Owner Operator: Who makes more? Semi or Hotshot
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- čas přidán 28. 07. 2024
- Lets break down cost and revenue between an semi truck and a hotshot to see who really does make more as an owner operator booking loads from the load boards.
Email: loadmizer@gmail.com - Jak na to + styl
Swap the annual and monthly totals under the semi column. Just noticed I got that part backwards 👍
This was because you tried to read from a script that was wrote for you...fool...!!!...in your words alone it is you running numbers off the chart for a rig and trailer to offset your faults....not ours...if I ran a rig for 3k a month and a trai l er for 800 a month....well...I would consider myself a fool like you...36k a year for rig payments are for real go getter truck drivers...not you...forsure you have proved...enjoy your pickup truck
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When I say something I will do it.
It is important that you know there will be no more money made on human lives. It stops now people will receive the medical attention that they need. Whether it be a broken toe are open heart transplant. Let it be known your loved ones will receive the care that they need.
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At the end of the day be assured that your hard work was not in vain. You will keep what you earn. The days of paying income tax on your hard work or over. The wages of yesterday will not support the needs of today therefore you will be earning a fair wage that will support you and your family.
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Giving every American a chance to have a little more.
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I got cha man
I am remembering the old business school saying..."its not what you earn, its what you keep that matters".
Man I appreciate the way you simplified it. Straight to the point! You answered my questions and even taught me a few extra things. Be blessed!
The thorough analysis of two methods was enlightening. I was curious about a comparison. Much appreciated
Love your no BS approach. Keep em comin'
Very very helpful and straight to the point. I wish everyone would make videos like this. Just hard facts. Thank you so much.
Awesome video, Great explanation of an important topic, I am a disabled Military Retiree looking to get into hot shoting. Your videos have been a great help in making my Decision thank you !
No problem at all! I’m glad you were able to gain some knowledge from it! 🙌👍
Good breakdown.👍
Now add back in the $3k per month truck payment, and you have the typical independent with a $10k jalopy running cheap freight ($1-$1.50 per mile), but living the highlife while class act operations are suffering.
That's why I'm a semi-local company driver 5 days a week for $80k.
Taxes are paid, retirement fund, health insurance etc....
I still dream big though....and that's what the used truck dealers are counting on....guys like me wanting a longhood KW w/18 spd. and a massive ego....lol.
Wow, this is eye opening! Thank you!
Much appreciated video! Exactly what I needed!!
Very helpful information, thanks for all the good stuff.....and occasional comedy 😎
As a driver that has done both as a owner operator … your numbers are accurate
Excellent, Thanks For The breakdown.💯
Excellent video. Very real and honest figures. I'm an independent owner operator semi owner. Dry van freight did reefer also.. My truck payment is half your estimate and my insurance is less than half but still your figures are pretty accurate. Great insight into hot shot. Thanks
Yeah I think one thing I meant to make clear in that video was that those were my numbers based on my situation at that time. Was it ideal? Nah but it was real and that’s the decision I faced and I’m glad I made it. Thank you though man, I appreciate you seeing it for what it is. Those things are expensive no matter what and if the revenue isn’t there it’s pretty painful.
Thank you this was very helpful.
Dope vid ya dig! Very well needed.
Thanks, this is great information!!
A few things I don't hear mentioned enough in this industry and it's finances: Writing off the truck purchase, depreciation, cost base. When and how you purchase and finance a vehicle, how and when you claim it as an expense/deduction, for how long, and how you time that vs. your GROSS AND NET income can have extreme impacts on your NET annual income, could be the difference between making money or owing money. There are months in the business year to buy and sell trucks too.
thank you ,very helpful vid.
In the beginning of the video you make the point.... If your just getting into this industry. That's the real factor when looking at your numbers. 1st off, most people just getting into this industry would probably not purchase a brand new $160000 semi. In fact, people just getting into this business start off with a pickup truck because they don't know anything about big trucks. So it makes sense that a person can walk up to a Ford dealership and purchase a brand new truck. Then they automatically become truckers.
