Operating ratios

I read the mega quarterlies in the trucker mag and they're all hovering around 90% +/-....so I applied their formula to my business....to see what I'm doing........ and guess what? Mine is in the mid 60's...hmmmmm

Did I do something wrong ? hit the wrong key ? Nope.....

So why is expert mega carrier up in the 88 to 90% range and I'm in the mid 60's? Is that 25% ate up with mega manager salaries?

What should my numbers be as a o/o ?

 

So you spend $0.60 to make $1.00 and they spend $0.90... sounds good so far! I remember O/R in the Top 100 being .98 to 1.02 back in the 80's...Yup anything over.99 is breakeven - loosing money...one carrier was highlighted for an O/R of 90!

 

Yeah, about that. It's a moving target. My dog is old so it's always something but that's my avg for 2011.

Again, if mega carrier is so smart then why is his o/r 30% higher than mine? Where's the money going ?

 

Driver wages, equipment costs, fuel, maintenance, tires, taxes, benefits, retirement plans, real estate, office staff wages (load planners, dispatchers, safety department), janitors, office equipment, accountant, and lawyers on retainer.

As a single pony operator your expenses should be much lower.

Companies with thousands of trucks will generate millions in profits per year on just a few cents per mile and save thousands on trucks, fuel, and parts.

 

Brick & mortar is expensive.
So is having 2.5 to 1 (or greater) trailer to truck ratio.
Also don't forget those CEO, and other big wig salaries.

 

Really? C'mon Chalupa, you surely can't compare your one man operation to a mega carrier with a 500 truck fleet... It's apples and oranges my friend.

 

Why not? He should be better than me in any arena imo. The only thing he can't do that I can is treat a driver fairly....( he doesn't know how and doesn't care to learn )

 

So do you figure full wages,employer portion of taxes,comp,umc,medical benefits,cost of new equipment(new not used)?

 

Yes...cost of my equipment...not new but yes, everything. I don't have medical either.

Why would I add in a new truck pricing for ROI ? I don't have one...... If I did then I would.....

 

Then it's apples and oranges. Leave the wages out and it will be better yet.