Profit per mile

If your getting a flat rate than yes you can figure in your profit per mile but most my runs never pay the same I may run for $1.78/mi and next day run for $3.25/mi. My company makes more money when I do oversize ect.

The more miles I run the more profit my company makes because my fixed cost goes down. At the end of the day the goal is to make the most profit for the least amount of work!!!!

 

I'm Inc and what money left over "profit" I don't pay taxes on that until I spend the money but I do pay quarterly payroll taxes. The down side is the company matches taxes and I now do personal taxes and company taxes

 

Here is a calculator for figuring the costs.

You can make it for one run (just put one run in the average weeks run per year) or for a year and the calculator figures the costs out.

http://www.hotshotcarrier.com/profitcenter.php

 

We have figured that the truck makes a profit after it earns $1.67 per mile. This covers fuel, maintenance, truck payments, driver pay, taxes, insurance and various other operating costs.

 

So you can keep so called profit without paying taxes with a Inc?

 

With a "S" corp you can take company profit as a dividend if you like and you do not have to pay SSN on dividend profits. That is the big advantage of a S corp because it is the self employment tax that kills most truck owners.

 

Yeah i am reg under soul prop.

 

That is what we did after paying out for a paycheck service we did not need!

 

I think some people take per mile thinking too far. It's a useful tool in determining profitability, but think about this. If at the end of the year on guy averaged 2.10/mile but nets $72,000 and another guy averaged 1.87/mile but nets $120,000, who are you going to say did better that year ?

Or another example, let's say you are at Gary, IN at 2pm. You have two loads to choose from, one pays $4.00/mile to Kenosha, WI. One pays 2.60/mile to Cincinnati, OH. Both deliver 7 am the next morning. Which one do you choose ?

The Kenosha load is 100 miles, so if your expenses are 1.20/mile, it's supposed to put $280 in your pocket, but you know by the time you load you are going to have to fight through the city, burning extra fuel, etc... that 2 hour trip could easily take 4 or 5 hours and burn $40 or $50 extra in fuel over what your 1.20 estimate accounts for.

The Cinci load is 270 miles, you figure again your expenses 1.20/mile, it should put $378 in your pocket. They have the construction completed around Indy and besides by the time you get loaded and get down there it will be 7pm or so. The trip is going to take you 5 hours or so, maybe 5-1/2.

I think I'd take the extra $100-$150 on the 2.60/mile load over the $4.00/mile load.

 

Fixed costs never go down, they're fixed. If they do, they become a variable cost.