Cost per hour

Factor in any repairs or roadside tire service.

PM maintenance down time.

Any tolls or other road charges out of pocket expenses.

The least expensive tractor rental here is 65.00 per hour based on a 8 hour day.

 

Bidding a job like that doesn't sound easy, but keep in mind if you are positive that your break even number is $48.18 per hour if you submit an hourly rate at $65 you will look to profit around $250,000 if you submit at $75 you look to profit $502,000, you must keep in mind if you want the job you have to be reasonable, you don't want to shoot yourself in the foot by bidding too low, but you also don't want to be out of the ballpark. You must be absoulte about your break even number and then add your profit margin a reasonable profit margin (in my opinion so please don't jump all over me) is around 20% if you did that, with the numbers that you stated on here than you actually should bid it at $60 and that is rounding up doing really quick math because I am not going to sit down and put hours of thought into it. That will put you at around $149,000 per year PROFIT....

Again I am not pulling out a spread sheat and putting hours of thought into this is just based on previous experience project bidding, but again that is YOUR break even number not mine

 

I was recently working for an O/O who had his truck leased onto a large companies city division,power unit only. The company paid for insurance, plates and all heavy use/highway fees. The truck was registered with IFTA as it occasionaly went on inter-provincial loads. He was required to have a $4000 holdback with a $90 per month buy down to reduce the deductible to $2500 instead of $7000.
The rate was $37/hour to the truck.
I was paid $17 dollars / hour + holiday pay at 4%.
I did a bit of quick math in my head on the daily operating cost for you.
Miles per day were average 50 to 75. This is iner-city work, not big miles but the truck is running 12 hours a day, 5 days/week. Lots of sitting in traffic and waiting at docks idleing. Average fuel used was around 20 gallons per day. So roughly $80/ day fuel.
Factor in maintenance at $30 per day/$2.50/hour (rough estimate).
Basically : 17.68 + 2.50+ 6.66 = $26.84 / hour operating cost.
$37 - $26.84 = $10.16 net per hour.
Thats not net profit though as you still need to include the 90 per month buy down, breakdowns ( rad went out the last week i was working, cost $1200) plus all admin style fees accounting, business taxes etc.
Basically he was providing a job to me while making no money himself. So be carefull on your operating cost if your not driving the truck yourself as operating costs plus wages for a driver might leave you in the same boat as this guy. Based on what he was being paid I wouldnt run that truck for any less than double what he was being paid. You should be making a wage plus a business profit if your the owner / driver. And at least a business profit if your the owner employing a driver.

 

Fuel cost from 40 to 52 dollars per hrs depending how hard you pull average day pulling a 4 axil is about 500 dollars for 10 hrs plus wait and tarre 14 per cent of fuel plus 23 per hrs with tax this is a very close est and that with out the trailer:big

 

For a tractor and trailer with the cost where they are at today i would go in no lower than $75 an hour. Guys around me are getting right around $65 an hour just for a tractor, company supplied trailer. I got $55 to $60 an hour over 15 years ago just for my tractor no trailr so do not sell yourself short.

 

It's easier to come down a little on the bid
if they start complaining,then to start
a 24/7 operation and try to raise the
rate 2 months into it. Just a thought.