Buy Trailer????
Discussion in 'Ask An Owner Operator' started by goodwolf, Jul 1, 2011.
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You meant .22 per mile.Didn`t check the rest of your figures but that one jumped out at meBigJohn54 Thanks this.
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Thanks RJ. Wow I hate it when I spread bad information. I checked my notes and the difference is 0.22 CPM. What I find most distressing is upon checking everything, I come up with about 0.10 for my trailer costs. This does figure virgin rubber and the maintenance/repair costs are padded. In addition, my model is based on 2000 loaded miles a week.
So it is quite a bit more profit than I was thinking.
Thanks for catching that. I've got to quit posting late at night.
EDIT: After checking and rechecking, it appears they take about two times in gross revenue what a trailer would cost to operate. If you look at many companies charging trailer rental from $135 - $195 per week and my calculations for cost around $200 per week, I'm comfortable that my calculations will cover everything.
With the information BBBill added about drop and hook not paying as well, I conclude owning the trailer would be the best way to go for me. Since my model was based on less miles than most would run in a lease, the trailer costs could drop by 0.01 - 0.015 CPM with more miles. That is probably where I got the 0.08 CPM operating cost.
I've spent most of my time running cost of operation calculations on my own authority. So I haven't yet perfected the calculations for a lease operation. I started out running them for another TTR member and realized this was a great backup plan for me.Last edited: Jul 4, 2011
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hmmmmmm wow.
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Wow, we are in the same ball park. At 2,200 miles per week I have $.095 for trailer overhead. This is likely twice what it is truly costing me but plan to have it pulled by an O/O that leases on to me and I am sure that they are not going to be as gentle as I am.
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