cost per mile to remain profitable

Separate fixed and variable expenses.

Fixed expenses will be everything that you pay if the truck does nothing.

I assumed 100,000 miles a year to figure costs before I started, and a running cost of $1.25 or so, per mile.

I left a company job at .70 cpm, therefore I set my minimum all mile rate goal at $1.95.

When revenue comes in, I take 15% off the top, into a ‘tax account’

The remainder is divided by all the miles that it took to generate that revenue.

I then set aside .30cpm for maintenance, .15 cpm for replacement of equipment (in separate accounts).

Then pay myself.45 cpm.

Any excess is profit that goes back into the business account.

 

If u cant find a load coming and going, see if u can negotiate a round trip rate , if it is the same place ur going to each time..

 

Fuel cost 2.25 per gallon divided by mpg 10 is 22.5 cents per mile.
Pay to driver is 50 cents per mile.
Add in 2.5 cents per mile for maintenance.
Your cost per mile to bring the truck back home is 75 cents per mile.
So the cost of bringing the truck home is 275x.75=206.25
Your fuel cost, mpg and driver pay may be different than my example but you must add that into the load payment.
So if you need 1.70 you must add the.75 for 2.45 to make this load profitable.
You can not expect to turn a profit on deadhead miles but they can not cost you money or you will be out of business.

 

No offense intended, but I don’t see this business plan working out.

At 10,000 miles a month, you’ll have to generate 90 cpm to satisfy the salary figure of $9k/month.

If you repeated today’s run of $400 - 5 days a week, 4 weeks - You’ve generated your salaries - but what is paying fuel/maintenance/insurance?

Did you inherit this business somehow, or was this a planned venture?

Don’t get me wrong -.its better to ask these questions sooner than later.

 

Your cost per mile is the same. Loaded and empty.
Especially, If you have an employee driver, not yourself driving. Don't forget about the payroll taxes! Work comp. and all the other little costs.

The fuel cost and maintenance may be a little lower empty, but all the other costs remain the same.
Example above. Loaded cost $1.70/ empty $0.75 per mile. I would figure my cost at $1.70 for all miles.

Your fixed costs are a little different to figure per mile, until you ran a few months.
In time your insurance should drop a little and the fuel will probably rise.
Good luck

 

Earnings to operating expenses

Check post #4

 

Wow...wow..wow. .... Everything totaled up every cost to live from your netflix to your truck insurance. Total it all up. Lets say uts 5k monthly fuel is a running variable. Food you can control if you have a fridge. So at a minimum monthly net of 5k you need to do math. I know almost to the dollar how much i will make after fuel cost running most loads and i do the math with all miles not just loaded. I have had a few weeks i turned 3600 miles and only was loaded 2800 still grossed 8500 took home almost 7k understanding the cost of operations is the biggest thing. I don't work for free and if you know you need to make X amount a week sometime you drive more then you want to to make it happen.