Earnings to operating expenses

I use Excel spreadsheet to keep up with maintenance and expenses.

With fuel, permits, maintenance program, taxes, and insurance your gonna be around $1 per mile using your own authority. So, when I started I had $1 per mile on the foundation and I had to make at least $2.50 per mile to stay aflot and build the business.

Best way to get your per mile down is to pay for some things up front. For example: Pay for insurance and permits up front. Then take $5000 up front and put into a maintenance account to get it started and add to it as you go along. If you stay ahead of the game then you will get your per mile down.

Take your first year and build your business and then 2nd year see where your at before you spend major purchases.

 

I wanted to be around 3000 miles per week but I also look at price per load the broker is willing to pay and then I look at how many miles that load is and then do the math equation. If I am not in my margin that I want to be for that load and price then I don't take it.

So, when I first started my margin was $2.50 per mile I had to make to actually build my business. In 2018, it just so happened that year was a booming year for trucking so I managed to get $3 and $4 per mile loads just about all the time.

The best way I can explain this to you is a chart that I used to calculate Variable Cost and Fixed Cost. What you do is you add up your Variable Cost and divide that number into your miles per month and do the same for Fixed Cost. Then add the two together to give you your cost per mile. This is a rough estimate to get you started.

 

Actually, LABOR is by far more expensive than diesel.

 

Fixed costs I break down to the day then fuel/repairs I figure into a mile, I also factor in an average driver pay even though I pay myself a lot less, just have to figure out what works for you but in my option there is zero reason to run a truck 3000 miles a week

 

That chart is just an example of what you fill in. Obviously your miles are going to be bigger than 8400 per month and your gonna have more fuel. I was greedy and I wanted 3000 miles per week and I wanted that extra money. Some guys aren't hard runners but I am.

I'd start my bank account with at least $15,000 right out the door for any major work that may come up within the first 6 months. It takes 6-12 months to even build a business and get started. Just make sure you start with a decent account.

As long as you follow that chart example, fill in the blanks in your variable cost and fixed cost, and do the math equations like i showed you to get your cost per mile, then you will never go broke. Also, That chart doesn't show taxes or paying yourself so, you can add into the fixed cost of paying yourself per month and taking out taxes each month.

 

You seem to be using past tense wording. So does that mean you're not averaging $2.50 per mile presently.?

 

No I still do but I was giving this guy a chart to go by to help him in his business, something to shoot for when he gets out there.