Haulin Assets

#154. April 2024 Financials

We keep moving in the right direction, April 2024 Financials were better than March. If you remember I mentioned I would be happy if we can keep doubling our net income for 4-5 months. April is the third month in a row we have been able to do that. We start off the episode talking about the importance of being agile. If you aren't agile in this kind of a market, you are going to be hurting. 

What To Expect From Episode 154

Even though we keep moving in the right direction, there is still a decent way to go. Here are the numbers: 

• Total miles ran– 113,066 (Lowest in a while, had a truck sitting for a while. Larry had to step a way from over the road for a while. He is a great driver, we’ll miss him)
• Deadhead miles– 7,551 (6.7%, slight increase)
• Total revenue- $241,614.25 (Decrease, for the number of miles, it’s an improvement)
• All-in rate-per-mile- $2.14 (Moving in the right direction)

Haulin Assets realized another baby profit of $10,565.31. That is also 7 months in a row in the black.

Here are some of the P&L items we discuss during this episode:

• Revenue was down
  • Rate per mile was up.
• Most expenses were pretty normal, but here are the exceptions:
  • Bad debt
  • Maintenance and repairs
  • I did another CPM analysis and we went from $1.97 in October 2023 to $1.87 now

#153. Independent Owner Operator vs. Leased Owner Operator

Independent Owner Operator verses Leased Owner Operator is a bit of a controversial topic because you get strong opinions on both sides of the argument. I think that is because being an independent Owner Operator is the right thing for some people, while leasing on to another company can be the right thing for someone else. In this Episode of Haulin Assets the Podcast, I want to talk about the pros and cons of both, along with the things you need to keep in mind and watch out for to help you make the decision for yourself.

What To Expect From Episode 153

Let’s define each.

Independent Owner Operator, just like the name implies, you are truly independent. You have your own DOT number, you own or lease the truck you drive, in most cases, you have your own Operating Authority (MC Number) with the FMCSA (Federal Motor Carrier Safety Administration).

Leased Owner Operators, own or lease a truck and operate under the authority of another motor carrier.

Where things get confusing is the term leased is also used when leasing vehicles, think of that kind of lease as a long-term rental of the vehicle. That type of vehicle lease/rental is different the leasing on as an owner operator, they are two very different types of leases, but often happen at the same time between the same companies and can cause some very serious problems. We talk about that and why you have to be super careful in that type of situation. I'll put it this way, we don't recommend leasing or buying a truck directly from the motor carrier you are going to lease on to. Craig and I talk about why that is.

There are pros and cons of both and we talk about each.

Independent Owner Operator

Pros

• Truly Independent
• Higher financial upside
• You get to decide the type of loads you haul
• Lots of tax benefits
• Investment control
• Strong sense of ownership

Cons

• You have to find your own loads
• All responsibility falls on you
  • Bookkeeping
  • Sales
  • Maintenance
  • Admin tasks
  • MCHQ and Trackin Assets can help you navigate a lot of these
• Higher stress
• Takes more money to start
• Your insurance will likely be higher for the first year or two
• Isolation
• Unknown, unknowns 

Leased Owner Operator

Pros

• Many administrative tasks are handled for you
• You don’t have to find loads
• You will get some cost savings operating as part of a larger fleet
• Less financial risk
• Should have access to steady work
• Training and safety programs
• Great way to gain experience and use it as a stepping stone to becoming an independent OO

Cons

• You sharing the profit with another carrier
• You’re working for someone else and have to follow their rules and do what they say, you lose control
• Some companies will take advantage of you
• You may be the low man on the totem pole
• Some contracts can be very restrictive
• Ownership transfer issues

