Why did you downsize or end your fleet?

My monstrous fleet of two end dump tractor-trailers... had it all paid off, was happy with where I was profit-wise, was overburdened between managing and maintaining them on top of working a day job, and I was seeing (accurately) dark clouds on the horizon.

 

I don't know if this is pertinent this late, but I had 13 trucks, starting in 1988 and closing it out at the end of 2009.
All I could see was an endless spiral of increasing costs, regulations and lessening profits.
My partner and I started with one truck and one driver (me). During the 80's and 90's we did very well, but starting in 2002 it started downhill. One of the things that was killing us was the proliferation of independent brokers. Constantly underbidding us with accounts we'd had for years. I think one of the turning points is when one of these brokers underbid us for a short contract, then offered it to us to haul for 0.35 per mile less than we bid. Needless to say we didn't do it, but it left a bitter taste in our mouth.
We saw less and less relationship business and more and more bottom line.
But the customer demanded the same service. Our competitors often didn't come thru and we were offered the work back, but at the new price. When we explained we couldn't do it and the other guys didn't do the job, it didn't matter.
Price was price.
Our market was San Diego to Seattle with forays to Idaho, Nevada and Phoenix. California was hit hard by the 'recession' and we started watching clients close up. Then the California regulations became worse and worse.
There just wasn't any end that I could see.
My partner died suddenly (I swear this business killed him!), and finally it was time to go.
I don't regret for one minute my decision. Looking back, it would have been better if we closed about 18 months earlier.
I don't envy the small fleet owner or independent O/O trying to make a living out there now.
It's brutal and the profits just aren't there for the risk and investment required. (IMO)
I now dispatch for a major company and see the numbers over and over.
Unless you're really big with deep pockets, I don't think it's worth it anymore.

 

To Emulsified,

This country should be ashamed of its self. This used to be the land of opportunity! I bet if you talked to guys in any number of small businesses they would have the same story. The rising costs of doing business or over regulation or the subs and Mega's squeezed them out. There still some opportunities left, but they are few and far between and cost a whole lot of money. Small business used to be the backbone of the country and economy, now it's all big box stores and mega companies pedaling imported goods and labor. Worst part is I don't see it getting better anytime soon.

Adam

 

Small businesses are at-least starting to stay afloat again.
I've watched three of my friends businesses grind into the dirt and catch fire. They're all in the poor house now, we used to get together frequently and have dinner, a nice few bottles of wine and enjoy life.
Now we have a meatloaf and drink everclear and have a better time.
Being poor builds character

But I do agree; trucking isn't the sort of buisness you can get into without really deep pockets anymore.
Such is the way of progress.

 

I started my business for different reasons than most. You can read the details in this thread that I hijacked when the OP vanished.

I had two employee drivers and two trucks. The short version is that managing drivers sucks. The one non-family employee was a unicorn of a driver. Couldn't ask for someone more careful and conscientious about the job, and a good friend on top of that. Still a 24x7 soul sucking thing to keep up with. He suddenly passed away a little over a year ago. I decided to drive truck #2 myself and not hire a replacement. Best decision I've made in years.

Bottom line is: Nobody cares for your company's health, assets, and customers like you do. If you have ideas that you will sit at home in your jammies on the phone booking loads while your revenue stacks up, think again. More like you will be on the phone 24x7 as a punching bag and professional money spender.

 

We run 3 trucks. I run one, my father runs the other and a driver runs the third and I can tell you that Red has nailed it

 

Quit hauling the cheap freight!!!

 

Dad had trucks and at 18 I stepped in and we ran it co until we worked out a deal to be bought out. Guy that bought us I stayed with until Wednesday. It was wrote in the contract that I shall stay employed with the company and drive trucks I desire. Well I don't desire Freightliners and when I was told he was trading my Pete for a classic with a 485 10 speed and coffin box flatop I just cleaned it out. Now I, drivin for another Mom and Pop and we started out with hoppers then he ventured into cattle for some more money and then went to vans. Me and another guy pull the last two pots he has. To make money you gotta be able to hook on to anything.

 

I got tired of it all. The way the industry changed and rates fell it began my thinking to shut it down. Then my good drivers left to do something else or become o/o. Then the new generation drivers that can't drive and don't care about anything. I would still have my fleet but I had enough. That and I want to begin slowing down towards retirement.