Caution Prospective Independent O/O! My Embarrassment.

Discussion in 'Ask An Owner Operator' started by TallJoe, Oct 20, 2017.

  1. TallJoe

    TallJoe Road Train Member

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    Apr 12, 2016
    Chicagoland
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    Came back home earlier today and decided to run some numbers again...including the latest week.
    I neglected my bookkeeping and doing things by numbers this year. I am completely shocked, having analyzed my miserable loadboard/spot market endeavor results --- Year To Date. My numbers got even worse after I added tolls and found some more unaccounted expenditures.
    I'll let you see my real numbers so that you are forewarned that the first year with your authority may not be any better with where you are leased on now. Mind you, I don't have the truck payment. Still the cost per mile is close to 1 dol. All of it is year to date. Look at the cost side of it. Can you get that much better rates? Buy a new truck and I am making less than a company driver. This is a dry van general freight.
    2017 year to date:

    Total Revenue $ 122,906.48
    Fuel $ 29,801.71
    Maintenance $ 12,364.88
    Office $ 4,084.65 (including loadboard fees + truck accessories)
    Trailer Payments $ 5,240.61
    Parking $ 2,930.55
    Insurance payments $ 10,240.01 (paid off - down payment was paid in Fall last year - it only shows YTD about 4 K was paid in 2016)
    Plates and Taxes $ 3,324.53
    Fees & Interests $ 205.75
    Tollways $ 3,655.84
    Scales $ 296.50
    Showers & Misc $ 23.00

    YTD Aggregate Cost: $ 72,168.03
    YTD Profit $ 50,738.45 ----- some company drivers might be at this already (in the middle of October)

    YTD Total Mileage 77494.00

    Odometer (loaded and empty) Pay per mile 1.59 ---------------should be at least at 2.00!!!!

    Maint per mile 0.16

    Fuel per mile 0.38

    TotaL Cost per mile 0.93
    Profit Per mile 0.65!!!!!!!!!!!!!!!!!!!!!!!! misearable
    mpg 6.44

    Conclusion: I've been horrible. I need higher rates!
    Principal Question: Can I be allowed much higher rates?
    Question to you. Will you do any better than I? Can you at least afford the gamble?


    All right! On Monday, I'll go from Chicago to Miami for 4K. Is it even enough? Look, earlier this year I was stupid enough to go down there for 2K more than once. Now, I need a drink.

     
    Last edited: Oct 20, 2017
    Express12$, Oxbow, NWAF and 14 others Thank this.
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  3. againstthewind

    againstthewind Road Train Member

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  4. TallJoe

    TallJoe Road Train Member

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    Apr 12, 2016
    Chicagoland
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    Every weekend and major holidays.
     
  5. Steel Dragon

    Steel Dragon Road Train Member

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    Buy a trailer?
    Stop paying for parking.
    Run west and avoid tolls.
     
  6. TallJoe

    TallJoe Road Train Member

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    I was running 800-900 a day before... LTLs right there Phoenix, AZ and LA. grossing close to 200k a year and profiting 90-100k but not any more.. I was leased on with specialists for that type of work. LOL My ankles started to swell too much and too often. Ominous sign. I need to learn it better here.
     
  7. Steel Dragon

    Steel Dragon Road Train Member

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    Miami trips are always losers on the way out.
    You guys need to black and blue Florida...not Washington.;)
     
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  8. nax

    nax Road Train Member

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    My pro-forma calcs show me at $1.50/all-driven-miles with 50% bobtail (assuming PO drop trailer then bobtail back)

    Also, why do you ask if you "can be allowed much higher rate?"

    It's not like there's permission needed to demand/negotiate higher rates (you realize that, don't you?)

    EDIT: Please tell me you are negotiating tolls into the rate, if not you need to save this link on your smartphone home screen: www.truckrouter.com
     
    Last edited: Oct 21, 2017
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  9. LoJackDatHo

    LoJackDatHo Medium Load Member

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    I applaud your truthfulness. Most O/O inflate their numbers so as to look good to others. The first years are learning curve years. Find your niche.
     
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  10. Globalman65

    Globalman65 Bobtail Member

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    May 1, 2017
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    Wow. Well I don't haul dry freight, I haul reefer loads. My income for 2016 annual was $259,315.00 I have a 2016 Pete 389 with a new 2016 reefer. After all expenses my gross income for myself was $108k and putting additional capital away for another new trk in 2018. I sacrifice and run hard and have specific traffic lanes I run in. I run 3 weeks out and 1 week at home. You need to evaluate your operation and run smarter. You can do it.
     
  11. TallJoe

    TallJoe Road Train Member

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    Apr 12, 2016
    Chicagoland
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    My huge mistake was that I did not run the numbers all the time precisely. I had some capital and nice credit capacity - still do, and never really felt a blade against my throat. I was measuring profitability with the Total Revenue and Fuel expenses difference....it may be all right indicator when you are leased on but that's not enough when every little thing to pay for is yours.. The other expenses , of course, I was aware of, but they were in a further background, not so direct but made the picture so horrible. The total cost side should be the warning before anyone wants to get their MC#....I can't see much room for improvement there.
    Some may pay less for the parking or the tolls (depending on your area) but my first year insurance cost was of 15K... yours could be more, my truck is paid off, you may still pay for yours....I just say it should not be that different. I was hauling too cheap...but I could not get decent rates January - May at all. Don't get me wrong. I tried to quote and asked for more --- I saw the averages for the last 90 days on DAT and they would not give me them even...
    What else can I do other than to say "I can do this load for $1200 and be on it now...." when their tell me "No sir. Sorry. We've been having calls on this load and the offers for even 1000 were already rejected. We can give you this one for 950..."
    I started seeing improvement in August till now - so there is some optimistic note, they started paying better, meeting my desired rates more often.
    I've been always afraid to post my truck, I always called to ask for loads and did not want to take a load from an unchecked broker. That's because I want to know ahead of time who I deal with, and guaranteed to get paid and all my invoices ware paid so far. I have to overcome this fear somehow and take more risks.
    Is changing an equipment type (reefer, open deck) a solution here? I wish it was that simple ... that would mean that I did not do anything wrong just faced reality with a dry van on a spot market. Getting a reefer or a flatbed is a game change, going on a different dimension, learning things from scratch. I am not changing anything yet. I am going to change the following: 1.start posting my truck 2. never settle for less than a minimum of 1000 a day regardless of mileage (advice given here by some more experienced) or $800 if getting home... no freaking way I can get a 1000 from Columbus, OH or even Omaha to Chicago. This means that If I don't get 1000 I deadhead or sit. I am the type who gets nuts if sits in one place for more than a day so I'll deadhead. 3. Try to reach out to smaller brokerages....break initial distrust fear and hope for more "off loadboard" relationships - this I believe is the biggest element to work on.
     
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