Sitting cost per mile.

Discussion in 'Ask An Owner Operator' started by camaro68, Mar 4, 2012.

  1. camaro68

    camaro68 Medium Load Member

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    How much is sitting cost per mile? Average daily miles divided by daily fixed/variable cost. Example: If my avg daily miles=400. My daily fixed/variable cost= 32.87. $32.87/400= .08 cpm. So if I wait five days on a $2.50 load. Does that $2.50 rate now become $2.10/mile?
     
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  3. Hardlyevr

    Hardlyevr Road Train Member

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    I would say that your daily fixed costs times the number of days that you sit, should come off the total of the line haul of the order, and then after that reduction divide by the miles, to give you a new revenue per mile that would account for how long you sat.
     
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  4. snowwy

    snowwy Road Train Member

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    what's the going rate for a sitting truck anyways.

    or renting i should say.

    since the trailer never got completely unloaded and the truck wasn't allowed to leave. and ended up taking the load back.

    the trailer was loaded with equipment for a job that didnt pan out so other locations had to be found which didn't pan out. so the equipment ended up coming back home.

    or even if the job panned out. the truck was still stuck till the job finished to bring everything back home.
     
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  5. MNdriver

    MNdriver Road Train Member

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    I have ~34/hr operating cost laid out for my business plan.
     
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  6. camaro68

    camaro68 Medium Load Member

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    Sounds like a good scenario for a going out of business sale.........LOL
     
  7. MNdriver

    MNdriver Road Train Member

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    because if you don't plan for some down time, that time cost will come back to haunt you and you will be out of business.

    You can't turn the wheels 7/wk, 52 wks a year. You have to park it to get it serviced, break-downs and other costs that WILL happen, not might.

    Cost of a Major might be estimated at $10K, but you will still be without a truck for 7-10 days. How much money did you loose there?

    What about a brake job, a day? maybe two?

    Getting tires installed, a day right there.

    How about the time around the holidays? Thanksgiving to March starts getting rather sparce for some lines of hauling. There's times it would be cheaper (dec 23 to Jan 5 comes to mind) to just park the truck and take some time off.

    Memorial Day, July 4th and Labor Day were never a good time to look for loads, Long weekends. People sit for them too. Unless you are really on the ball and get good loads that got you driving 1400+ miles.

    Still haven't figured in your personal time that you want/need to take either.
     
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  8. camaro68

    camaro68 Medium Load Member

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    My reason for the sitting rate question comes from a thread I read earlier. A guy was waiting on a good paying load. Offered 1.75/mile. Waited 5 days for a little more than 2.00/mile. So I was trying to figure the actual rate for the 2.00/mile. Figuring in the fixed/variable cost. I realize you need time off and other factors. But when things are running good and your on a roll. Would the 1.75 rate have been the better choice. Considering you had to wait 5 days for a little over 2.00/mile. And did he realize the 2.00 rate is now about 1.85 for him after the 5 day wait.
     
  9. MNdriver

    MNdriver Road Train Member

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    Too many other variables in there....

    Was it $1.75 for a short run? long run?

    Same with the $2.00. Short or long run? They can change the calculations there.


    I can see planning 24-36 hours between loads. Not 80-90.
     
  10. Les2

    Les2 Road Train Member

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    Your theory is flawed. It cost you nothing to sit. Before you say food and other stuff you need to live off of, you need to think that you still have that even if you took the cheap load.

    So going by your numbers you figured $.15 a mile off the $2.00 a mile rate, you would also have to take off that same amount for the $1.75 rate. You still gotta eat...

    The theory of... "A load on my wagon is money in my pocket" is a good way to end up out of business!
     
  11. skateboardman

    skateboardman Road Train Member

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    les, i think he is thinking more of fixed costs per day like truck payment , ins , etc that monthly costs divided bt 30 wiuld give a per day basis of costs
     
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