I've been in and around trucking my whole life. I have yet to purchase a brand new semi. It makes absolutely no sense. Take your numbers and then calculate I purchased 4 used trucks as a package for $80000. Now do the revenue on 4 trucks. In my case I purchased them cash. However, just for fun let's say my payment was double what the pickup truck payment is. That's still some pretty good revenue. Some might say well come up not everyone has money to purchase cash. You will if you know this industry well enough and avoid purchasing $160000 trucks that will be worth 70000 in 4 years. Or purchasing a $60000 pickup truck that will be worthless by the time you pay it off in 5 or 6 years.
I think the fuel number is pretty close to what we average on a monthly basis. Of course, having dual 150 gallon tanks means if you planned trip correctly, you purchase fuel at better pricing. I am currently in Memphis Tennessee. There is a wal-mart up the street where I can Bob tail over and top off with a $1.89 a gallon fuel. If I were to head to the West Coast I would probably top off again even without needing to in the Dallas area for under a buck 90. Then I would probably top off again in Deming New Mexico for just under 2 bucks. This would easily get me in and back from California to top off again in Deming for under 2 bucks. A hot shot will struggle because of less range. From Memphis I can hit almost any point on the East Coast with this cheap fuel. There are a handful of spots that I can grab fuel on the East Coast for about a $1.99. So having extended range makes a Difference in being able to grab cheaper fuel when compared to the limited range of a hot shot.
Next let's talk about fuel economy. Not really sure what you are running. I don't know what specifications your truck had. But I can get 7.75 miles per gallon running over 70000 pounds gross. Not sure if your truck had the wrong gear ratios. Or if maybe you are just trying to go too fast.
The other thing I have noticed is rates tend to have a sweet spot. When you get into the 2000 mile range the rates do seem to be lower. But if you are anywhere between 500 to 1200 miles, we are getting well over 3 bucks a mile. All my drivers have tanker endorsements. This opens the door to hauling chemical totes that require the endorsement. This eliminates some of the competition and allows for better negotiation. I just ran a 1000 mile load at 4.65 per mile because it required tanker endorsement.
I think the big part a lot of CZcams videos miss is the true depreciation of the vehicle. While you state it's easier to get rid of a pickup truck, I would never purchase a pickup truck someone used for hot shotting. You also neglect to mention that when people try to sell a used pickup truck with 200000 miles on it, the usually still owe way more than it is now worth. So whether the person is going to purchase another pickup for hot shot, or trading in for a personal vehicle you will most likely be financing negative equity into your next loan.
If you compare this to semi trucks, The used package I purchased for $80000 has rendered a nice return. I sold 2 out of the 4 tracks as a package for $60000. I owned the 2 trucks for about 2 years and did 150000 miles out of them. So you could say my net purchase price for the other 2 trucks was $10000 apiece. Or you could say I had a net appreciation of $10000 per track in 2 years over 150000 miles.
My point here is both businesses can make money. The key is when you're just getting into it as you put it it's very difficult for people to see that they are not making money in most cases. Often times people don't realise it until they close the business down.
I always tell people, when I went into business for myself I did not open a bakery because I do not know how to bake. I got into trucking because I had decades of experience.
