Did I Miss Anything?

Discussion in 'Ask An Owner Operator' started by Lion Heart, Nov 20, 2011.

  1. Nov 20, 2011 #1
    Lion Heart

    Lion Heart Bobtail Member

    30
    5
    Nov 19, 2011
    All over & Nowhere!!
    0
    Hello, I just would like a little feedback on my little business plan that I'm working on. Please bear with me this is something I put together based on the my research so far. It is in DUMMY format:biggrin_2552::biggrin_25512: b/c I am not the rocket scientist that I see allot of these guys on this forum tends to be. I am looking for any feedback from a o/o vet with experience.

    Please hold the SARCASTIC comments, I just would like to here the facts on what I need to add/change. Maybe someone else could use this as a guide or help with their future plans as well.

    Key Chart
    ● $4.10 Price Per Gallon (PPG)
    ● 300 GALLONS (HOW MUCH FUEL AVG. TRUCK HOLDS) LOADED
    ● 1800 MILES (AVG. TRUCK GETS 6.0 MILES PER GALLON (MPG) LOADED
    ● AVG. MILES PER WEEK (MPW) 2800 (SOLO DRIVER)


    FUEL FORMULA
    ● 4.10 PPG * 300 GALLONS = $1,230 (PRICE PER FULL TANK OF FUEL)
    ● $1,230 = 300 gallons =1800 miles
    ● 2800 mpw / 1800 miles per tank = 1.55 (FILL-UPS IT TAKES TO RUN 2800MPW)
    ● $1,240 (FULL TANK) * 1.55 = $1,922
    ● $1,922 = PRICE TO RUN 2800 MPW (PAID MILES 2,500 PER WK)


    FUEL SURCHARGE
    ● $4.10 PPG / 6 MPG = $0.68
    ● BASE RATE FSC (FUEL SURCHARGE) = $1.20 CPM (CENTS PER MILE)
    ● $1.20 CMP - $0.68 = $0.52 CPM CHARGED TO THE CUSTOMER
    ● FSC PRICE = $0.52 CPM


    OPERATING COST$
    • $0.78 TRK. FUEL
    • $0.10 TRK. REPAIR
    • $0.04 TRK. TIRES
    • $0.03 MISC.
    • $0.38 DRIVER SALARY
    • $0.11 TRK. PAYMENT
    • $0.08 INSURANCE
    • $0.01 FUEL TAX
    • $0.04 ROI (RETURN ON INVESTMENT
    • $0.04 TOLLS
    • $0.10 REEFER FUEL
    • $0.05 TRL. REPAIR
    • $0.02 TRL. TIRES
    • $0.08 TRL. PAYMENT
    • $0.02 TRK/TRL – WASHOUTS
    • $0.02 ACCT.

    TOTAL = $1.90

    • $0.02 PHONE
    • $0.03 INTERNET SOFTWARE/CABLE
    • $0.02 FOOD
    • $0.01 TAX
    • $0.01 UNIFORMS

    TOTAL = $1.99 - $0.21 (RUNNING TEAM SAVINGS)
    = $1.78 COST$ TO OPERATE

    NATIONAL AVG. REEFER RATE PER MILE = $1.54 CPM + $0.48 FSC. = $2.02 CPM


    P.S.
    Team savings are things like Trk/trl payments & ins. Things that we can cut in half b/c we are operating out of the same truck and trailer.


    Thanks,:biggrin_25514::biggrin_25514: so much for your time and opinions.
    Be safe and happy holidays to all:biggrin_25525:.
     
    Lion Heart, Nov 20, 2011
    Lion Heart, Nov 20, 2011
    #1
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  3. Nov 20, 2011 #2
    Lion Heart

    Lion Heart Bobtail Member

    30
    5
    Nov 19, 2011
    All over & Nowhere!!
    0
    Oh yeah, and has anyone paid fully for their authority from a company like ooida? I'm trying to understand how long do I have to pay my truck payment, trl payment, and insurance on both trk & trl, before I actually can take a load to start earning revenue.

    I just would like to know how long does the process takes in general after they take care all the paper work? Name of the company you use to obtain yours, also if you could list how much was the fee, that would be helpful as well, thanks.

    I don't need to hear about "DO IT YOURSELF,:biggrin_25513: IT'S EASY" I am not to smart when it comes to all this paper work, "get this you need that," I would simply pay them to do everything for me. Plus I have a few extra dollars, so it shouldn't be a problem.

