What are some of the costs incurred by owner operators when switching companies?
If you've been pondering some aspect of your career plans, but aren't sure where to turn for asnwers, try highwaySTAR. We may not have all the answers but we do know where to find them.
Switching companies can cost you a bundle. On average, that greener pasture will set you back close to ten-grand. Right off the top, you're looking at a disruption of about a week in your revenue stream; $2500. If you have any unpaid accounts at the previous company, such as fuel or tires, that amount will likely come off of your final statement in a single lump sum, say $2000. That carrier will probably retain your holdback account for at least 90 days, but we won't include that here.
If you've paid for your base plate on an annual basis, you'll forfiet the balance of the year that you've already paid for, then you'll need a new base plate, so that cuts right into the first statement from the new company to the tune of about $1500. You may well be required to remove the old company's colours and repaint for the new outfit, so call that $2000, then the tractor will need to be saftied, call that a grand to be safe. We're now up to $9000, and we still haven't turned a wheel.
In all likelyhood, you'll be looking at a minimum of thirty days before you see the first statement from the new company, so you'll need some reserve to get you over that hump, and then there will likely be the obligatory first-statement deductions coming right off of the first cheque.
In other words, as an owner operator, you had best assemble a bit of a war chest before jumping ship, or at least, time the event so that it poses the least disruption in your finacial plans.