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IndyJohnny

Seasoned Expediter
I got an 05 chevy van after watching a couple friends make decent dough expediting. I found a decent pair of people to drive for. I do a lot of deadhead miles, and have grossed over 2000 dollars my first two weeks, and made 2500 dollars these past two. The van gets about 16 mpg. Is this a decent amount for someone starting out? my runs vary from as little as .90 a mile, to 1.20, with a 13% fuel allotment.
I live alone, and this is enough money for me right now, but just curious about how much most van owners make. Thanks all.


Johnny
 
terryandrene

terryandrene

Veteran Expediter
Safety & Compliance
US Coast Guard
Johnny:

You imply that you own a van, but you drive for a pair of people. You also say you deadhead a lot. Is that more than your paid miles? Less? To fairly answer your question and give a comparison we'd need to speculate if you are doing well. Here's a mathematical exercise for you. Add all your pay that you get to keep for the two weeks you've worked and divide that by all of the miles that you drove. Your answer is your pay per mile. If you earned $4500 and drove 9000 miles of paid and deadhead you have earned 50 cents per mile; not good! If you get to keep 75 cents for each mile driven, you did OK, but not great.

How much pay you grossed is important but your overhead is equally important. The likelihood of you sustaining $2000 weeks, every week is slim to none, so get as much as you can, while you can. And while your doing it, I suggest you get a good handle on the real cost per mile of operating your van; you may be surprised.
 
I

IndyJohnny

Seasoned Expediter
I own my van, but the two people im driving for, own an expediting business. Id guess you'd call me a subcontractor. I know very little about doing this right now, so I am getting work through them, and in return, they are helping it to make it very easy for me to learn while I am starting out. I can take the runs I choose, which for now is every one I can get.I do understand I need to factor everything in as far as my costs go, I was just giving out only a few rough numbers. From what you say, I need to be finding more backloads, as I am almost always running home empty. I really appreciate your input, thank you. :)


Johnny
 
F

fastrod

Expert Expediter
It sounds like you are deadheading home after every run. This is not a bad thing if your making enough money to keep you happy. If your companys runs all come from a local area, then trying to find backhauls would be a waste of time. If they have one set up for you that picks up when you drop off then fine, but if you have to wait a half day or more, forget it. It sounds like you have a nice deal here. I run about the same as you except I have my own authority.
 
I

IndyJohnny

Seasoned Expediter
Hey, thanks for the info. Yes, I am running under their autority. I would eventually want to get my authority. I need to know more about it. Again thank you for your time. :)


Johnny
 
LDB

LDB

Veteran Expediter
Retired Expediter
I may be "confuzzled", which isn't uncommon or difficult, but I'm reading you are running loads outbound for .90 to 1.20 and then deadheading back for the next load. If that's so then your d/h is basically 50% which is definitely too high. What you are really doing then is running for .45 to .60cpm. Is the 13% for fuel based on the .90 to 1.20 you get or on the total amount the customer pays? If it's on what you are paid that adds 11.7 to 15.6cpm to the paid side or 5.85 to 7.8cpm to the .45-.60cpm. I don't see how you can make money running for 51-68cpm total on all miles. Hopefully you are talking to a lot of other van operators, hopefully concentrating on those who own their vans, and discussing operations with them as well as the company they run for. I have no van experience but it sounds like you might do better with one of the bigger players that will get you follow up jobs and reduce your d/h to a more reasonable level. Good luck.
 
