Your operating cost per mile?

FORESTGUMP · Jul 3, 2013

landstar8891 said: ↑

All i have is a truck.I have lived in my truck for over 30 years...I have nothing more than a truck and some clothing.This is all i own....

My CPM is .71 cents a mile..This covers everything in my life...[/QUO

So, who pays for the fuel? Or do you buy fuel and have someone else who pays for insurance,repairs etc,etc.
Click to expand...

rollin coal · Jul 3, 2013

sarcasm...

Lepton1 · Jul 4, 2013

Twicebit said: ↑

I'm not an owner operator but just thinking about this, sure you can pay yourself a wage and have it figured into your cost per mile, however, your wage is the one cost out of these nine categories (fuel, oil, tires, repairs/maintenance, licensing/permits/..., insurances, misc expenses, vehicle cost/depreciation, wage) which may have to lessen if there's not enough revenue to the truck!

An example: your revenue through the year averages $1.70 per mile for your Total miles driven, and your cost per mile, which in your example of including whatever "wage" you include in "cost per mile", averages $1.76 through the year. In this case, you're going to have to make an adjustment of $.06 cpm less wage through the year, to break even. The adjustment wont be in those first eight costs of actual operation of the truck. Its going to be in that ninth one, your wage!

I wonder if paying yourself barely an adequate wage weekly or bi-weekly, which just covers personal expenses, in that cost per mile, would be an idea. Then once a quarter is completed, maybe pay yourself in the form of a bonus, any excess revenue that you think won't be needed in the operation of the truck, with a cushion for operational expenses of course. I wonder if paying your wage this way, in the event that your quarter didn't match your hopes/expectations, that you'll be glad you didn't pay yourself a higher wage and then have to cough up... for an expensive repair or whatever...

Just my thoughts. I may be off somewhere in my thinking. Enlighten me, please!
Click to expand...

Two thoughts off the top of my head:

1. You would need to consult with your tax accountant before taking a quarterly bonus or profit sharing and a small wage in between. In a similar situation with a different business my accountant strongly discouraged this kind of compensation. His phrase was, "Pigs get fat, hogs get slaughtered".... meaning that the IRS looks unkindly on this kind of compensation because you would avoid paying your fare share of taxes. Penalties would be an issue.

2. From my understanding reading through the posts of what seem to be the more successful O/O's on this board, the point is that you don't pull freight for less than your CPM and you are targeting only pulling freight for $3/mile or better. The essence is to run less miles for more revenue.

emoneybags · Jul 5, 2013

1.01per mile operating cost. fuel cost .44 get 8.47mpg I avg 2.44pm for 2013 so fa.r I just drive slow which leaves me to only pull 2-3 loads a week so they have to be good money loads

Guntoter · Jul 6, 2013

Depending on the load, $4 to $7 per mile. Fuel at 2-3 MPG escort vehicles at $1.50 each, permits... Cost for a 200K pound transformer from Long Beach to Big Bear California with 3 Highway Patrol cars, 5 regular escorts (one pole car), permits, and fuel was about $30 per mile.

Log in or Sign up

Forums

Find Trucking Jobs

Your operating cost per mile?

FORESTGUMP Light Load Member

Trucking Jobs in 30 seconds

Wait, employers can't reach you!

rollin coal Road Train Member

Lepton1 Road Train Member

emoneybags Bobtail Member

Guntoter Road Train Member

Trucking Jobs in 30 seconds

Wait, employers can't reach you!

Log in or Sign up

Useful Searches

Find Trucking Jobs

Your operating cost per mile?

FORESTGUMP Light Load Member

Wait, employers can't reach you!

rollin coal Road Train Member

Lepton1 Road Train Member

emoneybags Bobtail Member

Guntoter Road Train Member

Wait, employers can't reach you!