OK, am I missing something? The way I understand it you are a team, 2 drivers in the same truck. If each person is doing 2500 miles a week then your miles a week should be 5000 +,- First, separate out your fixed costs and your variable costs. Fixed costs are things like insurance, plates, permits, truck/trailer payment, etc. Those costs don't change with the number of miles you run. They stay constant, weather you run or not. Your variable costs are things like fuel, tolls, maintenance (tires,brakes,PM's,etc.) fuel taxes, SALARY, (Don't forget that one) etc. I think your tire and maintenance cpm are in line, keeping in mind that the more miles you run the faster things wear out. If you are going to pay yourself a salary are you a sole prop. or LLC. or C-Corp or what? Alot of O/O's will go LLC. If you go the W-2 route remember there is matching Social Security/Medicare taxes for your business. So that $.50cpm is actually $.56cpm in terms of cost of labor/payroll. That is all up to you. What I was getting at is that if your a team your fixed "costs per mile" go down the more miles you run. Your total variable costs go up, not per mile but per week, month or whatever. When I was teaming hauling refer/produce it was not uncommon to run coast to coast 2700-2800 miles in 2 1/2 -3 days. 4800-5200 miles a week was a norm. You may not want to run that hard, but what ever the amount of miles you do want to run make sure you know what you need to make to be successful. One cost you don't have in your list is profit. Build that into your rate calculations too.
Just my .02
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Discussion in 'Ask An Owner Operator' started by " OPTIMUS PRIME ", Sep 22, 2010.
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i am registered in penn and the appx 1800 covers my plates and all states except oregon since for the amount of times i went there it is cheapr to by the one trip permit.
sorry took so long for my to answer it was my first time on this site -
I'm correcting the fixed and the variable costs as we speak. I didn't forget the salary, i have it at $50k a year each.
LLC. I didn't know about the SSI. and Medicare tax.
I didn't put the profit in b/c I forgot to tell you that those numbers were based on the break even point, anything after that was a profit. I'm at $1.34cpm. as the break even point right now.
So far i added a lot of things like home-time, scales at truck-stops, tolls, pre-pass for the scale houses, subscription softwares, factoring companies, etc. that I forgot thanks to YOU and OTHERS with great responses. THANK YOU SO MUCH FOR YOUR HELP. -
I just changed mines to 2k a year.
I'll keep that Oregon Plate in mind when it's time pay for the plates -
oh and it's nice to see OPTIMUS PRIME has unleashed the fury known as CAPS LOCK!!!!josh.c Thanks this. -
josh.c Thanks this.
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Jfaulk99: who put the sawdust in your shorts this morning?
Some reason you're attacking people and making fun of them? I see no fury in OptPrime's posts....did I miss something? -
josh.c Thanks this.
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