Cents per mile bottom line.....what did i miss?

do you or will you have frieght to sustain that kind of break even point? That is $162670.00 to break even a year or $13555.00 a month Are you gonna run on your own or lease to someone?

 

Seems your 'driver pay' is a little low. I understand it's bottom line. But if it's your truck and your neck on the line, I'd be doing 'bottom line' for more than that.

 

1 .62 seems like a correct figure but at 5.0 mpg I'd think about dumping the truck to trade up to a more fuel mileage conservative truck the difference between 5.0 and 6.8 or 7.2 is huge ... You talking about your fuel costs drop to around 0.58-0.63 which is a savings of 0.17-0.22 per mile dropping your overhead to aprox 1.40-1.42 which is a much better break even number JMO .

If it were me I'd prob keep the OOIDA and drop the NASTC

 

you will never know unless you try but those numbers scare me. I think you built in some wiggle room on fuel milage and cost per gallon which is a smart move in my opinion. Better to plan on less but get more if you know what I mean. Good luck with your venture.

 

5,11,15,16 are not recurring cost....

 

Getting your authority is a one-time deal. $300 up front.

As for a hiring a driver, that makes more sense.

Now, the one thing about these numbers that would scare me (even worst case scenario) is dealing with WHEN things are due. Sure, it's nice to say that the 2290 is .0055/mi, but in reality you pay it up front and then are loaning yourself your own money while your driver is paying you back interest free over the next year. And then the process repeats itself the next year. Other expenses, too. Insurance is paid up front (by month, including before your authority goes final), your $300, equipment purchase, etc. A lot of money is coming out all at once that you're not adding in the cost of recouping that money. You're loaning it to yourself for free. With inflation in one year, that's actually a negative ROI with regard to that money. Also, what about repairs. You want a bank roll to start in case something big happen early. Even something that may not be warranty. Such as your driver needing towed out of a ditch, blowing tires, etc.

.08/mi is only $8,000 a year for repairs. Now, since this is a power-only proposition and you're accounting for $2,500/year for the tires, that's still only $10,500 for vehicle related needs. Based on your truck price, you're looking to spend on $12k a year for the truck payments. I'm guessing you're buying used. Which case, $10,500 can be eaten up in a hurry if things go wrong. And secondly, you only get $10,500 at the end of the year. What if halfway through the year, you've spent $9k to maintain the truck, meanwhile your driver, at worst case scenario, has only earned you $5,500 for repairs and tires. You're $3500 in the hole for repairs waiting for the money to build up and hoping nothing else major goes on.

Sure, you can make more than $1.70 for all miles (because your driver won't care whether he's loaded or empty to be paid). But, what about detention, layover, etc. The driver is going to want something, whether you get it from the load or not. If you sit him for a day because you're looking for better freight, what is he going to get out of it? If the answer is $0, he won't be your driver for long. Same with detention. If he sits for 8 hours at a receiver and your contract doesn't give you anything, your driver will want something for his time. Here or there, he may let it slide.

Fact is, I'd want at least a .20/mi cushion on that for all miles built in to handle all that. That'd be another $20k, with more money coming in up front to help shore up the bank account for repairs, lost time from repairs, etc.

This worst case scenario feels more like a "at what point will I default on my obligations" than "at what point should I seriously consider, economically, doing this".