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

Rate per mile spreadsheet I made: https://docs.google.com/spreadsheets/d/1xlg_aWP8ELBKGt4brlsEpCtJAnFMbg51afvUc7eQJ9I/edit#gid=0

 

Could be loaded miles, practical miles, pc miler... Does company or operator pay insurance, plates, tolls, trailer rent ? $1.60 seems a little low, I would hope the company would cover most of these items, but there is a lot to consider. Length of haul, detention ? $1.60 doesn't mean much without details.

 

if you call the company most will send (email) you all the info on how they pay and what they cover (ifta, plates,....)

 

Cost per mile has to include a number of factors specifically from your own business expenses. It would include things like truck and trailer payment, insurance, personal injury protection in lieu of workers compensation, fuel costs per mile, routine maintenance, truck washes, plates and permits, highway use tax, to name a few. The lure of being an owner operator is the pride and freedom of having your own business. Along with that comes a lot of hard work and responsibility. It's not for everyone. The downside is being responsible for the costs associated with repairs and maintenance. If you suck an injector tip through your turbo and you're not under warranty, do you have the means to fix it? ($7k or so) If your crank breaks in half can you afford to fix it? ($30k it cost me for an out of frame on my CAT). Big trucks cost big bucks. Think hard about it before you decide. It's stressful at times but rewarding as well. I wouldn't give up my truck for the world.

 

So, Here is my 2014 year end statement. I had a couple of big equipment costs in 2014, so the actual cost per mile is higher then normal years, but it will give you an idea. My equipment cost is for a truck and trailer, so if you are just paying for a truck that would be less. Also, I run flatbed, so I tend to get pretty bad fuel economy, anywhere from 5-6.5mpg. If I was to run van, I could get 6.5-8mpg. Hope this helps.

cpm= cost per mile
[TABLE="width: 268"]
[TR]
[TD="class: xl65, width: 194, bgcolor: transparent, colspan: 4"]Total Repair and Maintenance
[/TD]
[TD="class: xl68, width: 70, bgcolor: transparent, align: right"]$22,087.19
[/TD]
[TD="class: xl66, width: 42, bgcolor: transparent"]cpm
[/TD]
[TD="width: 49, bgcolor: transparent, align: right"]0.1729
[/TD]
[/TR]
[TR]
[TD="class: xl65, bgcolor: transparent, colspan: 4"]Total Permit/insurance and tolls
[/TD]
[TD="class: xl69, bgcolor: transparent, align: right"]$23,420.45
[/TD]
[TD="class: xl66, bgcolor: transparent"] cpm
[/TD]
[TD="bgcolor: transparent, align: right"]0.1834
[/TD]
[/TR]
[TR]
[TD="class: xl65, bgcolor: transparent, colspan: 4"]Total Office supplies and services
[/TD]
[TD="class: xl70, bgcolor: transparent, align: right"]$4,601.69
[/TD]
[TD="class: xl66, bgcolor: transparent"] cpm
[/TD]
[TD="bgcolor: transparent, align: right"]0.036
[/TD]
[/TR]
[TR]
[TD="class: xl65, bgcolor: transparent, colspan: 3"]Total Driver Payroll
[/TD]
[TD="class: xl65, bgcolor: transparent"][/TD]
[TD="class: xl71, bgcolor: transparent, align: right"]$0.00
[/TD]
[TD="class: xl66, bgcolor: transparent"] cpm
[/TD]
[TD="bgcolor: transparent, align: right"]0
[/TD]
[/TR]
[TR]
[TD="class: xl65, bgcolor: transparent, colspan: 3"]Total Equipment Cost
[/TD]
[TD="bgcolor: transparent"][/TD]
[TD="class: xl72, bgcolor: transparent, align: right"]$42,704.67
[/TD]
[TD="class: xl66, bgcolor: transparent"] cpm
[/TD]
[TD="bgcolor: transparent, align: right"]0.3344
[/TD]
[/TR]
[TR]
[TD="class: xl65, bgcolor: transparent, colspan: 2"]Total Fuel
[/TD]
[TD="bgcolor: transparent"][/TD]
[TD="bgcolor: transparent"][/TD]
[TD="class: xl73, bgcolor: transparent, align: right"]$86,602.72
[/TD]
[TD="class: xl66, bgcolor: transparent"]cpm
[/TD]
[TD="bgcolor: transparent, align: right"]0.6781
[/TD]
[/TR]
[TR]
[TD="bgcolor: transparent"][/TD]
[TD="bgcolor: transparent"][/TD]
[TD="class: xl67, bgcolor: transparent"][/TD]
[TD="class: xl67, bgcolor: transparent"][/TD]
[TD="bgcolor: transparent, colspan: 2"]total cost/mile
[/TD]
[TD="bgcolor: transparent, align: right"]1.4048
[/TD]
[/TR]
[/TABLE]

 

Also, depending on the carrier, some cover insurance, baseplates etc,. So typically when you see a carrier advertising 1.60/mile they would usually pay for the baseplates and insurance, or a least have deeply discounted insurance. Also the companies like this, that pay 1.60(usually advertised like 1.10/mile plus fuel surecharge) are kinda like the schneiders, j.b. hunts, etc. They are for the new comers, and you tend to make a little less with them, but they offer a lot of support.
Good Luck

 

The ATA says their members reported the average cost to run a truck is $1.68/mile

 

1.68 is pretty high. That would probably include a driver payroll. If I add a 60000 payroll to my 2014 year end statement, it brings my cost up to 1.87/mile. This is Total miles I put on the truck.(127000 for the year)