Are my numbers even close?

Depending on the mechanical condition of your equipment the repair cost may be a little higher. How about health insurance for yourself or family. That could be another .10/mile cost depending on your plan.

 

There won't be a fuel surcharge unless he has a contracted direct shipper set up. The spot market is simply "I'll do it today for this price."

 

I really appreciate the advice and have no problem being "brought back down to earth"

*Changed 1.95 to 1.76 which is the break even point including a 44K driver pay
*Removed 30% margin of error
*added .10 CPM for benefits
*Changed Fuel to 3.82 gallon
*Changed maintenance from .13 to .22 CPM 25K in maintenance annually......REALLY???

Whats a reasonable Gross Per mile to expect?
So an owner operator make 44K a year.......?

Anything else..........

 

When I had drivers, my break even was $1.50ish with $3.50ish fuel. That was with 3 year old trucks and 6 year old trailers with payments. Driver pay was .38-.40 cpm.
I once bought a $5,000 53' trailer from Ryder about a decade ago. The first heavy load saw me replacing 6 our of 8 tires on the road. 4 were individual blowouts. Tires had been capped at least twice. When all was said and done, I had 8 new tires put in the most expensive way possible from FL to NJ.

 

You haven't stated your experience level so telling you what to expect is impossible. I'd say if you divide your gross revenue by your odometer after your first quarter, I wouldn't be surprised if you're around $1.50 per mile or less guessing that you have no experience with rates, brokers, freight lanes, etc. the more knowledge you gain, the more your bottom line will improve.

 

On the maint, I ran an older Mack CH...and split my repairs into 2 groups....elective and mandatory. Bought the truck from a fleet with mid 600's. First year repairs exceeded .32cpm and trimmed back to .23cpm after 36 months. Truck never saw the dealership either, did 80% myself and hired out the shop guy on Sat. for the balance. ( Less brakes, oil changes and king pins )

Something I watched was a value to resale cost. ( my formula ) It was already a gimme that i would never recover all repairs in a sale but I had reached a saturation point where if I lost the engine then it would exceed the value of the truck to fix it. I cut her loose at 900k as repair costs started to climb due to age and fatigue.

I continued to adjust my business model / miles for profit through freight selection and lane changes where miles drive fuel costs and maint. requirements. I learned many lessons like to buy a new starter instead of a reman. Changing that 75 lb piece of iron 3 times tends to teach you something.

I should have but did not charge downtime back to the repair category . RM says we run a cash business so you can't lose it if you never had it. Money I didn't earn but could have is not a loss.

Your better than you were on the sheet but that model is unsustainable ....... no banker would fund that P&L sheet. You cpm spread looks good enough for now but the 10 grand for the admin? and 11k for bennies? ( yes that's realistic ) but where is the money gonna come from? You gotta eat...... I'd like you to be a bit more conservative on your projections. Admin costs will have to be pay as you go ( you will do it for free ) .

JMO

 

I'm a straight out of the womb newbie, but I'm smart and learn quickly.

so if I take out the admin 10K and remove the driver pay, since I will be the driver, and bring the gross per mile down to 1.50 the bottom line is 28.5K....... not too promising

 

I think you need to double your insurance pricing then as well. Shoot for the stars of you have the bankroll to do it. However you'll be learning some hard expensive lessons about trucking. I'd highly suggest working for someone first. With zero industry knowledge, it is going to be very tough for you to succeed. It can happen, but very tough. Go get a year in somewhere, then lease your truck on to a percentage based carrier and start learning rates, freight lanes etc. This is the most economical approach.

 

Its all been counted and recounted million times. 1.10+ drivers pay is the cost pet mile on paper.But considering low fuel economy, lack of experience and below average equipment I don't know if there is any hope to make this work

 

You gonna be running of load boards for freight? Better plan on a buck fifty as your average rate. Load board freight is stupid cheap.

No reason that truck will be in the shop once a month. I have an 03 columbia, been in the shop exactly 3 times since the day i bought it new in 03. One of those times was because they screwed up the clutch job I sent it in for. That was also the last time someone else worked on my truck. Get yourself some tools and be willing to work on it yourself. If you plan on relying on shop's, you won't make it. I'm convinced there are only a handful of quality mechanics left in this world.