Some numbers for new O/O

Yes thank you. Was just trying to make the point between two engines and experience that was the same for comparison. That’s all

 

hello
I rent a truck for a week with insurance and road side at $1361 plus $250 trailer rental $1200 for fuel , plus Ifta, misc expenses $300 for a total of lets say around $3100 a week. I using around 14 broker apps on my phone .
i drive 2500 a week my take home is around 2000 to 2500 a week everything above is a tax right off leaving me at 14% taxes roughly $150 per 1000 in taxes my worest week to date $1744 and i have no headaches when im done the truck goes back to renter and i dont think about it . yes i pay more for the rental but i dont have any of the responsibilities.

you will need $8000 up front to make this happen there is a $5000 deductible you have to put down on the rentals. but you get that back (if you dont wreck the truck/traler)

was a company driving for 27 mounths no tickets, violations.

started driving the rental 4 mounths ago
this is working for me

 

Wait until rates take a huge dump, let us know how it’s working out then.

 

I was just thinking the same when I read that. 60k per year in rental for the truck and 12k per year in rental for the trailer. Not sustainable in a normal market.

 

He said his expenses are $3100 a week all in and runs 2500 miles a week. I’m a rookie in OO but it could work? Let’s say he can make $1250 / per day x 5 that’s $6250 - $3100 = $3150. That includes all expenses even fuel. Unless I’m missing something.

 

I find it extremely hard to believe he actually runs for $3100 per week all in while renting a truck. Even if he does that’s before he pays himself. Let’s say fuel goes up $500/week and rates go down $1500 per week. All of a sudden he now not only doesn’t even make what a company driver does, but in fact essentially no money at all.

I’m not bashing him. Good for him for getting started 4 months ago and giving things a try without a massive investment up front. However, with time unless he changes his program he will go broke.

Kinda one of those deals when you start in great rate times, you have a false sense of where your really at with the business when it comes to the cyclical nature of this industry.

 

$500 increase in fuel is 40% increase and rates going down $1500 is 25% decrease.

So let’s say cost goes from $3100 to $3600 because of the 40% increase in fuel all in. That’s $720 per day operating cost all in.

His break even CPM is about $1.44 ($3600 all in cost with 40% increase in fuel / 2500 miles per week).

 

Were you not in trucking when fuel was $3, $3.50, $4, and $4.50 per gallon? We’re you not in trucking in 2019? What about April/May of 2020? How about 2015 and 2016?

It’s amazing that people on TTR all the time forget that they have to pay THEMSELVES, and true profit is only what’s left over. If you don’t have true profit then how are you supposed to ever get ahead or weather bad times?

Hopefully his Mom/Dad pay all his personal expenses and let him drive their car and stay at the house when not on the road. No risk of getting fat when you don’t have money to eat. (Whole point is you must factor in paying yourself)

 

Did rates go up when fuel was that high? If I had to pay 3.50 plus a mile this year wouldve hardly been worth it.

 

Not necessarily. Not on the spot market anyway. Contract and LTL yes but that’s apples and oranges to what is being discussed here.

Fuel will be going up over the next couple years I 100% promise you. This new administration is not pro keeping oil low. It’ll be more how it was under Obama only likely worse. (In regard to fuel prices)