The Scenario......

Discussion in 'Ask An Owner Operator' started by q in sac, Mar 28, 2011.

  1. Mar 28, 2011 #1
    q in sac

    q in sac Light Load Member

    202
    57
    Jul 12, 2010
    Sacramento, CA
    0
    I've been on this board for sometime now and picked up valuable info on how you O/O's are operating in this tough economy. And I praise your determination and "go getter attitude".

    What I'm looking for, is a better understanding on the rate and making a "profit" in this industry. And knowing my "break even point". So I'm asking you experiecenced O/O's to help me to gain a better understanding rate pricing and enhanced my business skills at negoiating a good rate.

    Please note this example was pulled off of Getloaded.com

    So here we go:

    Van load from French Camp, CA to West Jordan, UT 700 miles, 25K, 53' van. The rate is $1025, or $1.46. Please I know this is a "lowball" rate. This is information only and I hope this will help (me and others) understand rates and stop low balling everyone.

    Truck: 2006 Int'l 9400i Sky Rise, ISX Cummins, 10 speed, 3.55 gears. 150 gallons capacity.

    Other bits of info: Diesel is at 4.03 per gallon here Cali. # 150 gallon tank x 4.03 = $645. MPG on 9400i avg 5.5 MPG. So my range is 825 miles. Now I know the mileage will vary, because going over Sierra Nevada and other passes toward SLC.

    So after giving this info, help me to understand, where is my BEP and can I make profit on this scenario.
     
    q in sac, Mar 28, 2011
    q in sac, Mar 28, 2011
    #1
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. Mar 28, 2011 #2
    Lilbit

    Lilbit Road Train Member

    16,583
    12,233
    Aug 4, 2008
    Let me check my logbook
    0
    Your break even point would be based on your total per mile costs of running your truck . . . fuel, tags, IFTA, maintenance, repairs, insurance, load board subscriptions (if you use them), internet access, and all of the other expenses of running your biz, including taxes. You have to know how much it's going to cost you to run the truck per mile to know if a rate is going to work for you.
     
    Lilbit, Mar 28, 2011
    Lilbit, Mar 28, 2011
    #2
    papa1953 and nonstop Thank this.
  4. Mar 28, 2011 #3
    BigBadBill

    BigBadBill Bullishly Optimistic

    4,599
    4,439
    Oct 2, 2010
    Chattanooga, TN
    0
    Can't add anything to what Lilbit said.

    That rate for todays fuel price is low. But rates are lower in CA than some other markets. What you also need to figure out is volume and rates from SLC.
     
    BigBadBill, Mar 28, 2011
    BigBadBill, Mar 28, 2011
    #3
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.