Operating Costs

I don't calculate per mile. I do cost per day on a five day work week. I've taken my fixed cost plus an average of the fuel I use. Works out to about $375 a day. It's probably higher but I like up keep a nice cushion for variables in fuel pricing. I can't stress enough having a savings account for maintenance only

 

Very good thread here- Good explanations,especially within spreadable income.

But do you guys realize how many people in this country DO NOT and CANNOT pay their share of taxes- And haven;t been caught....Yet?

Thats right- Kinda like those "certain" people that have to have the NEW caddy or Nike Shoe or whatever- And trouble themselves with maxed cards and then Repossesions.......People live beyond their means because they figure its more important to them than the consequences- So I ask them WHY do you mess yourself up lije that? They say- "Man,Lifes too short I Want It and now"

Ok, Whatever,,,,, Same with what Im talking about Here, Guys will go get Authority- Make Good money- Spend it all, And Dont pay taxes- As a matter of fact- Quietly,Their are Drivers reading this Right Now Behind or Not paying taxes.....

Remember,They are untouchable..Right???

And Big Government sees it-Knowa it and Will Get them when they least expect it- When all they have left is their family- Who Should dump on them too- For being a Fool.......Yet,Life goes on- Fools remain Fools- Less Educated want the Big money- Yet cant handle consequence....

Oh Well,

 

I also do belong to those in the category of passiveness... Even if we are, by nature, thrift and frugal and the only extravaganza is to buy a prime parking every now and then or go to a motel on a hot scorching day, we are subjected to market forces: we can't change the rates and lower down most costs by much. I agree that with time and experience, every one of us can judge instantaneously whether or not we are hauling cheap or not, or running hard enough or not, by mere intuitive means. So the very knowing of you costs and profits won't change the way you do things by much...the very knowing does not provide any real leverage, except that you can decide that you want to quit and do something else.

I still do believe that following your costs is a good and necessary thing. Just like it is important to know your blood sugar, blood pressure, prostate size... regardless of whether you feel good or bad.

Some of you sound, to my surprise, as if having a spreadsheet is something to snort at. Having one is really effortless, even with a pen and paper you can accomplish easy record keeping.
Yet, I see people here on this forum worrying about every last mile to be recorded for their IFTA, they even voice record their odometer readings when they see "Pennsylvania welcomes you" sign.
I hope the same people would not call me a pencil pusher...lol.

When JB Hunt sends me an invitation for Power Only, in which I read "$1.80 per loaded mile; 2500 a week" then by knowing my numbers, I can assess that's not so good an offer.

Or I can say from the retrospect of the last year, when I was running less and doing much better and, more importantly, when I see again that the average loaded mile to be above 2.75, then I know that it is not a good time to slack off, it is time to run the hardest you can, so I can afford to kick back in these current conditions.

When it is IRS filing time, I have it all ready too. Just take it to the accountant and I am done in 30 minutes.

 

This is physically impossible if you have any other cost after fuel. Right now fuel cost .39 per mile. 2.75 / 7 mpg = .39

I only do cpm for fuel the rest is cpd. Mine is $350 per day + .39 cpm for fuel. That covers my business cost , a little profit, and wage.

 

I do keep a small spreadsheet. It's just to track my savings vs. my goals.
Its all good either way.

 

No reason it can’t be both ways? My trucks only been in the shop a couple of times over the past 4 years. Whenever it is, I leave with empty pockets and a handful of disappointments. If it’s going to cost more than $1000 and 1 day I would just tow it home and fix it myself. Including complete engine and transmission replacements.
Here are some of the latest. I know I’m not interested in working my ### off to then hand it to a shop at $165 hr to guess and pray on my truck. It all goes right into my spreadsheet in the passenger seat in real time. Again I know some self made wealthy people that don’t know how to turn a computer on. I keep track because that’s how I was taught and operated over the last 25 years.
I like to have FACTS to make my business choices not gut feelings.
At the end of the day the bank account has to grow.......

By the way... none of this stops me from making some irrational business choices.
Did someone say CHROME?

 

I dont agree I think that a set salary is part of your expenses you say how much you want to make and that is part of your expenses every week then when all bills are paid the money that is left stay with the company for bad weeks or equipment replacement

 

Tug I have learned so much from you please keep sharing you Bain with us all.

 

OK OK I will confess, I wish I knew how to make a spread sheet and where and how to plug in the numbers to get an output. I also confess that at the end of last year I add up some numbers and divided some numbers for the first time. I do find it interesting and would like to know my numbers. It wouldn't change the way I do things much but I'm sure it would help make better decisions faster. If you are keeping track like this you are better off then me. But for some of us it is not a must. My Dad survived in this business for over 40 years and if you put him front of a computer he would not know how to turn it on.