He said, "If you're planning to start now...", but when is NOW? When was this video created??? All of these videos should mention the current date so we know the context!!!
I actually wrote to Alex a couple of times about growing his company. His rate of growth was not wrong, but his capitalization was wrong. He actually took a loan that he thought was an investor. He then turned around and bough a Mega cab that was not going to serve his business. In the end the end the truck is a tool, not a show piece, so pick the truck based on being a tool. No bells and whistles, no giant screen in the dash, no leather, no sunroof, no frills at all. You are wrong about the trucks being able to carry out the missions, they are just usually on the wrong mission. Running at max capacity every trip is what takes it's toll on the trucks and that can affect semi trucks as well. Use 350/3500s for 3 car haulers, 450/4500 for 4 car haulers and 550/5500 for 5 and 6 car haulers. All these trucks could handle the weight without issue and required minimal repairs if you keep rigorous maintenance schedules. Alex leased trucks from Enterprise and that was not a good idea since those payments hover around $3K to 5K monthly. Buying a used F350 used with 100K and paying $900 per month with say 6 or 8K down is much smarter. You will spend far more for a 115K mile year on the Semi than the Dually. You can also go places semi trucks can't go and those loads pay big! Private to private and company to company loads pay over $1.30 per mile each vehicle. If you have 3 car running nonCDL your revenue is near $4.00 per mile and at an average of 60mph during a run that's a mile every min or $4.00 per min for 60 min every hour. The semi carries more vehicles but uses fuel at 3 to 4 times the rate and burns maintenance at an even high rate when factoring annual repair cost per mile. The low cost of entry and more brokers using Hotshot is what's driving the Hotshot industry. When rates are crappy a Hotshot can still run because he is not spending $1000 every fill up or $600 on an oil change with filters. Alex did get ahead of himself and was really not as much of a businessman as he was a great guy. Unfortunately that "Investor" wanted a payment every month, profit or not, basically stealing from revenues if necessary. He never admits that on camera, but go back and watch the video he made talking about the investor and the deal he made. Many "Investors" hide a loan wrapped in what looks like an "at risk investment" agreement by not advertising on the front end they expect payments downrange regardless of earnings. I looked at revenue to earnings ratios and they had a great big hole due to the steep payment that came with the 100K he got. The investor guys use something called "Implied returns" to muffle the word payment, but it's a payment. Anyway, no one is going to read this far down, so I will stop.
He didn’t fail, our country is on a planned schedule of shutting down. They made his insurance so high that he would shut down. I guess they were trying to help him, because if you haven’t noticed, all retail seems to be going out of business, and trucking needs will be reduced greatly.
Is this really true though? I just went to Universal Studios, I have never seen more people shopping and buying shit they don't need in my entire life. Retail seems good!!
@@ridindirtyface We still have a mountain of inventory from the Covid shutdown in 2020. Factories all over Asia have shut down because of this. Amazon is selling all their unsold inventory as “Returned Goods” in swap meet flea market style settings.
Not sure what this guy is talking about but I net an average of 3 grand in 4 days and I’m non CDL. That’s a pretty good living for me and my family. My insurance is super low too because I only pay a portion of it.
This is why I ask you so many questions about trucking and how to go about getting a trucking company started. This video only proves your knowledge on the industry and how it works. First off you proved every point in this video you. Which is rare when you watch other trucking owner operators on UA-cam normally they say there opinions which are not facts and they have no evidence to support what they say. Secondly, you told me the "Don't Grow Broke" that's 100% right there and that is one of the main factors that I think Tow Piglet closed his doors. Now that I have been told that by someone very experienced in the industry and I have seen what happens if you "Grow Broke" it would be stupid of me not to take that advice. But another great idea I never heard of before, Call your insurance company and make sure it okay for you to expand and buy more trucks. There is something else I have learned. This video is why I will continue to ask you questions and take coaching because you have a reason for the actions you take and things you say. And I think more people need to see your channel other wise more trucking companies and MC numbers are going to disappear.
I could tell from watching some of his earlier stuff that he was lacking a little bit in common sense here and there and also was a bit of a big spender. You're probably pretty close though. At first you go broke slowly in business, then basically all at once. Sometimes plain bad luck plays into it but usually it's a series of missteps and mismanagement
I agree! Alex is a great guy and slow and steady is the way to go. Take a step back every so often and look at the numbers before adding.
