Can I make any money?

It is easy to make money as an owner operator all you need is a good printing press!

 

Also remember if you figure your cost @ $ 1.10 per mile, you will run more miles than you are paid for.Those miles cost you just as much as the ones you are paid for.

 

I figure my costs at $1.27 (avg of 3 trucks and 8 trailers) + driver pay so you're in the ball park. Jbatmick is correct...... dead miles can kill.

 

A couple of months ago, I answered a post concerning how much to look for money wise when booking loads. Rather than trying to rewrite it, I just copied it again here. I hope it helps to answer your question. Good luck with your foray into being an owner operator. If you run your business smart, you can make a good living at it.


It's almost impossible to know what to ask when you call to book a load if you have no idea what your cost per mile is to run the truck. You need to figure that out before you go anywhere, so spend a couple of hours on that first. I'll try to explain what I mean.

Lets base your cost per mile on 2,000 miles per week, or 8,000 per month to start. Once you know what you're doing, you'll for sure average more miles than that, but there is a learning curve to this, and you'll probably be spending a good deal of time chasing leads to start. Here's a rough breakdown:

You should divide all costs by 8,000 to get your monthly cost per mile
1. Truck payment
2. Insurance costs
3. license costs
4. Permit costs
5. IRS 2290 cost divided by 12 and then by 8,000
6. Your salary
You need to figure out your housing and living expenses, as well as the amount needed for your personal expenses. This figure will be different for everyone. Only you know what it is. I'll figure it at $800/wk gross for these purposes. This will be your salary.
7. Truck replacement cost. Remember, your truck is going to wear out. You will need to replace it. If you don't want to pay finance costs, you need to plan on this. I use .25/mi, but it's up to you. I'll leave it out of this schedule.
8. Tire replacement cost.
9. Preventative Maintenance cost
These are your fixed expenses. There are more than this, but it will get you started until you adjust it later.

Next is your fuel cost. It's best to figure it low rather than to over estimate your m.p.g. and not have enough to pay for it.

Here is an example of what I'm saying so you'll have an idea of what I mean.

Truck payment $1,200/mo divided by 8,000 mi= .15/mi
Insurance 400/mo divided by 8,000 mi= .05/mi
License cost $1650/year divided by 12 months divided by 8,000 mi=.02/mi
2290 $550.00/yr divided by 12 divided by 8,000mi = .01/mi
Salary before income tax $3200/mo divided by 8,000 mi = .40/mi
Truck replacement cost (If you want to pay cash for your next truck, add this in also)
Tire replacement $450 ea X 10 tires = $4500 divided by 150,000 mi = .03/mi
Preventative Maintenance and repairs (I figure this at 18 c.p.m.) .18/mi

So, your base cost per mile using this formula is .84/mi

Add fuel to this. Be sure to figure low so you'll have enough money. I figure 5.5 mpg for budgeting purposes. So it will cost $5818 per mo. at $4/gallon for fuel, or .72/mi for fuel at 2,000 mi/wk.
Add this fuel cost to your fixed cost of .84/ mi and you have a cost to run your truck of $1.56/mi.
Obviously, I estimated the majority of the costs, and there are things I didn't put here, as this is for illustrative purposes only, but it's enough to show you what to look for in a load. You want to multiply your cost per mile by the total estimated miles of the load before you call about the load, so you know what you have to have for pulling the load.
For example. a load from Dallas to Kansas City would be about 550 miles. You need to get $860 minimum for this load. Don't forget to negotiate lumpers, tolls, detention, etc; as well as any charges for "truck ordered, not used" in case the load cancels after you go to get it.
If you take a couple of hours to figure this cost out, you can succeed. Of course, the more miles you run in a month, the lower cost per mile your fixed costs will be. You will also need to adjust this from time to time as costs change.
I hope this helps you with deciding how to cost your business. Good luck with your venture.

 

We are a private carrier with our own outbound and we operate in a 150 - 500 mile radius of or yard. Also have MC authority and have always picked up brokered SD and DD freight for the 400 - 500 mile return trips but lately I have been staying closer to home and returning empty. More and more, the brokered freight doesn't pay enough for me to bother with. By the time you figure DH miles to PU, layover, meals, load time, decreased fuel mileage, extra loaded miles, DH miles to yard after delivery and the added risk potential of freight claims, accidents and more DOT inspections.....well I would just be working to keep the drivers in a job so they can complain about not being home. I used to do $100,000 - $150,000 in backhaul revenue annually but I bet last year it was only $50,000.

I wouldn't be in trucking as a motor carrier. No way to get drivers home every week without taking a huge hit on dead miles. I would have to keep them out 2-3-4 weeks at a time and nobody wants to do that. Plus we have our own shop and do alot of our own work...I would hate to have to let a driver take the truck to the TA to get something fixed.