Questions I would like to ask about the exp. busin

[guest]

Hello all, I'm really impressed with the posts on this board, so i wanted to ask some specific questions of my own.

1. What kind of avg. pay per mile can be expected in a D unit? So far, I've found .85-.90 for all miles to be the general advice. Comments?

2. What kind of fuel mileage can be expected in a D unit. I realize there are many factors effecting this, but I'm looking for numbers that I can count on. So far I've found that D units seem to range from 10-14 mpg. I would expect that 14 would be a little high? Is 10 to high? or too low?

3. In other posts I've read that you can expect .35-.45 cpm for truck expenses. I am assuming that this covers everything but the driver pay. Can I include my truck payment in those numbers, or do i have to pay for my truck after the .35-.45? Also, that is quite a range, can anyone narrow it up a little?

4. As a single driver, can I get the freight? I am willing to stay out if needed. I would like to think that I could avg. 2k miles a week. Is that possible?

I'm sure that I'll be asking more questions later. I just wanted to throw these out here to see where they go. I was intending to buy a truck, but after reading on here, I am convinced that driving for someone else for a while would be wise. The 40/60 split sounds pretty good to me.

 

[Weave]

RE: Questions I would like to ask about the exp. b

My answers:

Question #1: A D unit will generally get more than that. My company pays a straight $1.20/mi. Shop around for best pay rate.

Question #2: Looking at all the D units I know or have known 8-12 MPG is around the average for one.

Question #3: All inclusive cost per mile with payment for my D unit ($57k) has been around .55 cpm. There are a lot of variable costs, so it changes daily, but that's about average.

Question # 4: Yes, there is plenty of freight for the single driver. I work on a 10-13 day out cycle then 3-5 days home. I average about 1500 miles a week. If you stay out longer, 2000 is very possible.

Definitelty a good idea to drive for a fleet owner first before committing to buying your own truck. That way if you don't like it, you simply walk away. Easy enough, right?

-Weave-

 

[tazman]

RE: Questions I would like to ask about the exp. b

Hi,

Let's do some math...

2000 miles/week @ 50 miles/hour average = 40 hours driving

2000 miles/week @.90/mile to the truck = $1800.00

2000 miles/week @ 11 MPG average (181.81 gallons)

181.81 gal x $1.50/gal $272.72 (15% of gross)
$0.13.6/mile

Wear/tear on truck (maint.) $.10/mile $200.00 ????

Insurance on truck ($5000/year ??) Too high ???
$96.15/week /2000 miles $.048/mile

Food/showers and laundry etc.
$15.00/day ($90/week ???) $0.45/mile

Tolls and other misc $50/week
$0.25/mile

Truck payment $1500/month x 12 months divided by 52 weeks
$346.15/week /2000 miles $0.17/mile

So lets add it all up...

Fuel = $0.136
Wear/tear = $0.100
Insurance = $0.048
Food/living= $0.045
Tolls = $0.025
Payments = $0.170

I get to about $0.524/mile...

Which leaves you about $750/week before taxes (Fed and local)
($18.8/hr of driving)
Perhaps some experienced guys running can "tweak the numbers"

I'd like to to know as well..


Thanks,

Tazman

 

[Weave]

RE: Questions I would like to ask about the exp. b

Not too bad, Tazman! That you have even sat down to figure those things is a miracle in itself, and your guesses were reasonably accurate. A lot of guys just jump into doing this (I was guilty of it myself when I started out) not having a clue how to calculate cost per mile and profit. I learned it the hard way!
Your figures look realistic. You might get more pay per mile but less miles, or have a bit more or less fixed and variable costs. I can't do any tweaking as that would depend on the individual, where they run, their specific truck, etc-etc. Insurance varies greatest, depending on where you live and how much your lease company picks up for you. Payment on my $57k truck is $1320/mo for 52 mos.
I think your figures would be good ones for you to start with if you desire to become an O/O.
_Weave-

 

[Weave]

RE: Questions I would like to ask about the exp. b

Don't worry, I learned how to do math a couple of weeks ago. A firend of mine who knows I love electronic gizmos gave me this 1980's engineering calculator from HP a few weeks ago. It uses a system called "Reverse Polish Notation." Now those are three words that go together, right :7 Sounds like a new Eaton transmission- "The reverse shift polish dual range immidiate notation zero clutch grind away driver."
-Weave-

 

[guest]

RE: Questions I would like to ask about the exp. b

Thanks for the info. guys, seems to be pretty well in line with what I've put together. I have owned a tri-axle dump truck and done the finances on that, so the math isn't a problem, I just didn't know what kinda of gross pay and fuel mileage numbers to use. It seems that the the cost of operating the truck are very similiar to the dump truck, but the dump payed better per mile. We hauled asphault and averaged around 1.40 for all miles. But the dump truck business is very, very seasonal and of course we all know that payments aren't :'( I would do that if I could work it year around.

