We can officially call it the floor of rates

what are we talking about here? buy an overpriced truck, have a lot of sh#t happening, brake downs, maintenance, responsibilities. And still saying $0.3 is enough? So why wouldn't these people go and start a career in doordash delivery? I bet its much more profitable

 

This is what I did last year...so Yes $2.17 is paying myself at $1 a mile... my profit per mile was $1.32 last year

 

Thank you sir, nearly double your original post... believe me dude I know.

 

I think the biggest problem with running for cheap or for a loss is the fact that every mile u turn on ur truck, can't get it back. Eventually the truck is going to need replaced. And as long as you are running for a loss, there's no money being put away for new equipment one day... I'd rather eat the fixed expenses every month I sit and save the wear and tear on the equipment for when the money is good... there is a lot more expenses than fuel and insurance and maintenance (at least in my business?).. My breakeven cost would be pretty low too if that's the only expenses I was considering... but I don't claim to know anything about what I'm doing.. I have done nothing but lose money

 

Profit = Actual Net?

Or Profit =Gross?
Cause this reads as your net was a hair over $15K

 

That’s how I read that too .

 

Profit is my net so $130k is profit
Total gross was like 245k

 

I just wish it would have crashed around Memorial Day instead of now I’m getting bored with so much stuff to do that has to wait until May!

 

What are you seeing on a newer truck? Been debating on updating mine but just not sold yet on one.

 

As far as accounting for maintenance goes, I don't think think that just looking at past expenses is accurate. With older trucks, you also need to be building that +$30k bank balance for the in-frame, etc that is inevitably coming your way. While with new trucks, you need to be be accounting for the cost you paid for, and the depreciating value of your extended warranty.

On other costs, only looking at your truck payments and insurance seems like bad accounting to me as well. You should also be "paying" yourself a fair return on the value of the equity you have in your equipment (say of around 8%/yr, which is the historical average return on savings invested in the US stock market). This is the money that you might eventually buy your next truck with? And then, also, you need to be factoring in your equipment's depreciating value, too.

Okay, that was last year. Just anecdotally, for the last three weeks or so I've been bidding what I calculate to be my absolute rock bottom OTR van rate. One that will at least pay my costs - as described above- and me personally more than minimum wage; but roughly only a salary equivalent to that a new hire at a mega might make. Which is absolutely disgusting considering all the extra work an O/O has to do. That rate is $2.09 per mile. And on this, I have not gotten even a single counter-offer made in reply (although note, I have been finding some occasional regional hauls which pay an acceptable rate, though not resulting in close to what would be an acceptable yearly salary in total). These rate conditions are not slavery, they are even worse than slavery. Because If you're not careful, you may not only be working for free, but you can also be slowly funneling off even your savings (i.e. primarily into the pockets of the brokers, right now) as you inevitably spiral in.