Not wanting to throw a monkey wrench in anyone's plans, but IF this is a firm contract that you have been offered, aside from the "price to be paid and your expenses" I would want to have two identical trucks.
Problems can and do arise, to only have one day off a week non-stop will get old in a short period of time, having to maintain your truck on the 7th day, and you will bouncing off the walls quickly.
If you had two trucks, even if they were older, you would have a standby if anything went down, or maybe alt. them, week on, week off so that you could have someone local look one over for you.
Otherwise, I see you letting your company/customer down at some point, or at the VERY least, make a deal up front with a local truck rental place or dealer, so that you would have a truck available at a moments notice if/when you should break.
Just something I would think about.
What is the cpm you would want for this type of work?
Discussion in 'Ask An Owner Operator' started by Truckin'Hard, Jul 12, 2013.
Page 2 of 7
-
Container Hauler, MNdriver and DE36535 Thank this.
-
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
-
I have never pulled an end dump but have pulled a hopper and running back roads and rough roads etc will tear the hell out of a road tractor. I blew 2 bags in 2 months pulling a hopper rocks get caught under the airbag going over a bump sit there and wear through and then the bag blows to the tune of about $200. Expect tire repairs picking up nails in tires good thing is if you're dedicated drop to about a 250 mile radius if not less. That will save a ton on insurance. There is a lot that's going to go into this that needs to be considered. Make sure you know what you're getting into. You're eyes may get real big and see dollar signs and it may not turn out to be the cake walk you thought it was been there done that it sucks but be prepared. I hope it works out for you but I'm trying to get you to think about other costs you may not be considering consider everything taxes, tires, more mainainance, etc and make sure its still going to work for you. -
I think you said it a lot more "nice" Kansas......
additional points?
Do you have a back-up driver and as we both said, a back-up truck? Those right there are going to be expensive to keep around.
Two trucks, I can see that being about $10,000 annual insurance if you have your own authority. Plates, $1700 each,
At that way, since you are providing a service to keep a trailer moving and a dropped trailer in place, I see at least 3-5 trailers being needed. One in-transit, one in load, spare at load in-case you have a break-down or delay getting back. (Murphy rules) Another for rotate out for Maintenance.
My hardware is tied up in a dedicated account every day of the year for this operation with no chance of being used. Regardless of miles driven if you get re-routed for construction, delay for accident etc. I would likely charge them $1500-1750 per day for all the hardware and service provided to ensure that they have a fresh trailer to load regardless. Just a different way of looking at it.
Are you moving single loads? or providing a disposal service and making sure that they have an empty trailer to discharge their waste (commodity) into at all times.KANSAS TRANSIT Thanks this. -
Why do you drop and hook a dump ? I mean why don't they just fill the empty dump on your truck instead of having a pre-filled dump waiting ?
Makes no sense, but I've done similar stuff (other than filling by loader) for concrete companies. They had several routes, each route was bid, they really didn't care if you went by mile or hour or whatever. I'd look at hours, and I can't imagine allowing less than 3 hours for a turn. So you are talking a 9 hour day for 6 months and a 15 hour day ?? for 6 months ? try to hussle so you can grab a sandwich ? and that's all only if they truly have the drop trailer loaded and ready when you get there.
I think the minimum would be $300 on a run like this. you have to pay the driver $75/run or hourly and likely gonna be days, traffic or whatnot, it's gonna be 10 or 11 hours instead of 9. And lots of days in busy 6 months he prolly only get 4 loads instead of 5. unless it's a straight shot interstate or something. even then, long day for 5 loads. -
100% right on!!!...so I need to calculate another truck in there, at least down the road. I've thought of this already and another driver if sick. Even if it is just a back-up conventional daycab, I should at least add another $10,000 for the year for that with tags, permits, insurance, licensing, maintenance, etc on a yearly basis??? Is that reasonable?
per year:
$20,000 for truck payment
$2300 insurance
$700 bobtail ins (is even needed as truck can stay on-site when I go home?...or risk of something while getting maint done make it worth it?)
