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O/O wanabe...Are my figures correct?

Discussion in 'Ask An Owner Operator' started by drivefor5, Apr 22, 2008.

Page 1 of 3
  1. Apr 22, 2008 #1
    drivefor5

    drivefor5 Bobtail Member

    19
    0
    Apr 1, 2008
    Henderson, NV
    0
    I really want to become an O/O and lease on with a company, such as Landstar (or others). I have a few months experience and when I finish my first year, I would like to buy a good, used tractor (cash). I was thinking of a Freightliner or KW T2000.

    I starting putting the cost figures together and came up with these (below). Am I far off? Granted, I am looking at companies that pay for permits and some insurance and I calculated running 10k miles a month.

    Any help or advice would be great. Thanks.
    ---------------------------------------

    Miles per month: 10,000

    Fixed Costs: .....Costs/ROI......$$/mile

    Truck Payment: .......$ 0 .......$0.000
    Insurance: ..............$ 350 ....$0.035
    Bobtail insur: ...........$ 60 ......$0.006
    Licenses: ................$ 50 ......$0.005
    Permits: ..................$ 0 .......$0.000
    Accounting Svc: .......$ 50 .....$0.005
    Company ROI ...........$ 1000 ...$0.10

    Total Fixed Costs: .....$1510 ....$0.15
    ------------------
    Variable Costs:

    Tractor Fuel: ...........$7000 .....$0.700
    Tires: .....................$ 200.......$0.020
    Maintenance: ...........$ 500.......$0.040
    Repair .....................$ 475 ......$0.047
    Truck Wash ..............$ 60....... $0.006
    Cell Phone ................$ 130..... $0.013
    Meals ......................$ 450..... $0.045
    Road Taxes ..............$ 150......$0.015
    Plates .....................$ 150 .....$0.015
    Misc. Deadhead Exp...$ 250 .....$0.025

    Total Variable Costs:..$9365.....$0.94
    ----------------------------------------
    Total Vehicle Costs:...$10875...$1.09

    Drivers Income: ........$4000 ....$0.40
    -----------------------------------------
    Cost of Operation ......$14875 ...$1.49

    Fuel Surcharge (avg) $3500-.... $0.35-
    ------------------------------------------
    Total Costs: .........$11375......$1.14


    Am I close to reality????
     
    drivefor5, Apr 22, 2008
    drivefor5, Apr 22, 2008
    #1
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  3. Apr 22, 2008 #2
    broncrider

    broncrider Road Train Member

    1,618
    3,187
    Mar 23, 2007
    somewhere drinkin beer probaly.....
    0
    wow, nice spreadsheet

    looks like you took alot of time to figure this out, that said some of your numbers are a bit off

    plates for said truck, $1400/year divide by 120,000 = .011/cpm
    permits....about the same

    my accountant runs me about double what you have figured....

    tires and maintence look alittle low...so does repair....1 oil change runs about $200....wont take long and you have no money in the account

    realisticly, can you afford a $50,000 truck with cash? if it was me id drop 40k , finance the other 10 and have 10 in a reserve account for when something drasticly goes wrong.....but hey thats a perfect world right?

    i would figure all expences high, and all income low

    but it looks close enuf to me
     
    broncrider, Apr 22, 2008
    broncrider, Apr 22, 2008
    #2
  4. Apr 22, 2008 #3
    Muleskinner

    Muleskinner <strong>"Shining Beacon of Chickenlights"</strong>

    977
    484
    Feb 18, 2008
    Land of the Chicken Truck.Southern IL
    0
    Wow....You made me dizzy there..:biggrin_25521:...Nothings a given in this biz as the variables are infinite(besides that,theres a lot of em').Anything can and will happen to cause you to open your wallet and there will be a dozen greedy little hands trying to get in it at the same time.

    In the now of trucking,If I were you and had the 50g to spend, I'd roll to Vegas and hit the BlackJack tables with the money.It'd be a safer investment and a hell of a lot less trouble.

