Looking to start my own trucking company

I've seen the 1/3rd rule used in the food industry didn't know it was in trucking also.

So if fuel is 50 cent a mile that would put total at 1.50?

I've seen 2/ mile thrown around recently as the avg cost so would that change it to a 1/4 framework? (Eqpt, fuel, driver, and misc?)

 

Your driver is gonna be above that quarter percent…do you know any good ones that run for .50 a mile?

Your also hopefully dreaming that your loaded all those miles for 2 a mile. What I mean is if you throw your rate per mile out the window and figure your total revenue for the week versus your expenses it’s gonna come down right close to 1/3

 

Probably not. Read all the above replies.

My fixed and variable costs have averaged $1.45 over the last 5 years with paid off equipment, leased to a carrier, running mainly oversized freight.
My revenue per mile averaged $3.10 all miles to the truck. All good. Miles in the last 5 years range between 35k to 60k miles.

While you can beat down your fixed cost with mileage, you cannot beat down your variable cost.

Look at other threads with rates clearly posted from the spot market, and then calculate what's left with running van freight or sticks and bricks for $1.50 to $2.00 per LOADED mile.

I just can't see you netting $36,000 out of a hands off operation running spot market during this current time, and in an inflated rates market, sustainability ends when the cyclical market of the industry does what it always does. Slumps, tanks, dredges, sheds excess capacity and rinses and repeats.

 

Yeah I agree your're right about that 50 cent driver pay.

So if I'm following your last point, average reefer makes 6k a week and it would put expenses(~truck+fuel) at 4k and driver pay at 2k? Am I following correct?

 

How does that 1.45 break down into major categories w/eqpt paid off?

 

page-148

Scroll down on this page - it was 2018, but there's a breakdown of costs in there. I've had that thread running 10 years now where I regularly post numbers, if you have the time or interest to research.

 

Let’s play figures.

Let’s say, easy, $1000 load.. 350 miles.. 2.86/mile…
Now. Driver pay, 28% $280 say.. 60 gallons fuel….

$169.80..
Down to $550.20 now. Fixed expenses per day come in..(4500/30 days, truck/trailer/insurance/prepass/elog/) $150/day/30 days
$400.20 left. And that’s not your part. That’s the trucks part.
Incase tire/breakdown/equipment failure, strap, chain, load lock, etc. (nothings free)

One tire curbed and that trip made you nothing, a wheel, that’s another 200-250 for aluminum or 100$ for steel if bent wheel.

 

Thanks ill dig in when I get a chance. FYI page 148 is from 2016 and it's talking about a pressure washer and also a post about fabbing some brackets for a kw.

 

That's a really good breakdown. I know those small emergency maintenance items can pop up but over a longer time they're gonna smoothe out to a more predictable number so out of that 400 can't a guy just pull the 15 cent a mile for the slush fund in those items?

So in your example what's your final number 350? 300?

 

$112.
28% of profit if you want. Or put it all up in business account and pay yourself 28% if your running you. I usually pay myself $600/week salary when I run. Rest goes in business account.