Operating Costs

Discussion in 'Ask An Owner Operator' started by TTNJ, Dec 8, 2019.

  1. TTNJ

    TTNJ Medium Load Member

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    i know there have been threads on this topic before but I am really curious how many O/O don’t know what the cost per mile is to cover all of their costs. My guess is that those fail don’t have a clue.
    I see a ton of folks on here that comment on low paying frieght and how they won’t move their truck for under $x.xx per mile, usually a number that is well above what their operating cost per mile should be.
    Frieght costs fluctuate based on supply and demand. Certain areas freight rates are great getting into but piss poor getting out of.
    As an O/O you are a business owner and you have to understand that some times business will be great while other times you will fight for survival.
    Bottom line...understand your costs and work to control your costs.
     
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  3. istumped

    istumped Light Load Member

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    +1. I also figure cost per day,(just to get truck on the road) and cost per hour. I have asked many serious youtubers that talk about making money what their cost is per day. NO ANSWER BACK YET. I agree it cost money to run a truck and it cost money to have it be sitting.
     
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  4. TTNJ

    TTNJ Medium Load Member

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    Exactly what I was trying to say...but you said it directly and made the point. A truck sitting is costing you money. Too many O/O need to swallow some pride and get off their high horse and realize sometime the truck moves to cover cost, not necessarily to make $.
     
    wright784, 86scotty and Banker Thank this.
  5. Accidental Trucker

    Accidental Trucker Road Train Member

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    Economists tell us to keep running an enterprise as long as all variable costs are covered, and some contribution is made to fixed costs. You'll still go under, eventually, but you'll work a little longer.
     
  6. HoneyBadger67

    HoneyBadger67 Road Train Member

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    There *is* an amount that must be met per day to just operate the truck, but how many are out here just to pay the nut? I have a car and a motorcycle that need to be paid, not to mention my belly gets upset if I dont toss groceries down there on a regular basis.
    You could argue that I don't need either of my toys, but what about the guys that have a wife (at home) and kids and a mortgage etc.

    My shorts get twisted if the rate per (loaded) mile dips below $1.50 because that doesn't factor in how far I'm bouncing to pick that load up. The travel agent gets irked when I mention that the bounce counts as miles on the truck.

    $1.00 per mile pays the truck bills but it doesn't pay for the toys or the nicer variety of groceries. Plus, if you're only covering your bills, where's the extra to put aside for the occasional hurricane force repair bill? Sometimes just the niggling little expenses (new wipers, batteries, PS reservoir, shocks, et.al) eat enough of the reserves away to make you nervous.

    Your bottom dollar rate has to reflect all of this plus the normal wear and tear of running up and down these wunnerful roads we have.
     
  7. Scoot 1971

    Scoot 1971 Light Load Member

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    42cpm is a very realistic # for our operation. We are leased onto a carrier and that is the # after all cost including 10cpm to our maintenance fund which is in a separate savings account. Enough in there now to cover an inframe on a DD15.
     
  8. Scoot 1971

    Scoot 1971 Light Load Member

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    $1 a mile towards truck seems ridiculous to me. How often does that truck break down?! We have put enough $ in our maintenance account to cover an inframe or, along with another 10-15k, replace truck if necessary with a 400,000 mile truck, which we have in savings easily.
    Maybe some of us don't have the business acumen we think we have. Honestly folks, it's not difficult at all to make really good money out here.
     
  9. Scoot 1971

    Scoot 1971 Light Load Member

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    We also have bills at home to be paid. A new house under construction, two useless 20 something sons along with two young grandsons we spend the entire summer with.

    We spend such $ each year taking care of kids whether they're pushing 30 or 7.
     
  10. Scoot 1971

    Scoot 1971 Light Load Member

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    There's always Uber if someone really feels like they need to run their own transportation business.
     
  11. JonJon78

    JonJon78 Road Train Member

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    You must get fuel for free?
     
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