.95 per mile? What am I missing?

I don't drive it like I stole it. The computer screen says 8.2 but it usually averages 6.8-7.1 since I started running with Bill on the Covenant side. If I must drive over 62 I try to limit it. Guys can swear and whine but there is another lane, so use it. Plus i usually run under 20k. I run Lucas fuel treatment is added into the fuel cost per mile and since I have been using their card/pumps, last months fuel average was 3.72 with my Lucas. $12k repair account with a $30k line of credit backer. At 24, I may be an otr rookie but a business slouch I ain't.

 

My fuel is very close to yours, it's the other costs we are different on.

 

Last year I ran(2011) before I retired, I ran 66,000 miles and averaged $2.31 per mile to the truck all miles. This is pulling my own step deck. I had people tell me you can't make any money running only 66,000 miles per year. I just smiled

 

That's why I shut my MC down to go with Covenant. All my insurance and Qualcomm rental is $64 a week. $17k owned truck.

 

I vote this the best post in this entire thread. Had similar numbers last year and it was by far the most profitable year ever for me. For folks who believe those wheels must always be turning to earn this should give you some food for thought.

 

A ton of stuff. What is the fuel surcharge rate on top of that? Do they pick up or reimburse base plates? Do they cover all the tolls? Do they offer some pretty decent fuel discounts when you buy fuel under their name? Do they offer discounted rates on physical damage, unladen, and occupational accident insurances? What are the incidental compensation fees, like how much for detention, how much for each additional stop off, etc, etc?

 

[TABLE="width: 472"]
[TR]
[TD="colspan: 6"]Here is what I found with my research so far on the O/O side. I am not one, though have found true comp and costs. Your breakdown should be similar as follows:

Weekly compensation[/TD]
[TD][/TD]
[/TR]
[TR]
[TD]Rate:[/TD]
[TD]0.95[/TD]
[TD]Miles:[/TD]
[TD]2500 [/TD]
[TD]Mile's gross:[/TD]
[TD] $ 2,375.00[/TD]
[TD][/TD]
[/TR]
[TR]
[TD="colspan: 2"]Fuel surcharge:[/TD]
[TD]0.42[/TD]
[TD] [/TD]
[TD]Fuel's gross:[/TD]
[TD] $ 1,050.00[/TD]
[TD] $ 3,425.00[/TD]
[/TR]
[TR]
[TD="colspan: 6"] [/TD]
[TD][/TD]
[/TR]
[TR]
[TD="colspan: 6"]Weekly Fixed Expense[/TD]
[TD][/TD]
[/TR]
[TR]
[TD="colspan: 5"]Physical damage Insurance:[/TD]
[TD] $ (50.00)[/TD]
[TD][/TD]
[/TR]
[TR]
[TD="colspan: 5"]Bob-tail, non trucking Liability:[/TD]
[TD] $ (6.00)[/TD]
[TD][/TD]
[/TR]
[TR]
[TD="colspan: 5"]Occupational Accident Insurance (per driver):[/TD]
[TD] $ (27.00)[/TD]
[TD][/TD]
[/TR]
[TR]
[TD="colspan: 5"]Driver Tech Rental:[/TD]
[TD] $ (17.00)[/TD]
[TD][/TD]
[/TR]
[TR]
[TD="colspan: 5"]Highway use tax:[/TD]
[TD] $ (18.00)[/TD]
[TD] $ (118.00)[/TD]
[/TR]
[TR]
[TD="colspan: 5"][/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD="colspan: 6"]Weekly Variable Expense[/TD]
[TD][/TD]
[/TR]
[TR]
[TD="colspan: 5"]Fuel cost @ $4.00, MPG @ 6, =AVG: 65 MPH[/TD]
[TD] $ (1,666.67)[/TD]
[TD][/TD]
[/TR]
[TR]
[TD="colspan: 3"]Maintenance Rate:[/TD]
[TD]0.12[/TD]
[TD]Maintenance =[/TD]
[TD] $ (300.00)[/TD]
[TD][/TD]
[/TR]
[TR]
[TD="colspan: 3"]Fuel Tax Rate per mile:[/TD]
[TD]0.01[/TD]
[TD]Fuel tax = [/TD]
[TD] $ (25.00)[/TD]
[TD] $ (1,991.67)[/TD]
[/TR]
[TR]
[TD="colspan: 6"] [/TD]
[TD][/TD]
[/TR]
[TR]
[TD="colspan: 2"]Balloon?[/TD]
[TD] $ - [/TD]
[TD="colspan: 3"]Lease Purchase weekly payment:[/TD]
[TD] $ - [/TD]
[/TR]
[TR]
[TD="colspan: 6"][/TD]
[TD][/TD]
[/TR]
[TR]
[TD="colspan: 6"]NET WEEKLY COMPENSATED RESULT:[/TD]
[TD] $ 1,315.33[/TD]
[/TR]
[TR]
[TD="colspan: 6"]NET ANNUAL COMPENSATED RESULT:[/TD]
[TD] $ 68,397.33[/TD]
[/TR]
[TR]
[TD="colspan: 6"]NET MONTHLY COMPENSATED RESULT:[/TD]
[TD] $ 5,699.78[/TD]
[/TR]
[/TABLE]

