What’s my best option for earning potential?

Discussion in 'Ask An Owner Operator' started by TomGodin, May 17, 2019.

  1. TomGodin

    TomGodin Bobtail Member

    22
    39
    Feb 15, 2019
    Wilkes Barre/Scranton, PA
    0
    A year ago I bought my own truck and leased onto the company I was driving for. The gross pay per loaded mile averages about 2.80/mile. I run about 2500 miles per week, about 25% deadhead

    Here’s how I am paid:

    The company gives me 85% revenue and FS.
    They then take from that amount 5% for dry van rental and 9% for cargo and liability insurance.
    Plus about $50/wk for eld and workers comp.

    I do my own apportioned plate and collision/bobtail ins.

    The give me a fuel card to use which gives about a 10-15% discount depending on where I am.

    After all deductions and fuel I make about $1-1.25/mile for all miles driven. mind you I drive a 379 with a 550 Acert (not my first choice, I was talked into it, lol) so I’m averaging 4.8-5.3 mpg. I stay in the northeast (all hills) and most of the time over 75k gross loaded.

    My own research hasn’t really shown me a definitive direction to go in.

    I’m wondering from experienced O/O’s could I do better under my own authority working off of loadboards and brokers? Landstar? Or am I in a good situation now? I would be grateful for any input.
     
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. Ridgeline

    Ridgeline Road Train Member

    20,737
    101,051
    Dec 18, 2011
    Michigan
    0
    Gross pay?

    To the truck or to the carrier?

    Think ... always think ... to the truck.

    If your numbers are to the truck ... that's better than others are getting.
     
  4. Midnightrider909

    Midnightrider909 Road Train Member

    2,383
    9,597
    Oct 26, 2016
    0
    If you got an aero truck and got out of the NE you could do better.
     
    Rideandrepair and Milkman719 Thank this.
  5. uncleal13

    uncleal13 Road Train Member

    3,757
    6,199
    Apr 9, 2009
    Humboldt, Sk
    0
    So they are charging you a percentage for van rental and insurance, fine. But it sounds like it's coming off the fuel surcharge amount also? That's not right.
     
    Rideandrepair Thanks this.
  6. Midwest Trucker

    Midwest Trucker Road Train Member

    5,771
    20,598
    Aug 31, 2018
    0
    How do you go from 2.80 down to 1 to 1.25? Running NE and with that fuel mileage not sure how your making much or any money.
     
    Rideandrepair Thanks this.
  7. Dave_in_AZ

    Dave_in_AZ Road Train Member

    49,833
    315,810
    May 4, 2015
    0
    1 mpg typically equates to roughly $10K year.
     
    Wrobichaud, Rideandrepair and speedyk Thank this.
  8. gokiddogo

    gokiddogo Road Train Member

    8,781
    14,753
    Mar 5, 2012
    Ontario Canada
    0
    Do you mean 1-1.25 after you pay for your fuel, and all expenses accounted for? Leftover essentially being driver pay + (your) company profit?
    At 2.80 for loaded miles which are 75% of about 2500 per week you're essentially grossing 5250 on 2500 miles or about 2.10 per mile.
    So are you paying 15% of the 2.10? Or is it 15+4+9=28% of 2.10? Basically is the equation 100×.85×.87 or 100×.72 ?
    One way you earn 73.95% other way you earn 72%. Pretty steep... if we saw off halfway at 73% your 2.10 for all miles looks more like 1.53 for all miles.... or is 2.80 YOUR cut after the 15% off the top and trailer rental/insurance is taken out?

    Need more info for accurate numbers. For what it's worth last year on my own authority I did 2.639 for all miles (CDN$) which worked about to about 2.00 usd all miles on 102,129 miles. (I don't track empty and loaded). With a mix of shorter runs and west coast runs as well as home daily runs (pulling reefer, all cross border work) on 238 days worked. I also drive a hood, heavy all the time, and averaged 5.788 mpg(us) over the year. I spent 29% on fuel at 78,390. (Includes reefer fuel and def). For a per mile cost of .767 (c) or .577 usd per mile. I realize an aero truck would have probably netted me perhaps 1 mpg more... but for my situation, I don't really care, I don't want to drive one of those. But let's not turn this one into yet another aero vs hood debate....




    .........because we all know the aero guys are just jealous anyway:p
     
  9. TomGodin

    TomGodin Bobtail Member

    22
    39
    Feb 15, 2019
    Wilkes Barre/Scranton, PA
    0
    100x.85x.86 is the correct equation. 2.80 is the average after 85% of the load but before the other 14%. To make it easier for arguments sake the 100% load revenue is 3.29/ LOADED mile.

    On a side note, I just had the intercooler and radiator cleaned externally. the fins were all packed with mud and was causing to start getting a little hot on real long pulls. It’s starting to get hot out so it never acted up since I started running the truck last fall and I am hoping that helps my mpg. I recently had a platinum overhaul with new turbos and everything and I don’t feel like I’ve been getting the best mileage. I’ll find out this week if that helps.
     
    Rideandrepair and gokiddogo Thank this.
  10. TomGodin

    TomGodin Bobtail Member

    22
    39
    Feb 15, 2019
    Wilkes Barre/Scranton, PA
    0
    3.29/mile is the company’s gross
    2.80 is gross to me before they take 14% for dry van rental and cargo/liability.
    So average loaded miles before fuel maintenance repairs and other annual expenses is like 2.41/mile LOADED deadhead is about 20-25%

    The reason I asked it this way is from my understanding Landstar and other loadboards show you the gross revenue only
     
    Rideandrepair Thanks this.
  11. gokiddogo

    gokiddogo Road Train Member

    8,781
    14,753
    Mar 5, 2012
    Ontario Canada
    0
    There used to be a user on here, but he has been gone for a few years now, Mr. Haney. You can probably look up his old posts. He was the master of Cat engines and could program them any way you wanted. I suspect if you someone who can do this you should see higher mpg.

    So if your deadhead is 20% your all miles rate would be 1.928. At 25%, 1.8075. That isn't horrible... in this current slow down, if you can maintain that, I would just keep doing what you're doing...

    You should also look at what your gross earnings are, after your company's cut, then divide it by your miles, get yourself an all miles rate. The rest of your expenses, notably the ones that cost you per mile driven, fuel is what I'm talking about as the major one here, you can come up with a cost per mile to operate your truck. Then subtract the fuel cost from the all miles cost, also figure it out as a %, see what you have left. Multiply that by the number of miles you ran. Does this number support truck payments, insurance, and payroll for yourself?
     
    Rideandrepair and Midwest Trucker Thank this.
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.