RV Transport Companies

[/QUOTE]
Credit amount
$1250.00

Expense amounts

$646.15
$25.00
$120.00
$200.00
$250.00


Total expense
$1241.15


You loss (credit minus expense) is $(8.85)


It only feels like you made $700 but the math does not add up. [/QUOTE]

You goofed, with your math and numbers he made $8.85. The contract amount is greater than his expenses. You left out insurance payments of $360.00/mo

 

The problem I see with many operators is they don't know the true cost to run a business and actually be profitable. Now, I realize some people think x number of dollars profit is a good living and the next guy wouldn't necessarily agree. It's all a matter of opinion. If I can't afford to get a decent motel then obviously I'm not making/charging enough for my services. Just my $.02

 

After 20 plus years in accounting I am sure I have a clue.

Most people should be intelligent enough not to include food costs.

 

Why would you not include food? After all it’s a cost of doing business. In the US even the IRS recognizes this as a deduction on a per diem bases. If you make enough to deduct your expenses you better be take the deduction.

Of course I get the feeling that just from my own questioning not many RV delivery drivers are taking the deductions as independent contractors. Many don’t know what an EIN number is or what it is for.


There are several problems with the overall RV delivery system. Some with the companies themselves, some with the drivers. The biggest is no standard for success. The regular trucking industry continues to try to deal with the hi turnover, excessive federal regulations, low cost freight, etc. Now all of these things are showing up in the RV delivery systems as well.

 

Because you have to eat anyway.

Sure it is a deduction but people eat.

I am an enrolled agent as well.

 

I’m not sure what an enrolled agent is, but don’t you deduct your expenses when you are on the road? This would include your food, (or a per diem daily amount per the GSA schedule). You do have to eat, but when you are away from home - it’s a cost of doing business expense similar to any expense you incur in the generation of revenue to the extent to profit or loss.

 

Google it sometime.

Many business entities are in the position of having the ability of taking per diems for travel and meals.

I get the per diem deduction.

But, use your head. You really have to eat each and every day of your life. The rules just allow you to expense the personal action of eating. It is not a cost of operating the business.

I can well afford to stay in motels. I choose not too. Many years ago, while fighting an IRS audit in Virginia, I awoke to find an intruder in my room who had broke into it. I have had 2 fires in my motels over the years. I used to travel every year quite extensively. Our company paid us for the meals. Even though as the boss said, you have to eat anyway, but you are not around the house to fix it.

Your other expenses are not in the total line as well.

I am not going to argue the little things. Most people that are so adamant that money cannot be made in this business are failures. I have been doing this since 2003.

Last year was a horrible year. Replaced a motor and transmission. Both of which paid cash.

I guess I should not have been able to do that. I assure you, it was not from the wages my wife makes.

Therefore, you can have your opinion, and I will bask in the fact that I am not working as a lowly company truck driver.

 

I still base my observations on people I have come in contact with. I agree, and will continue to agree with you, that there are a few who do this and make a living at it year round. Of course we need to come to some conscious on what that “living” is. If we use the lowest average number for a minimum wage person that number is around $15,800.00 a year. In higher minimum wage areas add another $2000.00 - $4000.00 a year. I would not expect a full time person making $35K or more doing this kind of work. The current model can’t support it. Overall we have to agree that someone who is making a living at this is the exception, not the rule.

There is a problem with an industry that has a 40-60% turnover every year. The high cost of entry, the turnover, the low pay are all of the same factors that have been affecting the trucking industry for years. The attitude that there is always someone else coming in the door to delivery RV’s has been what keeps the transportation companies around.


The reasonable expectation is that, at best this is a sessional job. Unfortunately as an independent contractor you have none of the protections, such as unemployment benefits when the season is over.


You mentioned that your recent repairs, (sorry to hear), were not out of your wives wages. Are you on her medical benefits package? Even under ObamaCare this would be an additional $2500.00 to $4000.00 expense in 2016 that drivers will need to budget for.


Unless the industry make major changes in the near future, capex in manufacturing relocation, technical changes in the assembly process ( manufacturing sub assembly that can be transported conventionally and final assembly done in other locations), the tsuami of driver shortage in the near future will continue.


I do disagree with you on one point, (I’ll default to you background) - "[FONT=Verdana, Arial, Tahoma, Calibri, Geneva, sans-serif]But, use your head. You really have to eat each and every day of your life. The rules just allow you to expense the personal action of eating. It is not a cost of operating the business”. I may be approaching this in the wrong way, but getting reimbursed for an [FONT=Verdana, Arial, Tahoma, Calibri, Geneva, sans-serif]expense in he course of doing business is the clear definition of a deductible business expense. It would apply as a cost of doing business even if it was successful or not in it’s over all profitability of the business.[/FONT][/FONT]
[FONT=Verdana, Arial, Tahoma, Calibri, Geneva, sans-serif]
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The reason it did't add up is you assume the numbers. The numbers you posted are so far off the mark.

 

RM and LGarrison - In virtually every thread you two and others who have figured this out are constantly battling the naysayers. While I understand not posting your actuals in entirety, it is apparent that if someone set themselves up properly they could be successful at this.

My point - not sure why you guys continue to defend yourselves. I say let them go on thinking that way and forget it. For me, I am seriously considering this, but I have determined I am not in the proper position currently. It wouldn't take too long for me though to get right.

From what I gather so far, this is what is needed for initial success:

1-ton Dually - Dodge Ram 3500 mega cab with Cummins and 4x4 is the preferred pack animal. A 2004-07 had the best motors (??). Truck paid for.
CDL A, Passport, and TWIC preferred.
Fuel mileage of at least 10mpg loaded and 16 empty. Keep your foot on the cab side of the firewall
Running Canada is More $$ per mile.
Stay out of the hotels and restaurants. Eat out of your truck.
Do not neglect the maintenance on the truck and know how to do it yourself.
Show up at the yard in person vice calling in for a load.

I have also determined you won't get rich this way, but you should clear what a mega company driver would; at least a newbie driver. The biggest key would be keeping your fuel mileage up and your maintenance tight and the left door closed.

Tell me, I pray thee, if I am close to the mark.