Owner operator break even points

I run local, pulling a flat.Agricultural products. Home every night, usually by 5 pm.Over the year, average 4 1/2 days a week, but sometimes will work 7.Take time off anytime I want to, have others to cover for me. Winter time is very slow. It cost me $1.61 per mile to run last year ( hub miles ).My revenue was about $ 2.56 per hub mile.Older, paid for equipment. Average about 950 miles a week, ran 51 weeks last year.
This year my cost per mile is down, revenue per mile slightly up.

I have a good gig, but it took a while to get it set up. Key is doing what the shipper / receiver wants done, when he wants it done, how he wants it done. Keep the customer happy.

 

I'm thinking for an O/O, 78% should be the least amount you offer, but if you are discussing overpaying people, then asking questions like these are not going to get you the right answers to justify your rates you want to offer because you are already assuming that you are overpaying them.

This morning my driver called me and I asked him what his average was on the truck, dry van go anywhere price - it is $2.97 for the past week all inclusive. He said he has refused a bunch of offers at $2.25 all inclusive because the FSC was too low. So this is an average and for some reason any O/O working under $2 as a regular thing seems to be working for nothing.

 

If you are not paying at least $1.68/mile and averaging 2500/wk then you are not paying enough,,and you pay all insurance except bobtail ,you pay IRP too.
Pay less and you get what you pay for ,,junk trucks and poor quality drivers,

 

Why don't we go at this from a different angle. What is your O/O average gross to the truck per year, and how many hub miles are they running a year to earn that revenue? Post your numbers, and we will let you know if you're over paying them.

 

If you aint trying to burn,ripoff,scam,or short the drivers to increase your profits,you aren't trying hard enough.."Come on" man!!!!lets get it together so you can roll around in a vette or a beamer...

 

If someone isn't into trucking, maybe they should play at trucking?

 

So you want to know your driver's BEP and then you will be the one to decide how much over over that he well need to feed his family? How altruistic of you, not.

You brokers are always focused on Truck BEP, we drivers are always focused on Life BEP. It's so much more than paying the bills and eating this month, we have to think about the next truck to drive and the new car(s) for the wife on down the line, retirement and leaving something for our heirs.

 

Keep it simple: $2.00 per loaded mile avg.

 

Yup, thats what they have been used to for the past few centurys. They seem happy enough.