Other considerations

Independent Owner Operator

• Fraud
• You'll need a bigger reserve of money

Leased Owner Operator

• Talk to several owner operators who do work for the any company you are thinking about leasing on to
• Make sure you read through the entire lease agreement. Consider having an attorney review it. I know it costs money to do so, but it could save you money in the long run and prevent a lot of heartache.
• At Haulin Assets we don’t come down hard on either side of Independent O/O vs Leased O/O. We generally advise against lease to own. It’s not the subject of this episode so we won’t go into depth but things just seem to be more likely to go wrong with lease to own. The agreement is riskier, the lessees are generally not starting on a firm footing, and the lessors can have incentives for you to fail.Buy or lease your own truck, from somewhere other than the company you are leasing on too
  • Do your own truck registration/IRP plan (Another way they trap you)
  • This will take a bit more money, but is a much safer way to do it, less likely to be taken advantage of

#152. March 2024 Financials

Although we saw a slight improvement, the March 2024 financials turned out to be more like February than I would have liked. Considering the extra payroll, it really could have been worse. Hopefully we continue to see improvement as the year goes on.

What To Expect From Episode 152

Our trucks ran harder in March than they ever have, setting a new record for the most miles ran in a month. The high miles, however, weren't enough to give us a meaningful profit. Here is how things looked:

• Total miles ran– 130,151 (New Record)
• Deadhead miles– 7,615 (5.9%, about the same as last month)
• Total revenue- $261,567.02 (Better than last month, but not as good as January)
• All-in rate-per-mile- $2.01 (I would have liked to have seen a little better number, hopefully we do in April)

Haulin Assets realized another baby profit of $4,199.19. That is double what we did in February, if we can double our net income every month for the rest of the year, I’ll be happy, okay, that's not realistic, even we can do it for the next 4 months would be fantastic. 

There wasn't much in the P&L that really sticks out. The only thing outside of normal is an increase in fees for legal and professional services. That was mostly a payment to do the Haulin Assets taxes for 2023.

#151. Eating Marshmallows & Trucking

Who didn't like marshmallows when they were a kid and how do they relate to trucking? We'll try to answer that. Before we do, I want to rant a bit. I can't wait until I'm like Walmart and companies just have to do what I say, whether they like it or not. We talk about a new decision Walmart has made that affects us. To be honest, I can't argue with their logic, but I don't have to be happy about it.

What To Expect From Episode 151

In 1972 psychologist Walter Michel of Stanford conducted a study on delayed gratification with some kids. It was called the Stanford Marshmallow Experiment. We talk about the experiment and how it relates to trucking, especially business ownership. The study largely focuses on self-control and willpower and how those two skills or traits have an impact on a person's ability to be successful. Listen to the episode as Craig and I talk about the study and how important those two skills or traits are. We also attempt to answer the questions whether those traits are something you are born with or can learn or develop as you age. 

Here are some interesting additional readings about the Stanford Marshmallow Experiment.

• UCLA Anderson Review
• University of Colorado Boulder

#150. February 2024 Financials

Sign up for information about Haulin Assets Academy here: https://haulinassetsllc.com/2024/01/23/finding-loads-the-process-episode-146/

Check out Fuelstream here: https://www.fuelstreamservices.com/

 

Traditionally, February is the low point of the year for the trucking industry. If that is the case this year, we have reason to celebrate. Although we didn't rake in huge profits, we did a lot better than we did during the really tough period we had during the middle of last year.

Before we jumped into the heart of this episode, Craig and I talked about two different situations we ran into recently. The first is about a frustrating receiver we regularly deliver to in the Miami area of Florida. The second is about a ruptured reefer fuel tank, that's a new one for me.

What To Expect From Episode 150

The numbers this month are pretty bland, nothing to write home about, but what more do you expect in February? I am actually fairly pleased with how things turned out and I expect things to get better and better as the year goes on. Here are the numbers:

• Total miles ran– 114,044 (Lowest miles we have had in 5 months)
• Deadhead miles– 6,474 (5.7%, about the same as last month)
• Total revenue- $234,532.17 ($56,426 less than last month)
• All-in rate-per-mile- $2.06 (If this is the low point of the year, which I think it should be, I’ll be happy)

Haulin Assets realized a baby profit of $2,046.87. 