He said, "If you're planning to start now...", but when is NOW? When was this video created??? All of these videos should mention the current date so we know the context!!!
The date is literally on the video, look right under it, July 22, 2022.
I actually wrote to Alex a couple of times about growing his company. His rate of growth was not wrong, but his capitalization was wrong. He actually took a loan that he thought was an investor. He then turned around and bough a Mega cab that was not going to serve his business. In the end the end the truck is a tool, not a show piece, so pick the truck based on being a tool. No bells and whistles, no giant screen in the dash, no leather, no sunroof, no frills at all. You are wrong about the trucks being able to carry out the missions, they are just usually on the wrong mission. Running at max capacity every trip is what takes it's toll on the trucks and that can affect semi trucks as well. Use 350/3500s for 3 car haulers, 450/4500 for 4 car haulers and 550/5500 for 5 and 6 car haulers. All these trucks could handle the weight without issue and required minimal repairs if you keep rigorous maintenance schedules. Alex leased trucks from Enterprise and that was not a good idea since those payments hover around $3K to 5K monthly. Buying a used F350 used with 100K and paying $900 per month with say 6 or 8K down is much smarter. You will spend far more for a 115K mile year on the Semi than the Dually. You can also go places semi trucks can't go and those loads pay big! Private to private and company to company loads pay over $1.30 per mile each vehicle. If you have 3 car running nonCDL your revenue is near $4.00 per mile and at an average of 60mph during a run that's a mile every min or $4.00 per min for 60 min every hour. The semi carries more vehicles but uses fuel at 3 to 4 times the rate and burns maintenance at an even high rate when factoring annual repair cost per mile. The low cost of entry and more brokers using Hotshot is what's driving the Hotshot industry. When rates are crappy a Hotshot can still run because he is not spending $1000 every fill up or $600 on an oil change with filters. Alex did get ahead of himself and was really not as much of a businessman as he was a great guy. Unfortunately that "Investor" wanted a payment every month, profit or not, basically stealing from revenues if necessary. He never admits that on camera, but go back and watch the video he made talking about the investor and the deal he made. Many "Investors" hide a loan wrapped in what looks like an "at risk investment" agreement by not advertising on the front end they expect payments downrange regardless of earnings. I looked at revenue to earnings ratios and they had a great big hole due to the steep payment that came with the 100K he got. The investor guys use something called "Implied returns" to muffle the word payment, but it's a payment. Anyway, no one is going to read this far down, so I will stop.
He didn’t fail, our country is on a planned schedule of shutting down. They made his insurance so high that he would shut down. I guess they were trying to help him, because if you haven’t noticed, all retail seems to be going out of business, and trucking needs will be reduced greatly.
1:18
Is this really true though? I just went to Universal Studios, I have never seen more people shopping and buying shit they don't need in my entire life. Retail seems good!!
@@ridindirtyface We still have a mountain of inventory from the Covid shutdown in 2020. Factories all over Asia have shut down because of this. Amazon is selling all their unsold inventory as “Returned Goods” in swap meet flea market style settings.
Not sure what this guy is talking about but I net an average of 3 grand in 4 days and I’m non CDL. That’s a pretty good living for me and my family. My insurance is super low too because I only pay a portion of it.
This is why I ask you so many questions about trucking and how to go about getting a trucking company started. This video only proves your knowledge on the industry and how it works. First off you proved every point in this video you. Which is rare when you watch other trucking owner operators on UA-cam normally they say there opinions which are not facts and they have no evidence to support what they say. Secondly, you told me the "Don't Grow Broke" that's 100% right there and that is one of the main factors that I think Tow Piglet closed his doors. Now that I have been told that by someone very experienced in the industry and I have seen what happens if you "Grow Broke" it would be stupid of me not to take that advice. But another great idea I never heard of before, Call your insurance company and make sure it okay for you to expand and buy more trucks. There is something else I have learned. This video is why I will continue to ask you questions and take coaching because you have a reason for the actions you take and things you say. And I think more people need to see your channel other wise more trucking companies and MC numbers are going to disappear.
It got worse
I could tell from watching some of his earlier stuff that he was lacking a little bit in common sense here and there and also was a bit of a big spender. You're probably pretty close though. At first you go broke slowly in business, then basically all at once. Sometimes plain bad luck plays into it but usually it's a series of missteps and mismanagement