3 months into as a leased operator, How am I doing?

1,583 per week x 4 = 6332 for the month and you have to take out:
any repair costs - includes oil changes and tires as needed, $1000 per month?
equipment payments - ?
driver pay - ???????
any profit possible here??????????????????

I think you started a company and found some sucker to drive for peanuts!

 

I would venture to say that a lot of successful o/o's aren't close to needing $1.68 a mile to break even. You should look at who the members of ATA are before repeating what they say is needed to break even. They protect their members and are way out of touch with the rest of the industry.

 

Break even points are different for everyone as a true owner opp. I run my own authority and use excellent brokers that pay on time. My average so far in July is $2.33 per mile. I drive a 2015 that I speckled myself and runs great. After all expenses I pay myself $0.61 per mile which is great. I do LTL running from CA to the south east and back haul chicken from AL to CA. It's worked out great but many sacrafices.

 

I too have had to find my groove on what works as a owner opp. But the hard work and sacrifice has paid off.

 

I average around $1.45 leasing my truck to carrier.i pay 115 per week for trl rental,45 per week in administration costs and that's it for my fixed costs.they pay all insurances,plates and ifta.my fuel is averaging .40 cpm or just a little less and .20 cpm into maintenance act and .10 cpm tax acct.pay myself the rest usually my pay is around. 75 or 80 cpm

 

I'll tell you where that $1.68 number is coming from. A few years ago my last company did a full audit on costs per mile for the previous 3 years. IIRC the final operating number was $1.70ish. Thats for Facilities, ALL employees (IE: non revenue generating office personnel and mechanics, in addition to paying drivers), Consultant fees, 3rd party safety audits.. EVERY cost the company incurred for the previous three years.

An o/o thats being smart is doing as much of his maint and repairs as possible himself, not employing a personal mech. Most o/o's aren't paying for property and all associated costs purely for business use either.

I just did a quick and dirty calc for my "worst case" operating costs for a 2500 mile week getting 6mpg and paying $2.81 a gallon for fuel (last weeks published DOE national average for fuel). I come up with $0.85. That number is BS too. I average closer to 2700 a week, 7mpg, and about $0.25 per gallon under national average for fuel purchase week to week. This weeks fuel purchases averaged to $2.32 a gallon, or FORTY NINE CENTS under national average. My real average since purchasing this truck in May is closer to $0.77 a mile.

What nobody takes into account when being critical of leased operators and L/P for that matter is the "hidden" costs they never see. Some of it as simple as a "free" place to park the truck. There's a TTR member who's stated he's paying $300 a month for parking in the NYC area. That big building and all the office personnel that support me on the road, thats a hidden cost covered by the company's cut of the revenue I'm generating. When I need a tire on the road I get "free" access to the company's national tire accounts.