    I try to keep things nice and easy...
    Thanks for your help and time... Be safe!!!!
     
    Lion Heart, Nov 20, 2011
    Lion Heart, Nov 20, 2011
    #2
  4. Nov 20, 2011 #3
    flood

    flood Road Train Member

    4,168
    4,047
    Dec 25, 2010
    0
    your numbers are not too bad
     
    flood, Nov 20, 2011
    flood, Nov 20, 2011
    #3
  5. Nov 20, 2011 #4
    Lion Heart

    Lion Heart Bobtail Member

    30
    5
    Nov 19, 2011
    All over & Nowhere!!
    0
    Thank you so much for your help and time. I'm adjusting my numbers now.
     
    Lion Heart, Nov 20, 2011
    Lion Heart, Nov 20, 2011
    #4
  7. Nov 21, 2011 #5
    fortycalglock

    fortycalglock Road Train Member

    6,164
    6,613
    Jun 25, 2011
    Tourist Town, FL
    0
    Where are you getting a driver you can sure to drive for. 38 all in which equals about. 25 a mile after matching contributions, workers comp, and a crappy medical policy not worth the paper its written on?

    It's nothing but an online form and $300 filing fee to get your contract authority. Usually, it is less than 30 days from the day your insurance company FILES. Ooida will still do your BOC-3 filing as long as your a member, even if you don't use them to get authority. Back when I got mine, there was a company in DC that would walk into the FEDS and get a copy and FAX it to you the day it was approved vs waiting for the mail. It might be electronic now.
     
    fortycalglock, Nov 21, 2011
    fortycalglock, Nov 21, 2011
    #5
  8. Nov 21, 2011 #6
    Lion Heart

    Lion Heart Bobtail Member

    30
    5
    Nov 19, 2011
    All over & Nowhere!!
    0
    actually my wife and I plan to run teams together:biggrin_25525: and we are going to pay for our insurance outta pocket at $400 a month. But I also have two drivers waiting for me to put them to work, and they both agreed with the pay scale I have arranged.

    Thanks for the input, I might give it a world.
     
    Lion Heart, Nov 21, 2011
    Lion Heart, Nov 21, 2011
    #6
  9. Nov 22, 2011 #7
    RedForeman

    RedForeman Momentum Conservationist

    4,875
    22,141
    Jan 30, 2011
    0
    Start to finish, getting our authority took 17 business days (did myself). OOIDA estimated 20. See the chart for my progress on this post. If you're able to time things as well as I did, you may only be on the hook for fixed costs a week or two. Looking back with 20/20 hindsight, I was extremely lucky to have things fall into place like they did then.

    A couple of things I am not clear on that could make a difference:

    If you are stressing over carrying a month of fixed costs while waiting on your authority, you have some big surprises coming. That money is nothing compared to what you get to endure once you move the equipment.

    Are you budgeting for reconditioning used equipment? There's a reason someone else traded that stuff in, and you get to be the one to figure it out and pay for the repairs. Better have about $5,000 on tap somewhere as a starting point.

    I think your revenue numbers are too optimistic just getting started. You may reach that level after several months of establishing a safety score and referrals. I think you're doing teams if I read that right, so 2,800 mi a week ought to work. Solo it's going to be a while before you do that at your business plan numbers.

    I'm not clear on your figuring fuel costs they way you did with fill up prices. That's extra math that could introduce some errors. Keep it to mpg, miles traveled, and fuel cost. The truck I'm in right now has 300 gal capacity that will likely never be filled all the way up. The one my son's in holds 200 and it is rarely topped off.

    In addition to burning their own little supply of fuel, reefers also get PM service done, chutes replaced once in a while (have to be tacked back up periodically in the mean time), add reefer breakdown insurance, along with more risk with perishable cargo.

    Hiring drivers is not trivial. Expect about one to two thousand in costs to on-board someone without cutting corners, and two to four week timeline if you are able to fast-track it. Remember your safety rating and very expensive equipment (to buy and keep running) are riding on your choice.

    FSC is only useful in setting contract rates. Do you have a shipper contract on deck? If so, good for you. If not, spot rates are usually line haul quotes based on current fuel prices (all in). Playing games with your business model to come out positive on FSC add-ons is you robbing yourself in my opinion.
     
    RedForeman, Nov 22, 2011
    RedForeman, Nov 22, 2011
    #7
    rollin coal Thanks this.
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