$1.40 per mile?

nobb4u · Jul 7, 2011

Every one is talking about $1.40 per mile and I am not sure everyone knows exactly how to figure your cost per mile so I thought I'd try to help and if you do know how to figure your own then good for you, but I do hope this might help those who don't know how or maybe who have never really tried to figure it out. The numbers you see here are based on my actual numbers from last year.

This is an actual spread sheet that figures these numbers for you if you would like a copy of the working one send me a personal message and I will send it to you.

greg334 · Jul 7, 2011

Why so much for worker comp?

nobb4u · Jul 7, 2011

It is work accident premium from FedEX.

greg334 · Jul 7, 2011

Really?

Wow I think I pay a third of that.

nobb4u · Jul 7, 2011

Mine is based on revenue so if I don't make anything I don't pay anything.

davekc · Jul 7, 2011

That is expensive. I guess if you aren't making anything it would help but it would seem like you would have bigger problems if no income is coming in.

Rocketman · Jul 8, 2011

Completely out of line...my apologies.

nobb4u · Jul 8, 2011

I think Rocketman that you really missed the point of my post. I was just sharing how much you can actually pocket at $1.40 a mile. I think there are people out here who have some very unrealistic ideas on how much money they need per mile to turn a profit. As for meals being included in my spread sheet I was again emphasizing that you can do quite well at the $1.40 rate and take care of road expenses, I don't see where health insurance is a business expense. So apparently we have different views on what our expenses are in this business.

I will also let you know I have a WG TVal truck so my income is much higher that the $1.40 a mile shown here. I was not in any way using this sheet to represent income it was just a simple sheet to try to help those who may not have figured out how much they really do HAVE to have to operate.

And also by the way I don't need a spread sheet to run my business I can run it out of my head and I know before I finish reading the load offer if it is profitable. Also I have been at the same company for over 12 years I run a T-Val truck as a single and quite profitably too, I have 29 years as a owner operator so I really doubt there is much you can teach me about this industry, but I am always open to learning. And as I said I was just trying to point out to some people who may not really realize how much the need to make a profit.

And if I want to go to the Bahamas I'm sure I can.

Rocketman · Jul 8, 2011

I know that I come across way too strong in my response and I wondered whether we were actualy trying to make the same point. So, I do apologize. Your numbers are very accurate and like I said they support my own numbers when I do run them. I guess we disagree on the meals and the health ins, but honestly I don't see where it matters..lol. That kind of goes along with my first statement, (now that I know your position a little better, I think you would probably agree) if the meals and/or the health ins is going to make or break the deal..there wasn't much of a deal to start with.

Personally, I know that my rates are profitable for my truck and I know what monthly numbers I need to hit to make things work and keep me where I want to be. After that, I forget about it and add it all up at the end of the year.

I thought I could see a reefer hangin off the side of the truck in your avatar and started to ask where the reefer fuel went, but I decided that maybe you were actually just showing what it would take to run that dry load.

I commend you for showing honest numbers and I apologize for offering to strong of a response before verifying your true position.

nobb4u · Jul 8, 2011

Not a problem, I was just trying to show that you can run very profitable at $1.40 per mile. I personally think that some people price themselves into the poor house, also some listen to people who really don't have a clue what it really takes to operate a truck or a company.

My reefer and my apu pulls their fuel from my main tanks so I don't separate it out.

Like I said I was just offering help.

Rocketman · Jul 8, 2011

You did a good job of showing actual expenses. The point your making is actually the same exact point I've been trying to make in this thread. I just didn't have enough sense to realize you were agreeing with me..lol.

I agree with you very much about people pricing themselves out of the market and that's been my point. You have a truck that is very capable of demanding some of the best rates in the industry, but as you just pointed out, if you have a need to haul a standard dry freight load, you don't expect it to pay what a TVAL load pays.

I have a few friends in TVAL trucks and I've seen them get good rates for "surface" loads as you guys call 'em. But they were in areas where they could get a good TVAL load and were not willing to move unless the load paid close to TVAL rate. Most of the time, they don't get those loads because there are other trucks in the area and the TVAL truck is obviosuly and intentionally pricing themselves out of that surface load. If Fedex has no other choice, they put it on the TVAL truck and pay the price. I have no problem with ANY of that scenario. But, it just blows my mind when people think they are going to force that kind of money out of the market on a regular basis.

