I search this forum for this topic and came up with nothing. This question for the O/O "skateboarders", "tanker yankers" and vans.
I was "rapping" with a Landstar O/O at a truck repair facility here Sac. He pulls a step deck and he blew is engine. A piston "imploded", now he's in the middle of a second inframe, so he's awaiting parts.
Per our conversation was about rates. He advised me that rates are coming up, but not fast enough. So I "axed" him what is his break even and profit goals. Break even is $2 per mile and profit is 30 to 50 cents below what current diesel fuel is at for the week. This that a fair goal? I know there are maintenance, insurance, truck/trailer pmt, etc and other variables.
But from his attitude, its like an "entitlement" to get a high rate. So is that the same attitude with "all" O/O's?
So, I guess "greed is Good" uh.
Break even and profit goals......
Discussion in 'Ask An Owner Operator' started by q in sac, Feb 4, 2011.
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If those are his real break even and profit numbers he has made some major mistakes. First thing you need to do is write a business plan if you want to be successful. As for costs, my insurance and plate costs per month are about $1200. Figure on 30 to 40 per cent of gross going to fuel. Put away 10cpm for maintenance. Don't forget tolls, put away a few hundred every month to replace tires. Then there are the taxes, can't forget the taxes. Hire an accountant that deals specifically with the trucking industry for the tax and financials stuff.
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That's what I don't like about Landstar.... They tell you the gross of what the load is paying. Then you have to calculate in your head 68% of 98%.....rodknocker Thanks this. -
The couple of times I've hauled a brokered load from Landstar they wanted my personal cell number, home number, and to call them every 2 hours. I told the guy to get in touch with my dispatcher and HE can call me. To find out info, after all I usually talk to my dispatcher several times a day, and that is more than enough. That way it cuts down on the he said, she said garbage. -
when I was at landstar the leftover crap that hit the boards avaeraged $1.30/mi with fuel. take you percentage out of that. Flats were better but not that much. That guy is lying or he's a train wreck waiting to happen with a $2/mi BEP. Mine is about $1.40 with taking $.030/mi for myself
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So from the replies, this guy was "talking out the side of his neck".
I have been reading the posts of you "experienced O/O" and your right. You need to account for the fixed and variable expenses. This forum gives me decent info on making the right choice for me. It's tough out here. So I'm glad that some of you "chime" in and express your knowledge and pass on.
One other question arose, who set the rates? The shipper or the brokers? This guy said the broker, because the shipper comes to him with a load. He get all info and puts out the bid for the load. If the this guy that I talked to yesterday refuses to take a load for $2 per mile what gives? His truck was a 2000 Freightliner FLD 12064 flattop sleeper. Not in the best of condition. But still with that attitude will he or others out there, can or will they survive and go on welfare? -
With that old of a truck it should be paid for so the $2 BE point is BS. Either that or he is living on credit to make his last few months before going completely under.
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$2 a mile for a solo driver is not enough
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So between $1.50 to $1.80 per mile is "breaking even"? I know depending where you live, mileage, etc, will vary. Need an avg.....
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Breakeven is different with each & every one of us.
We all have different costs. For a rough breakeven number... Your looking at a range between $1.00 & $1.40
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