Question for other owners, on rate

I ran some numbers on your fuel issue and if he is getting at least 6mpg and burning 500g of fuel he shouldn't be spending more than 2000 a week on fuel. Is that 5-6k a week including your fuel surcharges? If so then I would say that's about average from the O/O's I have spoken to recently in my area in the NE.

Only you and your dad know what it costs to run the business and turn a profit. But those numbers would work great in my business plan. But I'm looking at a $785 a week fixed expense and fuel and taxes still need to come out.

Wish I could be of more help but I can only base my information off of what I am told by other O/O's as I'm still trying to nail down my business plan. But I'm sure there will be plenty of people with first hand information to give you, best of luck.

 

I just checked my plan and with pessimistic assumptions set, I'm at 42%. Adjusting mpg and fuel cost to actuals changes all sorts of values and brings that down to 38%. It's just an indicator that really doesn't mean anything by itself. Fuel is just one of many costs, and different types of freight and road conditions drive different rates and fuel consumption. Besides, everybody knows that 95% of statistics are made up on the spot anyway.

You need to be working those fuel assumptions into a comprehensive business model for your business. You can do what-if scenarios and really see what changing assumptions with fuel and anything else can do to your break even and bottom line.

 

Your dad's fuel costs are not out of line with current rates and fuel costs. He might try slowing down and look at other ways in which to save on fuel.