in the world of truck drivingmany newcomers are drawn to the realm of becoming a owner operator. Given the choice of earning 0.34¢ per mile or $1.15 per mile, it’s not hard to see why someone would choose the higher earnings route. At 2,500 miles per week, the difference of an additional $2,025.00 per week deserves attention. However, when it comes to professionals truck driving jobsyou have to deal with reality.
In an industry where the driver averages 100,000 miles per year, a owner operator compensated at $1.15 per mile is looking to raise $115,000.00 annually. Compared to average company driver at .34¢ per mile, his annual gross income is only $34,000. Why would someone choose an annual income of $34,000 over $115,000 while performing the same duties?
Despite owner-operators are in decline, there are still those companies that proudly announce that they are 100% owner operator fleet. Some have even raised compensation to a whopping $1.50 per mile. With 100,000 miles per year, you are now facing a gross income of $150,000 per year! As a newcomer looking for a new career and a company willing to put you in “your own truck,” the thrill of earning that kind of money is hard to turn down. You want freedom. . . you want your own business. . . he wants $100,000 more per year. Everything sounds great. Now let me bring you to reality.
Owner-operator leasing programs are a way for new drivers to “own” a truck. The driver is responsible for all expenses, including fuel and repairs. Although there are some that do well, most of these owner-operators fail to. For me, a lease owner operator is nothing but a glorified company driver. Let’s take a look at a profit and loss analysis sheet for a owner operator et un company driverand you be the judge:
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company driver: Profit and Loss – Based on 100,000 miles per year
- Compensation: .34¢ per mile = Driver Gross Income – $34,000
- Miscellaneous Expenses, including meals @ $125.00 per week = Total Cost – $6500
- *Tax Withholding @ 15% = Annual Deductions – $5,100
- Company Driver NET Annual Income = $22,400.00
- Company Driver NET Weekly Income = $430.77
- Compensation: $1.15 per mile = Driver’s gross income – $115,000
- Pay Per Truck @ 1,333.35/month = Annual Cost – $16,000.20
- Collision/Comp. Insurance = Annual Cost – $6300
- Bobtail Insurance = Annual Cost – $804
- Licenses = Annual Cost – $1,835
- Permits = Annual Fee – $525
- Accounting Services = Annual Cost – $725
- Tractor Fuel = Annual Cost – $39,397.06
- Truck Wash = Annual Cost – $701
- Telephone = Annual Cost – $1,624
- Meals = Annual Cost – $6500
- Tolls = Estimated Annual Cost – $1,275
- Taxes (Road, Use, Fuel) – $1,755
- Taxes (Personal @ 15%) – Annual Cost – $17,250
- Miscellaneous Expenses – Annual Cost – $500
- Maintenance @ .06¢ per mile = Annual Cost – $6000
- Total Owner Operator Income = $115,000
- Total cost of operation = $101,191.26
- Owner Operator NET Annual Income = $13,808.74
- Owner Operator NET Weekly Income = $265.55
*Tax withholding is estimated at only 15% average And now. . . tea ”
owner operator“:
owner operator: Profit and Loss – Based on 100,000 miles per year
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Figures speak louder than words. This analysis is also based on the fact that everything goes as it is. Some tires blow out. . . a burnt engine. . . and now you’re in the red. It is not difficult to understand why the trucking companies love the lease owner operator. 100,000 miles per year at 60 MPH will take 1666.66 hours to drive in a perfect world. East operator owner net annual income shows that they made this hard and difficult life for $8.28 per hour.
The “freedom” of being a owner operator it’s a myth. Refuse a load or “go home” whenever you feel like it, and see how long the company will make you sit afterward. As a company driver, just drive. . . without the headaches and expense associated with owner operator Program. Yew over highway truck driving is in your plans, think carefully about the possibilities that await you. As everything in life. . . learn as much as you can BEFORE you start the trip. It is essential that you know the the truth about transportation.