Cents per mile bottom line.....what did i miss?

I started to reply to this last night but got majorly side tracked. SO I will respond tonight.

The first thing I did was to determine the number of days I will have the truck on the road. Those are my "working days". The days that will earn revenue and bring in the income. The fixed Overhead expenses will be the same regardless, I just have to figure out how I am going to generate it. So I divide my fixed OH costs into the number of planned days on the road. I figured this from my per diem days I am tracking.

For me, I will use 19 days. As an O/O, I don't care to work like the dog I did as a company driver.

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For expenses, I will use this example. I have been using it as an example here for a couple months now, why change.


So now I have $6110 of fixed cost divided by 19 days worked. So it's I need to earn about $321.58 each day I am out with the truck without even turning a tire. If I am moving, it's costing me 82 cents per mile.

So for a truck to haul a load that's about 600 miles away, it should pull in at least $321.58 + (600*.82) for a rate or a total of about $813.58 just to break even.

If I pick up a load that's gonna go for 1200 miles, that's two days so it should pay (2*321.58 )+(1200*.82) or about $1627 for the load. Mind you, this example is JUST TO BREAK EVEN. It will not generate a profit.

If the second load is only 200 miles but it's going to take you two days, you'd be at (2*321.58 )+(200*.82) or about $807 for the load as you are not moving the truck an extra 1000 miles or saving about $820 in maintenance expense.

Adjust accordingly if you can haul 2, 3, or more loads in a day or the number of days that you are going to be hauling under that particular load.

 

The 82 cpm is fuel and maint escrow based on fuel cost /mileage and the maintenance amortization table cpm of 14.2 cpm.


As your fuel mileage goes up, that cost goes down.


Significantly too.


But before you get hung on it....


You are better off to just NOT turn the miles if you can avoid them

 

Feel free to use the table format. It's just the way it works for me.


I have a spreadsheet built to do all this. It's really a screen shot of that sheet from April.

I dont share the workbook because of how complicated it is and don't feel like cleaning it up for that

 

Reading and SEARCHING on TTR...talking with others.

What I have concluded is the typical IFTA payment on the quarter is about $75-100. That is taking into account that is what you will have for a bill with just filling at the pumps as needed.

So I just plugged in a "typical number" to plan for and used it. Once there is a history, I will plug that in.

 

And when you do....


They'll change the rules.

 

I just figured that my daily average miles driven for the last 14 weeks is 550 miles.

If You haven't guessed by now, I am big on spreadsheets. I also added another catagory to my OH expenses. "Professional Fees". These cover accountants, licensing agents etc for doing their job. As a business owner, it's not our job to DO EVERYTHING. We delegate. I have been hesitant to use a licensing agent, but finally just decided I would bite the bullet on this one.


Here's also an example of a real load that's been posted on a load board. They offered it at $2500. I used the rates from above to figure the rest of it. People want to know how someone can haul for $1.35-1.40? Because they probably grasp their expenses better than some think. It's based off some real world items I am really looking at for DH and mileage and rate offered.


The $1.34 is the revenue per mile for the truck. I forgot to label the heading for it.