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Newbie with a Rate Question

Discussion in 'Ask An Owner Operator' started by nix5o, Jul 24, 2011.

Page 1 of 2
  1. Jul 24, 2011 #1
    nix5o

    nix5o Bobtail Member

    5
    0
    Jul 15, 2011
    Lafayette, Louisiana
    0
    I've been lurking for a while, trying to read and learn. I'll be honest this will be my first driving gig. I've spent my first 10 years of my career in maintenance and honestly I'm tired of working on stuff. I've been around trucks most of my life, and now I'm ready to drive. I know there will be plenty of you that are saying starting out as an o/o is a big step, but I have the money to do it, and I want to be my own boss :biggrin_25520: The company I'm looking at has terminals on going both directions from the house so I think it will work out pretty good on the down and back program they have. My question is your thoughts on they pay scale they offer.

    • Late model equipment (2007 and newer tractors)
    • $1.30 per mile loaded
    • $0.65 per mile empty
    • $100.00 Load/Unload pay
    • Fuel taxes and permits paid
    • 3500 miles per week (average)
    • Paid weekly
    • Out-and-Back program
    • 50% empty
    • Fuel Surcharge
    • Our Owner Operators are paying $1.30 - $1.35 per gallon with fuel being $3.15 national average


    I was told that there current surcharge is about $1.00 per mile. But the surcharge is only paid on the loaded portion of the run. Is this normal?

    I've been crunching numbers and I think I can make it work. I just curious what you guys think?

    thanks in advance
     
    nix5o, Jul 24, 2011
    nix5o, Jul 24, 2011
    #1
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  3. Jul 24, 2011 #2
    onedayaway

    onedayaway Light Load Member

    107
    58
    Jun 28, 2011
    alberta
    0
    That sure seems like big miles, especially for average miles.
     
    onedayaway, Jul 24, 2011
    onedayaway, Jul 24, 2011
    #2
  4. Jul 24, 2011 #3
    snowwy

    snowwy Road Train Member

    20,595
    13,316
    Jul 6, 2009
    0
    i wanna know where to buy fuel for $3.15.

    the cheapest i've seen so far is $3.79.
     
    snowwy, Jul 24, 2011
    snowwy, Jul 24, 2011
    #3
  5. Jul 24, 2011 #4
    Pedigreed Bulldog

    Pedigreed Bulldog Road Train Member

    7,737
    14,422
    May 7, 2011
    0
    In other words, $0.975/mile

    Fuel expense = $0.225/mile @ 6 mpg

    $0.975 - $0.225 = $0.75/mile

    Insurance will knock another 3-5 cents per mile off that. Truck payment another 8-10 cents per mile. You should probably factor in another 15-20 cents per mile for maintenance and repairs....so we're up to $0.26 to $0.35 per mile to cover those, leaving $0.40 to $0.49 remaining.

    ...and there are more expenses to consider...taxes, tolls, maps & other supplies. Are you going to hire an accountant to do your taxes and such? That all costs money....and just when you THINK you've got all of your expenses tallied up and accounted for, a new one will pop up.

    You still haven't paid yourself, yet, either. How much were you wanting to make driving that truck?
     
    Pedigreed Bulldog, Jul 24, 2011
    Pedigreed Bulldog, Jul 24, 2011
    #4
    NYROADIE Thanks this.
  7. Jul 24, 2011 #5
    onedayaway

    onedayaway Light Load Member

    107
    58
    Jun 28, 2011
    alberta
    0
    My fixed and variable are $1.05/mile (est) on a 130,000 mile year (est). That is for full price fuel though and my wage is not included in that figure just to give you some idea of cost of operation. It's figured at $3.90 gallon for fuel. With your fuel sub worked in break even would be $.625/mile. That would leave you $.35/mile for profit and wage. Hardly worth the time and you'd likely have even higher fixed expenses due to the 2007 or newer tractor requirement. Hope that helps.
     
    onedayaway, Jul 24, 2011
    onedayaway, Jul 24, 2011
    #5
  8. Jul 24, 2011 #6
    snowwy

    snowwy Road Train Member

    20,595
    13,316
    Jul 6, 2009
    0
    ummm. it costs .65 to .70 to drive my truck a mile in fuel alone. that's up or down of 5.5.
     
    snowwy, Jul 24, 2011
    snowwy, Jul 24, 2011
    #6
  9. Jul 24, 2011 #7
    Kansas

    Kansas Road Train Member

    2,541
    2,585
    Apr 14, 2009
    aircap, Ks.
    0
    Say what? Youre confused LOL
     
    Kansas, Jul 24, 2011
    Kansas, Jul 24, 2011
    #7
  10. Jul 25, 2011 #8
    nix5o

    nix5o Bobtail Member

    5
    0
    Jul 15, 2011
    Lafayette, Louisiana
    0
    The 3.15 a gallon thing is old, I'm sure they don't update the info everytime the fuel prices change.


    Pedigree Bulldog I appreciate you breaking everything down. One thing I do know is they provide the insurance on the tractor.

    I have a friend thats hauls for these people and he's doing pretty good, he also has 5 other drivers that work for him and he pays them 30% I'm just trying to see if there is something in these numbers that I don't know or am missing.
     
    nix5o, Jul 25, 2011
    nix5o, Jul 25, 2011
    #8
  11. Jul 25, 2011 #9
    smarttowers

    smarttowers Light Load Member

    174
    48
    Jul 6, 2011
    New Mexico
    0
    Are you sure your friend is getting the same numbers as his deal with the company?
     
    smarttowers, Jul 25, 2011
    smarttowers, Jul 25, 2011
    #9
  12. Jul 25, 2011 #10
    onedayaway

    onedayaway Light Load Member

    107
    58
    Jun 28, 2011
    alberta
    0
    Yup, that sounds about dead on. However the add claims their drivers are only paying $1.35/gallon which would be .225/mile with a 6mpg average for fuel.
     
    onedayaway, Jul 25, 2011
    onedayaway, Jul 25, 2011
    #10
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