This is a really good break down. I won’t argue with much of anything you said because now having had 2 new semis and 1 used that ended up bankrupting me, I’ll chock that up to circumstance. If I did it again I’d go used. Especially with the mechanics I have at my disposal now. I try to stress that my numbers are from no contract freight and living off the load board as anyone new would do. Anybody in this game long enough generally knows that for the most part, the boards are the dumpster. The money freight comes from directs, pocket brokers and first calls. Anyone who you can name your price with instead of settling. The industry is flooded though with bad actor from both sides of the boards so it’s not best case scenario, but if played correctly and strategically it can make money. Both semi and Hotshot. They have their place in the same industry and honestly aren’t fairly comparable, however, I did my best haha. Thank you for the feedback. This was very much worth the read! 👍
Are you saying that paying cash it better than financing
@@maxwellperry3652 in my case I purchased cash. So if it slows down I don't go under
Awesome honest video content. Numbers are spot on. Everyone talks good money videos with no numbers, I ignore those tubers. This is similar toTP, he gives numbers. I have little regard to those who Are not transparent. Continued success. Excellent vid
Thank you for noticing the real deal. Always a rotating door. Money in and money out. Only one direction keeps you going. 👍👍
Another critical column should be personal expenses. A driver needs to know how much a day, week and month must be made or he/she will go bankrupt soon after. This is critical to know which loads to bid on. You need to understand your running expenses so you can see a profit per week day, week, and month. I enjoyed your video and became a subscriber. Looking forward in watching your new videos. Thx
Ted Miroe absolutely. These are just operating costs though. Personal expenses fall in your budget and dictates what you can afford to pay yourself which yes they are deducted from gross business revenue in the form of distribution. Everyone’s personal expenses are different. It would be irrelevant for me to post mine because everyone’s lifestyle and personal responsibilities are different. When looking into this individually though..:yes absolutely your outside of business expenses are critical. 👍👍
great video
All the more reason to own a Semi versus making payments in the spot market.
Thanks for the Side by side comparison.
That would have made a big difference on paper. I’ve had 3 different semi’s over the years though and could never pay them off. Seemed like every time I turned around I was in the shop for something. Not to mention the trailer. I’m not a diesel mechanic, nearly any maintenance had to be done at a shop. Even the warranty work that turned into “well this is covered but here’s all the things that aren’t”. That’s just my experience. I’m happy to be out from under the big truck headache.
Good break down
Thank you man, I appreciate it. Hope it helps! 👍👍
Great Info....good breakdown of cost
Very good video!
Bevan Johnson thanks man! I hope it helps 🙌👍
Thanks!
Great video!
Jason's Outdoor Channel thanks for watching!
Man thanks I’m glad you allow reply’s I hate when these guys make all these videos and don’t allow you to reply on the bs mumbo jumbo game they spitting
I learn a lot in the comments 😂
@@LoadMizer me too
Good video, Loadmizer. It is a good "ballpark" figure, with a disclaimer, "everybody is different", but people don't get that. U knew u were gonna open up a huge can of worms, didn't u? Lol.
Man I had no idea how big the cab was 🤣
Well explained
Thanks man, I appreciate that 👍👍
Good video👍🏻it my experience that they make about the same also. We have both semi and hotshot, difference for me is that semis are a lot easier for loads. Hotshots you have to stack partials to equal a semi. But fuel is more for semis. So kinda depends on how you look at it. I personally think semis are easier because I can find 1 load going 1200 miles for example and know I don't have to stare at load board. Where as a HotShot, you constantly have to find pick ups. I donno just my opinion. Anyways good video. 👍🏻
Bryan B absolutely easier to find loads for a semi, the only flip side to that is stacking partials can generate more per mile than an A to B load while costing less to run it. It’s no doubt way more work though, but as an owner op more revenue is worth it 👍
@@LoadMizer good informative video! 👍🏻
I've been CDL since '99 & I'm planning to go O/O as MC/DOT, BUUUUUT I have the tanker endorsement...
I figure @ $4+/mile rate, with a few dedicated contracts & delivery-end contacts for backhauls, I should be able to pay off my choice of semi tractor inside of 3 years relatively stress free... & I also have an extensive Diesel Engine & Heavy Equipment Mechanical background so aside from tires, I believe I can make it to the finish line debt free... 🙏🏻🙏🏻🙏🏻
Great video bro
Thanks man!! 👍
New sub here im new to your channel. Bro i love your videos great info . Well explain .. from El centro cali..✌🏼
Thanks man and welcome to the channel!! 🙌
Outstand Video!!! A+
Thank you
You had to be pulling dry van. Don't forget that 5 yrs 500k warranty on a big truck. My freightliner was 125k new. Get 7.5 to 11 mpg ( based on weight) and run flatbed. The hot shot numbers on all these channel had me intrigued. Till I was running numbers. 386k mile and only once derated for a fouled dose valve. $1900 repair. $400 oil change yes ever 40k miles. I just can't grasp these numbers your showing as more for a hotshot.. I can easily bring home 6k a week and home every weekend after equip payments, fuel, ifta, insurance and a maintenance savings of .10 cpm for tires and services.
