Baseline Expenses

Interesting way to look at things.

 

Deadhead miles, paying yourself back the $20,000 down payment and of course i think landstar will not let you run unless you have disability ins, ticket/lawyer service, accountant service, satalite service, all other extras,and Landstars 35%. Just to name a few. If i could not net between 40 and 50 grand every year then this boy will take it easy working at the Pigley Wiggley!!! Don't forget, you are the one living out of truckstops.

 

Shepard74. Lets do this together. I have 18yrs expirence in the field and was looking into becomming an Owner Operator with Landstar or other. I have a good job but if profitable want to do this for more freedom and fun while still netting at least 40 grand in 10.5 months. I may run into a problem with that waiting for loads that pay enough to roll my wheels. If you run through the weekend you can unload and take at least 1 day at a campground bobtailing. More to do, clean air and swimming pool. Thease thimgs i talk about are some of the cost i have considered in my investagation to becomming an op. Yes i am including xm although xm is out and i phone is in. Both satellite. Other costs may include mpg analizer like Bulldog, if you own your own trailler then a trailer tracking system, (internet) and other thing you feel you need to run your business. I have talked to a Landstar rep and they told me they will not let me run without Disability ins. This will help protect your business if you can not drive due to injury or ilness for the short term. I have attended the Landstar live loadboard demo and have written down as fast as i could the pay,miles, to from info an even have gotten at times the fuel surcharge info. My findings: 90% of the loads after 35%,and fuel alone pays from .65 to .85 per mile including deadhead miles. Now you will have to take everything out after that. Next reply see breakdown of expensives.

 

My breakdown is more from an income point then a cost per mile like yours is. Gross pay for 108,000 paid miles at .82 average per mile after 35% and fuel for all miles is as follows. Take in $88,560.00 - 15,000 to pay myself back the 95,000 i put down on the tractor over the next6 to 7 years. -12,000 for all insurance including health for 1 person. -21,560 for all other expensives like tires, oil changes, breakdown, all the landstar expenses including base plates and bobtail ins and all others listed in the landstar packet. This would also include tow ins and everything under the sun that is part of your bussiness. - Apx 8,000 taxes including double the SS. tax. You dont want to keep zeroing out your taxes and reduce your SS when you retire. - Apx 5,000 per yr for 5 yrs for a loan i will be taking out. I will need to keep puting 15,000 into savings, be it that a combo of cash and ira. The remainder is for living expensives and fun. Apx 12,000.. Right now i don't feel that is enough to take these risks and live that lifestyle. Show me how you came up with 1.32cpm when most Landstar loads that i could see were only paying 1.9 at best. Sure there are better paying but i bet the compition is ferce for them. Have you tried the Landstar demo? What were your findings? I see some companies pay 75% of loads. I am not looking to be an op running like a company driver thou. Thoughts and findings please.

 

The only concrete thing you can get is the fixed expenses that LS charges you back (plates, permits, ins, occ/acc) the rest will vary highly between operations of each truck. I have no truck payment, so my costs are much less than soeone with one. ALso, DH miles vary greatly since you will be choosing your own freight. Some guys have only 100 Dh miles, some 300 and others have 0. It's all depending on how you operate and where ya go.

 

You know i recalculated some #s. Based on what Landstar told me... They said that the drivers are averaging 1.84 cpm. So, lets take a 2000 mile load at 1.84cpm... =$3680.... Subtract a fsc of say 430.00 = $3250,,or 1.625 cpm... Subtract Landstar cut of 35% = $1137.5 or .569cpm = 1.84-.569=1.27 or $3680-$1137=$2543.. Now assume you are getting 6.5mpgs... 2000 paid miles divide by 6.5mpg = 308gallonsx 4.05 average price per gallon fuel = $1247 or .49 = .78cpm paid or $1296 pay for at least 3.5 days work.. Now you have to calculate in mt miles repair and all ins and other.. My guess is that you cant be making any more then .45cpm times 110,000 paid miles and you get apx $49,000 minus double SS and other taxes.. I may be high with the .45 paid miles.. Any comments on the #s i am getting?? Am i missing anything or mis calculating to this point? Even owning your truck out right you still need to calculate in replacement cost and repair which in my book are 2 different cost.. Replacement means of tractor or rebuild motor/tranny.. Comments please..

 

Guys, lets start listing all of our true expenses.

 

Hears what i have so far.. Landstar expenses.. Plates $1650 year, Permits $200 yr, EORB $327 yr, Seal/lock program $125 yr. Communciations Network $192 yr,
Unladen Liability $1164 yr, Workers comp (required) $1840, Accountant expense $800 yr, Lawyer service $600 yr, Med ins for 1, $1800 yr, Towing service $350 yr, Apx cargo ins and Physical ins about $9,000.. Guess at maintance and breakdown, other service like i phone and apps, Truck payment, Scales, tolls, Drug testing. Without adding up any thing after cargo/physical ins the total is.. $16,123.. not including med ins,maintance/breakdown,truck payment, scales, tolls, drug testing, and other services.. People it is just a view but i think we need to make at least 2 dollars per mile before one could even consider rolling the tires working for Landstar.. Please add any other expenses or views i may have missed..