1.24/ mile to opperate?

Discussion in 'Ask An Owner Operator' started by 2hellandback, Mar 31, 2011.

  1. RedForeman

    RedForeman Momentum Conservationist

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    Jan 30, 2011
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    I think it depends on what you need for a return. You clearly have a handle on what your costs are and seem to be looking for a target rate number to shoot for.

    So your cost is $1.24 per mile. If you live out of a po box, have no family to support, and no expensive hobbies or habits, and a sensible cash reserve and good cash flow, that number might be $1.25. If you have a mortgage, kids in college, and like to take two weeks off a year, you might need more.

    Figure out what you would need for a salary on a regular job working for someone else and build that amount into your business plan the same way you've done with costs. Then you'll know precisely what that target rate is.

    Your last comment about sitting 4 days bears out a few more good targets to know:

    - how much your truck costs you per day when it's parked
    - how much per mile deadhead costs you to go somewhere else to pick up better freight.
    - how much it costs you to make an extra pickup or delivery in route
    - how much money you're loaning the broker by paying lumpers and invoicing it
    - toll roads, truck washouts, and any other load-specific cost

    On those rates, I have them built into the spreadsheet I use while a broker is trying to bend my brain with hidden costs. It's saved me a couple of times from accepting a rate that looks like it will beat my target but actually doesn't.
     
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  3. integralx2

    integralx2 Bobtail Member

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    4
    Mar 19, 2011
    0
    What area is that ? Van ? FlatBed? I usually can get about 2.45/mile on overall miles
     
  4. 2hellandback

    2hellandback Heavy Load Member

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    Dec 19, 2007
    Blackfoot Idaho
    0
    Denver CO. Refer.
     
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