for a larger firm) then the company you are working for is going to go bust…so why work for them?

Unless we all work for XPO, Stobbies, Kinaxia, Culina? Is that what everyone is suggesting ultimately?

4

The profit from running trucks is so meagre that for the most part you would be financially better off working for someone.
Most small operators or owner drivers have niche work they’ve done for years, so know the job inside out and which are the best paying bits. They can move very quickly and alter their business to suit the work available.
Larger hauliers need lots of trucks each making a small profit to make it work, the work they do is plentiful but extremely low margins, think Amazon etc.
Which is why most on these forums would suggest you stay employed.

Sent from my iPad using Tapatalk

5

chaversdad:

Build5:
Hi guys,

I get it must be a massive headache finding somewhere to park it, TM CPC, repairs, staying legal, lease or buy etc etc…

and that’s before you’ve gone and knocked on doors to find work. .
.

For a start you have those the wrong way round

You have to admit it’s a bit of a chicken or egg situation depending on who you are and where you are based ,like round here you could but a unit or a rigid make your self available and it wouldnt be long before people be dropping on you for the odd day ect

6

coiler:
The profit from running trucks is so meagre that for the most part you would be financially better off working for someone.
Most small operators or owner drivers have niche work they’ve done for years, so know the job inside out and which are the best paying bits. They can move very quickly and alter their business to suit the work available.
Larger hauliers need lots of trucks each making a small profit to make it work, the work they do is plentiful but extremely low margins, think Amazon etc.
Which is why most on these forums would suggest you stay employed.

Sent from my iPad using Tapatalk

I get what you’re saying - if you intend to run one truck, you’d be better off working for someone else who is a subby to a larger company who have the contract.

But what if you wanted to be that main subby or God forbid, take that contract.

Am I wrong to be looking at this as a numbers game (small profit per truck, per driver, increases exponentially with more trucks and drivers)?

TM CPC, office, etc etc… remain static with a larger fleet?

Very simplistic I know, but you get my drift.

It’s just a numbers game?

7

Build5:

coiler:
The profit from running trucks is so meagre that for the most part you would be financially better off working for someone.
Most small operators or owner drivers have niche work they’ve done for years, so know the job inside out and which are the best paying bits. They can move very quickly and alter their business to suit the work available.
Larger hauliers need lots of trucks each making a small profit to make it work, the work they do is plentiful but extremely low margins, think Amazon etc.
Which is why most on these forums would suggest you stay employed.

Sent from my iPad using Tapatalk

I get what you’re saying - if you intend to run one truck, you’d be better off working for someone else who is a subby to a larger company who have the contract.

But what if you wanted to be that main subby or God forbid, take that contract.

Am I wrong to be looking at this as a numbers game (small profit per truck, per driver, increases exponentially with more trucks and drivers)?

TM CPC, office, etc etc… remain static with a larger fleet?

Very simplistic I know, but you get my drift.

It’s just a numbers game?

Yes it’s always a numbers game. As you get more trucks you need more office staff to get the work, look after the drivers etc, so the office side grows with the numbers of trucks.

So if you’ve a business with a turnover of £1M and a 2% turnover = profit of £20k. For a £100M turnover and same profit margin profit = £2M

That’s why more trucks means more turnover means more profit. In theory.

I’m not saying a one man band should just sub off another transport firm, though this would give a consistent source of work but at a low margin. As a one man band The holy grail is to work direct for a customer getting decent margins.
All my work is direct for customers. But you still have to be careful not to overprice yourself as you’re competing against the big boys, but what you can give as an OD is a service, which is what the big boys can’t do.
E.g your customer rings up at 4pm and says can you get this delivery there tonight, and you say no problem. And charge them for the privilege.

So you think it’s better working for yourself and not being told what to do by a knob of a boss, it’s just as bad in reality as you’ve got knobs for customers telling you what to do and when, and knobs for drivers moaning about doing it.

Sent from my iPad using Tapatalk

8

Build5:

coiler:
The profit from running trucks is so meagre that for the most part you would be financially better off working for someone.
Most small operators or owner drivers have niche work they’ve done for years, so know the job inside out and which are the best paying bits. They can move very quickly and alter their business to suit the work available.
Larger hauliers need lots of trucks each making a small profit to make it work, the work they do is plentiful but extremely low margins, think Amazon etc.
Which is why most on these forums would suggest you stay employed.

Sent from my iPad using Tapatalk

I get what you’re saying - if you intend to run one truck, you’d be better off working for someone else who is a subby to a larger company who have the contract.

But what if you wanted to be that main subby or God forbid, take that contract.

Am I wrong to be looking at this as a numbers game (small profit per truck, per driver, increases exponentially with more trucks and drivers)?

TM CPC, office, etc etc… remain static with a larger fleet?

Very simplistic I know, but you get my drift.

It’s just a numbers game?

No. Because you will quickly discover that 95% of drivers are ■■■■ who will a) drive your truck like they stole it or b) bring it back every day with panels hanging off, or c) both. Paying out hundreds for new mirrors, clusters, panels and mudguards nearly every week soon makes you realise that you’ve doubled your hassle factor for no additional income. And that’s before you even get to the part where your phone goes off at 6am with a text message saying they’re sick and not coming in today, leaving you up ■■■■ creek. Then there’s the crowd that see absolutely nothing wrong with helping themselves to a gallon or two of diesel each week at your expense.

9

^^^ yup, if you are one of the 5% driving for someone else can be consistently more fruitful than going it alone, the hard bit is those 5%ers findings vacancies within the 5% of employers worth working for.

Regarding the future, the ongoing farce they have made of the current crisis isn’t likely to be over for several months, possibly several years indeed may be permament if the govt of the day and those who own them find it gives them more control, so its anyone’s guess what your best bet is from here on.

10

Mick Bracewell:

Build5:

coiler:
The profit from running trucks is so meagre that for the most part you would be financially better off working for someone.
Most small operators or owner drivers have niche work they’ve done for years, so know the job inside out and which are the best paying bits. They can move very quickly and alter their business to suit the work available.
Larger hauliers need lots of trucks each making a small profit to make it work, the work they do is plentiful but extremely low margins, think Amazon etc.
Which is why most on these forums would suggest you stay employed.

Sent from my iPad using Tapatalk

I get what you’re saying - if you intend to run one truck, you’d be better off working for someone else who is a subby to a larger company who have the contract.

But what if you wanted to be that main subby or God forbid, take that contract.

Am I wrong to be looking at this as a numbers game (small profit per truck, per driver, increases exponentially with more trucks and drivers)?

TM CPC, office, etc etc… remain static with a larger fleet?

Very simplistic I know, but you get my drift.

It’s just a numbers game?

No. Because you will quickly discover that 95% of drivers are [zb] who will a) drive your truck like they stole it or b) bring it back every day with panels hanging off, or c) both. Paying out hundreds for new mirrors, clusters, panels and mudguards nearly every week soon makes you realise that you’ve doubled your hassle factor for no additional income. And that’s before you even get to the part where your phone goes off at 6am with a text message saying they’re sick and not coming in today, leaving you up [zb] creek. Then there’s the crowd that see absolutely nothing wrong with helping themselves to a gallon or two of diesel each week at your expense.

^^^ + 1