Last edited:
I

IndyJohnny

Seasoned Expediter
>I may be "confuzzled", which isn't uncommon or difficult,
>but I'm reading you are running loads outbound for .90 to
>1.20 and then deadheading back for the next load. If that's
>so then your d/h is basically 50% which is definitely too
>high. What you are really doing then is running for .45 to
>.60cpm. Is the 13% for fuel based on the .90 to 1.20 you get
>or on the total amount the customer pays? If it's on what
>you are paid that adds 11.7 to 15.6cpm to the paid side or
>5.85 to 7.8cpm to the .45-.60cpm. I don't see how you can
>make money running for 51-68cpm total on all miles.
>Hopefully you are talking to a lot of other van operators,
>hopefully concentrating on those who own their vans, and
>discussing operations with them as well as the company they
>run for. I have no van experience but it sounds like you
>might do better with one of the bigger players that will get
>you follow up jobs and reduce your d/h to a more reasonable
>level. Good luck.
>
>Leo Bricker, 73's K5LDB
>OOIDA Life Member 677319, JOIN NOW
>Owner, Panther trucks 5508, 5509, 5641
>EO Forum Moderator
>----------
>Support the entire Constitution, not just the parts you
>like.


How do I come out ahead? If I spend about 400 dollars in fuel, drive 2285 miles at .90 per, I make $1028.25. So I net 628.25 for approx 28 hours driving. Of course I there are quite a few other expenses, which knock it down even more, but it still ends up a positive figure, that I live on. I usually drive about around 2500 total miles or a bit more every week
 
easyrider2697

easyrider2697

Expert Expediter
The only problem I see with that is, the other factors the you are not including, Insurance, and the biggest maintence, whats gonna happen 4 months down the road, when you have been living off the "net" and you have a major repair to do say 2500 bux for a locked up motor, by living off the "net" and not making money for "your" business you will be out of business and looking for a job right after your first major setback.
 
C

Crazynuff

Veteran Expediter
None of it makes sense . He gives his paid mileage at well over 2,000 miles a week . If he "almost always" comes back empty that's over 4,000 miles a week . The only deduction he uses in figuring what he " makes" is fuel . So he makes less than $700 a week . Now lets subtract insurance , at least one set of tires a year , the truck will have to be replaced in no more than 2 years , and running that many miles the truck should be serviced every 2 weeks . I say he'd be doing well to net $15,000 for the year .
 
B

Broompilot

Veteran Expediter
Johnny reading these answers by you I am left wondering how long you can stay afloat.

That warranty is great for now, when that Van hits 200K and was only profitable for 100K according to what I read, than what?

A used Van in three years with 200K does not exactly hold much of any resale to it. Than what? Another Van? A new Payment book? High Repair bills out of your pocket now not the MFGs. Johnny do you have a Business Plan set up yet? In what I am reading your doing one thing right, asking questions?

But whats your long term plan? Do you want to be further ahead than where you started 2-4-7 years from now. Or as you said I am single and do not need much $?

We live in the Greatest Country in the World, for opportunity some I know are happy with the decision to just get by. But when that Van is Worn out just getting by aint gona put a new one under the X-mas tree. If I could encourage you do anything please put a Business Plan together before its to late. I wish you well.
 
terryandrene

terryandrene

Veteran Expediter
Safety & Compliance
US Coast Guard
Indy:

The truth hurts when you're doing something you like and have a few dollars in your pocket for doing so. The truth of the matter is that you are earning considerably less than a typical van operator.

You say that you "come out ahead" by earning $1028.25 for driving 2285 miles, Thats 45 cents per mile! 45 cents is far from coming out ahead and here's the reason I say that:

let's assume you'll operate a $20,000 van for four years at 100,000 miles per year.

20,000 - Van paid cash; no interest.
01,000 - Plywood, e-track, fire ext, triangles, load bars, straps etc
68,750 - Fuel at 16 mpg costing 2.75 gallon
01,600 - Oilchange/lube every 5000 at $20
03,600 - Insurance at $75 month
00,200 - Van registration
00,800 - Accountant for taxes
08,000 - Preventive/corrective maintenance
01,500 - Tires replaced twice
00,100 - Tolls +/-
01,680 - Telephone at $35 month
04,160 - Truck wash + laundry at $20 weekly

111,390 / 400,000 = 28 cents per mile overhead.

