cost breakdown

Discussion in 'Ask An Owner Operator' started by canuck in da truck, Aug 26, 2010.

  1. canuck in da truck

    canuck in da truck Road Train Member

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    i was wondering if i could get a few o/o to put a breakdown of their cost per mile to operate
    tryiing to set up business plan /projection--but the lowest cost permile i can come up with is 1.55 per mile
    thanx
     
  2. Jimbo60

    Jimbo60 Medium Load Member

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    Really, you're right about there. The only way to carve it down anymore would be to cut out any profit you have figured in there. Or maybe your wages?

    I stated in another thread that I used to manage a small fleet (very small - 6 trucks) and we were at $1.65 - "bare bones"

    So I don't think that you're going to go much lower.


    my $0.02



    ............... Jim
     
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  3. canuck in da truck

    canuck in da truck Road Train Member

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    thanx jimbo--yes i saw that post--and at my 1.55--i am only grossing about 45000 for wage--and that is with only 1000 a month truck payment
    unless i can knock out plates and insurance --except bobtail--then it would help--but i dont think that many companies pay for total insurance--most --far as i can figure pay upfront then deduct
     
  4. MedicineMan

    MedicineMan Road Train Member

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    just operating costs are $1/mi. then my wage on top of that
     
  5. Jimbo60

    Jimbo60 Medium Load Member

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    The only real way to cut costs is to cut expenses.

    Plates and insurance are fixed costs. You can shop for the best rate on insurance but, it's a fixed cost for the term.

    Fuel = a variable cost. Increase MPG and reduce cost. Look at the type of truck/engine/transmission and at minimzing idle time.

    Maintenance = a variable cost. Do what you can yourself and look real hard at parts pricing. What you can't do look for good shops with the lowest rates you can find.

    Carve where you can but, try not to gamble if you're really committed to lowering the number. I wouldn't expect it to go below $1.30 though if, you're running it like a business.

    One other note; If miles go up - operating cost goes up, to a degree before it lowers. I used to run our costs based on "what if" scenarios. It took like an extra 1000 miles weekly before revenue really started to offset the added fuel expense in any sort of meaningful way.


    .......... Jim
     
  6. canuck in da truck

    canuck in da truck Road Train Member

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    i was using the cost breakdown sheet from ooida --would that be fairley accurate?--once i put my own truck payment in and adjusted fuel--i went with 5mpg to try and adjust for idling
    it seems a bit high for things -like maintenace/repair and tires all being seperate
    but i would rather err on the side of caution and have a bit extra in those accts
     
  7. canuck in da truck

    canuck in da truck Road Train Member

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    i see so many posts of people that seem to be going o/o but they are very un prepared by the questions they ask
    i pulled wrenches for about 25 yrs so i know my around trucks/trls--so a lot of the repairs where i dont need tooling i would be able to do
    i just dont want to go in as blind as some
     
  8. MedicineMan

    MedicineMan Road Train Member

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    the maintenance is a shot in the dark. It's going to vary depending on the age of the truck and in the end you luck.

    in the last year I have spent about $3600 in repairs (not including tires) which works out to $300 a month. My 24 year old peterbilt I had before this truck was running about $800 a month in repairs
     
  9. Jimbo60

    Jimbo60 Medium Load Member

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    O.k ...... I personally take OOIDA with a grain of salt but, their worksheet might be a good place to start.

    Tires; set a price for tires (figure what you need as far as brand/type etc..) determine how long a set will last and the replacement cost. Divide by projected miles and you have a real per mile figure for tires.

    Same with maintenance. Figure your PMs, belts, hoses, fluids etc.... and get your per mile cost.

    Repairs? That's a little funky because they're an unknown. I would say that, having 5k set aside for unexpected repairs would be adequate for a year (barring an unexpected catastrophic failure) but, you want to get that out of your pay eventually so you have to offset it against expenses.

    ummm ..... don't you think that 5MPG is a little low? Realistically I think you should be looking at around 6MPG.

    .......... Just sayin


    ............... Jim
     
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  10. MedicineMan

    MedicineMan Road Train Member

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    mabey 5mpg is low if you'r running around in CA at 55mph. But at 80k lbs on every load and running 70 to 75 with idling I average not much more then that and I use 5mg as a basis for my figures also. I'd rather underestimate then over estimate and end up working for free
     
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