Is this a viable plan?

UK PROFESSIONAL DRIVERS FORUMS OWNER AND FLEET OPERATORS FORUM (INTERACTIVE)
1

I posted this in another thread but got no response to it so I thought I would try again:

I have been having a nagging thought these past few months that it may be worthwhile doing something like this:

Getting down the local Renault dealer and picking up an ex-Nobbies Premium. Thoughts behind this is that they are all 3ish years old, well maintained and tend to have a full recon by Northampton before they come off hire. They ain’t what we would call luxury, Privilege cabs at best but they have everything you need to do the job, including ADR kits if you buy the right one.

Question 1: How much do you reckon something like this would set me back

Pick up an old flatbed or curtain sider for your own work.

Sign up with the likes of Fowler Welch or Freshlinc. They are a fair way from me but I have contacts in Lincolnshire that would allow me to base there at weekends which will cut down on the empty mileage. They pay £2500 a week for a subbie, who rarely needs to pay for parking because you pull the curtains on their site at Spalding. Diesel used will be around, (at current prices) £1000 a week. R & M budget at £250 a week because while things break they wont break every day and £500 a week in my pocket should leave a fair bit going into the bank.

Do a deal with a local company to buy their empty pallets and once a month you clear them out. It may take a day to do, but if you shift four loads of pallets in that day, you take in £10,000. Pay them a pound a pallet will knock you down to £7000 ish, but that £7000 will more than pay for your HP on the truck and help to build the kitty.

Is that all pie in the sky? Or could you make something like this work. I know set up costs would be fairly big, especially given my age with the insurance but a startup loan from a bank, based on a reasonable business plan should help to cover these costs.

After that the plan would be clear the loan, stack away enough to run for a quarter without taking in any money at all, then start saving for the brand spanking new Renault T/Merc Megaspace with all the options. The big rule for me would be that once you got the first truck on chit, never buy assets if you cant buy them outright.

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I have a mate on freshlinc and he does ok … But it’s not that good mate … I
'D have a look into it abit more …

Jody

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If it was that easy everybody would be doing it. Keep your dreams but all you will get out of it is wages. First of all if you are working and parking in Lincoln you need your O licence in Lincoln . Nobody does anything for nothing so you will have to pay for parking someone for matainance insurance GIT insurance and public liability. So now rethink and do your sums again.

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Do pallets really sell for that much■■?

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Locally they pay "£2.50 a Euro and £2.00 for a standard. Based on a full load on a flatbed of Euros, its £2500 per load.

Servicing is included in my sums. PLI and Employers Liability isn’t but shouldn’t have too big an impact. If I can make the sums work on the Welch or Freshlinc work then the couple of days a month moving pallets is all extra money in the bank. Its the over the weekend parking which is the unknown cost at the moment but I cant believe it would come to seven thousand a month!

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nsmith1180:
Locally they pay "£2.50 a Euro and £2.00 for a standard. Based on a full load on a flatbed of Euros, its £2500 per load.

That assumes you can get 1000 pallets on a trailer, this seems unlikely too me, I can get 390 standard four way pallets on a 4.4 metre trailer, so even with euros being smaller, and assuming you can go to 5m, I’d be surprised if you could get 600 euros on a trailer (perhaps someone who moves them can confirm or deny?).

I’d also be surprised if the company did not already have an arrangement in place, most firms that receive large numbers of inbound white pallets would realise that they have some significant financial value.

Still, good luck if you do have a viable plan.

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Harry Monk:

nsmith1180:
Locally they pay "£2.50 a Euro and £2.00 for a standard. Based on a full load on a flatbed of Euros, its £2500 per load.

That assumes you can get 1000 pallets on a trailer, this seems unlikely too me, I can get 390 standard four way pallets on a 4.4 metre trailer, so even with euros being smaller, and assuming you can go to 5m, I’d be surprised if you could get 600 euros on a trailer (perhaps someone who moves them can confirm or deny?).

I’d also be surprised if the company did not already have an arrangement in place, most firms that receive large numbers of inbound white pallets would realise that they have some significant financial value.

Still, good luck if you do have a viable plan.

You are right, I have my maths wrong on the number of pallets per load. Max load is 33 stacks of 20 on a flatbed if you are moving Euros which is 660 per load and £1650 per load. Depending on where you get em and where you sell them you could move four to five loads during the working day. Also, I know of at least one large company that would be £220 per load better off with my rough numbers than their agreement currently in place.

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Fowler welch pay £400 per day for fridge traction & don’t care about your hours. Dunno about Freshlinc (I’d go there instead of Fowlers given the choice) Dunno why you’d need a trailer of your own. We used to pay £1 to £2 for a heavy 1200x1000 & up to £2 for a STAMPED Euro I doubt it’s changed much. Yours will have brokes & lights in & you’ll be competing with pallet dealers, good luck with that. You’ll get 500 standards on a flat bed & 660 odd heavy euros if they are stacked with military precion.

Your plan seems sound enough but you’re talking about a LOT of things going your way which never, ever happens!

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The plts in reality will be a dream or everyone be at it

The rest have you factored in cashflow
Fw use to be 60days end of month terms unless changed recently and were never great rates

Think you will make a wage realistically

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Ahh yes, Fowlers is 60 days from month end & they won’t let you factor, self bill.

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Pallets I know not a lot about.

