At What Point Do I Begin Trucking My Own Materials?

ruskent

Right now i run my business out of a 3/4 ton deisel pick up truck. I get everything delivered. In the last month i took over 25 deliveries. I belive i pay 80-90 for delivery depending on the vender.

Most loads were full tri axles or tandems. With a few block and paver deliveries mix in and some smaller loads of sand and decorative rock.

My volume of deliveres and exports of materials off job sites is only going to increase.

Do you guys find it makes sense to go buy a used tandem for 40-50k?

I thought of buying a single axle international. but i'd end up making 3 trips to equal one triaxle.

Granted all these deliveries are worked into my job cost. I just feel like i am laying out alot of money per a month that i could be putting towards a truck payment for a truck that i'd own free and clear in a couple of years.

What have you guys figure out works best? BTW i have no proablem getting deliveries on time when i need them. So thats not a issue.l

Norrrrrrrrrrrrm

If I had that many deliveries I would buy a truck like you said. Put that delivery money toward the truck and have yourself another form of advertising on the road. Your company will look even better. Go for it!

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Cole

Do you have someone in place to drive it?

Or are you going to have to hire on someone else for that?

Personally, I am trying to get away from working in the field and I know that right now I am too busy to be running to get materials etc...

The cost of hiring someone who you can trust to get the materials etc.. and also be good at his craft might outweigh the price of getting them to deliver the materials/products.

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ruskent

I am looking to hire a full time equipment operator/driver. As of right now i am spending 3k a month with my excavating sub. Thats to much also.

I figure if i get a tandem i could hire it out when i am not running loads for myself.


I am just really looking at my numbers and trying to figure out how to stream line my operation and become more efficent. I am just tried of putting money into other peoples pockets when i could be building equity in my own equipment.

I just need to manage the financials correctly.


So guys how much am i looking at to get into a decent truck?

Matt

Cole

I hear you, as I am the same way.

Good Luck!

Cole

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denick

Rusknet,

Take a deep breath. Take another deep breath. Breath real deep one more time.

Do Not buy a truck!

Matt, You want t make large profits? Do not buy a truck!

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Nick

"Every day I remind myself that my inner and outer life are based on the labors of other men, living and dead, and that I must exert myself in order to give in the same measure as I have received and am still receiving" Albert Einstein

ruskent

Denick

Please elaborate? What about if i could keep the truck busy for 40 hours a week?

concretemasonry

Rusk -

Make up your mind and decide of you are in the contracting business or want to dilute yourself and try to run a truck cheaper than the people in that business.

If you cannot properly schedule items that require a larger truck, you should take a closer look at your contracting business. There is nothing wrong with hiring someone to deliver something for you unless you want a bunch of "adult toys" with your name on them that cost much more than you think.

Are you prepared to hire a driver that must pass all of the commercial licensing requirements, up your insurance and maintenance and then have to pay when the loads are not convenient or on time?

Keeping a truck busy 40 hours a week makes little if any money and takes time unless you want to hire some one to supervise. The next thing will be changing your construction to fit the truck delivery schedule.

I would also suggest getting a smaller vehicle so you can spend your time on the business and not run errands to correct bad scheduling or mistakes. There is more money to be made by getting more profitable work than trying to pinch pennies and have toys.

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ruskent

Timely delivery is not a proablem. I call the quarry and have my stuff within 1 hour. I was just trying to see if it made any sense to buy a truck to do deliveries in house.

GregS

What if you needed multiple deliveries in the morning in order to start the day?

Is your truck going to drive to the supplier, wait around for it to get picked and loaded, paperwork signed, then drive back, have your guys unload it all, then drive to the next supplier and do the same thing again?

Seems you might be ahead by getting someone else to deliver it and making sure that is added into your price of the quote.

You'll be ahead of the game with one less thing to worry about.

What if your truck breaks down? You are probably still paying your driver, pay for the repair, and also pay someone to deliver the stuff that your driver was going to be picking up anyways.

