STOP TAKING CHEAP FREIGHT YOU IDIOTS!!!!!

Discussion in 'Expediter and Hot Shot Trucking Forum' started by wildcoyote, May 30, 2022.

  1. wildcoyote

    wildcoyote Light Load Member

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    Apr 20, 2014
    Michigan
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    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)
    Fuel Filter

    75k miles (1 year): $19,973 (round to 20k) + 5x$639
    Misc Repairs and others
    Tires
    Preventative maintenance (brakes/wheel bearings...etc)
    Your 5 15k services

    150k service (2 year): $600 + 2x$23195 = $46,990
    Coolant Change
    Overhead

    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
    Trailer?
    Office cost?
    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)

    Truck: $1.10
    Trailer: $0.17
    Office: $0.10
    Pay: $1.60
    Total: $2.97/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.
     
    Last edited: May 30, 2022
    BennysPennys, Cat sdp and Val_Caldera Thank this.
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  3. MacLean

    MacLean Heavy Load Member

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    For $1.60/Mile where do I send my resume?
     
  4. Cat sdp

    Cat sdp . .

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    Cascadia life…..@ 8 mpg

    it’s wrecked the industry
     
  5. Val_Caldera

    Val_Caldera Road Train Member

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    Triad, NC
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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".
     
  6. wildcoyote

    wildcoyote Light Load Member

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    Apr 20, 2014
    Michigan
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    I understand but look at it realistically. When I was driving as a company driver, I made an easy 80-100k (mostly oversize, went home 3-14 days a year.) As an O/O I really should be making around 75k after taxes. that means you have to make 120k per year, you will pay 37.5% give or take in self-employment taxes (15.3 + bracket).

    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.)
     
  7. wildcoyote

    wildcoyote Light Load Member

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    Apr 20, 2014
    Michigan
    0
    Lots of companies will lease at 15% in the trucking industry, little seem to be doing it in the hotshot world. If I leased guys on, I would lease at 85% with them being dispatched or choosing to get their own loads (no dispatch fee on either way, it is included.)
    Right! Not really though, these numbers were based on $4 a gal and 8mpg, so the fuel is a little lower than true cost this week.
     
  8. Kenworth6969

    Kenworth6969 Road Train Member

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  9. Judge

    Judge Road Train Member

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    Newport, Ar
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    639$ for 15k service?
    You must have a paccar.
    or maxxiforce.

    My cummins just cost $455 with a gallon of Lucas.
    So I can under bid you $184 on the next load.:downtown::downtown:

    And 75k take home pay??
    .56/mile.x85000 $47600.
     
  10. Cat sdp

    Cat sdp . .

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    Eat Chef Boyardee and live in a Cascadia and you can go much lower……:)
     
  11. Judge

    Judge Road Train Member

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    Mar 19, 2014
    Newport, Ar
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    Q.How do you fix it?
    A.Become a Broker.
     
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