To those that work for low rates...

Regardless of anything. If a O/O has a very healthy monthly $$$ liquid account, I don’t think the numbers stress should be too high is that account stays stable

 

Last years costs are easy to figure out but mean dick at this point with inflation fuel I can figure to the penny, usually pad that about 20% to account for spikes and higher ifta states, (even though I fuel cheapest NET cost) driver pay is pretty easy to figure out, maintenance and running cost I’m very liberal on because id rather be high then low, tack another 25% on because I really don’t need to go to work to break even and I’m a hair under $2.90 a mile to make it worth my while to go to work, I do keep track, but at 4.86 a mile last week I’m not in panic mode yet.

Also Running one market is easy, hoppIng around can vastly swing your costs, and, if you have to run to loves every two weeks for a grease job and a light bulb I can see keeping a little better eye on costs wasting money like that, if some of these guys put half the effort into doing their own stuff as they do with spread sheets they could probably drop their costs a good bit…

i was always taught to bid the work so you can be happy with a profit and if you can cut back somewhere great, just make sure you take care of the important things first

 

That’s the whole pie. If it works, it works. Regardless of the cpm.

 

Its not just trucking. Farmers can tell you what 200' of a acre yields the best product over a few thousand acres, seed cost, the gallons per hour to plant, harvest. Very informative people mostly.

But ask one "So how many acres you farming this year". Answer "Oh id really have to add that up and get back to you. Idk". They know every single detail. Except the one that could complete the math equation to gross revenue.

I'm in no way picking on the farmers. Most truckers with half a brain are doing the same.

Some years are good, some are not.

 

deez nuts lol, $650k liquid from stocks. 1.50 a mile, 100/mile idc.

 

I worked for a great family for a few years in the mid-80s. He had just got into trucking, but owned several other businesses and was good with his money. He told me once that the accountant told him he was losing his ###. He said that was more money in his checking account each month than there was the previous month, so he ignored the accountant's concerns. He died a couple of years ago.......as a very wealthy man for rural Idaho.

 

I feel you got no clue what's going on in this industry.
Load to truck ratio is way down = Lots of trucks trying to get one single load = can get moved for cheaper. Rates where higher then load to truck ratio was way higher. We are hitting a slow point and the trucking industry is feeling it first.
The account I'm on we have quite a few mega carriers now that rates are down doing it as its stable work and pays decent.

Wait until fuel prices drop then look at the rates they will be about .40 lower then what they are now lol

 

Plain and simple explanation. I agree 100%.

 

How much time you got left? Im at 9 months now and I’m out

 

The replacement cost is a weird animal.
It should start pretty much at the point where your equipment is paid for. Or on second thought, it may not be right, perhaps it should be present as soon as the equipment is acquired, even as brand new. Intuitively, it should be high enough so that at the time when the equipment is paid for, the accrued replacement amount with whatever equity you have on the equipment, should be enough to replace the equipment. That means a lot of saved cash which requires a lot of discipline to withstand temptations to misallocate it for other, more or less urgent things. I don't do replacement costs. I always make sure to have enough funds for a major overhaul or a hefty downpayment. The interesting thing is that when you know that you retire in 5-7 years, you could indeed acquire a brand new truck and run it down and sell it for whatever is worth after hanging the keys for good. Preferably at a similar time as we've seen not too long ago when 500 000 mile trucks were priced at over $150 000. Not anymore though, not anymore...I am sure those who were fortunate to sell their trucks, had been well aware of something like a replacement cost but had never dreamt about something like a replacement bonus.