2ndGen

If I missed this throughout the thread, excuse me, but the most important thing I'd consider is how much increased liability are you subjecting yourself to by putting a rig this big on the road?

Even great drivers make mistakes. If the resources saved out weigh the risks, then by all means, go for it. Not meaning to be the voice of gloom and doom, but offering another point of reason here.

denick

Matt,

Unless NJ is some magic dream land of financial abundance owning a truck doesn't add up.

You can keep a truck busy 40 hours a week? How? 12 months a year? When will this company give you time to make your own deliveries?

Where is the driver? You need to do a real background check on this driver and keep the records, Join a drug testing program, (look up the mandatory fine for not belonging to a drug testing program) Daily driver inspection reports, Daily logs or time sheets of everything they do (drivers are limited to hours they can work, they sweep floors at night for 40 hours they can only drive 20 hrs a week. And the details keep going on just the driver.


A triaxle dump gets and average of 4.5 miles to a gal. of diesel.

__________________
Nick

"Every day I remind myself that my inner and outer life are based on the labors of other men, living and dead, and that I must exert myself in order to give in the same measure as I have received and am still receiving" Albert Einstein

ruskent

I think i am just confused. I just keep looking at what other companies do and i am trying to figure out how in the world it makes financial sense for them.

denick

There's your mistake Matt. It needs to make financial sense for YOU Don't waste a minute thinking about them.

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Nick

"Every day I remind myself that my inner and outer life are based on the labors of other men, living and dead, and that I must exert myself in order to give in the same measure as I have received and am still receiving" Albert Einstein

Chris Johnson

Your in the contracting business, not the trucking business

You want to spend good money on a USED truck with a motor and transmission that requires insurance to have on the road and chances are no warranty, go look in the mirror and slap yourself in the head.

And as DENNICK said, daily logs, inspections, different road rules (scales, regular certifications, special license, etc.)

Your not making someone else rich by paying 80-90 per delivery, that is the business they are in and can maintain deliveries for that price, if you work out all hard and soft costs for this vehicle I'll bet you think again, it does not make financial sense for 25 deliveries a month.

Think long and hard about this one before taking the plunge, we not talking about a 2000.00 tool here. Where you plan on parking it when not in use, evenings, weekends, etc. Who's driving? I see money pit.

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Chris

LNG24

Matt,

I agree with the rest of the group here. I use to own my own truck and equipment. Made sense because I had to move my equipment, but I hardly ever used it to haul material into the site. Only to haul the waste out.

It was alot of work, paperwork, to keep that truck on the road. Why do others do it? Maybe because they didnt really look into it until it was too late. You would HAVE to keep that truck running 40 hrs a week for at least 8-10 months out of the year. Thats a lot!

Now if you end up getting your own Excavating Equipment, then it might start to make sense as you will wat to have something to move that equipment when you need to. Just keep an eye on the bottom number. Monthly Payments, Insurance, Licensing, DOT, IFTA, Paperwork, Fuel, Operators. Those add up quick.

If you are doing jobs where you will be on site for a month or longer, dosnt even pay to transport yourself. If you will be there a day to a week, then it might.

It is nice to have your name on the trucks, Even Nicer to have the money on your checking account.

fhdesign

My brother has a small trucking business, and he says he does it primarily because he loves the trucks, the profit is small.
Most of the people around here buy there first truck when they can't get deliveries on time, or they need it to move themselves.

Driftwood

I love taking the time to fetch what I need ,right now. I'm the only driver and enjoy a little flat a$$ time. It's an 84 f-8000 3208 cat. Bob tail. I'm always overloading her and avoiding the scales. I even jump on the loader at the pit and load myself ,if no ones around. I have some good relations . Does all this make $$ sense ? Don't care,keeps Me smiling. Right now there's only 5 of us.
Would I hire a driver? Not for My little circus.

POOLMANinCT

80 bucks for material delivery within an hr matt???

thats a gift....

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rino1494

If you are doing good now and making money and have no problems with getting material on time, then keep doing what you are doing. For us, a truck is a must have. We actually need another one, but that isn't going to happen.

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