Some numbers for new O/O

Every company driver. 1099 still get it

 

Want real numbers?

My numbers for 2018 - solo owner operator with a dry van, working off load boards.


Fuel $ 38,003.82
Maintenance $ 17,917.67
Insurance $ 11,039.00
Truck Payments $ 0
Trailer Payments $ 6,987.48
Insurance $ 11,039.00
Tollways $ 10,791.18
Licensing & Taxes $ 3,810.43
Parking $ 3,371.66 ( $371 is for prime parking at truck stops)
Office & Accounting $ 1,331.20
Communication $ 1,110.15
Fees & Interests $ 301.27
Scales $ 245.50
Showers & Misc $ 759.44

All Costs $ 95,568.80 ---- cash spent to run the total of 83 986 miles.

164 days home/33 days work involved around the truck and business related.

101 full days out/100 partial days out (leaving or coming back home)

Now, how about the pay? I think, that at least the target of $100 K should be aimed by a full time owner op in his prime...so in this case, 200K of gross is needed to accomplish that.
For the purpose of accounting ... 83 986 miles at 55 c per mile (very real rate) = $46 192, what is left after is a profit or dividend - in this case about 55K - about 45/55 split which is well balanced, IMO.

I fell short: I grossed $181 000 which means that either I run too cheap or too little: loaded miles at 2.68 per mile / all miles at 2.15 and deadhead was 5400 miles about 20%.

 

That's 85k before taxes & benefits. It's a decent wage, especially being able to control when, where and how you want to work.

 

I should preface my "decent wage" comment with the fact that decent wage is relative to where one lives, cost of living, etc.

The majority of small businesses are really not that profitable.

Especially one man truck operation...

People who do it are motivated most often by something more than just getting rich or even doing better than what they could achieve as a company man or woman. They have to be, because the risk/reward line is just too far stacked on the risk side, especially in this industry.

In TallJoe's line items, consider his truck maintenance. Throw in a complete engine failure and the costs related to rebuild, downtime, loss of income, etc, and one can see that would essentially be a catastrophic blow.

I don't fault anyone for wanting to pursue their "dream". However, as has been reiterated over and over again on this forum by guys/gals that have been there and done that, you better count the cost.

 

The maintenance includes towing, truck rental and repairs - a $12 000 debacle which involved 21 days down time - at least 12-15K loss of revenue. Otherwise, I would have reached the "accomplishment level" of exceeding operating costs by 100K easily.

Could have those costs been any less?
Perhaps tollways could have been avoided to more extent (knock off $2000-3000) and the fuel discounts could have been better (knock of $2000-3000). Other than that - Fuel mileage (I run about 65 mpg on average) don't see much room for improvement there, parking --- maybe $1000 - 1500 less, if parked in cheaper or less secure places.

It is worth to consider that had I bought a new truck, I would have not had that $12K break down (I know that to some it could be rather a frivolous presumption). However, the payment of 30K a year for a good new reliable truck even with $0 maintenance, still would have had to be offset by working more miles, as I don't think I could have negotiated better rates knowing my limitations. Although, the revenue side is a different subject from costs, but I do think that's where the focus should be directed. A different thread is needed for that.

 

I wasn't disparaging your numbers.

 

Nationwide.

 

Dang that sucks

 

It is what it is.

 

Oh I know you did not. I just wanted to emphasize that you were 100% right that one catastrophic failure or as in my case one major break down can result in spoiling what otherwise could have been a great year. Have two of them - quite possible on a used and fatigued equipment - then you can get beyond recovery.
Folks need to know that having reserves or access to $20 000-30 000 at any time is a must, otherwise, I would think they are underfunded.