Profit per mile

Plus the Cincy load will take you into a better freight area. A lot of people don't think of this.

One thing I've also noticed is people figuring up their bottom line rate per mile and running by it at all times. Knowing what it is is one thing, but running at that rate all the time is another. If my bottom line rate per mile is $2.00 I'm shooting for much higher.

Another thing, if you're running for less than $2.00 per mile, you might as well be leased onto a carrier.

 

That's exactly what he's saying.


I'd love to see the brains explode trying to understand my formula for figuring a load rate......

 

How do you guy figure that rate when you have personal bills? Example: mortgage, college tuition, car payment, etc etc? Do you take money out of business account to your personal account you share with the wife when needed? Or pay yourself bi-weekly a set salary and the rest stays in business account?

 

Thats what i had in mind when i go o/o is to pay myself a flatrate, so it is a fixed expense, and do a lil profit share and end of year.

 

If you pay yourself a salary lets say 3,000 bi-weekly. Should you put that in your expenses, for tax purposes?

 

You don't.


You run it as a business SEPARATE from the household bills.


That's why you pay yourself a set salary.

 

Wrong you take all your fixed cost and figure IF YOU RUN xxxxxx miles your CPM is $$$. My fixed cost does not change but if you figure it up at 75,000 miles anything over that your fixed cost drop

Insurance cost $8,000 a year @ 75,000 miles = $.10
That same $8,000 fixed cost @ 100,000 miles = $.08
So what ever I drive over my fixed miles "in this case" I make $.02/mi profit more on that 25,000 miles = $500

 

sure thing there boss.


Then you are figuring them as a piece part (miles) cost which is a variable cost, not a fixed.

http://economics.fundamentalfinance.com/micro_costs.php