Haulin Assets

#128. The Freight Market: Past, Present, Future

Before we dive into the past, present, and future of the freight market, we talk about a big change we made . We hired an operations manager. It is a huge step for a company like ours, especially as small as we are and considering the freight market we are in. Craig and I discuss why we thought this was a smart decision, even though on the surface, it may seem like a dumb one.

What To Expect From Episode 128

The freight market has been really tough for a year. When is that going to change? In this episode, Craig and I discuss some of the factors that drive the freight market, what usually makes it change, and when we think that it will start to turn. We finish off the episode by talking about the two key things any trucking company needs to focus on to get through times like this.

Full show notes (with charts!) at https://haulinassetsllc.com/

#127. March 2023 Financials

We had one truck sitting for the entire month of March, that definitely had an impact on things. The infamous egg load occurred around the end of the month. It will have more of an impact on April's numbers than it did in March. Needless to say, March was an eventful month. We talk all about it during this episode. Make sure to give it a listen.

What To Expect From Episode 127

The tough months keep racking up. With that being said, it could have been worse, we were positive and at least moving in the right direction. The weather was a bit better in March and so far April has been much better. I'm done with winter. Here are the numbers.

• Total miles ran – 99,992
• Deadhead miles – 6,736 (6.7%, creeping up, indicator of a tough freight market)
• Total revenue - $201,659.00
• All-in rate-per-mile - $2.02 (The worst we have seen in years, since the start of COVID)

Haulin Assets realized a profit of $9,848.55. I am actually surprised we made a profit based off the average rate per mile. Our direct shipper relationships are making a difference. An owner operator could probably survive in a market like this working only off the spot market, but anyone with employee drivers I don’t think would be able to. We're keeping our hook in the water so we'll be able to take advantage of a stronger market when the fish are ready to bite.

 

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#126. Hiring Truck Drivers Using Facebook

If you are trying to grow a fleet of trucks, I can just about guarantee your biggest challenge is hiring good drivers. With a nationwide shortage of about 80,000 drivers and a driver turnover rate close to 100%, hiring and keeping good truck drivers is extremely difficult. How does a growing carrier not have their lunch eaten by the big guys when it comes to recruiting? That's what we'll cover in this episode.... After we talk about a recent load of eggs we hauled that had some challenges and ended up with a big mess to clean up.

What To Expect From Episode 126

Finding the type of drivers we look for at Haulin Assets has always been a challenge. That challenge got a little easier when we started working with Jake, our guest on this episode, and he helped us start recruiting on Facebook. Here are some reasons to use Facebook as a recruiting tool:

• 96% of truck drivers have a Facebook account
• On average, Facebook users spend 33 minutes a day on the platform
• It's the #1 platform for user engagement
• 73% of seekers found their last job through social media

Here are the general topics we cover:

1. What is currently generating interest in your positions and how do you leverage that?
2. What needs to be in place before launching ads, i.e. Facebook Business Manager, Facebook Ads Manager, etc?
3. Who is your target audience?
4. What content do you need to create and the basics of how to do it.
5. How many applicants do you need?
6. What is your plan after launch?

Best Practices

• Make ads mobile friendly
• Use images and video
• Have patience
• Driver testimonials are gold
• Use web automations to increase the speed to contact
• Facebook is a piece of the pie

Common Mistakes

• Failure to declare your ad as a “special ad category”
• Poor image sizing
• Using stock images
• Not running ads through the Ads Manager
• Not staying up to date on policy changes implemented by Facebook

Check out Meramec Solutions here

#125. Increase Your Financial IQ

Being financially smart is less about intelligence and more about having a plan and being disciplined. I think being a rocket scientist verse running a marathon is a good comparison. Having a high financial IQ is more akin to preparing for a marathon than being a super intelligent person. Not everyone is going to have the intelligence necessary to be a rocket scientist, but I think just about anyone can get to the point where they can finish a marathon. It might take years to get there, but if you have the desire and discipline, almost anyone can run a marathon. Anyone with the desire and discipline can be financially smart and gain financial freedom can do it, but in almost every case it will take a good portion of your lifetime to get there. In this episode Craig and I are going to cover steps anyone can take to be financially smart and eventually gain financial freedom.

