Caution Prospective Independent O/O! My Embarrassment.

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

  1. boredsocial

    boredsocial Road Train Member

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    And every company driver can attest to the fact that unless they are extremely local they aren't getting paid 1.10 a mile even including benefits. These numbers are cracked completely out for OTR even for regional guys.
     
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  3. Mattflat362

    Mattflat362 Road Train Member

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    Well if I was selling rates I would definitely be basing those rates on worst case scenarios because that is basically all we see...lol.

    That graph is dead on IMO. So add company profit on that and bam you have a valid starting point IMO.
     
    Last edited: Oct 26, 2017
  4. boredsocial

    boredsocial Road Train Member

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  5. Mattflat362

    Mattflat362 Road Train Member

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    Bennies, 6 weeks paid vacay, +55 per mile adds up quickly....let alone new truck every 3 or 400k miles...

    Again...worst case (or best for that imaginary driver ^^ LOL) scenario.....which happens every stinking day all stinking day.
     
  6. Mattflat362

    Mattflat362 Road Train Member

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    Hey by the way OP....if you are using the free DAT to post your truck you also have access to this for free. I am starting to use it religiously. I was shocked at how many of my favorite brokers had zero feedback....and that I had none at all after 3 years. The obvious offenders have plenty of bad feedback to help make decisions before running a load for someone. I can't believe I just recently found this.... 1.jpg
     
  7. TallJoe

    TallJoe Road Train Member

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    I thought I'd conclude this thread as 2017 ended - my first full year under my own authority and loadboard freight.

    Total Revenue $ 151,806.73
    Fuel $ 36,404.23
    Maintenance $ 15,908.48
    Office $ 3,949.64
    Trailer Payments $ 6,405.19
    Parking $ 3,474.55
    Insurance $ 12,994.01
    Licencing & Taxes $ 3,958.31
    Fees & Interests $ 2,522.75
    Tollways $ 4,536.39
    Scales $ 373.50
    Communications $ 1,250.00
    Showers & Misc $ 108.00
    All Costs $ 91,885.05

    Total Business Net $ 59,921.69

    Total Mileage 93927.00
    Rate per mile 1.62 ----------- hauling too cheap/deadheading too much!!!!!!!!!!!!!!!
    Maint per mile 0.17
    Fuel per mile 0.39
    Total Cost per mile 0.98
    Profit Per mile 0.64
    mpg 6.42

    Again:
    So it is important to realize that getting your own MC# and taking loadboard freight is not any guarantee for financial advancement. Running your numbers as you go is important too. Add truck payments to the numbers, which I did not have and this is ludicrous nearing bankruptcy.
    Take a good look and think twice before committing.


    Although after a year...now in 2018 on a positive note...I started great!

    YTD Revenue $ 21,870.00
    Fuel $ 3,424.56
    Maintenance $ 77.00
    Office $
    Trailer Payments $ 582.29
    Parking $
    Insurance $ 689.00
    Licencing & Taxes $ 243.59
    Fees & Interests $ 2.00
    Tollways $
    Scales $ 11.00
    Communications $
    Showers & Misc $ 38.84
    All Costs $ 5,068.28
    Total Business Net $ 16,801.72


    YTD Mileage 7453.00
    Rate per mile 2.93
    Maint per mile 0.01
    Fuel per mile 0.46

    Total Cost per mile 0.68
    Profit Per mile 2.25
    mpg 6.07

    - as of 1/21/18 - I still may catch 10K before End of Month:D:D:D:D




     
    Last edited: Jan 21, 2018
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  8. Ristow

    Ristow Road Train Member

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    yah this year will be better for you. last year sucked until the last month or so. your insurance should come down substantially.
     
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  9. rollin coal

    rollin coal Road Train Member

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    Yes if you add a truck payment, or you could say equipment replacement costs into those numbers, that is really bad. But luckily you did not have a payment or you are already finished. It was your first year and you are learning. Consider that a success - small victory. It will get better as you apply practical experience and get more efficient. Of course with used equipment you're going to have some down years every now and then where the truck maintinance burns more cash than normal too.
     
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  10. rahtek

    rahtek Light Load Member

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    The new guys wont understand how valuable these numbers really are. You're a much braver man than I am. I could never bring myself to put my numbers out in public like this. However, I feel like I need to give something back so here are some of my numbers as a first year lease o/o. I think by comparing them you'll see that you're on the right track and that having your own MC was not a mistake. If nothing else you should take comfort in knowing that the skills and knowledge youve gain are priceless.

    First Year Independent (You)
    Operating Cost $.98CMi

    First Year Lease o/o (Me)
    Operating Cost $1.17/Mi
    I take pride in knowing this is a VERY accurate number. Youre cheating yourself if youre not accounting for every penny. I have made multiple excel sheets tracking every important metric.

