What to charge myself per mile?

Discussion in 'Ask An Owner Operator' started by Accidental Trucker, Oct 17, 2019.

  1. Intothesunset

    Intothesunset Road Train Member

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    I'm seeing this as you are a Co-op type of thing or ESO?? If so I think that is a whole different tax game.
     
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  3. Accidental Trucker

    Accidental Trucker Road Train Member

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    All good points, although you’re a little low on driver cost. Closer to $0.76, counting wages, medical, vacation, taxes, Christmas bonus, etc.

    Actual trucking costs are very considerably lower than $2 a mile.

    I don’t think I’m comfortable with any model, though, where one business is forced to subsidize another. I’ve been in situations like that and it fostered bad habits and bad behavior among the people being subsidized. “they can’t do without us”. I don’t care much for entitled attitudes, if you can’t tell.
     
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  4. TexasKGB

    TexasKGB Light Load Member

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    I'd just value the load however is most advantageous to you, over whatever the baseline is, and divide it by the mileage.

    Edit: I feel like I'm making a hash of a very simple concept. Another advantage is that counting miles means counting minutes, and that gets bad after a while. Pay by % of load net or per load makes it simpler all around, eliminates the worst of the time pressure, and helps avoid workaround ########.

    Just my 2 cents. Thanks for reading.
     
  5. HillbillyDeluxeTruck

    HillbillyDeluxeTruck Road Train Member

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    You are the business owner. No one but you and possibly other management if you have it should know your #'s. Pay your drivers a good wage that keeps them happy, get rid of the profit sharing and do quarterly bonuses if it makes more financial sense, hell bonuses pretty much are profit sharing. If I was a driver for you, I wouldn't give a #### how you labeled it, if Im doing the job well and you're paying me well for it.

    You control the rate, therefore you control the profit sharing. You're thinking of your employees, which is good, but the business comes 1st and foremost.

    What reduces your tax liability the most? Making more profit on the production co and running the trucking co at cost or even at a slight loss or paying the trucking co a higher rate, which means more costs for the production co, but more profit for the trucking co. To me, that's the # to figure out.
     
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