Is this a fair representation of O/O costs per mile?

Discussion in 'Ask An Owner Operator' started by TheGrimReefer, Feb 23, 2015.

  1. TheGrimReefer

    TheGrimReefer Bobtail Member

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    So I was watching some youtube videos and started to get into a channel called Smart Trucking. They have this video here:

    https://www.youtube.com/watch?v=tGLs7g7RHo8

    It is about calculating avg operating cost per mile, which she worked out to 1.03 cents per mile. She uses her husbands business for all the numbers. Ok, so first off, 1.03 per mile didn't seem too high for costs, but then I calculated from the numbers what the net pay per mile is (net income (what you take home)/miles) and it came out to 0.93 cents per mile. I see companies paying O/O up to 1.60/mile.... So what's wrong with this picture? Are ads for companies advertising 1.60/mile hiding something? are they excluding some sort of cost you have to pay to the company after?

    Sorry, new to trucking and looking to see what the appeal of O/O is and working for myself and this gap between earnings was a bit much to ignore.
     
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  3. Al. Roper

    Al. Roper Road Train Member

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    Well my Base Cost( fixed and variable) just to operate the truck is 1.12. That does not include MY pay nor profit for company. Right now all in is 2.05 pm. Everybody's number are different, based on type of freight, fuel mileage, payments, etc. you will get a dozen different numbers.
     
    MJ1657 Thanks this.
  4. thelushlarry

    thelushlarry Road Train Member

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    My figures are very similar to this 1.03. Then you have to add driver pay which I feel for a driver of my caliber should be 75 cpm and then company profit for investment 25 cpm. Now you are looking at 2 bucks per mile break even.
     
    30-aught-6 Thanks this.
  5. TheGrimReefer

    TheGrimReefer Bobtail Member

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    Ok, so the numbers in the video are not far off. SO that leads to my second question, what does a company advertising 1.60 pm mean, what are they hiding? As a company driver I know I will only .44 pm, but I have no out of pocket expenses, except food
     
  6. reefer101

    reefer101 Medium Load Member

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    $1.35-$1.50 per/mile paying my self .40 c/mile
     
  7. TheGrimReefer

    TheGrimReefer Bobtail Member

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    Are you independent? Have you ever called a company that was offering 1.40/mile in an ad and asked about that? Did it not include fuel or something?
     
  8. Dryver

    Dryver Road Train Member

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    $1.60 too high? $1.60 too low? I know what I would ask but what are you asking?
     
  9. flood

    flood Road Train Member

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    what you are mot seeing is the FSC that would be added to the $1.60 and most companies also give you a fuel discount
     
    Last edited: Feb 23, 2015
  10. reefer101

    reefer101 Medium Load Member

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    you have to everage $1.60 or more on all miles, than you make more than company driver. so that would be 50c/mile which some company drivers are making in Chicagoland
     
  11. barroll

    barroll Road Train Member

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    When I was a company driver, I was trained by an O/O at a company paying $0.98 a mile to O/O's. That, plus FSC, came out to about $1.40-$1.75/mi. He was making pennies a mile, and had been at it for years. He blamed his students for not driving enough to make him money, but the truth is his overhead was so high, and income so low, he never would have made more than a company driver making the pay cap at the time, which was 38cpm.
     
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