Operating Costs

The great thing about running your own business is that we each get to decide what is best for our own situation. I don’t ever intentionally run at a loss or beak even as I will deadhead past junk freight. I generally run dedicated contract freight so my rates are consistent over the life of the contract. I also figure my net per mile on every last item, service or expense associated with the business from an in-frame to a bottle of window cleaner, including retirement contributions on the business side. The retirement contributions on the personal side are after the net bring home. Occasionally I run spot market or out of my lane and will bypass low paying freight coming back towards home to get to the better freight. Other times I stop in and pick that lower paying load up, if it doesn’t cost me much extra time. I have no college degree only 1.5 years of college, but was taught by my Grandfather who was one of the most intelligent people I have ever known. He had a 6th grade education but managed to succeed in life.

 

Seriously, I give you the benefit of the doubt that you are confusing something else with the cost per mile:
but what we mean by the cost per mile is something that I laid out below:
based on my YTD numbers:



Mileage: 92 228
Fuel: $40,720.13 (0.44 per mile)
Maintenance: $16,535.97
Insurance : $ 8, 510
Truck Loan payments: $0
Trailer Loan payments: $6,987.48
Tolls: $8,639.80
License&Tax $4,938.21
Parking $3,706
Scales: $ 225
Office: $1,429.95
Fees&Interests: $4,691.98
Communication: $2,200
Other Expenses: $309.59

TOTAL: $ 94, 202.63
Cost per mile: 1.02 (excluding driver's pay which can be arbitrary and very )
however;
with a driver's pay at 45c a mile: $50,725 (line hual) + $3 000 (additional drops, detention, layovers) = 53 725

cost per mile: & 1.60

 

1.50 a loaded mile is horrible, I don't like to touch anything under 2 a loaded mile.

 

In order to compare apples to apples, we may come up with a figure that reflects only "truck rolling on the road" cost per mile:
Fuel cost per mile + Maintenance cost per mile which in my case is 0.62 cpm
But this only serves to show if someone else's truck is more or less efficient to operate.

However, someone may still effectively argue that he'd rather pay higher maintenance for an old truck than 3k payment per month for a brand new truck...so this comparison would not make sense entirely business wise because it does not show cost of revenue loss due to downtime.

 

I think ya'll are full of jello......
I've never once sharpened my pencil an 'drilled down'; I simply run.
I have no idea whatsoever what it costs to run my truck; never really thought it was that important....and here's why......
Cost of fuel, ain't a thing you can do about it
Rates, they are what they are. Either take it or sit.
Maintenance, again, it is what it is. Fix it, and roll on.
Taxes, you're gonna pay. The only control over that is if you keep your receipts, and even then, it doesn't move the needle that much.
Permits, buy 'em. You're gonna need 'em.
Expenses on the road, do your best to keep them down, but there's no sense in making a miserable situation that much more miserable. Live a little.

Yeah, get your best deal on tires and keep an eye on fuel prices. But, at the end of the year, the winners will be those who got up every day, did their best, and tried. That said, those who run for 88 CPM plus FSC will fail because they fundamentally don't understand the business. However, $1.00 a mile out of Florida is just fine with me, so long as I got $2.50 to go in. And if your 'pride' won't let you run for $1 a mile, have fun sitting at the truckstop; I'll be out making money.

 

True, the way I see it is lots of people will say you have to take the good with the bad. I've always said you got to take the great and sometimes settle for the good with this business if you are going to make it work. To many things now days that take a big bite out of profit and sometimes in a short period of time when you thought you were doing good. Might was well drive a company truck if you're going to break even in the end.

 

I could probably drive a company truck and do as well as I am now. The wrench in the monkey works is, I like adapting what I'm in to suit my wants/needs. Most companies won't allow you to make modifications. One company I was with had no problem with me removing the passenger seat, most don't like that. If I'm going to be out here as much as I am, company or o/o, I'd rather be comfortable in my own equipment than constantly frustrated in someone else's.

 

You have to move the truck for $1.00 per mile????