So, to me this is decently good cheese to make off of 95 cents per mile. Hope this helps.

 

You have not paid for the truck! .12cpm maintenance is ridiculously low for one of these lease contracts. You have not paid FICA, any state B+O's, or state required workers comp. There is no company contribution to insurance. You have not paid any required bonds, or paid the lease down payment. You have not set aside anything for the over-inflated balloon buyout.

Just as round figures from your stated $1315.33 weekly 'cheese' roll out $600 for truck payments and another 1/3 as a round figure for employee overhead (fica, workers comp. ins.) . 2/3( $1315-$600)= $476 for a weekly take home. $476/2500 = .19cpm

At $.19cpm you have not made down payment, bond, or any headway on the balloon.

More realistically you need to run that maintenance up to $.20 cpm and run the figures again: $.20cpm x 2500 = $500. Put that in your other figures: 2/3($1315-$600-[$300-$500]) = $343 for a weeks wage. $343/2500miles = $.13cpm.

Out of that $343 you need to pay your bond, deadhead/bobtail miles, balloon payment, down payment, ect...... I hope you can live on 'cheese' because that is what you can afford!


$17836 annual is nothing. Pull out $2500 for your down and $2500 for a bond and you got $12836 for a first year wage. You will work 90+ hours a week for that wage: $12836/ (52weeks x 90 hours) = $2.74 an hour. Out of that you are looking to sock away something for that balloon?

 

Only problem with those numbers, is that the carrier I am leased to, the insurance costs are lower and there is only a $10 a week for the Qualcomm (no install or security fee), no other fees or charges. And the rate and the fuel surcharge is higher for each where I am at. And the fuel discounts are substantial. It has been quite some time since I saw anything as high as $4 a gallon actual cost. Carrier files AND PAYS all the IFTA taxes. I only concern myself with the lowest fuel costs, which the carrier provides for fuel stops, in and out of network, for each state, updated every two hours, on their website for the driver. They show the current pump price, and the available discounts, so you know where to get the lowest cost on fuel along your run. And they reimburse for the owners base plates every year after the first year, irregardless of state the truck is plated in. And they pick up all permits and tolls in total. And I get $100 for any additional stop offs besides the first and last, and I have gotten around $37 an hour for detention. Best one was when I got to the customer at appt time, they couldn't unload till morning, I was out of hours anyway so I took a full 10 break. Got paid $375 for taking a break that night.

 

Here are a couple of thoughts. 1-The biggest mistake I see most guys make is they underestimate the cost of doing business. 2-One of the ways to assess whether a business is viable is, what would I get paid doing the same job for someone else, and can I make that, +10 to 15% profit, + 20% (for the added risk), or more, if not then it is a lifestyle/hobby and it is not a business. Nothing wrong with a hobby, just be honest with yourself on what you are getting into.