How are they doing it???
Discussion in 'Ask An Owner Operator' started by DocHoof, Nov 30, 2014.
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$1.44 per mile cost? Seems really high. What is the breakdown?
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If your Cost is $1.44 / Mile you better be getting loads at the Min of $1.83 / Mile
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Some of our local truckers with chromed out rigs have wives with good paying steady jobs. It allows them to be super truckers since if they make money it is just adds some gravy to the check book. I wish it was my situation but it is not and it is the path I chose but it would be fun to dream that my my paycheck didn't really matter.
jbatmick Thanks this. -
Based on 100,000 miles per year:
Fuel: 0.75 per mile.
Truck payment: 0.14
Insurance: 0.13
Permits: 0.04
Taxes: 0.17
Repairs: 0.20
Load board fees: 0.01
Factoring loads: 0.10 (5%).
Total: $1.44.
I've gone high on fuel and repair deliberately. Fuel could be set as a realistic of $0.64, but leaves no wiggle room if prices go above $3.85. Repair is put into an interest bearing account that I will cap at $40,000, if I ever reach that. And taxes are an uncertainty at the moment, but I have figured my max to be around 17% by IRS documentation. And that doesn't include my pay. Believe me when I say, I'm not doing this just to break even; I have bills to pay BESIDES my truck, so taking loads paying at $1.60, I'm gonna end up living in my truck. -
wore out, SL3406, scottied67 and 5 others Thank this.
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Where do you run? Unless you are trying to stay in the Southwest or Florida, you still should be able to average 1.80+ with a van.
Do you negotiate?
Guy getting loaded next to me is going to the same place I am & asked what I was getting. I told him $1800, he said $1500. Turns out his wife dispatches him from home & she doesn't feel comfortable haggling so she just accepts the opening offer if it meets his minimum.LittleMissCabover Thanks this. -
We try to tell newer O/O's that the better paying loads go to established / well connected trucks. It takes time to make connections. Most of us do ( or did ) not work off of load boards, they usually only show the loads that have already been turned down due to lower rates.
Everybody's situation is different. My cost per hub mile is a buck fifty five, and my revenue per hub mile is two dollars fifty one. I pull local dedicated farm products, quite happy being home every night.
Reefer is probably not your answer, unless you have connections.
I can make any business look profitable on paper using published figures, but the real world is much different. Good luck
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