Your average weekly revenue?

An old friend of mine drove a swift daycab for Moya when swift consisted of 6 trucks, the rest had sleepers.
I assume he was a driver, but don't really know.

 

No, he is in a terrible position. Do not give any encouragement. You cannot compare a moving asset that needs constant maintenance along with monthly market fluctuations to a bank CD! You are right about one thing...he should cut his loses.

 

He has less than $20,000 of his own money in, he does zero work per week and is showing a $300 weekly profit. If he continues these numbers by the end of year 1, he only has $5,000 of his own money in. I don't know his financing, but I assume he paid $55,000, so at $200 a week if he sells after a year overall I would project a $3-7,000 loss.

If he sells today he will probably lose at least $5,000, probably closer to $10,000. From my perspective he has little to lose by playing the game out. If he can get the managment and dispatch fees to a reasonable ammount, that should cover his maintence costs. If he can get revenue up, even better.

The OP is not dependent on the truck to pay his day to day so there is little downside to letting the truck run for a few months and get a real sense of the numbers.

 

And he may have a major cluster tomorrow and be 35,000 in the whole. I would never have a truck on the road fo 300 a week.

 

$300 a week is not profit, that is his gross profit. He still needs to pay taxes, and IFTA which for everything his "management company" is charging back they are not paying. He does not have a maintenance account a truck 600K mileage is def going to need some repairs. If he takes $7,000.00 loss next or a $10,000 loss today we are talking about $3,000.00 difference. Clearly money isn't an issue to this guy he should take the loss and run. Man I am posting his settlement on my board for my O/O to see in my office under the caption "you could be this guy...."

 

And if that happens he walks away from the truck and folds up the llc that (hopefully) owns the truck.

 

I understand that $300 isn't net profit. I understand that is going to have variable costs that will eat into or outright consume it. That is not his issue. His issue is the management company that is taking 40% (or thereabouts) of gross revenue while doing a piss poor job of running the truck. If he showed $600 of "profit" on that week's settlement people would not be clamoring for him to quit. If he were driving the truck he would be "taking home " $1,500 - a reasonable number even before taxes. Not a good number, but a solid base to build from.

I'm not saying the guy is in a good place. All I'm saying is that if he stays the course he can minimize his losses and has a chance of breaking even. If he sells now he locks in a loss of almost his entire intial investment. As long as the settlements stay positive integers, he won't get hurt any more than he is now.

The chances of the settlements staying positive with the 40% in managment fees and the quality of driver that works for $900 a week on a 1099 is a different story.

 

There is a lot of places that 900 a week s considered good money, we don't know the whole story of the guys deal nor what all he gets from his carrier, or even if he has a carrier, all we have is a one wek breakdown, tyhat leaves us guessing. it looks bad, but it works out to something like 3.44 bucks a loaded mile. it is entirely possible that he learns does some adjusting and makes a go, if he does he driver pay goes up to where he is happy, owner happy, everybody at ttr happy. lol

 

I will believe a CR England lease driver making 7 seven figures before I believe everyone at ttr can be happy at the same moment.

 

Yeah im with you on that one.