$500 workman's comp
$2,500 permits and tags (or less as it is only 2 states)
$9,000 maintence fund
per diem misc. would be lower as you actually get to live and eat and reside at home...that's got to be in the negligible pile
So that adds up to $35,000 in other expenses instead of gas.
plus I get $99k for gas for 137k miles
$135,000 total...am I missing anything?
plus $10k yearly for other truck (does that seem reasonable for maintenance, permits, licensing, insurance?) I might just as well get away with renting a truck but getting a cheap back-up that can be worked without worry because another is in service is pretty good. I'd like to give you credit for that one, but that was already in the plan. But at least I got a real reply to someone that is on the same wavelength.
that would bring the total to $145k...(are my cost estimates too high, low or right on?)
So what should take home be on top of that for the year, month, week, whatever??Last edited: Jul 12, 2013
-
It's not in rural areas...all highway. And as far as the hook and drop scenario, it just is as I described in this case. The other trailer is filled while out delivering/dumping the other one. I see at least 3 trailers also (one has to sit unused...like the extra day cab!!), maybe eventually 4...maybe. But only two can be loaded at a time anyway while gone, so more than 3 is kinda overkill. When you become more established, ok...but the thing is trailers are provided for...just drive and dump. I would account $10k extra per year to have one truck just sit for the most part.
It's also not severe service. No off-roading and lighter loads. All highway, and the dedicated drop is 50 miles, not 250. But you get the point. Good ideas. -
No one can give you an accurate price in reality. Only you know the details of the operation, and that is for the better for you. You're going to have a minimum daily cost of insurance, tags, overhead, truck payments, driver benefits, etc. Once you figure that out, you can figure out the driver pay and your minimum profit margin you'll need to make it work. Base your profitability on the lower side of the middle of the loads promised and you should be ok. Anything over that will be gravy to save for rainy days.
-
You will have a hard time finding a truck to rent with a wet kit. Might talk them into it with a long term lease. But you'll probably pay for it.
Also don't know what your hauling but its not likely you get all the loads you say. Things break on there end too. Weather can slow things down too.
But I would be on this like stink on smelly stuff. But I like k knowing what I'm doing days in advance -
A friend accepted a deal like this for less several months ago...he's excited about it. A headache to start out and think of in terms of the scope of it. Almost the same thing, even the miles are close. But I guess most of you guys clear 6 figures after taxes already, so aren't as excited about it as he is. Started with one truck and had to rent trailers for him...and he still cleared over 100k after expenses. He wants to expand and hire more drivers to run locations. He hadn't used his CDL in over a year when he took it on and it changed his life. Who wouldn't accept $300/load? But who is going to pay it for a dedicated spot like that with 'guaranteed' loads and pay? He 'is' a business now.
Danny, do you really think you would need to gross $375,000/year to break even to do the above contract? Even by standards of cpm or costs, I can get all costs, including fuel, to about $150,000 or a little over a $1.00 cpm (the reason cpm is low is because of 'volume'...guaranteed volume. It's light duty work and offers a regular stay at home lifestyle, but still gives you more miles than many of you are doing now). And these costs are given keeping in mind the expansion of having a 'second' truck even. Correct me if I am wrong though...I welcome dissent!!Last edited: Jul 12, 2013
-
Lester, Fortycal...it's guaranteed loads. It just is. Nobody believes it...that's fine. Why is it so hard to believe anyway??? Some people think that is good, other people a headache. I would think if you have thin(ner) margins, that is fine because you are making up for it in volume...guaranteed volume and a long-term contract. How many of you can say I will have this many loads tomorrow and know exactly where I am going, what I am going to make, and won't have to wait (losing money) for something to pop up or be screwed over trying to deliver a load?
How much is that 'safety net' (consistent work environment) worth having? Yeah, there is responsibility involved, but that is for everyone if you want to get ahead.
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
Page 2 of 7