One question for "weave". Is that $1.20 per mile for all miles or loaded miles? If it is for loaded, do you have any idea of what the percentage of deadhead you run compared to loaded miles is?

While we're here, does anyone know how much fuel one of these trucks burns while idling? I would think that someone out here has calculated gallons per hour of idling at some point. I've found that it's all in the numbers, you just have to have the right numbers.

Thanks again for the help!!

 

[guest]

RE: Questions I would like to ask about the exp. b

weave, i just went back and read your original reply. You said that your company paid a straight $1.20. I take it that you get $1.20 for all miles. Care to tell us who your company is? You can email me if you don't want to post it on here.

thanks

 

[guest]

RE: Questions I would like to ask about the exp. b

btwm Tazman, I was impressed with your calculations. I thought I was the only guy who spent all his time crunching numbers :+ . To me that's probably as much a part of the trucking business as getting behind the wheel, although this part doesn't get your butt as sore!

Have a good one and thx for the input.

 

[tazman]

RE: Questions I would like to ask about the exp. b

Thanks..... I need to know what I physically have to do when I finally get started....

Crunching the numbers will help me decide what truck level I'll need to focus on to start....and teaming up with a partner that will want to earn money too

BTW....deadhead...good topic....I answered an ad for a guy on thr classifieds...an he claimed that over a 1 year period...it averaged to be about 11.62% deadhead...for "his" people...thats pretty good...especially if you are not getting paid the full amount from your freight company...

I really should factor deadhead in the overall fuel/truck cost on my spreadsheet....as it is an 'expense'/direct cost of the business...

 

[vernon946]

RE: Questions I would like to ask about the exp. b

Tazman, I would not reley on that 11.62%. I acheived that once when I drove a company flatbed, but you'll rarely see that expediting. Depending on the company and how eager you are for the run, you could easily see 40-50% deadhead miles.

You have to remember, dispatchers only care that the load is covered, not how far you have to go get it or how far you have to go to get the next one. With a straight face, they offered us a run from Lynchburg, VA to Detroit. We were already sitting in Detroit, so that was a d/h of 610 mi for a 610 mi load.

We have to work hard to keep our d/h around 30%, and sometimes it goes over that.

Your fuel cost is probably low. While there are places this week you can buy fuel for $1.30, you won't be there much. I would go with $1.60 a gallon.

I would also factor in idling costs. Figure an average 4 hours a day if you can stand the cold and heat a little, or 9 hrs if you always gotta hear that baby purr. We park next to many truckers who can't sleep with the truck shut down.

Vernon

 

[Tony]

RE: Questions I would like to ask about the exp. b

>Your fuel cost is probably low. While there are places this
>week you can buy fuel for $1.30 you won't be there much. I
>would go with $1.60 a gallon. > I was cruising the old posts(this is only 4 months old) and this really stood out.Oh God, I would love to find 1.30 a gallon(is it that cheap anywhere in the country right now?), heck even 1.60(down south) looks good right now(I'm in northeast ohio)

 

[X X]

RE: Questions I would like to ask about the exp. b

Are the expediters only driving about 30-40 hours per week?

 

[zor]

RE: Questions I would like to ask about the exp. b

> Are the expediters only driving about 30-40 hours per week?

The hours a driver drivers a week depend on many factors.
The company they are with, There drivingh habits, There goals, and even the the loads they take and recieve from dispatch.

As a team driver I have run 50 to 60 hrs per. week, putting the truck on the road up to a 120 hrs per week.

If I were to take a guess at it, I would think, 30-40 hrs may well be avarge hrs per. week with all the down time you will incounter.
Hope this helps.

 

[zor]

RE: Questions I would like to ask about the exp. b

:9 I would like that name also.

 

[BigBusBob]

RE: Questions I would like to ask about the exp. b

Arky, regarding engine idling and fuel usage... a diesel engine will typically burn about 1 to 1.5 gallons per hour. A diesel AUX Unit or Generator, or APU (Auxilliary Power Unit) of some sort on a rig will burn about 2 gallons per 4 hours.