Adding additional comment here for the CZcams algorithms and stuffs. Good stuff though. That was cool.
Haha I highly doubt I have anything to do with CZcams’s algorithms just yet but hey....one day lol
Thank you for the great info!
But if I am not mistaken, a hotshot driver cannot sleep in his vehicle by DOT? If so, the hotel bill for a month would be very substantial.
But even if you had to sleep on the hood of the pickup might be worth the extra $$. 😉 thanks
You can most definitely sleep in the truck. I made a video about it.
czcams.com/video/L7L363DssFI/video.html
Big like for this video
Id like to see your thoughts with the fuel like it is today 2022-2023 with the severe fluxuation
The only calculation missing is the hot shot truck doesn’t last as long as tractor trailer and has to be replaced sooner so I myself am still trying to figure those numbers … it varies by truck and manufacturer wear upkeep etc …..
That’s the enterprise he’s talking about. Truck lease through enterprise is .22 cents a mile
Fireeee video
THANK YOU for noting that it isn't how much you gross, its how much you make, it amazes me the number of people that do not understand that grossing 300k and having 275k in expenses is less good than grossing 200k and having 100k in expenses.
That’s it. Looking good and doing good are 2 completely different mindsets.
Was thinking of starting with a 4 car hauler and a cat 3126 C6500 air brake as the truck. Would that be in the hotshot category?
Great video looking into enterprise rental what would you suggest buying or renting?
I think it depends on the application mainly. If it’s mileage heavy I think renting is best. If it’s a low mileage scenario I think buying would pan out. Also if it’s multiple vehicles with discounts buying “fleets” you have the opportunity to turn over vehicles by renewing your fleet if you can sell them or trade in to break even but that would be a pretty big number of vehicles to run through in order to make that work. There are pros and cons to both.
Doesn't the loads hauled with a semi pay much more than the hot shot loads?
Also, $2/ mile is kinda low for the semi, unless you're pulling a dry box. Pull flat, step, or rgn. Negotiate tarp fees. Get another $4-$500.
Did you ever pull specialized heavy haul with the semi?
Specialized? No. OD/OW yes quite often. If I was under perfect circumstances I’d lay down the money for a tridem extendable rgn and hd truck with a kicker axle and pull nothing but AG. I’m surrounded by it heavy. Just never got to that point financially. Still may be an option in the future though!
This gonna hurt some feelings 😂😂
Still true to this day.
Couldn't u do step deck and stack partials ?
Of course. You’re still paying the overhead on a semi though. The cost of operation isn’t offset that much by freight potential unless you have guaranteed freight that pays well all year.
i think its best i stay with company enjoy paid holidays time off benefits stay local thanks for sunning the numbers man u reallly discouraged me haha unlless u do in on purpose so more work for you lol. maintenance is a big one if your truck is down for some time and you got payments
I am looking for owner operators non cdl and cdl
Gooood shittttttt brooooooo
Should I run a three car hauler with 2020 Chevy 3500 4x4 Dually?
If that’s what you have then run it. You’ll need at least a 3500 to run a 3 car setup. You’re good to go
I ran a 5 car ez loader with a f350 and 3500.
Hey Ricky, Good info. I am CDL driver averaging $1400 a week. I'm saving up to get my rig and equipment. If you dont mind me asking- $2200 a month why so much?
That’s the rental cost based on a 10,000 mile month @ .22 cpm rental fee.
That’s just rough average though. Some months are more and some are less based on how much I run but not having to worry about any maintenance at all is great. Plus it’s easy to budget with a fixed cost like that.
So basically I should plan to put that towards the truck payment and planned maintenance.
Yessir! Also, I found out the hard way via a bankruptcy several years ago that you have enough put aside in maintenance when you can afford to replace everything the next day if you had to lol.
