A Perfect World? Check these number as Owner Operator?

Discussion in 'Ask An Owner Operator' started by leviant0107, Nov 13, 2021.

  1. leviant0107

    leviant0107 Medium Load Member

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    Detroit, MI
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    So, I was running some imaginary numbers in my head just because I like math and dream about being an O/O in my future at some point and I’d like to know if this is a somewhat reasonable breakdown schedule in a PERFECT WORLD.

    2000 miles per week at $3PM

    .75CPM to driver = 1500
    .25CPM Note/Insurance = 500 (2000 a month)
    (Assuming note and insurance are 1000 a piece)
    .50CPM Fuel = 1000
    .25CPM Maintenance Fund = 500

    Leaving me a potential owner of a profit of between 1000-2500, considering I drive myself or hire a driver.

    The driver would receive the same amount of pay at 25% of the weeks gross.

    I’m just wondering if I sound ridiculous or is this something similar to what any of you owner ops do on your pay breakdowns.
     
    Pamela1990 and D.Tibbitt Thank this.
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  3. D.Tibbitt

    D.Tibbitt Road Train Member

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    Fuel is a little low for right now. Where are you getting freight from? And how are you going to average 3.00 per mile day after day ? It is good napkin math. But you need to take into account huge maintenance problems like a engine rebuild or emission systems grenade. Which are going to cost a significant amount of money. Like 15k+. Dont forget about your time. Which when you are an owner op there is alot of #### to cover on a daily basis in order to stay in business and being an owner op is a time suck. Between driving and maintenance, booking loads and making sure you are getting paid on time etc... And thats if you run it on your own. If you hire a driver now you need to take into account driver abuse on equipment. A driver still needs to be paid even when the truck is in the shop . etc etc. I think the main thing most o/ops will tell you is to have a good amount of money saved up for bad situations.
     
  4. leviant0107

    leviant0107 Medium Load Member

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    Detroit, MI
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    yeah that’s all it was was napkin math just looking for some input thanks for that.

    I don’t imagine I’d actually average $3 a mile consistently but it’s a nice dream. I’d be based out of MI. A lot of freight leaving here under 1k miles seems to hover around 3 under or above. I see a lot of deadhead.

    Everything I’ve read says to start out with a good 50k put away.
     
  5. D.Tibbitt

    D.Tibbitt Road Train Member

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    Im not saying you cant do 3 a mile consistently but im just asking how you are going to do it? What type of trailer are you pulling? Its important to figure out where your freight is going to come from. Are you going to get your own authority and go run off load boards ? Are you going to lease on with a company that has dedicated freight ? A company that has their own load boards and agents like landstar, schnieder ? There is so many ways to be successful in this business. It is really up to you how you want to do it . but its the most important thing to figure out where you are going to get your freight from. Because that is the entire business.
     
    feldsforever and shooter19802003 Thank this.
  6. leviant0107

    leviant0107 Medium Load Member

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    Detroit, MI
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    I considered rolling between having my own MC and leasing onto a company with dedicated freight.

    Been researching the freight that comes out of MI. I was thinking dry van, tanker, and reefer. That would cover produce, seeds and the like etc. Still looking in to what all is available or common.
     
  7. roundhouse

    roundhouse Road Train Member

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    I can tell
    You that there won’t be enough money to hire a driver , and make a profit .
     
    shooter19802003 Thanks this.
  8. Pamela1990

    Pamela1990 Road Train Member

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    Finding back hauls is the most important part of this scenario.
     
  9. Midwest Trucker

    Midwest Trucker Road Train Member

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    I think that’s acceptable table cloth math for someone running on their own authority and dry van out of MI. In bad times that rate per mile is tough but your miles are also low so it may work out.

    Equipment acquisition for truck and trailer is something I’m not seeing. So, in this scenario you must already own things things and are paid for.
     
    shooter19802003 Thanks this.
  10. mjv2744

    mjv2744 Bobtail Member

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    Insurance alone is going to be 2k a month at start up. At least for the first couple years.
    A truck @ 75k and a trailer @ 50k is going to be 2500 a month for 5 years on a loan.
    A 75k truck is going to be fairly worthless at the end of 5 years if it makes it. So have some money saved for truck # 2 and buy newer at that point so say 125 on truck 2 and save 50k towards it. Payment will still be 1500 a month plus now you have a old trailer you will want to replace at some point.
     
    shooter19802003 Thanks this.
  11. mjv2744

    mjv2744 Bobtail Member

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    Oh and figure another 200 a week for taxes and misc
     
    shooter19802003 Thanks this.
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