Struggling with operating cost formula!

Im starting my own trucking company. We specialize in contract hazmat chemical (mini-bulk) transportation to areas where large tankers can't access. Such as water treatment plants at lakes, oil/gas wells out on dirt roads, etc. I have the contracts now and have contracted a tanker company to move these loads for the last few years. Now I want to hire my own guys and trucks to move these loads. But Im REALLY struggling with putting together the operating costs. Im not sure what figures Im supposed to be using or how to determine costs. Could someone take a look at what Ive put together and give me a little insight?

Over the last 3 years, we averaged 18,000 miles per year hauling these loads. Not a lot of miles, I know, but they are higher profit loads. I have to know what it is going to cost me to run this truck per mile so that I can make a spreadsheet to enter in the miles for each quote and know what it will cost to run that particular load to wherever its going.


Truck Pymt: 24120.00/year = $1.34/mi
Insurance 5000/year = $0.28/mi
Fuel: 9818/year = $0.55/mi
Tags/Taxes 4500/year = $0.25/mi
Driver 25000/year = $1.39/mi
Maint. 8000/year = $0.44/mi

Total 76438 $4.25/mi




Sales 76724

Expenses 76438

Net Profit 286


Seems like shelling out close to $150k for a truck and having the risk hanging out there for $286/year ($9/mo profit!?) isnt worth it!

Any thoughts on this?

 

I know a lot of you guys are out on the road and dont get to check in very often but if you do, let me know what you think of these numbers and how close I am. It seems pretty high but Im not sure.

 

Thanks for everyones insight. I should have mentioned this in the beginning, but the truck is a specialized triple axle tank mounted on a straight truck Sterling LT9500. The chemicals go to water plants that are impossible to get to with a trailer and truck.

I assumed 25k for 18,000 miles a year contract pay was sufficient??

I cant drive the truck because I have a full time job and would cause a severe cut in pay if I was to quit and start driving. I design the chemicals that go to the plants and am starting a company to fill the gap between the manufacturer and the customer.

I think that cpape has it right, utilizing the assets to the full extent would be the only way to come out ahead which would mean that Id have to hire a salesman to go out and talk to the other chemical companies and secure loads to keep the truck busy.

Theres really not any other option besides this $115000 truck/tank because it has to be special built out of 316L stainless.

Im starting to wonder if this is still a viable option or not...
Thanks for everyones help


EDIT: After speaking with the rep that is proposing the tanker truck, we have decided to start searching for a SS food grade used tanker and a day cab instead of the custom triple axle tanker setup. For two reasons, Ive spoke with some of my other contacts in the chemical industry and they are on board with sending loads my way but their minimums are 4000 gallons and the tanktruck would have only held 2500-3000 depending on specific gravity. Also, there are a number of used tankers available that would fit my needs for significantly less upfront money. It looks to be under $70k for a daycab and Tanker. Quick math on this shows that I can add roughly 9 loads a week to my own loads and that would help make up the lake of miles and get the revenue up.

Thanks again for everyones help, this isnt looking as disparaging as it originally looked now thanks to everyones help and PM's.