The real cost of trucking, from all the owner/ops seat

Discussion in 'Ask An Owner Operator' started by ihaveaquestion, Jan 21, 2024.

  1. NorthEastTrucker

    NorthEastTrucker Heavy Load Member

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    With the fuel surcharge I earn average money however I'm much happier now then being robbed by the last crooked carrier I was lease too. My truck is going on 2 years built during covid so unfortunately there's a lot of computer code glitch errors. The problems occur when their mechanic/technicians don't know tire sensor issues. Then later want to charge you $195/hr to figure it out on your watch, 'Ah, no thanks I will fix it myself. Glad I'm within my 12 to 15 year retirement plan. Trucking for any o/o is 'Big money spent, Big Money earned' in most cases but keeping a keen look at your 'Net Profit' is the key on the success ladder. Especially when trucking company's profit margin is different for every trucking company but the average is 6% to 8% percent profit of the annual income per truck.
     
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  3. Long FLD

    Long FLD Road Train Member

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    You have a whole thread about how the government should mandate how and how much drivers should be paid, but here you say you intend to pay your future drivers by the mile. Why not be the change you want to see? Why not base your business model on driver wages of $50+ per hour? Why not build your business model on the driver getting 1/3 of what the truck brings in? If you feel you have a superior way of doing things then go do it instead of wanting the government to make it all be the same across the board.
     
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  4. ihaveaquestion

    ihaveaquestion Medium Load Member

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    after that thread lol, I’m gonna have to be an accountant for drivers, so I’ll have to budget in a 2-3 year projection GOAL, with a rolling two week notice. Where drivers are scheduled 10 days at a time for loads this way somehow there’s no lag time or idle sitting around BS. PLUS they can schedule easy time off but aware of all the production so it’s a WIN-WIN-WIN for all including the country and industry.


    with the notion primarily predominantly factored in that “what’s pretty much every truck drivers dream? Own their own truck, schedule their year out, happy to help and be paid for services rendered.”


    so math is, straightforward brutal blunt honest, simple strategy math of a basic set up, in alignment and adjustable with markets conditions
    • 5 trucks/trailers
    • 5 drivers (partnerships & teams don’t work unless married or something so just 5 drivers)
    • Each truck needs say 150k miles a year to stay busy rather than idle or too much down time
    • Trucks gotta make over $2.00 a mile, or else driving, booking, moving around is pointless. IF truck makes $3.00 a mile awesome but economy is doing well
    • 5 trucks, 150k miles @ $2.75/mile = over $400k gross annually per one unit.. so $400k time 5 units = $2 million gross
    • Hey driver what makes you happy?
      • Driver says $150k salary I’ll pay my taxes
    • Okay well expenses are this & that do you want the deduction incentives?
      • Some drivers say sure I’ll take the deductions
        • Okay use your fuel card
      • some drivers say you can have the deductions I need a fuel/maintenance card.
        • Okay here’s a fuel card
    • Operation: let’s make the most of it.
      • Carriers profit off the unit hopefully makes 5% profit. BUT all that matters is driver made the most everyone did their best for the driver to make the most for taking all the risk & driving.

    Driver goes to pay taxes with the 1099 sch c misc all properly detailed “HONESTLY & CORRECTLY” for the IRS - so they don’t annoy the driver or the carrier which perhaps maybe theirs. Driver also shows the IRS not only the 1099 sch c, but the ELD log book, all the bols whole year of production supportively. End of the day, Homie is a superstar, made $400k to the truck, low idle times, good maintenance intervals, no tickets/accidents/claims, don’t even gotta say thank you to anybody just enjoys his career helping companies. Maybe the driver walks away with $140k or more after taxes, but the formula is all worked out. So whether by mile, by hourly, by percentage, by tonnage, by whatever blah blah.. drivers just cool runnings smooth with it, living the dream, making the most out there where they could technically die at any mile or minute in a split second accident..

    Then times that but a whole league of drivers.. just doing their own thing some are doing it right now, some field of dreams on a mission, some just wanna be a company drivers.. it’s up to them really… it’s not like someone has a thumb over them yelling at them to illegal drive out of hours or some BS we read about.

    So real the idea is make, someone sit down, and make a company that makes owner/operators and rebuild true independence “selflessly”… that owner operator somehow makes a team of drivers that work for them. Awesome Help them too… in the end they all deliver for America “house always wins”

    Any mega carrier desk sitter can go get a CDL and drive before they wanna yap some advice, if they don’t have a million+ miles BETTER GO GET SOME, other than that no respect by default or care even if it’s a good luck; especially after the last 25 years of BS, since the dotcom y2k boom.. its actually - Crazy how an industry… - that’s so simple is somehow so messy and full of fraudsters, scammers and clowns galore. So I’ll attempt to help drivers achieve their dream of ownership & will at least I tried or someONE did something.
     
    Last edited: Jan 24, 2024
  5. ihaveaquestion

    ihaveaquestion Medium Load Member

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    Shop rates honestly are out of control and they’re not even doing anything.. it’s almost like billable hour fraud or something… mechanics half the time literally just hooking up a computer, reading software diagnostics, and going off whatever the computer tells them.. not even checking things half the time with their own hands & eyes.

    honestly, I found that every 15,000 miles just do a fluids refill check, swap filters, find stuff. Helps on preventive measures.

    for me, my problem is I idle a little too much, I get lazy sometimes, my own fault. When you’re out there running your rear end off it’s whatever, fuel tax write off. I could probably save like $100 or so per week if I didn’t idle so much lol
     
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  6. Kenworth6969

    Kenworth6969 Road Train Member

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    We at the point now with the rates that two pilot pizzas per day is the breaking point to put you out of business :eek:
     
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  7. gokiddogo

    gokiddogo Road Train Member

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    I only billed out about 65,000 this year and drove a little more than 15,000 miles. The 65k is cdn$ so I managed to buy a couple happy meals along the way.
     
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  8. gentleroger

    gentleroger Road Train Member

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    So what you're saying is I should quit my company job to drive 20,000 more miles and make less than I do now?
     
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  9. abyliks

    abyliks Road Train Member

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    I did 61k miles last year, I wouldn’t even expect anywhere near 150k out of a driver nor have them run the bag off my truck for $2.75 a mile …
     
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  10. ihaveaquestion

    ihaveaquestion Medium Load Member

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    So then you have no complaints
     
  11. ihaveaquestion

    ihaveaquestion Medium Load Member

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    So then you have no complaints
     
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