Advice to the weary

Historically, being an operator produces 5-10% more net income than just being a driver. Taking in consideration the non taxable benefit of subsistence allowance however, would move the national averages up anywhere to 10-17%. These numbers are significant and could well produce a shift from company driver to company operator. In this turbulent time this tendency may harm uninformed drivers.

I would hazard a guess, however, the 10-17% will not be a national average this year (or even last) as too many operators are sacrificing their own salaries to sustain their business. “Fortunately” (and also sadly) the glaring tax benefits are offset by the sight of operators dropping like flies. However, those who are surviving, and even thriving will continue to maximize non-taxable benefits.

In these turbulent times, understanding supply and demand is critical to sound business practices. Operators changing companies over a cup of coffee must become a thing of the past. In tough times, providing a high level of service creates your own demand and company loyalty. It is critical to operator’s success in an economic downturn. Those who too quickly jump from ship to ship will eventually fall into the water and drown, its inevitable, especially in a recession.

As early as September of 2007 I started telling my clients to “buckle down” and don’t make waves, create value within your company. My advice now is, “if you are at all making a living, no matter how uncomfortable, stick it out!”. The lower grade companies, dealing with lower grade customers and lower grade operators will soon fall by the wayside. You don’t want to be licensed on one of those during a recession.

Take it easy, count your blessings, save your pennies, take advantage of every savings when you can.