Danny, operating costs should include every single penny it takes to make your business do what it does. Including but not limited to, fuel, truck/trailer payment, insurance, maintenance, tires, taxes, load board fees, washes/washouts, tolls, license plates, log books, note pads,pens, computers, phone, internet, etc. If you do not have a truck/trailer payment then you should have a number in your operating cost for rebuild or replacement. Everything in my business has a cost per mile, I figure my cost per mile on an annual average of miles. Everything that I listed and some others like cargo securement is figured into my cost per mile.
$7800 ca-mi-ca
Discussion in 'Ask An Owner Operator' started by MHC, Aug 9, 2012.
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rollin coal, HDFatboy, fortycalglock and 3 others Thank this.
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So many people out here don't understand that! They think if they are sitting for a few hours they are losing money.Oscar the KW Thanks this. -
truck 1 - $5250 - (3500 * $1.20)$4200 = $1050
truck 2 - $5000 - (2500 * $1.20)$3000 = $2000
almost double actual net !! -
Ditto. Add at least $1.00 per mile to that rate minimum & I would take it if my regular customers are not shipping anything during that time frame.
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Oscar the KW, the numbers let me see your point...You, sir, are correct. It was pounded into me to keep the wheels turning, even if it meant taking a cheap load to get to a good load. I thank you for the education, for learning me I was mislead, and for your patience.
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MHC Thanks this.
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Oscar,i'm not questioning your way off doing things but you should keep the cashflow and gross revenue in mind.
As you stated above,you are now 12y an O/O?
A bit like me(i started in 1999).
So i'm guessing you have build up some reserves and you are no longer stuck with high truck/trailer payments?
I can see a scenario where someone who hasn't been a O/O for a long time has to been the wheels turning to keep the money coming in. -
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One more thing to add to that, I can easily gross $250,000 and be lucky to net what the average company driver does. Or I can gross $170,000 and double the net of the average company driver. For me the choice is pretty simple.
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