Average revenue needed to survive.

Money pit aside for future truck and trailer purchases are not part of operating cost. For that matter, neither is a current payment unless it is a straight lease and you turn the equipment end at the end of the term.

In order to get your true operating cost you have to spread everything out over the life time of each individual item. For example, if you buy a truck today, for 150k, and plan on keeping it for 15 years and 1.5m miles, that truck cost you 10cpm to operate. Plus finance charges of course.

 

I can't take less than 19 dollars a mile or I'll go broke

 

I'm with you . Not only is deadhead burning fuel its consuming time and most of all its unpaid

 

Oh no? What is it a part of then?

These sound like excuses to run cheaper.

 

Any money set aside for future purchases will be taxed as profit. So what is it part of if you are paying income tax on it?

 

Current truck and trailer payment are very much a part of operating cost. I see the whole lifetime factor there. Those payments are part of your overhead at the time which means they are part of the operating cost. Operating cost vary just like anything else. Once a truck is paid for the cost per mile of operating it changes though it doesn't go away.

 

Yes but it is still part of your operating cost

 

My nest egg for future purchases are subjective in the way it could be titled or filed as under a line item. Is it actual operating cost associated with what you're pulling today? Some will say yes but for the heck of it lets say no.

With no being the answer for now, It certainly falls under the line item of future business needs, or anticipated business needs such as what's coming down the pipe in 1-3 years/3-5 years that I should consider now under my current total operating cost and/or continuation of operation. Similar to a tire fund, or in-frame fund, or general maintenance fund. That stuff will be coming.

I guess there is the minimum cost to get from A to B. Cost to move the freight say, .80 Cpm (not getting fixated on the # as we all get the concept) but the total of keeping your business in the black for today and tomorrow. Could be rated at $1.05. 10 people could come up 10 different ways to slice it.

It's just one mans thought process. the more we talk about it, the better we all become.