What To Expect From Episode 125

One of the first books I ever read that had a big impact on my financial IQ is an older book called, "The Richest Man in Babylon" by George  S. Clason. It's a great book, that teaches simple financial principles that are easy to understand and he does it in an entertaining way. You can learn more about it by clicking here. Most of what we are going to talk about is not trucking specific, but we will try to relate some of it to owning a trucking company. Here are some of the principles we'll cover during this episode:

1. Believe YOU control your own destiny (This is one of my own principles and I think it is the most important, listen to learn why)
2. Increase your income
3. Manage your expenses
4. Reinvest your earnings
5. Is your home an investment? (My answer to this question might surprise you.)

#124. February 2023 Financials

Things have been a little hectic for me the last couple of weeks. That means this episode is not as robust as I would have liked. There is some great info in it, so I think it is definitely worth a listen.

What To Expect From Episode 124

February ended up being better than I thought it was going to be, but definitely not a good month. At least we didn't lose money. Craig and I dive into how things went this month. I also talk a little about insurance because our insurance renewal is coming up in April. Less than a month away by the time this episode posts.

• Total miles ran – 83,391
• Deadhead miles – 4,142  (5.0%, Decent)
• Total revenue - $184,606.48
• All-in rate-per-mile - $2.21

Haulin Assets realized a profit of $7,279.94. The P&L for the month was fairly bland, but there are a few specific things about it that we go over.

#123. Speccing Our Trucks

I have been asked to do an episode on how we spec our trucks by several listeners, so here you go. It's a complicated topic full of lots of different opinions and there is more than one way to skin a cat. I would love to hear your opinion on things, comment here or on the Facebook post for this episode. We have now purchased 9 brand new trucks from two different dealers and two different makes. We have learned a lot along the way, but as I have prepared for this episode I have learned even more. I challenge you to never have the mindset that what worked for you yesterday is good enough for you today because trucks are constantly changing. This is a topic that a good owner will never stop learning about. Stay on top of the technology. As engines change, the best gear ratios change, etc. I hope you like the episode and learn something new.

What To Expect From Episode 123

As I mentioned, speccing a truck is something everyone has an opinion about and they are all different. It's good to do your research so you can make the best informed decision possible. This is one area of your business it is good to spend a little extra time on to make sure you get it as close to right the first time as possible. There are a few things we did differently on our 2nd and 3rd new trucks than we did on the first new truck, like ordering a TV mount and inverter from the factory. Doing them aftermarket was just a pain.

Here are the main topics we are going to cover:

• The engine
• The transmission
• The rear axle
• Items that affect the weight
• Driver comfort
• APU
• Extended warranty

Below you can see the document from the dealer that has exactly how our most recent trucks are specced. It's just some light reading, great to help put you to sleep.

#122. January 2023 Financials

We had one of our best months in quite a while, but honestly, I am a bit disappointed. I though it was going to be better. Right at the end of the month, I-80 in Wyoming was shut down for several days because of weather and a big 50 vehicle pileup. That resulted in several of our loads that should have delivered in January being delayed and not arriving at their destination until the beginning of February. On a positive note, that will probably make February's numbers better than they would have been. If you haven't ever used this website, check it out. It is a good way to see what is happening on the major roads in Wyoming.

What To Expect From Episode 122

We had all 10 trucks running in January for the first time. In fact, it was the first time in over a year that we have had all of our trucks running for an entire month. What does that mean, we broke some records. Check it out:

• Total miles ran – 101,915 (Record, but weather had a negative impact)
• Deadhead miles – 5,739 (5.6%)
• Total revenue - $215,780.06 (Record, but should have been $20k higher)
• All-in rate-per-mile - $2.12 (Yuck!)

Haulin Assets realized a profit of $21,131.69. Our saving grace was that we had all trucks running for essentially the entire month. The longer I have been doing this the more I realize that we need to have the wheels turning as much as possible. A sitting truck is a money pit.

#121. Worker’s Compensation and Occupational Accident Insurance

Whether you are an owner operator or a fleet owner, Worker's Compensation or Occupational Accident Insurance is something you will have to deal with. They are two different types of insurance, that are for a similar purpose. The basic concept is the same from state to state, but each state has some differences. Make sure you figure out what your state's differences are so you follow the law. A good place to start is your state's office that oversees this type of coverage, you can find their contact info here. Having one of these types of insurance usually is the law and most states audit it.

What To Expect From Episode 121

According to NIOSH (The National Institute for Occupational Safety and Health), Worker's Compensation Insurance is used to provide partial medical care and income protection to employees who are injured or become ill from their job. The concept is simple, the rules behind it are not. If you or one of your drivers is injured while working for your business, this type of insurance will help cover some or all of their medical expenses and typically give them a small wage while they are not able to work.

