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  1. #1
    Road Train Member chalupa's Avatar
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    Operating ratios

    I read the mega quarterlies in the trucker mag and they're all hovering around 90% +/-....so I applied their formula to my business....to see what I'm doing........ and guess what? Mine is in the mid 60's...hmmmmm

    Did I do something wrong ? hit the wrong key ? Nope.....

    So why is expert mega carrier up in the 88 to 90% range and I'm in the mid 60's? Is that 25% ate up with mega manager salaries?

    What should my numbers be as a o/o ?


  2. #2
    Medium Load Member wis bang's Avatar
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    Quote Originally Posted by chalupa View Post
    I read the mega quarterlies in the trucker mag and they're all hovering around 90% +/-....so I applied their formula to my business....to see what I'm doing........ and guess what? Mine is in the mid 60's...hmmmmm

    Did I do something wrong ? hit the wrong key ? Nope.....

    So why is expert mega carrier up in the 88 to 90% range and I'm in the mid 60's? Is that 25% ate up with mega manager salaries?

    What should my numbers be as a o/o ?
    So you spend $0.60 to make $1.00 and they spend $0.90... sounds good so far! I remember O/R in the Top 100 being .98 to 1.02 back in the 80's...Yup anything over.99 is breakeven - loosing money...one carrier was highlighted for an O/R of 90!

  3. #3
    Road Train Member chalupa's Avatar
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    Yeah, about that. It's a moving target. My dog is old so it's always something but that's my avg for 2011.

    Again, if mega carrier is so smart then why is his o/r 30% higher than mine? Where's the money going ?

  4. #4
    20 Year Truckload Veteran jlkklj777's Avatar
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    Quote Originally Posted by chalupa View Post
    Yeah, about that. It's a moving target. My dog is old so it's always something but that's my avg for 2011.

    Again, if mega carrier is so smart then why is his o/r 30% higher than mine? Where's the money going ?
    Driver wages, equipment costs, fuel, maintenance, tires, taxes, benefits, retirement plans, real estate, office staff wages (load planners, dispatchers, safety department), janitors, office equipment, accountant, and lawyers on retainer.

    As a single pony operator your expenses should be much lower.

    Companies with thousands of trucks will generate millions in profits per year on just a few cents per mile and save thousands on trucks, fuel, and parts.

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  6. #5
    Road Train Member mustang970's Avatar
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    Brick & mortar is expensive.
    So is having 2.5 to 1 (or greater) trailer to truck ratio.
    Also don't forget those CEO, and other big wig salaries.

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  8. #6
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    Quote Originally Posted by chalupa View Post
    Yeah, about that. It's a moving target. My dog is old so it's always something but that's my avg for 2011.

    Again, if mega carrier is so smart then why is his o/r 30% higher than mine? Where's the money going ?
    Quote Originally Posted by jlkklj777 View Post
    Driver wages, equipment costs, fuel, maintenance, tires, taxes, benefits, retirement plans, real estate, office staff wages (load planners, dispatchers, safety department), janitors, office equipment, accountant, and lawyers on retainer.

    As a single pony operator your expenses should be much lower.

    Companies with thousands of trucks will generate millions in profits per year on just a few cents per mile and save thousands on trucks, fuel, and parts.
    Really? C'mon Chalupa, you surely can't compare your one man operation to a mega carrier with a 500 truck fleet... It's apples and oranges my friend.

  9. #7
    Road Train Member chalupa's Avatar
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    Why not? He should be better than me in any arena imo. The only thing he can't do that I can is treat a driver fairly....( he doesn't know how and doesn't care to learn )

  10. #8
    Road Train Member wichris's Avatar
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    So do you figure full wages,employer portion of taxes,comp,umc,medical benefits,cost of new equipment(new not used)?

  11. #9
    Road Train Member chalupa's Avatar
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    Yes...cost of my equipment...not new but yes, everything. I don't have medical either.

    Why would I add in a new truck pricing for ROI ? I don't have one...... If I did then I would.....

  12. #10
    Road Train Member wichris's Avatar
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    Then it's apples and oranges. Leave the wages out and it will be better yet.

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