Taking the plunge. My journey as an O/O.

Discussion in 'Ask An Owner Operator' started by Farmerbob1, Jan 7, 2019.

  1. Farmerbob1

    Farmerbob1 Road Train Member

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    My P&L includes all the Crete shop costs, and the incidentals, as well as my cost for the 2019 engine rebuild that was not paid until 2020.

    Total maintenance expenses for tax purposes in 2020: $55,128

    One minute and I will pull together more numbers. Taxes are complete on my end, but the accountant still needs to do their part.
     
    Cat sdp Thanks this.
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  3. Farmerbob1

    Farmerbob1 Road Train Member

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    Ok. 2020 basic overview.

    Total 119,586 miles driven.
    9,032 empty miles.
    Empty % 7.55

    Total revenue to the truck was $156,269 or 1.30 CPM

    Fuel + Fuel tax was 39,501 or 33 CPM

    Truck maintenance, repairs, and additions (fifth wheel made adjustable) total was 55,128 or 46 CPM.

    All other truck related variable expenses (hotels, tools, electronics, clerical supplies, etc.) was 4,832 or 4 CPM

    Truck payments, registration, taxes, tags, truck insurances, and workman's comp were a total of 30,021 or 25 CPM.

    Total expenses. 129,481 or 108 CPM

    HOWEVER, as noted above, the expenses include my part of the engine rebuild at the end of 2019 due to Crete maintenance account payment shenanigans. That was $13,864.

    Total real 2020 expenses were $115,617 or 97 CPM.

    That puts my income at $40,652 or 34 CPM.

    At this point, however, I have paid off the truck loan, which cost me $20,257 in payments last year.

    I am also planning on moving to a different company in the short term, either Schneider, Landstar, or JB Hunt, where I can run off their load board.
     
    TallJoe Thanks this.
  4. Eldiablo

    Eldiablo Medium Load Member

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    I’m sorry but you would have been better off to have worked at a place that paid you better and saved up cash and paid for a truck. I just can’t see working as hard as you do for little gain. I mean there’s places you could have been making 100k a year and not any payments or truck expenses. I’m not being ugly just realistic. You are a hard worker and should be making more money.
     
  5. loudtom

    loudtom Road Train Member

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    If those maintenance figures are mostly from using Crete's shop, that's pretty bad. They probably get significant savings on parts and labor, but those are dealership rates.
     
  6. Cat sdp

    Cat sdp . .

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    The air , all in rate at team orange seems to be going pretty well ......

    it would make me a little nervous to jump over there right now.........but $1.30 a mile gross should be easy over there....
     
    Farmerbob1 and Midwest Trucker Thank this.
  7. Midwest Trucker

    Midwest Trucker Road Train Member

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    Honestly, if you can survive on that, you can survive on anything. It’s gone basically exactly how everyone said it would but through your work ethic and low cost of living, you’ve made it work. Hopefully you can make some big changes soon before life gets in the way and brings you down.
     
  8. snowwy

    snowwy Road Train Member

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    Take out the truck payments and you'd be up to, what? $60g personal income? Ish..


    So now you gotta find better cents per mile.

    Good job though. Paying off your biggest asset. Most wouldn't have made it.
     
    Farmerbob1 Thanks this.
  9. Farmerbob1

    Farmerbob1 Road Train Member

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    No. I barely ever used Crete shops because no Crete shops are full service shops. I rarely have my truck in the shop for just one thing.

    Maybe $750 of my maintenance was done at Crete shops, and that number is probably high.
     
    loudtom Thanks this.
  10. Farmerbob1

    Farmerbob1 Road Train Member

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    The first couple years of any small business is full of growing pains and learning experiences.

    If owning my own truck had not worked for me, Crete is still counting my time with them as continuous employment. Just got my 4 year Crete driver sticker for my truck. As long as I fulfilled my financial responsibility to Crete for the truck, they could roll me right back into being a company driver.

    Owning a truck for over two years, and paying it off early, despite the low pay, tells me that I am ready and capable of moving on.

    A lot of people work well when they work for another person, but do not have the motivation to work well when they are the boss. I know now that I can do what needs doing even though I don't have a boss telling me what to do.

    So, yes, I could have jumped into the deep end of the pool to see if I could swim, and made it work. I know that now, but I did not know it then.

    Why didn't I switch after a year? I knew I could do it then too. I wanted to have the truck paid off before taking on more o/o responsibilities like self-routing. I fully expect that I am going to deliver into somewhere with no good outgoing loads, at least a few times.

    I tend to be very fiscally conservative. Not in a frugal way, but a careful way. I will spend some money or lose some potential money in order to reduce risk to me.
     
  11. iraqralph43

    iraqralph43 Road Train Member

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    As O/O ....can you get the .04 cpm bonus...for doing 30,000 miles in 3 months.... yearly profit sharing like a company driver does....and are you paying for .. or have any health insurance though Crete
     
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