reality is, take the lower paying freight (at times) to get to an area where the higher paying freight is, or sit on your butt at the truck stop.
i never owned my own rig, but if i did, from my garage management days, i'd take a lower paying tire rotation job in, to keep the doors open, rather than to go home, and maybe lose out on a high dollar exhaust job, that drove by, cuz my doors were shut.
sometime you gotta sacrifice, to get more later.
STOP TAKING CHEAP FREIGHT YOU IDIOTS!!!!!
Discussion in 'Expediter and Hot Shot Trucking Forum' started by wildcoyote, May 30, 2022.
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i went and got myself NIASE (ASE) certified, "just in case" my state followed, glad it never did.Another Canadian driver and Rideandrepair Thank this. -
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Don't crucify me for asking these questions, I only have been doing this for 3 years.
75k miles (1 year): $19,973 Whats this? Insurance?
450k (life of vehicle 6 years) : $70k for new vehicle=$210,970 450k miles on a pickup is rare, try 300k on most trucks. Also deduct the sale price so at least 20k for a used up truck back in your account. Don't wait for the truck to die before you sell it. I bought a 2019 Ram for $60k, drove it for a little over 2 years and sold it for $42,000. Truck cost me less than $9500 a year to own.
Trailer Replacement: $55k $0.15/mi Your hotshot trailer costs twice as much as it should for a hotshot rig. Very few if any are buying $55k trailers to pull behind a pickup. I can get a near mint 5 car suncountry loaded for that price and earn at the very least $3 a mile avg all miles if not more. Also, replacement means that you sell that 55k trailer for i dunno around 25k when you're done with it? So subtract that as well. I pulled a 3 car HD low pro I bought for $21k and sold for $18.5k after 2 years. Trailer cost me less than 3k for 2 years.
Office cost: (O/O with no personel) $7.5k $0.10/mi What office expenses do you have? Most O/O pay for loadboards and a cell phone if its just one truck and trailer and have a "home office".
So I invested $81k for my truck and got back 60k after 2 and a half years. Cheaper than leasing/renting a truck.
I don't see any tax deductions in your numbers. Almost all of these costs will lower your tax due at the end of the year.
Now I am a moron when it comes tax time I admit. I don't know much and am often wrong but if you are being taxed as an S corp why are you pulling all your salary and not collecting part of it as dividends and paying less taxes?singlescrewshaker, Another Canadian driver, Rideandrepair and 2 others Thank this. -
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450k on a pickup is easy, I currently have 300k and it is grossing 40k+ nearly every work day. You can't add back in the amount of the sale price as once you depreciate the asset you have to claim that as income, so to make it simple, forget that. Not all of us want to sell that pickup either as it will serve a purpose after it's work life, BTW 20k on a 450k pickup would be a dream.
Have you priced a trailer recently? My 55k trailer now costs close to 70k, you're going to see that most good, properly spec'd HS trailers that are rated to 40k will be 50k. Again, depreciate it and selling it costs money in taxes, but why would you want to sell it anyway? Rent or use it for another business on the cheap. Computer/printer/toner/binders/paper/adobe/loadboards/accounting/email/website (many more I can't think of at the moment.) Trust me, 7.5k is easy to spend, you can also lump in some clothing into that as a little catch all.
They won't lower your taxes when you PROFIT 120k then have to pay taxes on it, that's why I mentioned 75k take home. Your gross should be close to $223k before write offs. Assuming original 2.97/mi at 75k loaded miles with no deadhead.Last edited: May 30, 2022
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Absolutely understand this line of thought, a lot of times, my backhaul will be below target, but my haul out was way above target and they level out to my target or slightly higher.
I'm just trying to better educate people so they can arm themselves with negotiation power and realize that $3/mi isn't great money at the end of the day. It's just barely an average worker in a factory that comes home every night. I'm a numbers guy, although I do LOVE driving, some days I wish I could jump in the truck, but it just doesn't make sense all the time.
This breakdown won't work for everyone, but I think most underestimate their costs by A LOT, especially the guys hauling campers one way for $1.60 lol.Another Canadian driver Thanks this. -
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