Did I get your attention? I hope so! I'm curious where each of you sit based on operating costs, as I'm being told that $2/mi is good money by majority of brokers.
I got a breakdown for you.
15000 mile service: $639 based on recommended procedures
Engine Oil & Filter
Axle service (severe duty)
Aux Trans (severy duty)
Transmission (manual running OEM-Preference)
75k miles (1 year): $19,973 (round to 20k) + 5x$639
Misc Repairs and others
Preventative maintenance (brakes/wheel bearings...etc)
Your 5 15k services
150k service (2 year): $600 + 2x$23195 = $46,990
450k (life of vehicle 6 years) : $70k for new vehicle=$210,970
$210,970/450,000 = $0.47/mi
Insurance = $0.13/mi
Fuel = $0.50/mi
Total before anything else: $1.10/mi
Decent pay (75k take home)?
Let's add some of that up.
Trailer Replacement: $55k $0.15/mi
Trailer repairs and maintenance: $0.02/mi
Office cost: (O/O with no personel) $7.5k $0.10/mi
Pay $120k before taxes = $1.60/mi (Take home $1/mi, self employment taxes $0.60/mi)
Yes, running more miles will assist in bringing costs down, but only fixed costs, not variable.
Somebody, please explain to me why you are willing to run for $2/mi? You will go out of business, maybe not, but are you achieving your goals in life before you die, and saving for retirement?
EDIT: Please acknowledge this is assuming all miles are loaded, if you have empty miles above this you still need to add the truck trailer and office to it, after redoing the fixed costs under the new mileage.
Assume you run 90k total per year, 75k loaded and paid you now must make. $1.29 for every unloaded mile plus $2.89 per loaded which amounts to making $3.15/mi loaded.
STOP TAKING CHEAP FREIGHT YOU IDIOTS!!!!!
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What a Wonderful LOGICAL Breakdown Of Costs.
There's will continue to be "those people" that will run a 44k Load out of Florida for a whopping $.85 (& LESS) a mile, to KEEP Owner Ops broke claiming "We're All In".
I'm just running numbers as they should be and the true break-even. Wages are an expense and not just profits, as many will disagree with that. The reason I consider them an expense: If I replace myself with a driver, I have to pay that anyway, so at the end of the day, I might as well add that to my fixed expense sheet as salaries. In my operation, I also have my fiancee as a dispatcher so it isn't one income, we are living off of it for both of us. Reality is, I'm slightly underpaid (about ten years of experience in flatbed, mostly drop-deck OD loads) and she is overpaid (underutilized.)
Another Canadian driver Thanks this.
639$ for 15k service?
You must have a paccar.
My cummins just cost $455 with a gallon of Lucas.
So I can under bid you $184 on the next load.
And 75k take home pay??
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