August 2019 | A STRONG GROUP

Monthly Archives: August 2019

Flatbed Rates – How do they hold up?

Flatbed rates are the reason why so many truck drivers want to transition from Dry Van to Flatbed.

While Flatbed drivers claim that you need some time to get the proper training to drive Flatbed and get those Flatbed rates, many are rushing and trying to apply for Flatbed driver positions.

What do Flatbed rates look like today?

As usual, Flatbed rates are higher than the ones you can get with Dry Van.

But, there are a few things that have a direct impact on Flatbed rates:

  1. The current state of the market and the industry
  2. The brokers
  3. Competitiveness of companies

At the time of writing, Flatbed rates average around 50 cents per mile for company drivers and contractors.

That rate may go up and down, depending on the company offering the position. Some pay as low as below 40 cents per mile, while others go as high as 70 cents per mile, you can check that here.

As drivers are getting more interested in Flatbed, the average salary for truck drivers changes due to changes in the industry itself.

What can you expect in the following time?

As the health of the market changes so do Flatbed rates. Right now the market is not in such good shape it was a couple of months ago, so it’s plausible that Flatbed rates will go down.

Some companies that aren’t doing so well already adjusted their rates according to the market. While Strong Group still maintains a 70 CPM rate.

It’s important to notice one small detail when asking about the company’s Flatbed rate. Many companies out there won’t pay you all the miles, but only the ones that you cover with the load.

So, if you’re an owner-operator, and the company offers you 60 CPM, but they only pay you the miles you covered loaded, while you still have to cover the expenses for fuel and other things while driving empty.

Around 40% of all miles are empty, so the companies that don’t pay the empty miles, leave you with a lot of expenses.

They don’t realize that not only fuel costs haven’t gone down, but your time has a price as well.

With the new fees that will be introduced in 2020 for drug and alcohol testing for carriers, rates could only go down.

Hopefully, newly introduced fees won’t impact the rates for truck drivers, because, in the end, both the driver and the company should be happy for the business to flourish.

Flatbed rates summary

Flatbed rates still look pretty good, although all rates are slightly going down it’s up to the companies to decide will they lower the pay rate for their drivers or keep it where it is.

We still pay $0.70 per mile for our Flatbed division and don’t plan on lowering it soon, because we still have a lot of freight to haul!

cdl class a jobs

CDL Class A Jobs – Available now!

CDL Class A jobs are available again!

We’re hiring OTR drivers for Dry Van and Flatbed.

We pay 60 CPM for Dry Van and 70 CPM for Flatbed.

Requirements:

  • CDL Class A
  • Clean MVR
  • At least 2 full years of experience

We offer the best rates in the US!

Truck drivers average salary is pocket change compared to what you can earn with us!

Home time depends on your home state.

Get in touch with our recruiters at: 855-787-6644

Right now we offer CDL Class A jobs in 48 states across the USA:

If you’re looking for OTR truck driving jobs, we got them for you!

Strong Group has built a STRONG relationship with each and every one of its drivers as they are the most important

part of our company, and we currently have more than 95% of our new drivers as walk-ins on a recommendation.

We’ve also started a shop 3 years ago where top experts in truck and trailer mechanics are serving more than 50

trucking companies, including ours.

Strong Group is a family-owned company known as one of the fastest-growing flatbed, and dry van carriers in Indiana.

Precisely these family values, in combination with respect and hard work, helped our company to achieve stellar success.

Operating for more than a decade, we have learned the value and importance of quality service.

Each and every delivery is made with the utmost safety in mind, and you can count on us to provide reliable, efficient and timely services, thus raising the industry bar with every passing month.

If you like what you hear, contact us, and let’s start making money together!

owner operator salary

Owner operator salary

Owner operator salary is the very first reason a company driver decides to become his boss.

There’s a lot of owner operator trucking jobs available today, and the demand is increasing by the day.

Along with the higher-earning possibilities, it comes with a great benefit of having your own truck and getting that independence that many truckers would like to enjoy.

How much is owner operator salary different than company drivers’?

Owner operator salary is significantly higher than the one that company driver can reach. That’s why it’s so attractive to many truck drivers.

Based on our company’s survey, when asked on the first interview what would they like to change about their position, the drivers’ first response was to get their own truck through a lease.

As of July 2019, truck drivers’ average salary goes as high as $71,000.00, while owner operator salary is around $195,000.00.

It’s obvious why truckers are rushing and saving money to buy their own trucks. Because in the end, they get a lot more money in the bank.

When is the right time to think about owner operator salary?

Pro tips:

  • Only you know what’s best for you
  • You should have enough experience to know how the industry works
  • Put everything on paper and see is it good enough for you

First of all, it depends on your personal choice and a few other situational things.

On one hand, there is no exact right time you should think about owner operator salary and hopping in your first personally owned truck.

On the other hand, the best time, would be the moment  you find a good lease deal.

Depending on the company that offers you the lease, and the requirements you need to fulfill, you will have to wait more or less to get that truck you wanted.

In our case, for example, we require our drivers to drive for us at least 3 months, before they can get a lease.