We'll cover a lot of details during the podcast, but here is the bottom line. Most states require you have either Worker's Compensation or Occupational Accident Insurance if you are an owner operator. If you have employee drivers, you typically have to purchase Worker's Compensation Insurance. As an example, the way Utah works, if you are an owner operator, you can opt out of worker's compensation by paying a $50 annual fee, submitting a waiver form to the Utah Labor Commission and showing proof that you have Occupational Accident Insurance, which is cheaper, but will still cost you money and provide some coverage.

One of the big topics we cover is how much the insurance costs and that answer varies, A LOT. Worker's Compensation for a truck driver is way more expensive than it is for an office worker. The type of work you do is the biggest determining factor, the other two main factors are how much you pay in wages and the number of claims you have had. If you are a brand new company, they use a generic factor to calculate the claims part. We cover this in more detail, so be sure to listen.

Some other good options for learning more about Workman's Compensation and Occupational Accident Insurance include:

• Your truck insurance agent, they can usually get you the coverage and tell you all about it.
• Search Engines. Google is pretty smart, google worker’s compensation in (put your state here) or Occupational Accident Insurance in ..... and you will learn a lot.
• Your state's Division of Insurance

Don't try to skirt the system. If you don't follow the rules you can get fined or sued. Worker's Compensation coverage is one of the biggest reason companies that try to use 1099 contractors instead of employee drivers get sued by their drivers.

Impact Tip

Get your hook in the water. This impact type is brought to you by Chet, my much smarter than me brother. People have been asking a lot if now is a good time to start a business. The answer to that question depends on you. I would say your success in starting a company is 80% you and your preparation and 20% the economy and other factors out of your control. I have seen people start trucking companies when the economy is down and freight rates are terrible and succeed. I have also seen people start a trucking company when the economy is booming and freight rates are awesome and fail. The owner’s ability and their preparation are the difference maker. If you are prepared and ready, do it. If not, wait. There is one thought I would like to add to that for you to consider.

Do you like fishing? When you are fishing you want your hook in the water when the fish start biting. If you wait unitl the fish start biting to find your rod, get all your gear and bait your hook, by the time you are ready and cast your hook in the water, you will have already missed some or all of the action. To catch a fish, you hook must be in the water.

#120. December 2022 Financials

When I first pulled the profit and loss statement for this month, I was disappointed because the profit was lower than I was hoping. Then I dove into the numbers and felt much better. All-in-all, this is actually one of the best months we have had in a while. Craig and I will go over all the details so make sure you listen to learn what made the difference.

What To Expect From Episode 120

We start off the episode by talking about a driver we let go at the beginning of the month. We learned some lesson that we'll discuss that will hopefully help you avoid some of the same mistakes. Here are the highlights for the month.

• Total miles ran – 80,998 (A new record, celebrate the wins)
• Deadhead miles – 4,937 (6.1%, Decent)
• Total revenue - $194,233.65 (Much better than the last two months, also a record, but we need to keep working on pushing that number higher)
• All-in rate-per-mile - $2.39 (Getting closer to being respectable)

Haulin Assets realized a profit of $7,746.33. Not where we want things to be, but when we break down the P&L you will see why, the number is really better than that.

Overall, I would say this was our best month in quite a while, especially considering Christmas week and that rates really were not that good for a December, really for any month, let alone December. We also had quite of few anomalies this month that we talk about during this episode.

#119. New Semi-Truck vs Used Rig: Which is More Profitable?

This is an episode, comparing the profitability of a new semi-truck verses a used rig has been a long time coming and is one people have been asking for. I have been super excited about doing this since the early days of Haulin Assets. This was an eye-opening deep dive into profitability for me and to say the least, I am pretty shocked with the results, the difference was bigger than I thought it would be. I have some really good data and hopefully you feel like it has been well worth the wait.

What To Expect From Episode 119

Everyone's situation is different so we are not going to answer this question for you. We are going to give you some really good data and analysis to help you make the right decision for yourself. You are going to have to listen to the episode to get all the details. I highly recommend you listen to it while following along with the P&L below, it will help things easier to understand.

Here are some of the most interesting topics we will be covering.

• The difference in fuel expense. This one really surprised me.
• Insurance
• Interest on loans
• Maintenance
• Repairs
• Operating Income vs Net Income
• Depreciation. We take a bit of a deep dive into this one.

We also cover some pros of new trucks and some reasons it might make sense to buy used.