Don't move truck if the gross doesn't even cover fuel. Unless you are moving just to relocate to high paying area. But even then the short haul should pay more than fuel. Always have a profitable reason for hauling any load be it bouncing to better freight / rate lanes or the pay is right.
How much do you need to gross per truck per week?
Discussion in 'Ask An Owner Operator' started by Tiffy, Apr 23, 2012.
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Unless everyone is running the same: o/o leased to & pulling co trailer or all full independent its a moot point, your comparing apples to oranges. Gotta be more specific in your questions to get even ball park #s
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Next driver that did that to my truck. He'd be cleaning his stuff out and getting his last paycheck.
He's paid to work, not figure out when he can quit working.
And I would make sure every driver knew that exact reason too.JDP Thanks this. -
You hit the nail with that one. You have to set an example with drivers like that.
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My methodology exactly. Additionally, why do company drivers know your rates and revenue for runs to be able to figure out what the truck is grossing for the week (obvious exception for percentage pay)? If they're paid on CPM there is no reason for them to know.
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jeez, I am harping my dispatcher because I am not turning enough miles or getting stuck on detention pay.
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It's natural. Most people look for a threshold or target to achieve in their daily grind. It could be expressed in many ways. Miles, profit, fuel, revenue, you name it.
You've made the mistake of throwing that number out in conversation and your drivers have picked that up as a measure of success or failure. Hit the number and you got it done for the week. Could have been one trusted driver you may have been talking business with. Then he took it to the rest out of context and you accidentally set that target.
Something new managers often miss is that you're now a leader whether you feel like one or not. People working for you are always looking for direction even when you think it's just casual conversation. You have to be very careful about what you say and how you say it. The hardest thing about being a good manager is crafting your message for the audience. You don't have to be an AH about it. Just be careful and never forget that as friendly as your working relationship is, these folks are listening to every word and watching every body language cue for some insight about their livelihood.
About that number. Two things.
1. If you share your business, don't forget to share the bad news too. Context. A guy sees your rates producing $3,500 to the truck in a week. The only thing he saw taking away from that was a couple of fuel tickets and his paycheck. Most people don't think big picture. Random driver hears about $3,500 gross, sees $1,000 fuel tickets in his trip folders, and his $800 paycheck. A little too much time to think and he's dwelling on you taking the remaining $1,700 to make payments on your boat or a trip to Vegas and how he's getting the shaft. If you're going to share revenue to the truck, don't leave out the costs. Let them know what the insurance, plates, tires, etc. cost per week. Break down? Yeah it sucks you don't get a paycheck when the truck is in the shop. But check out the repair bill! Show them how while they missed a few days of pay, you did too AND spent more on top if it.
2. Don't just pick a number out of the air to use as a target. Carefully choose something that is easy to measure and sets a goal that will satisfy your business. For most people, that would be a number that defines their paycheck. For an o/o on a percentage, obviously revenue to the truck ought to be the motivator and your minimum would be a number where you turn a profit and satisfy contract obligations. For a company driver, that might be a number of loads or miles - pick something that defines their paycheck, and again set the threshold where your business is satisfied.
The numbers you get from us will be all over the place. A guy that lives in his old truck and has no bills to pay might think $2,500 is a grand week. The guy parked next to him in his new W9 with two ex-wives and six kids might look for a higher number. Do a cost analysis to figure out what YOU need to be taking in to make a profit. Beware that bigger revenue isn't always the answer if you're doing bad/costly business. That's why you have to figure out that number for yourself. -
A WW II Navy Vet that I worked for. Owned his on appliance store. He told me you figure your cost and double it. Thats where you need to be. So if he bought a refrigerator from the factory for 150 bucks. He would ask 300. So that might be a good rule of thumb. If it cost you 1500 a week to run. You need to earn at least 3000.Tiffy Thanks this.
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This week my gross revenue will be a hair shy of $4,900 on about 2100 miles of driving. $3500 is my absolute minimum for me to consider I had a 'good week', and that's only if I drove 1700-1800 miles.
I'm in this to make money, not 'just do enough so I can stop working'. Maybe next week I won't make anything. Wouldn't be good if I left all that money out there on the road and didn't take it when I had the chance.MNdriver Thanks this.
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