Expense Spreadsheet of 2010

Discussion in 'Ask An Owner Operator' started by Turn3, Oct 28, 2009.

  1. Grumman

    Grumman Light Load Member

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    Nov 7, 2009
    Locust Grove, GA
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    Good Evening Turn 3,
    I just found this board today and thought I would chime in. First off I would suggest finding fixed costs per mile as well as per day. Fixed costs are really based on time and not dependant on a truck moving. I equate it to the overhead (rent, capital fixtures, etc.) of owning a restaraunt. Knowing what it costs per day will let us now how much overhead has to be satisfied if we sit for a couple of days. So just figure your fixed costs per month and divide by 30 or 20 depending if you'll base your business on runnning everyday or just weekdays.
    I didn't remember seeing a truck payment in your figures. If it wasn't there and you own a truck outright we still need to factor in something for the eventual replacement of that truck. Also any annual ad velorum taxes on equipment.
    In equating a fixed cost per mile I like using an industry standard of 2500 You should be able to find it online. You can also run a maintenance account as a set fixed cost you will save each month for future repairs even though oil changes are based on mileage. Make it your own escrow account and the amount would be reflective of the age of your truck. Well that is enough typing for now.
     
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  3. outerspacehillbilly

    outerspacehillbilly "Instigator of the Legend"

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    May 28, 2009
    The Who's Your State
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    Please explain this highlighted statement. What is it?
     
  4. Turn3

    Turn3 Light Load Member

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    Oct 15, 2009
    Pacific, Missouri
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    outerspacehillbilly, I found a good explanation on Wikipedia below. It is the sales tax or excise tax at time of sale and also the annual personal property tax.


    **An ad valorem tax (Latin for according to value) is a tax based on the value of real estate or personal property. It is more common than the opposite, a specific duty, or a tax based on the quantity of an item regardless of price.
    An ad valorem tax is typically imposed at the time of a transaction (a sales tax or value-added tax (VAT)), but it may be imposed on an annual basis (real or personal property tax) or in connection with another significant event (inheritance tax, surrendering citizenship[1], or tariffs).**


    Grumman, thanks for the reply to my question. We are factoring in the some of the expenses you listed. The truck loan would be a self financed along with a maintenance fund built in. I think the more money I put away the better of the over all operation.
     
    outerspacehillbilly Thanks this.
  5. Grumman

    Grumman Light Load Member

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    Nov 7, 2009
    Locust Grove, GA
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    Regarding the ad velorum tax. Some states will ##### this on your equipment every year. I know Georgia does. You typically can't avoid this on your tractor as you will plate it in the state your business is located. However there is nothing that requires you to register your trailer(s) in your home state if the tax is too much. You can register your trailer in Maine which is very cost effective and pretty easy to do. I know it saves us about a grand per trailer a year.
     
    outerspacehillbilly Thanks this.
  6. ironpony

    ironpony Road Train Member

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    Ask my GPS...
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    How are you going to get your loads? Brokers fees are built into the load, but there are monthly access fees for load boards.

    You also mentioned looking at fuel going up by .50... assuming you mean $0.50 per gallon. Its already done that since the beginning of the year, and the economic numbers don't support the current price of crude. That means the speculators are getting back into oil futures. What are you going to do if we see another spike in diesel like last year - what if that number is an increase of $1.50 per gallon?
     
  7. Turn3

    Turn3 Light Load Member

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    Oct 15, 2009
    Pacific, Missouri
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    Yes... I meant $0.50 not 50% but then again $5.00 per gallon may still happen.

    I am basing the fuel on todays current pump numbers, in fact we are setting the fuel expenses in $0.25 increments so we have the values before it happens.

    ".... and the economic numbers don't support the current price of crude." What exactly do you mean? The cost per barrel vs. pump prices compared to historic prices?
     
  8. Turn3

    Turn3 Light Load Member

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    Oct 15, 2009
    Pacific, Missouri
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    Is this something that can be done on-line or through the mail? Or do we have to set it up in person?
     
  9. ironpony

    ironpony Road Train Member

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    I was listening to Evan Lockridge the other day on Sirius... he had an energy industry analyst and a DOE analyst on as guests discussing the current price of crude oil. When crude prices increase because of demand, you expect to see a decrease in the availability of crude oil.

    What's happened in the last month or so is a fairly good increase in crude oil stocks, no increase in the price per barrel from OPEC, along with an increase in price on the spot market. So what's happening? Both analysts couldn't explain it in terms of supply and demand. That means there's something else going on... speculators driving the price up, which is pretty much what happened last year.
     
  10. Turn3

    Turn3 Light Load Member

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    Oct 15, 2009
    Pacific, Missouri
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    Well.. according to our numbers if diesel hits $3.00 and if the freight rates do not cover it then we are losing money under our model. This is going with an average of $1.40 per mile and loaded miles of 75%.
     
  11. ironpony

    ironpony Road Train Member

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    Have you factored a fuel surcharge into this?
     
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