Indyjohnny, I've left out some things here and spent some you may not have. These are just estimates of what you will have spent in four years of operation. You might want to substitute your own guesstimates to get a number that suits you, but the way I see it is you'll net about $17,000 per year, before taxes. If you can live modestly from that income that would be great, but at the end of four years, your van will have little or no trade-in value and you'll likely be no better off than before you started.

I truly hope you can get a grip on your real expenses and look around for an opportunity that will provide you with a far greater percentage of revenue miles.
 
K

kellmellus

Seasoned Expediter
>I got an 05 chevy van after watching a couple friends make
>decent dough expediting. I found a decent pair of people to
>drive for. I do a lot of deadhead miles, and have grossed
>over 2000 dollars my first two weeks, and made 2500 dollars
>these past two. The van gets about 16 mpg. Is this a decent
>amount for someone starting out? my runs vary from as little
>as .90 a mile, to 1.20, with a 13% fuel allotment.
>I live alone, and this is enough money for me right now, but
>just curious about how much most van owners make. Thanks
>all.
>
>
> Johnny
Hi Johnny ,i am looking for a better company to work for what is your company name?thanks kelly
 
R

robtech

Seasoned Expediter
terryandrene said:
Indy:

The truth hurts when you're doing something you like and have a few dollars in your pocket for doing so. The truth of the matter is that you are earning considerably less than a typical van operator.

You say that you "come out ahead" by earning $1028.25 for driving 2285 miles, Thats 45 cents per mile! 45 cents is far from coming out ahead and here's the reason I say that:

let's assume you'll operate a $20,000 van for four years at 100,000 miles per year.

20,000 - Van paid cash; no interest.
01,000 - Plywood, e-track, fire ext, triangles, load bars, straps etc
68,750 - Fuel at 16 mpg costing 2.75 gallon
01,600 - Oilchange/lube every 5000 at $20
03,600 - Insurance at $75 month
00,200 - Van registration
00,800 - Accountant for taxes
08,000 - Preventive/corrective maintenance
01,500 - Tires replaced twice
00,100 - Tolls +/-
01,680 - Telephone at $35 month
04,160 - Truck wash + laundry at $20 weekly

111,390 / 400,000 = 28 cents per mile overhead.

Indyjohnny, I've left out some things here and spent some you may not have. These are just estimates of what you will have spent in four years of operation. You might want to substitute your own guesstimates to get a number that suits you, but the way I see it is you'll net about $17,000 per year, before taxes. If you can live modestly from that income that would be great, but at the end of four years, your van will have little or no trade-in value and you'll likely be no better off than before you started.

I truly hope you can get a grip on your real expenses and look around for an opportunity that will provide you with a far greater percentage of revenue miles.
Click to expand...

So what is a good number for a cargo van to be making?
 
R

robtech

Seasoned Expediter
easyrider2697 said:
The only problem I see with that is, the other factors the you are not including, Insurance, and the biggest maintence, whats gonna happen 4 months down the road, when you have been living off the "net" and you have a major repair to do say 2500 bux for a locked up motor, by living off the "net" and not making money for "your" business you will be out of business and looking for a job right after your first major setback.
Click to expand...
What would you say should be a dollar amount he should be seeing to be profitable then? Approximately?
 
terryandrene

terryandrene

Veteran Expediter
Safety & Compliance
US Coast Guard
Ask ten people; get ten answers. Here's my numbers for calendar year 2007:

In service/available for dispatch, 74.07%
Load acceptance, 71.10%
Revenue, including FSC, per loaded mile, $1.26

Those are good numbers for a cargo van. Many folks do better and many worse.

The real point of my comment was that each individual must take a realistic look at past and future costs and determine their own cost per mile based on the working life expectancy of their vehicle. You'll notice my last post did not include monies needed to pay the driver(s), money necessary for living expenses, taxes, health care, retirement.
 
RLENT

RLENT

Veteran Expediter
Terry - there was one error in your expense recap - which was great BTW.

You had $4,160 for Truck washes and laundry @ $20 .... not that big a difference in the overall picture.
 
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