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

How can you be good with them keeping what they have no right to keep? Certain charges should ALWAYS be passed 100% to the truck owner. Fsc is one of them.

 

Amen. Funny thing is, this cat's saying he's pulling in $1.14 FSC. That's just beyond credible and I'd be seriously interested in seeing how the accountants are reporting that on a settlement sheet.

But back to the point: FSC, accessorial, detention, layover should all be 100% pass through. It's the owners money...but I fear we're speaking to stones here.

 

I agree 100% that you should stockpile for the future.

I still contribute to my IRA whether I run 1000 miles or 10000 per month. Every little contribution adds up in the long run.

My business model is simple.. run more when the rates are high, and park when they’re low. If I don’t average $2.25 per mile on my total miles including deadhead, I don’t run. That’s .20cpm less than my rolling average for the past 12 months but that’s my minimum.

I spend less in maintenance and repairs by running less miles. I also have no truck or trailer payment, no mortgage and no extravagant bills. My truck insurance is my highest fixed expense at $1000 per month.

The main thing for any business is keeping your operating costs in check. The next is knowing when you’re spending too much and getting that number under control.

I think you have a good handle on what you’re doing, I just have no desire to drive that many miles. I spend more time with my wife and kids than with my truck and I wouldn’t have it any other way.

 

He said 19 cpm fsc. That is actually rather low. My last load was @37 cpm. Line item charge. There was an additional line item charge for an extra stop. Everything on my settlements are line item charges. As for the owner should get 100% of everything, i disagree on one instance: If the carier charges a percentage for use of their trailer i can see an arguement they are entitled to that % of detention and layover cause those are equipment utilisation charges.

 

Do you get workman comp from Crete? It's very cheap. How was that amount calculated?

 

I just ran your numbers through my spreadsheet using a 2 month average as follows:

$29,936.04 Revenue ($14,968.02 monthly average)
23,279 All miles (11,639.5 monthly average)
$1.29 revenue per all miles

$4,712.48 Fixed costs ($2,356.24 monthly average) *I added $45 for cell phone.
$13,840.97 Variable costs ($6,920.49 monthly average)
$1,550.00 Personal ins/w.comp ($775.00 monthly average)
$20,103.45 Fixed & Variable without payroll ($10,051.72 monthly average)

$9,832.59 is what's leftover for 2 months ($4,916.29 monthly average)

$0.42 a mile is what's leftover to pay yourself a wage without factoring a couple of other line items that really should be added to your actual cost of operation but I left them out for mercy sake

From a personal standpoint, all that stuff about rewards points, 1% cashback on your credit card, etc., should just be thrown out the window, it really has no relevance in what your real costs of operations are.

 

If anything running like this will teach you to run as efficient as possible. I started in 2008 and I remember in 2009 it got to where I didn’t pay myself for a couple months to scrape by. Overall, looking back it made my business much stronger.

If you are down to figuring reward points at loves then that’s getting down to the nitty gritty. lol I truly do hope that you have a good learning experience and then move onto better opportunity while your still operational.

Good job breaking everything down. Good luck into next few months.

 

Wow.