I can't knock it. Sounds much better than most deals I know about. The gross CPM is up there with the best and the accessorial pay sounds great.
Any money to be made?
Discussion in 'Ask An Owner Operator' started by onedayaway, Jun 28, 2011.
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That's what I figured too, but I still have to play with some numbers. I just don't want to set myself up for failure. These guys are running hard too, most are doing that 590 mile run 5 nights a week.
153, 400 miles yearly
12,783 monthly
2,950 weekly
I still have to figure out how many miles i would need monthly to cover my fixed cost and my variable cost to get to that point. Also would like to figure a realistic average for miles I would run. Say a couple weeks off a year for holidays/vacation, days unable to run due to possible break downs, slow downs in frieght, and unexpected delays that may cause me to miss that 5th trip. You'd make it up for some of it on the longer trips where you drive all day but still. Guess it helps to when we can legally drive for 13 hours a day. I also have no idea how I would add in accesorial pay when I have no idea how to factor that in until you've actually been doing it for a bit and seeing how often that arises. I'll leave that out of the equation for now if that's what will make or break me it's not even worth considering the adventure. lol
Question for you experienced guys. The truck I'm looking at is an 03 w900 with 620,000 miles. What should I be figuring for a per mile cost when it comes to tires, pm, and repairs? -
10 cents per mile has worked out for me overall. Based on a little hindsight, I would go with 15 cpm for the first 2 or 3 years and build a reserve for the engine rebuild that you will need around 1 million miles.
A rebuild will likely run around 20K, and you might want to think about a remanufactured engine at that point.BigJohn54 Thanks this. -
I agree with Frenzy. Based on what I see companies charging on leases (0.05 - 0.10) and what I hear other owner/operators recommend (0.10 - 0.11) I think 0.10 - 0.11 would work. My projection uses 0.14 but I expect to lower it as soon as a reserve is built up and history proves I don't need that much.
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I figure about $0.025/mile for pm's (oil changes) I change my oil at 15,000 miles. You can figure your oil changes will cost from about $200-350.
I calculate tires at $0.05/mile.
Maintenance is a bit trickier. I would count on about $0.08-0.10/mile. You need to build this up to about $20,000-25,000 as quickly as possible. You could contribute more.
If you want to look at an average miles per year, your numbers seem to be high. If you lease to a carrier you could probably use their average, but if you will take time off during the year and there will be some delays from time to time waiting for loads, etc., I would use an average of 2,500/miles per week. There will likely be times when you may only get 1,700-2,200 miles per week during slow times of the year. Other times you could run over 3,000 miles when business is good. I would not count on running over 150,000 miles per year starting out, especially starting out unless you are running team. You always want to figure your estimated miles and revenue low. -
Yeah, I would much rather estimate low and end up with more than estimate high and fall short.
I think anything in excess of my expenses will be going into a nest egg for big repairs etc until I can get a reasonable amount put away. Even then I plan to pay myself a realistic wage and look at what is left at the end of the year to figure out where it should be going. Whether it be towards a new truck, rrsp's for investment or tax break, more repairs, you catch my drift... thats if there's anything left over and I'm not in the hole having my truck taken away. =P -
Even as for fuel what would a safe MPG estimate be?
03 w900 72" bunk 244" wheel base
detroit 60 series 18sp
running 62mph
60% decks 40% vans
60% loaded 40% empty
Most of our decks seem to leave the yard at the 20, 000lb - 30, 00lb range. Vans can be anywhere from light loads to a gross of 87, 000lbs.
If I purchase my own tractor I'll likely have to plate/register for a gvw of 63, 500kg in 12 months time. So just shy of 140, 000lbs but then pay changes also. -
There are a number of variables when it comes to fuel mileage. I would not plan on getting more than 5 mpg with a w900. I have known of some who do heavy haul with a W900 who have had their fuel mpg down to as low as 2-3 mpg. If you keep your speed down and mostly haul lighter loads then you could probably count on about 4.5-5 mpg. -
Using the calculator on the ooida website using as realistic numbers as possible and the current months rate at $1.30/mile plus 29.5% fsc as follows
Usings g/man's est of 130, 000 miles a year
gross income $1.68/m
fixed expenses $.20/m
variable expeses w/fuel 6mpg $.84/m
total espenses $1.05/m
my wage $.34/m
company profit $.30/m
Which would be $45,000 wage $39,000 company profit or a total profit of $84000/yr
I'd like to think i estimated expenses on the high side, the recommended 0.175 for tires, maintenance, repairs and I used real numbers for plates and insurance and miles on the low side. Still no accesorial pay though.
I also came up with a break even of
81000/miles yearly
6750/miles monthly
1557/miles weekly
to cover all fixed and the variables that go up with that to still take home $43,784 as a wage at the end of the year.
This all sound about right or are there some red flags? -
I don't think you will get over 5 mpg with a W900, if that. I assume that you are putting your maintenance in with the variable costs? What about your truck payment and insurance?
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