"The almighty $2.00 a mile theory"

At the end of the 3rd quarter my rate per mile to the truck gross for all miles was $1.84 and it cost me up to that point $1.10 to run my operation so i grossed to me after all costs $.74 cents all miles empty and loaded. It has gone down a little this quater do to more empty miles and the rates not going up as fast as the fuel has. I run a flat and my rate are over $2.25 a mile 95% of the time but i deadhead around 25%.

 

Another problem is the term "COST TO OPERATE". Different drivers include different items. Some have trailers to pay for, some do not. Some include insurance, at different values and limits, some do not. Some include brokerage, some do not. Some include computer expenses, office expenses, etc. Others just use fuel, tires, and equipment prices.
Have to look at these variables when comparing cpm.

 

What do you mean by "Some include brokerage.." What expense are you referring to here?

 

I guess I'm trying to figure out why anyone would ever NOT include that, especially since brokers don't pay on a percentage of what they make, they pay what they can get the load hauled for. I realize there are exceptions to that, but it's not like anyone ever writes a broker a check to pay him for hauling his load.

 

My overall average for past 60 days

Dryvan $1.75 / mile
Reefer $1.90 / mile
Flat $2.02 / mile

 

Brother in law runs Midwest, no coast runs, pulling a reefer trailer. I talked to him yesterday and he has averaged $ 1.80 a mile last couple of months.

 

When figuring avg's~ if your not using speedometer miles your fooling yourselves. Gross money to the truck, divided by speedo. miles = your avg rate per mile.

 

Really

 

I have had a few discussions with O/O's who use dispatched miles in their calculations.