But £250 a week to cover maintenance, insurance, op centre, depreciation, phone etc. etc.? Don’t think so. At least double that and add a bit more.

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Truck cost is £400 week min
Rent buy new or old

Dont kid yourself like many do that finance is only 200 week
As over 3 years etc it will work out about the same
Been there tried it

Forgot bit no factoring either use to back load for them
Always remember manager saying o start our terms are 60 days eom no factoring companies no early payment if you dont like it hsng up now and dont load for us lol

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The Renault premium is a v sensible buy to start off with I havnt checked current prices but I’d say from a Renault dealer you’d be looking at around 30 k for a 3 year old one
As for the 2500 a week pulling fw trls I’d say that is rather inflated and your probably looking at around the 2 k mark for around 850 quids worth off fuel which means your be left with a lot less than 1500 quid the pallets I can not comment on but surley if it was Tht easy Wudnt a lot of hauliers ods be at it ? I’m not trying to shoot you down in flames just trying to be realistic

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coiler:
Pallets I know not a lot about.

But £250 a week to cover maintenance, insurance, op centre, depreciation, phone etc. etc.? Don’t think so. At least double that and add a bit more.

I reckon on about £600 a week for total running costs excluding diesel so I’d say you’re about right.

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If you really want to work for yourself you could try Hargreaves. Yes tippers. They can base you basically anywhere you like and aim to run you at £2 per mile. U can hire a trailer from them for £196 a week and they cover ALL maintenance of it. They also pay weekly which as a new start will help as your biggest killer is cash flow. BUT why on earth would you be contemplating self employment on the basis of earning £500 a week in your pocket? I make a lot more than that working for a company who DO pay sick pay, who DO pay holidays, who DO run legal. You’ll have none of this if you are going it alone. The stress will be horrendous and if you have a down day, a puncture, a traffic jam then you ain’t earning money. I did it, I tried it, it was always mean dream and I’m glad I tried but I got out before it killed me through stress, poor diet / working conditions and worry

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rosscopeeco69:
If you really want to work for yourself you could try Hargreaves. Yes tippers. They can base you basically anywhere you like and aim to run you at £2 per mile. U can hire a trailer from them for £196 a week and they cover ALL maintenance of it. They also pay weekly which as a new start will help as your biggest killer is cash flow. BUT why on earth would you be contemplating self employment on the basis of earning £500 a week in your pocket? I make a lot more than that working for a company who DO pay sick pay, who DO pay holidays, who DO run legal. You’ll have none of this if you are going it alone. The stress will be horrendous and if you have a down day, a puncture, a traffic jam then you ain’t earning money. I did it, I tried it, it was always mean dream and I’m glad I tried but I got out before it killed me through stress, poor diet / working conditions and worry

I base on £500 per week because that was what I was earning, not including nights out at RJ Jones. I know I can live on it. Anything else goes in the bank and can pay a dividend.

monarch of the highway:
As for the 2500 a week pulling fw trls I’d say that is rather inflated and your probably looking at around the 2 k mark for around 850 quids worth off fuel which means your be left with a lot less than 1500 quid the pallets I can not comment on but surley if it was Tht easy Wudnt a lot of hauliers ods be at it ? I’m not trying to shoot you down in flames just trying to be realistic

RJ Jones was being paid £2500 per week per vehicle which is what I based that on. The vehicles on traction work were the only ones actually making money! As for the pallets, I based that on a conversation with a pallet company for whom I did a couple of loads on quiet days for RJs. They own the yard we ran out of and I was running empty past the collection back to the depot so it was no skin of our nose to help them out but built goodwill with the landlord. Given that RJs have recently laid off half their drivers, it seems goodwill was important.

Harry Monk:

coiler:
Pallets I know not a lot about.

But £250 a week to cover maintenance, insurance, op centre, depreciation, phone etc. etc.? Don’t think so. At least double that and add a bit more.

I reckon on about £600 a week for total running costs excluding diesel so I’d say you’re about right.

The £250 was just for things breaking, servicing or tyres going bang. Insurance was a separate cost. The 08 plate R420 I was in at Jones did six months for me, was serviced three times in that period, (though i assume it was serviced just before I got in it because its supposed to be six weekly isn’t it?) and the only unexpected expenses was a blowout on the M1 and three new tyres to replace the mismatch which came as a result of the blowout on the drive axle. I also went through three sets of electrical suzies but thats small change.

I wasn’t accounting for depreciation. My maths says that as soon as I have brought the truck it is worth nothing. That way if it gets sold for say £10000 after a couple of years, then its £10000 bonus rather than a £20000 nasty shock. The phone is easy, I have unlimted minutes, texts and data on my personal phone, there is no reason why I cant use that for business.

The only thing there I hadn’t accounted for, with or without writing it into my little idea, was the op centre. Though if my R&M numbers are that far off it makes it un-doable without some pallet income, for which I would need add the cost of keeping a trailer either hired or owned. I don’t think Mssrs Fowler and Welch would be delighted with me using their trailers for PJs.

Thank you all for the comments, its very informative. I wouldn’t be expecting to do it this year at least, I have a bit more experience to get first.

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They’ll pay RJJ £2500 per week for fridge traction but they’ll pay Mr. OD £2000 per week I’d wager which basically is a total waste of time. If you can get £2500 per week out of them with a mileage cap because you have a golden tongue then fill your boots my friend.