looking for cost numbers

Discussion in 'Ask An Owner Operator' started by ben johnson, Jan 18, 2020.

  1. ben johnson

    ben johnson Bobtail Member

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    6 years in, money saved up. looking to make the jump to purchasing my own truck. researching, hence why im in the forum, costs. if i put a down payment on my own truck and go the process of getting my own authority and then lease onto the company i’ve been with, it ups my percentage they give me from 71% of the load to 77% but they take care a lot of the invoicing and cumbersome paperwork, i believe.
    if i go completely independent( lease a trailer, get on a load board), then i have to do all that. i’m looking to get a new truck and new-ish trailer lease. knowing, or being informed, that this route would make my first 2 years a wash until i pay off the truck and trailer. this leads me to my questions-
    1) the numbers i crunched just to make my equipment, taxes, bills per month was around 13,000. is that an accurate number. this includes truck and trailer payments, fuel, load board and wifi hotspot, insurance, costs and my personal bills.
    2) is there profit to be made after that? or am i eating ramen noodles
    3) do these numbers seem accurate/ realistic? asking for a friend
     
  2. Deere hunter

    Deere hunter Medium Load Member

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    Do you know what you’ll be making per loaded mile . What percentage deadhead , and average miles per week??
     
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  3. ben johnson

    ben johnson Bobtail Member

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    i’m basing what i think i would make per week/ per month on this current week. just for comparing numbers sake. i pulled in $4800 in gross revenue. 5 loads, pretty good per mile average. close to $2, before costs obviously. around 2800 miles this week. so $17200 for the month. based on my numbers that would be $4200 for the month profit. but that is straight in pocket after all costs. and i assumed i would make a low $40k-ish the first two years till i pay off the equipment. then after that, truck and trailer still have low mileage and the following years that salary would go up significantly.
     
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  4. ben johnson

    ben johnson Bobtail Member

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    i don’t own a house or anything. and my food and stuff per month/ year are figured into my costs. so, personally, i’m not looking to need a super high salary. just a nice profit to take some vacations every once and a while
     
  5. pavrom

    pavrom Road Train Member

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    Just buy woodflooring equipment that cost 15k ( top of the line ) , installation price of the 1sq ft is $2 , refinishing or sanding another $2 . I can do 1000 sq ft in 4-5 days working 8 to 5 ...with 3 hour break every day , sleep home every day , have wild weekends ! Equipment will last 5 years atleast ... Maybe more , break downs cost virtually 0 compared to trucking . Go figure
     
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  6. Midwest Trucker

    Midwest Trucker Road Train Member

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    He’s saying start a wood floor refinish business is how I took it.

    Anyway your expenses are probably pretty accurate. You need to gross more though. Need to be at 20,000 for the month or higher to be worth it on your own authority all things considered. And by worth it I mean really getting ahead. This stuff is not easy so you need to be doing very well to be worth it. Otherwise take pavrom advice above.
     
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  7. TallJoe

    TallJoe Road Train Member

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    Yeah. Floor finishing business always thrives in Chicago. As long back as I remember. Many live in half million houses here doing just that. All you need is a strong backbone and knees and be accurate in measurements and cutting.

    If we are talking dry van:

    I agree about $20K gross needed and no more than 12K miles a month per month. I am not sure, if more is even possible per HOS. That sort of mileage will generate up to $50K - 60 costs in fuel, maintenance and tolls (Midwest, East Coast)
    The rest is equipment payment, insurance, licences and taxes, etc could be another $50 - 60K

    Now, 20K a month is not easy working load-boards only, no to say impossible, especially, if someone wants to live life. To make 20K per month, you have to stay focus every day, not thinking about going home every weekend. Even every second weekend. The only way is to go out there make $20K and then sail back home.
     
  8. craig_sez

    craig_sez Road Train Member

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    Unless you have over a 100g's saved i wouldnt go new..
    Try the 1st cpl yrs on a pre emission use trk...
    Put some $ into the used one and you will not have as big of a hit on your account..Plus if it dont work out its not as big of a loss..

    Oh and your gonna need a big chunk of $ to cover costs n such for your 1st month or two..
     
    Last edited: Jan 19, 2020
  9. Scooter Jones

    Scooter Jones Road Train Member

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    The American Dream of owning one's business lives on.

    This business, like most, is tough. If you have some experience and a good driving record, I'd recommend your "friend" get on with a good company that pays well.

    Preferably one that pays by the hour with solid benefits like UPS, FEDEX or the like.
     
    Last edited: Jan 19, 2020
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