Need some advise and wisdom

Discussion in 'Ask An Owner Operator' started by Forklift, Jul 24, 2009.

  1. Forklift

    Forklift Bobtail Member

    15
    4
    Jul 18, 2008
    wellsboro pa
    0
    I'm looking at leasing on to Landstar as a BCO, the recruiter sent me an actual listing from the load board which shows the total revenue, total miles, cpm, and distance away, all from my zip code. You cant view this info with out a login so this was the first time i was able to look at cold hard numbers.

    Im doing the math and taking 72% (what Landstar pays) of the total gross revenue and working out the actual cpm and the fuel costs for loads, and i cant come out any better then a company driver. What am I not figuring right, I gotta be doing something wrong.

    I'll list three random loads from the sheet she (the recruiter) sent me.

    Dist. Revenue Miles Rate/Mile
    Load#1 146 $1700 1421 1.20
    Load#2 70 $1641 1513 1.08
    Load#3 88 $1369 1216 1.13

    Now you have to take your 72% of the Revenue to find out what your actually going to be making cpm, and you have to also add in the empty miles, Dist. away.

    Using Load#1 it would be Total miles 1567, Actual Revenue $1224, giving you your Actual Cpm of .78

    Cost of fuel for the Load#1 looks like this. 1567 actual miles # 5.5mpg = 285gal, at 2.7per gal, Total cost = $770

    So Actual Revenue of $1224 - $770 fuel, leaves $454.

    $454 divided by the total miles traveled (1567) gives you .30cpm. So load#1 pays .30cpm to the driver. This is before taxs, insurance, maintenance, tires. Surely after you deduct these expences you'll be left in the hole.

    If your still reading this long post thank you, can you please help me understand what im doing wrong. This cant be the way it is... is it?

    I can be a company driver at .38cpm and have health care benefits and 401k and have none of theses worries... What gives?
     
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  3. MedicineMan

    MedicineMan Road Train Member

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    6,440
    Jan 13, 2007
    Woodville, TX
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    welcome to the star!!! lol.. you pay them allot. Your not figuring wrong.

    I will tell yout this though. Those are the loads that are sitting on the board whenever she happens to pull them up. Most of that crap will sit there untill it expires. When you work the landstar board you have to sit there and constantly refresh it every minute. Most the good loads never hit the board and are given directly to drivers the agents know, the good ones that do hit the board only last a few inutes so you got to be FAST!! thee is 8k other guys looking for that good load too
     
  4. MedicineMan

    MedicineMan Road Train Member

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    Jan 13, 2007
    Woodville, TX
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    the other thing I see is that you live in PA. Nothing off the east coast pays anything. Your doing good to get $1.20mi gross. The only good thing is that most the loads going into the eats coast pay much better. they have to because half the time you end up deadheading out
     
  5. Allow Me.

    Allow Me. Trucker Forum STAFF Staff Member

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    May 28, 2009
    Rancho Mirage, Ca.
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    I've heard that about Landstar. You need to get in with a couple agents and you won't even work the board. I did talk to an ex O/O with Landstar who quit after 6 months, because he had only made expenses and not one dollar profit. :biggrin_25511:
     
  6. Forklift

    Forklift Bobtail Member

    15
    4
    Jul 18, 2008
    wellsboro pa
    0
    Fuel cost's about .49cpm to just move the truck.

    (Just an average) 2500miles/5.5mpg= 454gallons. 454gal x 2.70per gal= $1226. 2500miles/$1226 = .49cpm

    Now assuming you the driver want to make .40cpm that bumps the total cpm we need to .89cpm, just to cover your pocket and fuel.

    Now how much per mile should go towards the truck??? i dont know this answer, but im sure that there is a genreal rule of thumb on this. I'll just say .35cpm should go toward the truck both payment and maintaince.

    So thats 1.24 to cover you the truck and fuel. Thats way more then these loads are paying and whats worse is were still leaving out things like plates, permits, tolls, insurance, health care, tax's....

    So it seems to me just on these ROUGH numbers by a novice that it would take somewhere around 1.80 to make a living doing this.

    I really thought buying a truck was the move, but now im not sure.
     
  7. wtm

    wtm Light Load Member

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    May 11, 2009
    south
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    So it seems to me just on these ROUGH numbers by a novice that it would take somewhere around 1.80 to make a living doing this.

    quote]

    To make a good living with those high fees u will need atleast that. But if thats all u can get then u take it or get out. I was looking at van rates yesterday and all I can say is im glad I have a flat. Do landstars fees include what u have to pay for their trailer or does that cost extra?
     
    Last edited: Jul 24, 2009
  8. HJL

    HJL Bobtail Member

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    Jul 1, 2009
    Dallas, Tx
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    You could always try getting a better cpm by going aftermarket and improving your fuel economy. Bully Dog does a chip i think, like their light duty stuff. If you could even get 5% better fuel consumption then it would atleast help you make a profit after texas taxes.
     
  9. IronRydr

    IronRydr Light Load Member

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    Dec 1, 2008
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    Based on what I've heard about Landstar, I thought the loads posted on their board showed the compensation for the load 'after' Landstar takes their cut. In other words, what shows on the board would go 100% to the driver. I would check with them to make sure.
     
  10. kelgar50

    kelgar50 Medium Load Member

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    Feb 1, 2007
    Bakersfield,CA
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    Wrong, what is shown on the board is the line haul(gross money).
    You only get a % of that.
    When I had my truck and step deck on over there it was 67% of the line haul and I got an extra 8% of the linehaul for having my own trailer.So I would get 75% of 98% of the linehaul (they keep that other 2% for admon fees or something like that.).Sometime the linehaul will have the fsc included you need to ask them what the fsc is on the load then have them break it out of the line haul for you to get 100% of the fsc otherwise there are agents that will leave it in there and you get screwed.
    Same with the tarp pay and permit pay.....etc.....
     
  11. MedicineMan

    MedicineMan Road Train Member

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    Jan 13, 2007
    Woodville, TX
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    they always break out the FSC. worst problem I have run into is a few agents wanting to only give you a small portion of the FSC saying "the customer doesn't like paying fsc" Which is usually BS. Landstar agents are caped at a certain percentage of the load they can keep. However the fsc and any extra pay like detentin etc is all fair game for them to keep whatever you let them keep. This week the FSC is like $.23

    right now I'm paying like $170 a week for insurance, plates, permits, escrow etc.. but the plates, permits and escrow are only for a short time, you don't pay them al year long.

    if you need $.35 for a maintenance fund then I wish I was your mechanic. That's well more then double what most keep but it also depends on your truck. old truck with no payment means high maintenace. newer truck with payment is lower.

    my truck payment is $.10mi, (based on 10k miles a month) you need to work on fuel milage because at 5.5 you are behind the curve on the FSC which is figured at 6mpg. so the higher fuel goes the more you loose. I'm averagein 6.5 approx mow so the higher fuel goes, the more I make, because I'm ahead of the curve.

    My pete was gettin 4 to 4.5. I had to scrape every penny of my allowed advance PLUS run about 60mph just t make sure I had enough money JUST for fuel.

    My first load with this new truck was 900 miles. pay was low (always is getting out of TX) and I still had almost $200 left of my advance after buying fuel.

    big difference
     
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