Do you guys honestly believe that not knowing your true operating costs is a good thing? It sure sounds like you are bragging about it you ask me.
Reality is probably that you have done this for so long that you do know your operating costs, you just haven’t put it on paper or broken it down into multiple buckets.
If you don’t know those operating costs sorry but you are going to fail at some point.
Operating Costs
Discussion in 'Ask An Owner Operator' started by TTNJ, Dec 8, 2019.
Page 9 of 13
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Surprisingly, there is an actual argument in this thread about whether or not knowing what it costs to run a truck is a good thing. The op's statement that knowing your operating cost is a crucial thing has been completely undermined by more than one poster.
Arguments are:
1. That's because you can't control neither the costs nor rates, they are what they are, so why bother...?
2. The presumption then must be that the market will never get below a certain level at which you will run below the fuel cost alone....keep on trucking money will come eventually, just don't let the boat sink.
3. Even if it true that a company driver can make more money, there is more to it than just a wage. ( I partially agree here lol)
But you see, at $100K of annual costs and $165 annual revenue...Can I be worse off from this business women who drives her old beat up Dodge Caravan packed with vacuum cleaners and mops and cleans the houses in the neighborhood?
I think it is better for me to bury head in the sand too, she can't possibly do better than me. I will never calculate my numbers again...can't lose my pride. -
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The argument by the nay sayers is that they just "know how to make money" is convenient, but not supported by anything. The psychological term is "satisficing", which is the phenomenon where people will choose the first acceptable outcome from a set of choices. Satisficing is the enemy of maximizing. In business, we want to maximize profit, not just be profitable.
Numbers tell you which load is more profitable. Your gut may be right, but it may not be.
Numbers tell you which tires are best for the bottom line. Your gut may be right......maybe not.
Numbers will tell you if used, used and rebuilt, or new is most profitable. Your gut may be right, maybe it's not.
You can most certainly be profitable driving by the seat of your pants....... but numbers will make you more profitable. Without numbers, you cannot maximize. -
Tug Toy Thanks this.
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Well Joe, there was this guy here not long ago who claimed that because he just installed the newest widget, his MPG had increased by .003, or some odd number that meant nothing.
He did not calculate for wind, weight, conditions, or anything else. Nor did he annualize his cost of the widget vs. not having it.
So, you see, while it's always a good thing to track and control your expenses, its douchebags like Ken Rutherford who make you believe that it's that important to that degree.
While it may be if you're running 500 trucks, it isn't if you're running 1. -
Whatever people; whatever makes you happy.
Please, one of you spreadsheet, count every nickle, check the air in my tires every day people share with the rest of the group your latest revelation.
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