avg wage?

I would lower my milage to a minimum level or calculate it based on low and average miles. Right now it is theoretical. But one thing you have to change is your mindset. It is not about your wage it is about do you want to work for that cheap. You want to make money and the goal is to get the better rates.

 

So if I read that correctly you are looking at 120,000/year or 10,000 per month. That is only 2300 miles a week. That is a good place to start. Most plans I see guys are looking at wanting 2700 miles a week. So if you get your average up on miles, average up on rate then you will be doing good.

But for the price you are looking to pay for a truck you had better plan on some significant expenses in the beginning.

I would also not look to run for anything less than $1.70/mile. But you will have a tough time doing that with your typical mileage company. You will be under $1.50/mile and then need to get the higher miles to make it work.

Start building relationships with good percentage companies. Rates are going through the roof right now and on a mileage lease you don't see any of that.

Feel free to email me and I will look at your sheet in more detail or have one of my drivers go over it.

bill@farm2fleet.com

Bill

 

- For the mileage you are using and the amount you have allocated towards the truck purchase, you're estimating way too low for maintenance.
- You are not showing highway use taxes, tolls, lumpers, etc. Depending on the company, the charge backs could take a bite out of the net.
- You need to account for medical insurance, etc.
- Agree with others here about using lower miles as your denominator so you are clear on the real break even point.
- Know the difference between balance sheet and P&L accounts for tax purposes and add in for taxes. Depending on how you amortize your truck purchase, principal payments will be a balance sheet entry and interest will be a P&L expense. You need to plan on the difference for taxes. Your expense sheet is on a cash flow basis, which is good to know but if you don't also plan on a P&L basis, you'll get a surprise at the end of your first year from Uncle Sam.

 

Almost forgot, depending on the company, you might get charged a percentage for use of their fuel card or for quick pays. Any percent they charge on gross amounts will flow straight to your bottom line so make sure to understand and consider them.