Or even sooner, if they prove to be good and responsible drivers!

What will change when you become an owner operator?

As we already concluded, the pay will be drastically higher. But that’s not the only thing that’s going to change.

You will be enjoying a lot of independence and freedom, but as always, with more freedom comes more responsibility.

The truck you lease to get that owner operator salary will technically be yours from the start, so all the expenses regarding the truck are on you.

But, that’s only if your truck breaks down unexpectedly. Which will hardly be the case if you lease a brand new truck.

From the experience with our owner operators, their biggest dilemma is which truck to lease.

On one hand you have a brand new truck that is priced more than a used one, and on the other hand, you have the truck you have driven as a company driver and you know exactly the good and bad things about it, plus it’s a lot cheaper.

Leasing the truck you’ve already driven is great because you know that trucks’ heart and soul. Getting a used truck in good condition is usually the best solution you can get.

What’s the next step for owner operators?

To keep going the path of growth for your business, the next big step would be to get your own authority and buy a few more trucks.

As an owner operator, you do have more independence, but you still operate under someone else’s company.

The next big thing for you would be:

  • Get a couple of extra trucks
  • Form a small fleet
  • Hire drivers to operate in those trucks
  • Outsource other parts of the business

Now you’re beginning to realize what it is like to be a true businessman. You will have to manage your team of drivers and trucks you bought for them to drive.

Luckily you don’t have to learn every single part of the business you’re going to run, nobody does that.

There’s a lot of companies that exist for that sole purpose.

You will need 3 key things to keep your business running and profitable:

  1. Dispatch
  2. Safety
  3. Accounting

Depending on your current knowledge and experience in the trucking industry, you can choose which services to use.

But, have in mind that most of these companies offer those services in a package, so if you know how to dispatch but you need help with accounting, you will have to pay for both.

There are very few companies offering you only the service you need and not an entire package of services.

In conclusion

Owner operator salary is something that will encourage you to advance further in the trucking industry and become your own boss, with your own truck.

Nothing to stand in your way of a better position, salary, and future!

 

Lease Purchase – A Way to Independence

Lease purchase is one of the most common things drivers are interested in today.

As newer drivers get more experience they are looking for a way to gain more independence and transition to owner operator and new trucking jobs.

Lease purchase programs are a great way to purchase your first truck.

Some companies even have their own lease purchase programs, like us.

Some truck driver veterans even say that after you get used to the OTR driving, you should get a lease purchase as soon as possible.

For it is your door to bigger earnings, and much wanted independence.

Lease purchase program, what is it?

Lease purchase is considered to be the best way to start your own trucking business.

Especially for those that don’t want to pay a big downpayment for the equipment.

There many benefits that come with a lease purchase program.

For example:

Getting the benefits from a full-service leasing company

If you decide to purchase a lease from a full-service leasing company, you can enjoy the following benefits:

  • Driver training
  • Scheduled preventive maintenance
  • Performance reporting

And many more.

Administrative costs reduction

If you lease from a carrier, you will probably get help with some administrative tasks, tracking your hours of service and managing logs for example.

When you become a leased owner operator, you will still operate under the carrier’s license.

There’s a high possibility that you will have your taxes and reports managed by the company.

Low price new vehicles

Lease purchase programs sometimes allow you to pick the truck you want.

While used trucks are constantly attractive offer due to the low price, you can also opt-out for a new truck and still get a good deal.

Permits

One more big perk about being a lease owner operator is that you can get licence plates, permits, and everything else to be ready to go from the company.

This depends on the company, of course, so it’s advised that you check the program and see what exactly are you getting.

A lot of companies promise big figures when they offer a lease, but the reality is a bit different. This is where you have to be careful.

Truckers saw many companies promising them 2,500 – 3,000 miles per week, but when they got their lease, they got only around 1,000 – 2,000.

While that’s the sad truth in the trucking industry, our drivers get over 3,000 miles on average, and that’s actually the minimum what we require.

And we pay at the highest rates in the business!

A lot of companies from their lease purchase programs to attract less experienced drivers.

That kind of drivers hardly can push the miles the experienced ones can.

That is the biggest difference in the lease completion period.

If you have more than 2 years of OTR experience, then you should have no worries.

How to prepare yourself for lease purchase

Before you get a lease purchse, you should be ready for a number of things.

You will have more freedom, and with more freedom comes more responsibilities.

You will be completely responsible for the truck you leased.

And that doesn’t mean that you have to preserve it from damages, but all the expenses that go with the truck will be yours.

You will have to pay for repairs, maintenance, and any unplanned expenses for the truck.

Which is expected, since you bought it, and you will own it once you complete your lease purchase.

That might be the only novelty in your style of operation, except for all the independence and freedom plus extra earnings that come with the lease purchase.

Conclusion

Lease purchase programs come with a lot of benefits, especially if you score a good deal with a carrier.

That’s only the beginning in the journey of self-sufficiency, the next step is to get your independence to a new level, and operate with a couple of trucks under your authority and outsourcing only the essential services you need.

Like dispatch, or accounting.