First, if you're leasing and $15 per week is a big financial deal to you, then I'll tell you right now that you have no business being involved in a lease contract. Why? If $15 towards the cost of doing business is bankrupting you, you're financially finished right now.
Second, information is the lifeblood of a business. Leasing a truck is not a job, and if you're pretending to be a company driver who just happens to lease with a paycheck on steroids, you'll be lucky to make it to the end of your lease. That financial breakdown is vital information that you need to succeed in this business. Just seeing the revenue/debit listing isn't enough. You need the financial breakdown as well to monitor the health of your business.
Third, I don't know how you value your time, but having that breakdown saves me money. To construct the basic profit/loss data I use as a management tool, I just lift the numbers right off the breakdown, and plug them straight into the spreadsheet. Done. If I didn't have that information, I'd be sitting there with a calculator, fumbling around trying to generate the same numbers. Knowing my numbers to a penny allows me to tell you that last week, my time was worth $49.50 per hour. $15.00 for a financial breakdown is small potatoes.
If y'all think you're going to get to the other side of one of these lease deals without knowing your numbers, the likelyhood is slim. I'm not saying it can't be done, but there's things that separate the 1in 5 of us who are successful from the 4 in 5 of y'all who walk away with their financial tail tucked between their legs like a beaten dog.
Leasing at Prime
Discussion in 'Prime' started by ironpony, Jun 25, 2012.
Page 81 of 94
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When I get my statement thursday morning, I print it off in my truck and spend about 30-60 minutes entering what data I didn't have or editing data I have already put in (usually the revenue numbers the qc est revenue message gives me for each load is on the low side of what I actually get) and reconciling all the itmes I should have been reiumbursed for making sure I was. I don't know how much time it takes you to do your bookkeeping each week or day, but I feel my time is very well spent and it usually takes less then an hour.
From that I can pull a profit and loss statement and drill down each exspense categorey. I can compare it to my YTD numbers, last months numbers, or even what I have set up in my budget/projections to see how I'm doing. As of Friday's settlement statement, my total profit this year is $6,154.52. That includes the full amount of the week 1's deffered lease payment and the 2 new drive tires already accounted for in my system as outstanding liabilities. Most of our busines is on a cash basis, but certain things like using Prime's fuel network or national accounts for maintenance and parts are more like acrural type of accounting. I agree with you that the average lease operator needs these numbers at a minimum to begin to be successful as a business owner and not a company driver on steriods just being a place for a problem to happen.
IP, I value your words of wisdome and try to follow in your foot steps. I am sorry if I came across in this post or my prior post as confrontational and trying to say you don't need to spend that $15/week for the operating statement. My point was to explain the breakdown of the $22/week you spend vs. what the other guy said was $7/week.
Good Luck! Keep the shiney side up,
Redoctober -
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Some feel the same way about driving 57mph in a 70 zone to save $40 in fuel a day ......... -
redoctober83, Bumper and albert l Thank this.
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You forgot to figure your prime fuel discount in......
And you can't have mpg figures on your truck cruising at 70 mph. -
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Just an assumption on my part but if fuel prices and fuel surcharge have dropped, I would think that running faster would generate more revenue. Yeah, maintenance will increase at a faster rate but maintenance would stay consistent with the mileage at any speed. But if you figure maintenance costs per mile and you run 57 or 70, the maintenance per mile should stay consistent, the increase would come in frequency of the maintenance due to the increased mileage since you are running faster. But running faster also allows you to run more loads, hence increasing revenue to the truck. Fuel costs would increase due to mpg but that logically seems to be the only increase in cost.
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There's a lot of objections to letting 'em go faster. You're going to get more wear and tear on the truck, and you go through tires faster. Half of Prime's drivers on any given day are low-experience, new to the industry types. I agree with restricting them due to safety reasons, but moreover, the damage an inexperienced driver can do financially to the bottom line via the fuel bill is enormous. Finally, Prime drivers are subject to dispatch to Canada, and they still have the 65-mph speed limiter law on the books. You'd have to run their trucks into and out of the shop at the border on every run up that way.
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My LLC is Undead Logistics, LLC
FullMetalJacket Thanks this.
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