"The almighty $2.00 a mile theory"

[QUOTE=" OPTIMUS PRIME ";1674023]
What kind of trailer, how many miles a week, and is it stressful to the point where you would prefer to operate with another type of trailer?[/QUOTE]I have a 4 axle truck and a 4 axle Double Drop stretch trl. 68,000 miles for the year. The only time I get stressed is when the height gets over 16'.

 

You got a deal!

 

Hope you all enjoy the kool-aid. There's a difference between owning your operation versus having the operation own you. This avg per mile BS shows what amateurs you are in the business of trucking. You are great at driving but don't have a clue on what it takes to really be successful running a business.

Let's see if anyone on here can provide a usable formula for determining a hauling rate range for his/her operation.

 

As I said before, I average $2.36 per hub mile so far this year, pulling someone else's trailer. Home every night, same customers day after day. I only run about 45, 000 miles year,average about 4 days a week, cost about a buck sixty a mile to operate. Cost is high due to lower miles, but it will get better.I am happy.

 

Whats the matter? Don't know your avg. per mile to the truck? Because I know exactly how many miles I did this year and exactly how much I made, I'm an amateur? Or is the fact I can divide the numbers and get the answer, bothering you?

 

Why dont you inlighten us almighty one. You must know your cost to operate before you can give a rate because if you dont you will never know if the load will be profitable. I have a formula. I know my cost per mile to run the truck and trailer plus what i want as a profit so i take no load that will not cover cost plus profit and when i say cost per mile i mean every single cost associated with running the operation.

 

This doesn't surprise me, over 95% of truckers don't have a clue on how to correctly calculate a hauling rate. 93% don't even know how to figure their break-even points.

The BEP formula:
Fixed cost per day (FC) including owner salary. (Annual FC divided by 365 times 7 divided by 5)
Operational cost per mile (OC) (is usually changes monthly based on last months maint, repairs, tire purchases. Some items are amortized over their expected usable life)
Fuel cost per mile (PM )(changes every time the fuel price changes)
Load specific charges (LS) (tolls lumper labor, pilot cars, etc.)

FC x number of days + (LS) = Total Load Cost
OC + PM = Total Load Operational Cost

Total Load cost + Total Load Operational = BEP

Then if you need a per mile figure divide the BEP total by what ever miles you want (HHG, PC, Practical, or Odometer), and you will be assured you are making the correct revenue for the load.

Don't ever start with a per mile figure.

Now you've got the information to begin determining your rate range.

 

I see you have once again ducked the questions you have been asked~just to yap about your wisdom.

 

No where near 95% of truckers are in the position to need to calculate a hauling rate. If we're talking about owner-ops, I think you're way off base on your percentages, but people do like to throw around percentages to make themselves feel superior.

OK, this is looking decent, that's fairly close to how I figure it. The only thing is, everyone here knows this. Nobody just blindly says "my rate is $2.12 a mile, whether your load is going 30 miles or 3000."

I find it interesting that you are being such a stickler for the details above, and now you're telling people to figure out a cost per mile based on any old mileage calculation. Fortunately, most here know to price a load based on how far they're actually driving.

Just to recap, everyone here knows you can't just blindly go into every load quoting a flat per mile rate. In the future, instead of coming into a conversation like this telling everyone they're wrong and don't know how to run their business, consider the possibility that people have already figured out their operating expenses and don't want to write out a thesis about how they came up with a rate/mi every time they discuss rates.