Cost of operation "real numbers"

I have an excel spreadsheet you can play around with.. It's very good.

PM me an email to send to if you'd like

 

OP, where's your benefits portion on your payroll overheard? Add health insurance, disability insurance, 401k contribution, etc., and that bottom line really shrinks.

 

Truck, trailer, insurance, fuel, plates, inspections, maintenance, and all expenses for running my LLC S-Corp, everything a company would provide for a w2 company driver runs me at about $1.05. It was about $0.85 last year but I had a different truck and just started my LLC. Keep in mind this is a small business with no good insurance or fuel discounts.

I pay myself $0.25 a mile. Total cost driving is $1.30. Everything I make over $1.30 goes into investing/growing business.

 

Copy that.

However, as you can see, once you add back what a normal company would pay in benefits as listed, plus stuff like vacation pay and the reality that most reputable companies will pay 0.50 a mile and above, you can see that your profit margin would essentially be 0%, or in the negative, in reality.

Not trying to throw a wet blanket on your numbers. You can understand why when company guys/gals see those numbers and margins, they think twice, and SHOULD, about jumping into the lease/owner operator field.

 

Saying that you made $196k a year sounds amazing, but after you factor in the fuel, insurance, and truck payment... seems like you’re down to near $100k. I’m not saying that’s all that an O/O can make, because I’ve met a few who claimed to have made over $500k (oil field, I believe). But for a company driver, especially one who makes $100k+ per year in an LTL outfit such as Old Dominion, Estes, or the like.... I mean, it just seems like an O/O making less than $250k/yr would be happier running the road as a UPS road driver ($150k/great gross)... no headaches, just driving.

 

Again, depends on what you value the most . Like I said before , in this industry , you can make as much money as you want/ can , but HOW you make it is the issue here.
I made about 200, last year . After deducting everything, I kept about 90,.
As an O/O 100% independent, I value more than money MY FREEDOM..
I choose where to go , how much to charge, stop anywhere I want , I decide to take off anytime and whenever I want . If my favorite team is playing here or there, I just get a load that can get me there and I have not problem. If my wife wants to go to any state for whatever reason , I get a load and we go , parked my truck , rent a car and enjoy it .
I respect people who rather drive for someone and is told what to do .and , probably they make more money , but that isn’t my ambition.

 

Nice to see a realistic 1.72 to run your operation. Most people seem to think they can run for 1/mi and that’s just not realistic.

I’d up your pay if it was me that way you get an even closer real cost as in if you put a driver in your truck.

If you can try to shoot for 250k+ gross and you’ll be in good shape.

 

How about adding up all the extra hours
A owner operator works during a week
That a company driver doesn't.

Accounting,
Book keeping,
Finding loads,
Negotiating rates,
Fighting with brokers,
Working on your truck,
Continuously Hunting cheap fuel,
Having to sit in the shop all day
To make sure your not being billed
For one minute that someone's not
Actually working on your truck.

Arguing with the shop because you
Think they charge too much,

Did I mention half your hometime
Spent working on you truck.

Add all that time up.
Your at minimum wage.