I'm not seeing a mileage there. Don't most cost per mile estimates integrate how many miles you're driving at least as well as mechanical wear tire wear and things like oil changes grease intervals? Most of what you're listing are fixed costs. The more miles you drive the lower your break even. Do you have a maximum mileage for that break even number?
When Broker's laugh at your rates.........
Discussion in 'Ask An Owner Operator' started by femalecdla, Aug 12, 2021.
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haycarter and Cattleman84 Thank this.
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Its barely 0800 and I've already covered that much ground.
But I do agree that if you aint averaging about $2.25+ per mile, for ALL miles your business probably is not making much money.Roberts450 and God prefers Diesels Thank this. -
This is why I am so glad my junk is paid for.
Not criticizing at all. So please don’t take it that way.
Im sure when someone see my window AC in the right window and my extension cord going to the generator on the trailer that are glad they have an APU.
If when I have a better way it will be paid in cash.
Sustaining that rate per mile all year around would be difficult.
On the original thread title when it comes to those brokers. You have to treat it like an NFL defensive back and shake off that You got burnt on a play and move on to the next. Make a mental note of who it is and not deal with them again. Remember that the mega brokers have a lot of people working for them and you may never talk to that person again.Dino soar, blairandgretchen, 062 and 1 other person Thank this. -
$35,932 for truck payment $691 a week for a lease
$4,732 for Insurance (bobtail, physical damage, and occ acc)
$2,160 for base plates
$1,320 for cell phone plan in business name
$936 for load securement equipment payments from carrier
$840 for QuickBooks subscription
$550 for Form 2290
$520 for ELOG and PrePass
$144 for Google Workspace and Domain Registration
~$100 for business licence renewals and annual reports
That amounts to rounded up $0.43 a mile based on 100,000 annual miles for fixed costs.
I try to allocate 1 days of home time per week. I pay $10 a night to store my trailer so you could count that towards business expenses at another $0.005 a mile cost.
Using FuelBooks, my 90 day CPM has been $0.38 for fuel and DEF.
I've spent $14,800 on maintenance and repairs since I got this truck in October of 2020. So that amounts to about $0.18 a mile. Even if I set aside $0.25 a mile, the money I don't spend is going to be taxed and not applicable to breakeven in business terms.
So my true breakeven is 99 cents a mile. Anymore and I'd be paying taxes. That is what breakeven means in business terms.
I don't pay for trailer usage. I've never had a blow out that wasn't on a trailer because I inspect my tire pressure and wear every day and not drive faster than the rated limit for them. Never found a tire rated higher than 75mph yet every day I see owner ops running down the road going 80+. They have blowouts no doubt. I also get good fuel mileage because I don't run like that.
If you want to talk "trucker report" breakeven definitions and not business breakeven definitions, then sure, you can consider breakeven to be whatever number you want. If I factor in health insurance, my cost of living, and an extremely healthy margin of 20%, then my target rate is $2.01 a mile.TallJoe Thanks this. -
Mileages is variable and cannot be treated as fixed unless it’s on a dedicated account. So, take the least amount of miles in a week and treat it as a fixed number. The least miles is set at 1200 per week. Of course as mileage increases RPM decreases. However, the goal is to make a profit. So this is where the profit comes into play. Your setting RPM at 1200 but your doing 1700 to 2500 per week. Your profit is on the 500 to 1,300 miles extra. So, if you set $3.50 as a minimum RPM based on a breakeven of $3.24 a mile, that’s $140 to $364 profit each week. That’s $6,440 to $16,744 profit to your business. That’s not your money, that’s what’s in the business name. Again, you’re investing in your business at 90% gross profit with a 10% net profit.
Please go back and study my expense report. You will see that maintenance, growth, and expansion is listed within the escrow. The escrow will have $17,250 each year. This is more than enough to cover maintenance issues on a brand new truck that within a 3 year period you are paying off any liabilities. At the same time, your building capital. If I’m taking 50% to pay myself, I’m not building capital in my business, I’m just working at a job. I didn’t start my business to have a job, I started my business to have a business that pays me dividends so that I can go do others things besides driving a truck.ProfessionalNoticer Thanks this. -
JB will pay when they need it moved that same day but that's about it. 2-3 days ahead of time they low ball it and won't come up until they really need it moved. Pretty much like that with every brokerage.
We must be one of the few to never have an issue with TQL Lol. Maybe they've gotten better the last few years. Always get good rates out of themProfessionalNoticer, staceydude and God prefers Diesels Thank this. -
Brettj3876 and staceydude Thank this.
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God prefers Diesels and Brettj3876 Thank this.
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I pay $22,000 a year for insurance not because I’m a bad driver, have a lot of tickets, or failed inspections. Simply because I’m based out of PA. I pay 4 times the amount you pay on a year. I’m paying $2,200 a month just for one truck and one trailer. So, my numbers where I say $350 a week is actually off.
Again, these are my numbers and others may have less or more. You may have a lesser breakeven point than me. But, these are my numbers. It’s where I stand in terms of business finance for my company. My hat goes off to those that can operate for far less, I simply cannot.ProfessionalNoticer Thanks this.
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