Caution Prospective Independent O/O! My Embarrassment.

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

  1. Toomanybikes

    Toomanybikes Road Train Member

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    Thanks again for the honesty, when you read a lot of fictitious , ego driven posts, that cannot be said enough.

    I am not familiar with your operation, so to be clear to other prospective o/o could you answer a few questions.

    1) @ .65cpm profit, you have not account for any truck payments, depreciation, or replacement. If I understand correctly, you own your truck outright. But yet as time passes and the truck gets worked it still depreciates in value weather you can take that as a tax asset or not. No accounting for that?

    2) Is the $.16 CPM your actual maintenance paid out? Or is a portion of that money accrued in a maintenance account? What portion of that maintenance do you farm out? What do you do yourself?

    3) Employment taxes, business, workers comp., fica taxes.....? How does your $.65cpm profit account for those expenses?

    4) Truck replacement costs?

    5) Personal ins?

    6) What is with the office expense? Just asking for details, why, and reason?

    Again not to drill you, because the honestly is really appreciated, but these are some of the things many people don't account for in their business.
     
    Last edited: Oct 24, 2017
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  3. Justrucking2

    Justrucking2 Road Train Member

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    A dollar a mile is spot on, I have always figured my rates using that number, and I have not been wrong to date. Oh, and I have no truck payment.
     
  4. Mattflat362

    Mattflat362 Road Train Member

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    You have a truck payment! I am paid off too but in reality we are just saving for the next trucks payment! Think of that way always! But instead of the next truck requiring a monthly payment.....it will be paid for in cash...by the payments you are making now (to your company).
     
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  5. nax

    nax Road Train Member

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    Everyone has a truck payment.

    Some prefer to use OTHER PEOPLE's money, and then give those people little-by-little payments every month

    and

    Some prefer to use their OWN money and cut 1 payment 1 time (then replenish the reserves)
     
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  6. Mattflat362

    Mattflat362 Road Train Member

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    I WISH it could be done with a house!! Ahg! (I know it can for some but not me!)
     
  7. Justrucking2

    Justrucking2 Road Train Member

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    Well, not a technical truck truck payment to a bank. My title is clean... But, I still put roughly $5,000 in repairs and two steer tires into my beast in preparation for winter, just finishing her up, my labor. Always figure in maintenance... If you don't, you are a fool heading towards bankruptcy. The reason I tell these new guys to buy used, and pay cash if at all possible. Being a slave to a finance company is not how I want to spend my days. ;-)

    Oh, just called Thermo King up here in Detroit, new Tri-Pac being installed in December before my old one falls off the side of the truck and kills someone. LOL!

    Oh, house is paid for too... ;-)
     
  8. jdilliplane1

    jdilliplane1 Light Load Member

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    My per mile rate is actually better than when I had my authority, but of course less miles. My daily rate profit margin is good and shorter days. 8-10 at most some 12s sprinkled in if there’s traffic. Overall I’m happy, everyone’s situation is different and there are more ways than one to skin a cat in this business.
     
  9. Justrucking2

    Justrucking2 Road Train Member

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    Ain't that the truth. It took me years to find this outfit I am leased on with. We shall see what the ELD nightmare has in store for us... I may just be buying another trailer and turning the authority back on. I hope this nonsense works out, as the last thing I want to do is that, turn the authority back on... :-(
     
  10. windsmith

    windsmith Road Train Member

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    I'm a company driver (W2). This week's check puts me over $70K for the year, on roughly 65k miles according to my GPS.

    I work day shift, Monday-Friday with a Saturday here and there when I want some extra coin. One layover per week, my choice (paid hotel and $150 per diem). I get paid vacation, paid holidays, $64/week medical for me and my wife, and a 401(k) with matching contributions up to 6%.

    Full disclosure: I drive the northeast and my Saturday trips are NYC Metro. And yes, I fingerprint all of my freight during the week.

    Just for reference.
     
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