Hey Ricky, I bought 2020 ram 3500 SRW high output, SRW good for hotshot?
ben cai it’s good for non cdl weights. I wouldn’t recommend a 40’ trailer with it though because you’d constantly be fighting with overloading your truck axle. If I had a SRW I’d pull a 32’.
Load Mizer thanks
Question: what do you think about the CZcams channel “on the road“ from a guy name Yousif? He made a CZcams video saying when he switch from hotshot to semi that his net profit almost doubled. He went over all the numbers for his revenue and expenses. Do you think he’s lying and selling a wonderful life on CZcams for views, or what do you think about that? I’m thinking about getting into the industry and I’m really torn on which way to go. You’re the first video I’ve ran a crossed that has said anything about hotshot being better than semi.
Wow you read my mind!!! I follow Yousefs channel too! Same thing I was going by his numbers and was sold on the semitruck is the way to go, but now this video has me wondering if hotshot makes more sense. 🤔 Now I'm confused which way to go??? Either way I would purchase not lease and pay extra for the extended warranty coverage since I'm not very mechanically inclined.
I follow Towpiglet too and he seems to be doing very well with hotshot!
Can you please do a video of Hotshotting in Canada?
Sorry man I haven’t had a chance to cross the border
@@LoadMizer the hot shotting scene in the US seems to present more opportunities for newbies. Any idea of across in Canada? Sorry to pry.
Great !! So both off them are not good job at the end. Most people can work any job and back home every day and they can make around that numbers for semi and hotshot..
Mmmm not even the dudes running older Pete's with Cats get only 5 mpg on their trucks. More like 6.
My last freightliner was getting 7-8 mpg/Detroit engine.
I hear the new ones 8 mpg solid.
Also, if you look "hard" for loads on a semi, it's not rare to hit $3 and $4 per mile. Not rare means you'll get 3 to 4 loads per week - one of them easily.
The trailer rarely breaks, and the truck can hit 1 million miles no problem.
If you do an in frame before it breaks, 1.3 to 1.5 million miles not rare.
There’s a lot of $3-$4 per mile loads for a semi. Then you call and it’s either O/D, doesn’t go anywhere distance wise, has a couple of drops not factored into the mileage rate between point A and point D that ends up dumping it below $2 per mile for all miles or it’s a weekend layover load averaging about $400 per day lol. There are a few occasions where you can snag a jackpot load but most of the high posted rates have a catch to them. Some O/D loads don’t even make sense when you factor permits, wait time, drive time restrictions and location appointments. They look good at first glance though. I’ve hauled a ton of them. Some that were amazing and some that I immediately regretted.
@@LoadMizer my experience with semis was just different. But, I am going to give the Enterprise thing a try. Everyone likes it so I want to see how it goes.
BTW how do you like the PJ trailer?
I saw that Texas Pride makes one with 12k axles instead of 10ks.
@@tpnotes that’s just it man, everybody’s experience is gonna be a little different, some vastly different. I can only take what I experienced and saw first hand and lay it out. I’ll never claim to know it all, I can only keep learning 👍
@@LoadMizer I just watched the video with the flipped winch. Smart shit. The American Dental Society should give you an award.
@@tpnotes that or they’ll charge me for lost revenue 🤣
I have to say one issue that might be a bit misleading is your failure to point out that the reason heavy equipment is more expensive is it is built to last longer. You can reasonably pay off a new truck and trailer in six years and still be able to run that truck and trailer for another 4 years without any payments. The life expectancy of a hotshot truck and trailer is much less. Additionally, you have to recognize that most experienced owner/opps do not pull freight for 2 bucks a mile it is simply not worth it, every mile you drive both you and your equipment are at risk. 100000 miles a year at 2 bucks is way worse then 65000 miles a year at 3 bucks. I personally would rather sit and wait for the good paying freight and minimize my risk exposure. One last point is that most of the good paying freight would never be put on a hotshot as most shippers/brokers would not allow it for insurance reasons.