Here are the P&L items we talk about:

• Revenue
• A new expense category
• Fuel

#149. Finding Loads: Keys to Success

Sign up for information about Haulin Assets Academy here: https://haulinassetsllc.com/2024/01/23/finding-loads-the-process-episode-146/

 

We start this episode off with a funny story about Cruella de Vil the truck, it makes for a good listen. Finding the right loads is one of the most important things to do well with your trucking company. It is also one of the most challenging. That is why I decided to do a series on the subject. This episode is going to wrap the series up and tie it all together with a neat little bow. If you have not listened to the previous three episodes, go back and listen to them first. As a reminder, they were: Episode 144, Finding Loads, They Systems I Use, Episode 146, Finding Loads, The Process, and Episode 148, Finding Loads, Relationships.

What To Expect From Episode 149

The spot market, that mostly lives on load boards, has its purpose in the trucking industry. However.... if that is all you are using, you probably won't last long as a company and you definitely won't be as profitable as you could be. There is both a science and an art to find the best loads available. The the science is the systems, processes, and number crunching and art is the relationships and negotiation. We break down the science and art and talk about the following keys to success:

The Science

• Having good systems
  • Load board
  • TMS
  • File Storage
  • Tracking weather
• Having a good process
  • Early to bed, early to rise, makes a dispatcher successful and wise
  • Don't wait
  • Be efficient
• Know your numbers
  • Variable and total cost per mile
  • Target rate per mile
  • Revenue per day is as important as rate per mile

The Art

• 80-20 Rule
• It's about relationships
• Where to find the best loads
• How to negotiate

#148. Finding Loads: Building Relationships

If you want to hear about the worst experiences I have had with a repair shop, listen to this episode. All I can say is never take your truck to the Freightliner Northwest in the Seattle area. As time goes on, I get more and more comfortable dispatching. One of the best parts of dispatching is the relationships I have been able to build. Relationships is one of the biggest keys to being successful finding loads.

What To Expect From Episode 148

Anyone can find loads, it is a lot more difficult to find loads that are profitable and keep drivers happy. The biggest difference between finding just any load and finding consistent, good paying loads is building good relationships. When I first started dispatching, I was getting all of my loads, that weren't direct shipper loads, off load boards. Last month I booked 41 loads through brokers, I only got 20 of them came from a load board. The other 21 were all via a few broker relationships where I was able to reach out directly to the broker and get a load before they had posted it.

The meat and potatoes of this episode covers some of the things I have been doing to find and build those relationships. This may seem like a simple thing, but it's not easy. It takes time, commitment, compromise, and a good attitude. Doing it right can have one of the biggest positive impacts on your trucking company. Like many hard things, it's worth the time and commitment it takes. Being willing and able to do hard things is one of the biggest factors that separate the successful from the unsuccessful.

THE CHECKLIST Whenever I book a load with a new broker I...

1. Make sure I communicate well throughout the entire load
2. Do everything they ask
3. Follow through with what I commit to them
4. Send a follow up email thanking them for the load.
5. If I think they are someone I would want to do more business with, I follow up with a phone call:

5a. Try to guage if we are a good fit for each other. Common lane, are their rates good enough

5b. Make regular contact

5c. You might have to take a load that fills a need for them, but might not be the best for you

#147. January 2024 Financials & Chris's Dumb Mistake

January was a good month, it seems like it has been a while since I have said that. It's also been a while since I have told a good "Chris is stupid story" from my adventures on the road. This episode starts with a good one. The silver lining is that it was a good learning lesson that shouldn't cause any serious harm.

What To Expect From Episode 147

The last 4 months have been some of the hardest months of my career. They have been tiring and stressful, but it is so nice to see positive results and it is making all the sacrifices feel worth it. With that being said, we still have work to do. Like I said in the story I told at the beginning of this episode, we can't get complacent and we can't settle into a routine. If we continue to push, good things will happen.