    Not being a smartazz,just letting you know that even the big dogs are sitting on the porch right now scratching fleas and waiting on the weather to change.:biggrin_25519:
     
    Muleskinner, Apr 22, 2008
    Muleskinner, Apr 22, 2008
    #3
  5. Apr 22, 2008 #4
    BlueNosedBstd

    BlueNosedBstd Light Load Member

    79
    1
    Apr 5, 2008
    New York State
    0
    numbers look good, although I would bump your fuel to $4.50/gallon($7500/mo), and don't forget, your maintainence cpm goes up on a truck with more miles.

    Geeze, and companies advertise 90cpm as if it's gonna make an OO rich, lol!
     
    BlueNosedBstd, Apr 22, 2008
    BlueNosedBstd, Apr 22, 2008
    #4
  7. Apr 23, 2008 #5
    drivefor5

    drivefor5 Bobtail Member

    19
    0
    Apr 1, 2008
    Henderson, NV
    0
    Thanks to all of you! :biggrin_25514:

    I will adjust my figures. I won't be able to start any of this until the beginning of next year. I just want to drive and I want to own my own biz, so what the heck. You only live once, right? It's going to be a lot of trial and error...I just want to avoid as much of the error as possible....That gets expensive..:puke:

    Any more advice would be great.

    Plan A= Trucking
    (if that doesn't work)
    Plan B=Blackjack :smt077
     
    drivefor5, Apr 23, 2008
    drivefor5, Apr 23, 2008
    #5
  8. Apr 23, 2008 #6
    Muleskinner

    Muleskinner <strong>"Shining Beacon of Chickenlights"</strong>

    977
    484
    Feb 18, 2008
    Land of the Chicken Truck.Southern IL
    0
    By next year these fuel prices may be back down to reasonable and trucking will be fun again.We can only hope.:biggrin_25517:
     
    Muleskinner, Apr 23, 2008
    Muleskinner, Apr 23, 2008
    #6
  9. Apr 23, 2008 #7
    Bigray

    Bigray Road Train Member

    1,135
    383
    Nov 23, 2007
    Tampa, Florida
    0
    I predict that fuel will increase this year.


    i'll go out on the limb and guess 5.oo a gal
     
    Bigray, Apr 23, 2008
    Bigray, Apr 23, 2008
    #7
  10. Apr 23, 2008 #8
    jarken22

    jarken22 Bobtail Member

    30
    2
    Jun 16, 2006
    British Columbia
    0
    well your off on some but close on other's your fuel is to low try #5.0 mpg # today's price = $8000 to 9300
     
    jarken22, Apr 23, 2008
    jarken22, Apr 23, 2008
    #8
  11. Apr 23, 2008 #9
    379 Peterbilt

    379 Peterbilt Medium Load Member

    523
    61
    Nov 12, 2005
    Wisconsin
    0
    Close-ish for the most part. I think you did right by conservatively over-estimated some costs. You should come in considerably cheaper on insurance, esspecialy bobtail. Truck wash at the blue beacon is $29 if you have the trailer dome at the same time. Looks like you are wanting 2 washs per month. Maybe do just one a month and wash on the other weeks at home you self. Cell phone bill also seems high, but I am probably splitiing hairs here.

    I'll second bronco riders advise on keeping that 10K in the bank and financing it. 10K in the bank when starting out as an O/O is piece of mind for if spit hits da fan mechanicaly.

    I think your road (IFTA fuel) taxes are high at $150 per month, but hey, factoring in the worst case, from the onset, is smart.

    I'm not even gonna touch the fuel cost you have posted. Yes, as we speak right now they are close, but in 6 months who knows. Ask your prospective company about FSC. This is make or break these days. You should get 100% of the FSC.

    Don't buy a POS Freightskanker.

    Don't forget factoring in some escrow money that your company may require, up front at the time ya sign on. (if any, but ask)

    Good luck to you!
     
    379 Peterbilt, Apr 23, 2008
    379 Peterbilt, Apr 23, 2008
    #9
  12. Apr 26, 2008 #10
    drivefor5

    drivefor5 Bobtail Member

    19
    0
    Apr 1, 2008
    Henderson, NV
    0
    Don't buy a POS Freightskanker.

    Thanks for the good advice. Yea, I looked at the Freightliners for their price, but I also know that sometimes I get what I pay for. :smt103

    Right now, I am leaning toward a Kenworth T600 or a nice T2000.
     
    drivefor5, Apr 26, 2008
    drivefor5, Apr 26, 2008
    #10
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