    Honest Operating Cost For Both

    First Year Independent
    Operating Cost $ 1.17/Mi When you add $1500/Month Truck Note
    Driver Pay .50C/Mi Fair market price for Chicago 1099 driver
    Total $1.67/Mi

    Firs Year lease o/o
    Operating Cost $1.17/Mi
    Initial Equipment Purchase $.52/Mi I bought my truck Cash but I still put it down as a fix expense.
    Diver Pay .50C/Mi Fair market price for Chicago 1099 driver
    Total $2.19/Mile (This Should answer all those "guys I just bought a truck can I make money hiring a driver" treads)

    Fuel
    You MPG 6.42 @ an average of $2.49/Gallon payed
    Me 7.20 @ an average of 2.49/ Gallon payed

    Maintenance/ Repairs
    You $15,908.48
    Me $ 14197


    It's a little weird how similar our operating expense numbers are. I think this means youre doing a good job of managing youre expenses. The notable difference is that I was driving for well north of $2.00 a mile. I think that made all the difference. This also made me realize Im paying my company too much for insurance and to rent their trailer. Im getting my authority this week and your numbers are telling me Im making the right decision.

    This year should be a good one for you though, good luck.




     
    Last edited: Jan 22, 2018
  11. TallJoe

    TallJoe Road Train Member

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    People need to look at real numbers. Some of them are inspired by success stories and can't wait for getting equipment and be on their own. Then after signing up to a load board and booking a few loads from CH, TQL, or Landstar, the reality might be not as good as expected, and the dangerous part of it, and many don't know it until a few months later, is that you work and work but there is still no money in the bank.

    The first mistake many people do is that they jump at this prematurely without enough capital at hand, assuming the money will flow quickly. Another is that they realize too late what their operating costs are.
    As a rule of thumb, or so it seems, the operating cost is about 1 dol a mile based on 90-100K miles a year. I don't include a driver pay in it. The driver pay is discretionary, it could be 45c, 50c or whatever. In my area to hire a driver you would need to pay them, indeed, 50c a mile. so this way the operating cost is at about 1.5 mile.
    The truck payments make about .10 - .15 c a difference if you purchase a used one and killing .25c a mile if it is brand new. The maintenance costs, however, should be way less with a new truck, but it is not always true.
    The operating costs, where a driver pay is included, should be then at 1.50 - 1.75.

    For example. Based on my total operating cost of 92K, which due to increasing fuel prices might rise, and my goal of clearing 100K , I need to gross at about 192K - 200K a year which means that every month, my revenue should be no less that 16K or 4k a week. Taking loads that generate less than a 1K a day was the biggest culprit in my 2017 fiasco. I was not focusing on weekly revenue. Also I wanted to be home every weekend and holiday. I don't take anything that pays less than 1K day. If say Carlisle, PA - Chicago pays 1000k, (indeed) and I want to be home for the weekend, then when I leave there to Carlisle, PA on Monday I have to go there for 3K no less, preferably 3500 to better offset those murderous tolls. The truth is also that to achieve the goal, I need to work over some weekends too.

    I once went to Lancaster, Pa for 1500 from Chicago. I figured 2.1 a mile ....not bad. From there I went to Grand Rapids, Mi for 800 and returned to Chicago for 450. That was back in April of 2017. See...2750 for the week of work, that's a recipe for failure.

    To better illustrate, here are paid trips for the first quarter 2017. I won't type the whole year. Note that very few of them give 1K a day revenue. OR even if they do, the back hauls/deadheads spoil the loop rate
    1 Melrose Park, IL - Springfield, OH 700
    2 Tip City, OH - Milwaukee, WI 650
    3 Chicago Heights IL - Atlanta, Ga 1200
    4 Atlanta, Ga - Miami, FL 1150
    5 Nashville, TN - Chicago, IL 650
    6 Elk Grove vllg, IL - Dallas, TX 1840
    7 Dallas, TX - Miami, FL 1900
    8 Jacksonville, FL- Milwuakee,WI 1000
    9 Kenosha, WI - Ft. Smith, AR 1350
    10 Ft. Smith, AR - Marion, IN 1125
    11 Chicago, IL - Columbus, OH 725
    12 Cincinatti, OH - South Holland, IL 500
    13 Chicago Heights IL -Sulphur Springs, TX 1500
    14 Sulphur Springs, TX - North Platte, Ne 1350
    15 York, NE - Joplin, MO 700
    16 Joplin, MO - Joliet, IL 800
    17 Bensenville, IL - Kanasas City, MO 900
    18 Bensenville, IL - Armdore, OK 1600
    19 Dallas, TX - Orlando, FL 1900
    20 Bainbridge, GA - Elgin,IL 1150
    21 Bensenville, IL - Armdore, OK 1650
    22 Dallas, TX - Orlando, FL 2050
    23 Orlando, FL - Detroit, MI + Chicago, IL 1550
    Please feel free to put the numbers, you would have gotten for those next to the column.
     
    Last edited: Jan 22, 2018
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