yes i am a newb and am in no way considering being an O/O but am just wondering how you guys figure out the cost to run your equipment? Do most do it per mile, or per week, per month? I would imagine it would be based on per mile, is there a formula? thanxx.
You need to do it per mile if you want to cover your tail...that is my opinion. Take your payment on your truck and trailer...figure out an avg miles per month and divide that into your payment and it will give you so many cents per mile. Fuel will be your BIGGEST expense and that number can vary depending on your specs,right foot,etc! I have seen numbers from .45 to .75 a mile in fuel...everyone is different. insurance,tags,etc.
Dont forget your maintenance. I personally take out .27 a mile and put it to the side. .03 goes for oil,grease,filters .08 goes for tires and .16 goes in for majors. At the end of the year, if I have not needed and majors or tires...I am ahead by over 30K...then I buy some toys or take a vacation.
My total cost of operation is $1.08 and I figure my fuel at $3.90 gal. I try and run 2750-3500 week depending on how I feel. I will NOT AND REPEAT..NOT take a load under $1.85 a mile...and that is my Bottom Line. I try for $2.25 all day and hassel until I get what I want. Run Smart,Think Hard, negotiate smart and the driving is the easy part. That is what I do and I never bring home after all expenses are paid under $2400 a week.Last edited: Mar 4, 2011
If you go to OOIDA's website, they have a cost per mile spreadsheet for you already made up. Just scroll to the bottom of the page and you'll see it. It's written as an Microsoft Office Excel spreadsheet, but if you don't have Excel..don't worry. You can get Open Office free and it's compatible with Excel. Here's the link. http://www.ooida.com/Education&BusinessTools/Trucking_Tools/costpermile.shtml
Play with the numbers a bit and you can get an idea of the different cpm using other variables.Wildcat74 Thanks this.
I figure it out by the mile and i do it every quarter. I include all cost associated with running the truck right down to all the little office supplys i use. It cost me with fuel at $3.95 $1.10 a mile to run my truck. If fuel keeps going up my cost will. IMO its the only way to know if your being profitable and to find out what you need for an absolute minimum to run for and still make a profit.
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