That is the point I've been driving at in this thread. Obviously I don't do such a good job of it, but I tried.

geo · Jul 8, 2011

1.40 mile is ok not great
i have taken runs like that and made them better
by d time, and hauling pallets away, d trashing after del, inside del, etc
love going to walmart dist, target dist, and places like
that , going to get at least 3 or 4 hours on clock
or were not ready for you and you have to leave
love as that makes ok run better

Dakota · Jul 8, 2011

geo said:
1.40 mile is ok not great
i have taken runs like that and made them better
by d time, and hauling pallets away, d trashing after del, inside del, etc
love going to walmart dist, target dist, and places like
that , going to get at least 3 or 4 hours on clock
or were not ready for you and you have to leave
love as that makes ok run better

I used to love Walmart dist. when at Ceva
I'd get paid two to four hours for sitting in there air conditioned break room while they unloaded and counted everything
Learned to bring a book, magazines or my DVD player....Those were the days!!!!

pjjjjj · Jul 9, 2011

nobb4u said:
...This is an actual spread sheet that figures these numbers for you if you would like a copy of the working one send me a personal message and I will send it to you.

Thanks for sharing, nobb4u. Before I comment, can you tell me how you have calculated your truck payment? ie, for how many years will this payment be in effect, does it change from year to year, will there come a time when you still have a viable truck but no truck payment?

Thanks

Swanny · Jul 9, 2011

Nobb4u, or anyone else that can help me with the fuel numbers. Per the spread sheet I'm coming up with about 10 mpg. Am I miscalculating? That seems exceptional since the refrigeration unit is running of the mains.

workaholic48 · Jul 9, 2011

I would also like to ask 2 questions. It is this: (1) Does 85.5cpm sound like an average, reasonable cost per mile for a D unit for all miles? I am thinking a 35k used truck with 15% down, for 4years@10%. Fuel mileage at 8mpg, and 7200 total miles/month. Not sure as to the accuracy of other expenses, but have used some, but not all of the posted spread sheet numbers posted in this thread. For some of the spreadsheet categories numbers I made an educated guess. Also (2) is the word "profit" what you actually pay yourself, for example on a weekly basis, or does it mean money left over after all your expenses, including your pay is taken out? Would like to get a better handle on expenses, terminology etc. thanks for your replies in advance.

workaholic48

Rocketman · Jul 9, 2011

workaholic48 said:
I would also like to ask 2 questions. It is this: (1) Does 85.5cpm sound like an average, reasonable cost per mile for a D unit for all miles? I am thinking a 35k used truck with 15% down, for 4years@10%. Fuel mileage at 8mpg, and 7200 total miles/month. Not sure as to the accuracy of other expenses, but have used some, but not all of the posted spread sheet numbers posted in this thread. For some of the spreadsheet categories numbers I made an educated guess. Also (2) is the word "profit" what you actually pay yourself, for example on a weekly basis, or does it mean money left over after all your expenses, including your pay is taken out? Would like to get a better handle on expenses, terminology etc. thanks for your replies in advance.

workaholic48

You should be able to beat 8mpg. I can count on 10 out of my truck and know others who do that also, but I also know some that don't. I would suggest 9 mpg as an estimate. I would also suggest you do considerable research and learn what to look for in a used truck to get the best fuel mileage. Your .85/mi number should work out on a $35k truck.

As a sole proprietor, everything above expenses is profit and taxable as profit, so I personally just consider the entire number above expenses. That does not mean that I spend all of that money and not save any for the future. It just means that if I want to know how much money I'm actually making per mile, all I need to do is subtract my costs per mile from my revenue per mile. I tend to keep it simple.

I do strongly recommend a seperate account for your trucking business. Deposit all truck revenue into that account and withdraw the bare minimum required to survive for the first year or maybe two. Once you have a strong reserve fund ($10K-$15K) built up, then you can start taking more out as personal money without hurting your ability to recover from a major breakdown. I've had a lot of family members ask me "what are you gonna do when that truck breaks down and it costs you $8k to get it fixed?". I tell them that I'll write the check when they get it fixed and get to work building my fund back up before something else goes.

x06col · Jul 9, 2011

Rocketman said:
You should be able to beat 8mpg. I can count on 10 out of my truck and know others who do that also, but I also know some that don't. I would suggest 9 mpg as an estimate. I would also suggest you do considerable research and learn what to look for in a used truck to get the best fuel mileage. Your .85/mi number should work out on a $35k truck.

As a sole proprietor, everything above expenses is profit and taxable as profit, so I personally just consider the entire number above expenses. That does not mean that I spend all of that money and not save any for the future. It just means that if I want to know how much money I'm actually making per mile, all I need to do is subtract my costs per mile from my revenue per mile. I tend to keep it simple.

I do strongly recommend a seperate account for your trucking business. Deposit all truck revenue into that account and withdraw the bare minimum required to survive for the first year or maybe two. Once you have a strong reserve fund ($10K-$15K) built up, then you can start taking more out as personal money without hurting your ability to recover from a major breakdown. I've had a lot of family members ask me "what are you gonna do when that truck breaks down and it costs you $8k to get it fixed?". I tell them that I'll write the check when they get it fixed and get to work building my fund back up before something else goes.

You have arrived Rocket. See, patience truly is a virtue. Jes takes time to see the individual trees in the forest.