OK, Time for some real help
- Thread starter Sawbones
- Start date
> Is there a simple enough equation that someone would
>love to share? One that says, if X * Y = C and F is this,
>then you devide c/f and you get profit or loss? X = Miles,
>Y = Rate per mile, C = cash, and F = fuel? Or some
>variation of this.
I have been tracking revenue, cost and operating income for multiple locations with millions of dollar budgets for over 25 years before retiring. Let me say that the spreadsheet at OOIDA is formatted wrong in my opinion; however, a lot of folks seem to like it. You have to do too many manual calculations. As far as cost per mile, it is at the bottom of my list. Now every time I say this I get hammered in the forums and the subject gets sidetracked, so folks please keep it to yourself ( e-mail me), we all have opinions, my business, my way, works for others and me, etc, etc. (Proven method) I like to know my miles paid and deadhead miles not paid, cost and revenue and bottom line numbers. Your cost per mile is what it is at the time more important than just knowing what your cost per mile is, you do need to know how to control it, after a very short while as history is logged and known, you can quickly adjust your management of your cost per mile to get to acceptable profit margins. What I did was in Excel format, Trip numbers going across and revenue and cost going down. I have each month’s tab rolling over to a yearly total sheet that shows me at a glance by month and year to date, revenue, miles total, cost by line item, (fuel, food, tolls, showers, Misc, etc). After the month is over I print out the report staple it to my BOL’s and trip reports with receipts allocated to each run, then I file it. I also have a formula that automatically shows me what I call my rolling forecast, revenue, and operating income by years end. In other words, this is where I will be operating the way I am now. Good or bad I have time to adjust before the end of the year. I am not finished with it yet as I think of new items to add and the worksheet really does all the work for you. I just impute the numbers by each trip and everything else is done for me. And it is updated at real time for anytime during the month.
Of course a pencil and paper works great for some “old schoolersâ€
You ask some really good questions and most members will answer them as they have experienced the same situation from time to time. I know I really had second thoughts about it until I got my first settlement. You can really get some good advise here I did before jumping into this line of work.
Don’t get confused, or discouraged with all the advice you will get. Remember, if 4 people see an accident there will be 4 different accounts of that accident but only one true account. Most times it will all align together for you.
Steady
"The windshield is bigger than the rear view mirror, because it is more important to see where you are going than where you have been"
>love to share? One that says, if X * Y = C and F is this,
>then you devide c/f and you get profit or loss? X = Miles,
>Y = Rate per mile, C = cash, and F = fuel? Or some
>variation of this.
I have been tracking revenue, cost and operating income for multiple locations with millions of dollar budgets for over 25 years before retiring. Let me say that the spreadsheet at OOIDA is formatted wrong in my opinion; however, a lot of folks seem to like it. You have to do too many manual calculations. As far as cost per mile, it is at the bottom of my list. Now every time I say this I get hammered in the forums and the subject gets sidetracked, so folks please keep it to yourself ( e-mail me), we all have opinions, my business, my way, works for others and me, etc, etc. (Proven method) I like to know my miles paid and deadhead miles not paid, cost and revenue and bottom line numbers. Your cost per mile is what it is at the time more important than just knowing what your cost per mile is, you do need to know how to control it, after a very short while as history is logged and known, you can quickly adjust your management of your cost per mile to get to acceptable profit margins. What I did was in Excel format, Trip numbers going across and revenue and cost going down. I have each month’s tab rolling over to a yearly total sheet that shows me at a glance by month and year to date, revenue, miles total, cost by line item, (fuel, food, tolls, showers, Misc, etc). After the month is over I print out the report staple it to my BOL’s and trip reports with receipts allocated to each run, then I file it. I also have a formula that automatically shows me what I call my rolling forecast, revenue, and operating income by years end. In other words, this is where I will be operating the way I am now. Good or bad I have time to adjust before the end of the year. I am not finished with it yet as I think of new items to add and the worksheet really does all the work for you. I just impute the numbers by each trip and everything else is done for me. And it is updated at real time for anytime during the month.
Of course a pencil and paper works great for some “old schoolersâ€
You ask some really good questions and most members will answer them as they have experienced the same situation from time to time. I know I really had second thoughts about it until I got my first settlement. You can really get some good advise here I did before jumping into this line of work.
Don’t get confused, or discouraged with all the advice you will get. Remember, if 4 people see an accident there will be 4 different accounts of that accident but only one true account. Most times it will all align together for you.
Steady
"The windshield is bigger than the rear view mirror, because it is more important to see where you are going than where you have been"
Well I worked out my costs (everything) and then figured out if I was to work an 8 hour day I would have to make $25 per hour minimum. Since I do so much deadhead I usually work on the hourly rate for the day. This way I know I'm making money if the run pays minimum $25 per hour for all time spent on the call. This works for me but not for everyone. I figured out 8 hours minimum to cover expenses, everything over that is profit. One customer we work for I usually make about $35-40/hour.
Rob Fis
Rob Fis