TYPICAL COSTS FOR “NEW” OPERATION WITH OWN AUTHORITY
To look at profitability of different size equipment operations, one must take into account the different key variables that affect each number. A typical operation includes the Class 6-8 expedited straight truck market and similar-sized busses. In reviewing the numbers in the following, please reference the background and philosophy used in our tractor-trailer operations overview as it applies to this segment. The key differences are revenue, utilization and actual fuel mileage.
We took $1.25 per mile overall revenue at 8,000 miles per month. We adjusted this gross using an average combined factoring and brokerage rate of 5%. We rolled in a fuel surcharge of $0.03 per mile against an average pump price of $1.50 per gallon. We used a straight truck with an insured value of $40,000, with a payment of $950 per month and getting 9 miles per gallon.
We used revised costs as noted in the fixed and variable cost pages for fuel / cash transaction fees, road and fuel taxes, servicing costs, licensing costs and collision / physical damage insurance. We also included that for liability / cargo insurance and typical office management / administrative costs.
The results follow for 1,850 miles per week, 8,000 miles per month or 96,000 miles per year:
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“OWN AUTHORITY” PROFITABILITY SUMMARY
Monthly Annual CPM
Income $8,790 $105,480 $1.099
Surcharge $216 $2,592 $0.027
Total $9,006 $108,072 $1.126
Fixed Expenses
Equipment $950 $11,400 $0.119
Licensing / Permits $151 $1,815 $0.019
Federal Use – 2290 $46 $550 $0.006
Collision Insurance $100 $1,200 $0.013
Variable Expenses
Fuel / Taxes / Fees $1,538 $18,451 $0.192
Liability Insurance $650 $7,800 $0.081
Cargo Insurance $95 $1,140 $0.012
Servicing $80 $960 $0.010
Repairs $320 $3,840 $0.040
Tires $160 $1,920 $0.020
Total Expenses $4,090 $49,076 $0.511
Taxable Income $4,916 $58,996 $0.615
so after all is said and done with all expenses paid you can put 58k in your pocket???
To look at profitability of different size equipment operations, one must take into account the different key variables that affect each number. A typical operation includes the Class 6-8 expedited straight truck market and similar-sized busses. In reviewing the numbers in the following, please reference the background and philosophy used in our tractor-trailer operations overview as it applies to this segment. The key differences are revenue, utilization and actual fuel mileage.
We took $1.25 per mile overall revenue at 8,000 miles per month. We adjusted this gross using an average combined factoring and brokerage rate of 5%. We rolled in a fuel surcharge of $0.03 per mile against an average pump price of $1.50 per gallon. We used a straight truck with an insured value of $40,000, with a payment of $950 per month and getting 9 miles per gallon.
We used revised costs as noted in the fixed and variable cost pages for fuel / cash transaction fees, road and fuel taxes, servicing costs, licensing costs and collision / physical damage insurance. We also included that for liability / cargo insurance and typical office management / administrative costs.
The results follow for 1,850 miles per week, 8,000 miles per month or 96,000 miles per year:
_____________________________________________________________
“OWN AUTHORITY” PROFITABILITY SUMMARY
Monthly Annual CPM
Income $8,790 $105,480 $1.099
Surcharge $216 $2,592 $0.027
Total $9,006 $108,072 $1.126
Fixed Expenses
Equipment $950 $11,400 $0.119
Licensing / Permits $151 $1,815 $0.019
Federal Use – 2290 $46 $550 $0.006
Collision Insurance $100 $1,200 $0.013
Variable Expenses
Fuel / Taxes / Fees $1,538 $18,451 $0.192
Liability Insurance $650 $7,800 $0.081
Cargo Insurance $95 $1,140 $0.012
Servicing $80 $960 $0.010
Repairs $320 $3,840 $0.040
Tires $160 $1,920 $0.020
Total Expenses $4,090 $49,076 $0.511
Taxable Income $4,916 $58,996 $0.615
so after all is said and done with all expenses paid you can put 58k in your pocket???
