Owner-operators Jim and Bonnie Kopisthke of Bailey, Colo., prefer working with a smaller carrier. “We’ve worked for big companies, and it seemed like we got taken advantage of,” Jim says.
At best, owner-operators can leave one carrier, join another and be off and running in three days with little income interruption, few extra costs and no surprises. The actual costs, including downtime, might be under $1,000.
Other owner-operators endure two or three weeks of downtime, pay excessive front-end fees and learn too late about significant ongoing costs, such as trailer rentals and insurance add-ons. Some drivers see even more lost income during months spent finding the right dispatcher and learning how to work the new carrier’s system. The total cost of changing carriers in such cases is thousands of dollars.
Keep in mind that personal living expenses have to be paid whether you’re making money or not. The same is true for fixed trucking costs, such as truck payment and insurance, which run about $100 a day. Furthermore, unless all costs, fees, revenue and work volume are accurately assessed, both short-term and long-term, a switch that looks like a winner could become a loser.
Owner-operators can control the process, minimize costs and avoid making a big mistake by observing a handful of simple rules.
AVOID FREQUENT CHANGES. Before considering a change of carriers, review your track record. Carriers try to avoid chronic job hoppers. If it’s this year’s second change, it might not be smart.
“It hurts your employment record to be changing jobs regularly,” says owner-operator Michael Webb of Anniston, Ala. “It’s better to stay with the company for at least a year.”