Semi
Where can I get more hotshot info .. I'm thinking of starting my business. But not sure if semi or Dully?.. someone plz message me .. thamknyou
Google is your best friend on that one. I’d start with an accountant.
Looking into hotshot. I have my Cdl but I noticed it’s a lot cheaper to get started non Cdl. Do you recommend one or the other? 40k trailers aren’t cheap. Thanks for the video
It’s a much cheaper commitment starting up yes. It would be the better route to go non-cdl if you’re testing the waters just to see if you like it or not. It does come with more restrictions on what you can haul though. I generally run out of weight capacity before I do deck space and I’m in a CDL set up. 40k is a semi trailer. A hotshot trailer should only cost between 8-14k new depending on how you have it set up.
Thank you. What trailer do you recommend for CDL?
Brand? I’m not brand loyal by any means, I’ve only hauled PJ trailers since I started out. Looking at. Diamond C next. Both have dealers close me for any warranty work and pretty decent national coverage in case I need a fix over the road I can’t do myself. As far as setup goes I’d go 40’ flat deck with pull out ramps, 10k dual tandem axles and sliding winch track on the side plus 1 welded between the wheels. That’s minimum. Air ride and hydraulic over electric brakes would be nice but you’ll start spending a lot quick adding options.
Here’s my trailer czcams.com/video/ll_MWtysbhQ/video.html
From what I’ve seen there’s wayyy more people moving up the ladder then down the ladder so to speak.... Something to think about.. So in an ideal world not financing a truck and buying cash is the way to go.
Oh I’ve noticed. Just wait till they end up in a maintenance bay on a regular basis and see just how far up the ladder they really moved. 🍿
Gas prices may have gone up since the posting of this video
PRO
5 MPG?!? 😱😱😱😱
Yep. Counting all engine time. Idling, fully loaded driving. You can get better fuel mileage on nice light flat runs but real life kicks in when people aren’t trying to fluff the numbers. Those things drink fuel hard.
What is your email load mizer
loadmizer@gmail.com
your % calculations don't add up 15% of 9326 = 1398.9 you have left 7927.1 hotshot side for 15% of 8629 = 12945 you have left 6974.65 that 1K difference. I agree that you will make more with the hotshot, but that because of extra regulation cost, insurance cost, and truck payments. now if your talking used you may be better off with a semi just depends if you buy good or bad. please don't do your own books.
Your % comes off the gross revenue. Not the settlement. Thanks though.
Nah semi is still better. Better living conditions and its much easier to find loads. U can serch a 50 mile radius for hs and get 2 hits do the same serch with a semi and get 200. U can make more money in a semi. I have done both also.
why not so your statement is that there are more loads in a search of 50 miles. Are you only searching hotshot? I pull flat, step, rgn loads all the time. How many of those search results are worth pulling? How much does it cost to run once you get one?
My question is.. who drives only 10k a month on a semi??
Based on averages probably a lot of people. That’s a 120k mile year. Once you factor in home time and holidays and stuff it’s a pretty average number.
Real word, semis are better? More oportunities, more expenses, more profit?...
Man that's not true I get at least 2.50 but most loads I get 3 plus and my kw t680 gets an average of 7.5 mpg I make at least $6k clean and go home every weekend so come on man but I have relationships with broakers and I get good loads because I'm honest and dependable so if you BS them you end up with crappy loads I don't do those
Cool deal, what’s your week look like without your 1st call brokers and email lists?
@@LoadMizer
Good I have a load from Dallas to OKC and I find 1 back so I'm home everyday with weekends off and and I do good you just need to be patient and think long term and you'll find loads that pay good
Anyway I can email you I’d like to pick your brain 🧠?
As much as I respect and like your videos, I am going to call bullshit on this one you are not comparing apples for apples the time you waste trying to stack partials to make up a full load I can already have my semi loaded and 1/2 way to where I'm going before your done loading. You've got to figure time wasted in on your comparison, I own both. You're leaving out some very important information. Also your not taking in too consideration that you will buy 2 or three Hotshot trucks too 1 semi. Make sure you put fact out there, too many people are trusting what you say.