I feel like we need a drum roll. I'm really excited to share this month's numbers, so without further delay......

• Total miles ran– 120,930
• Deadhead miles– 6,347 (5.2%)
• Total revenue- $290,958.59 (New Record)
• All-in rate-per-mile- $2.40 (Best number we have seen since August of 2022)

Haulin Assets realized a good profit of $59,546.22. Last month I said I was not going to feel good until I see our net profit number in the $50-60k range. I feel pretty good. We haven’t seen a number like that since the height of the market at the beginning of 2022, right before the crash started. I think we have made a muckle, at least for this month.

Most of the expenses on the P&L were pretty in line with normal so we don't talk much about those. The only exception was fuel, which was only 24.3% of revenue. That is the best we have seen since the beginning of 2022. Hopefully, fuel stays relatively low and revenue stays high.

We finish off the episode by talking about some of the changes happening that have produced good results.

#146. Finding Loads: The Process

This episode is jam packed with tips to help you find loads for your trucking company. We hone in on the process of finding and booking loads. We also start off this episode by introducing a new project I am working on that is going to be a game changer for many of you. It's called Haulin Assets Academy. It is an online, video based learning system that a team and I have developed to help you take your trucking education to a whole new level. Whether you have 1 truck or 20, Haulin Assets Academy is being built to take what I have learned over many years of trucking and condense those lessons learned into easy to digest modules that will help you sprint to a high level of success without losing your breath. You will be able to get to where you want to be faster, with a lot less headache. Stay tuned, Haulin Assets Academy will launch sometime in the next few months.

What To Expect From Episode 146

Dispatching is not an easy job. It's busy, hectic and requires you to be detail oriented at a very high level. Having a well defined process and following it is critical to keeping your trucks rolling efficiently with high paying loads. One of the keys to success is starting your day early. Load boards see their highest level of activity between 0800-1100 Eastern Time Monday-Friday. Activity on load boards tend to see another uptick around 1500 (3:00 PM). You need to be up and glued to the load boards during those hours if you are looking for loads for a truck. Here are some of the other things we talk about:

1. Staying ahead of the game
2. Your company information
3. Sending a driver out
4. When to start looking for the next load
5. Relationships
6. Take notes

Impact Tip

Register for the Haulin Assets Academy email list. Go to haulinassetsllc.com and look for the popup on Episode 146's page.

#145. December 2023 Financials

Happy New Year!! I am so happy to kick 2023 to the curb. I am optimistic that we will see some good things happen in 2024. Regardless of what happens with the economy, I think the changes we are making will help Haulin Assets continue to improve and become stronger as a company. One thing I know for sure is that this challenging year has taught us lessons that will make us stronger and more profitable than we would have been otherwise. I hope you follow our journey and that some of the lessons we learn will be valuable for you too. 

Craig and I start this episode off with a funny story about one of our drivers crossing a scale while pulling a reefer trailer full of bulk liquid totes. 

What To Expect From Episode 145

This was another month that did not produce the results I was hoping for. On a good note, we were slightly in the black. Here are the numbers for December. 

• Total miles ran– 123,557 (315 more miles than last month, you can’t say we aren’t constant)
• Deadhead miles– 7,455 (5.1%)
• Total revenue- $268,143.84 (Second best ever)
• All-in rate-per-mile- $2.16 (One of the better all-in rates of the year, but still not where we need it to be)

I am really happy with the total number of miles ran, total revenue and our all-in rate-per-mile is moving in the right direction. The net income did however disappoint me. This month Haulin Assets realized another small profit of $1,633.76. There were several contributing factors that kept us from better numbers. Here are some of the areas we dive a little deeper into:

• Bad debt
• Payroll
• Fuel compared to revenue
• Repairs, especially Truck 02, our only active truck that we bought used
• Tolls

I also spend some time talking about a new goal I have regarding working with brokers. I have already seen some good benefits. Listen to the episode to find out what I am learning and what I am trying to do different that is bearing fruit.