OXN
Active Member
FINANCES: Two key points, 1. how much does it cost me to run? 2. How much do I need to make to cover my cost and make a decent living?
First include ALL your expense and I do mean ALL, Which means take all your annual expense and quarterly expense and convert them into a monthly figure. That means everything from base plate, heavy highway use tax, IFTA, tires, repairs, maintenance, other state taxes like KY,NY, NM etc. then add them to your monthly expense, if you have to average for some thing, so be it, like tolls for example say 100 or 200mo, whatever. Don't forget things like, idling, mailing, truck washes, cell phone use and connection card, also loads boards, legal protection, etc. and oh yeah you know that visa card you been running up with fuel? You have to add that monthly cost as well; you might as well be as truthful and realistic as possible. What good is it to lie to yourself? You need to add everything in such a way to reduce your entire operation to what you were paying out when you were a company driver. Oh yeah I almost forgot if you factor include how much you're losing from that or any other variable cost.
Once you add all that up and add your approximate fuel cost you should have something pretty close to what your actual operating cost is.
2. Now divide that total expense by 30 days, you get how much per day, divide the total also by your average loaded miles, you have how much it cost you to run per mile, at least an average.
But wait obviously we're not owner ops. to work for free right? So now
add how much you expect to earn a decent living, I thought when I left the company if I'm making 3000mo as a company driver, if I'm least on I should make around 4500 net and if I run my own authority like double the headache double the money 6000, right? Keep dreamin! It don't come out that way sorry but most OO don't realize this til their in way over their heads. Anyway back on track.... add what you expect to make on top of your total expense lets say for example your total expense is 12,500 you expect to make about 4000 that’s 16,500mo right?
Now legally, physically and logistically you can only run so many miles a month, you should want to have personal and family time, time for God, self improvement, exercise (YMCA) recreation "not just sitting looking at tv and talkin on the cb all yo life.
So you can only make so many runs reasonably a month like 10 to 14
Now it gets deep, divide 16,500 by 14 that’s about 1180 lets keep a days work at 575 miles ( I know you can do a 1000 smart ass, but I bet you can't do it back to back everyday of yo life) that means your rate MUST be about 2.05 per mile on ALL, I said ALL miles, since you can't get 2.05mi in weak freight area You MUST get round trip from the strong area that’s about 4.10 per mile that’s your rate. You can get that from those same cheap brokers that been feeding OO on beanie weenies and ramen all yo life "IF" you correctly position your equipment quote your price and WAAAAAAAAAAAAAAAAIT!!!
Most average about 1.45 on all loaded miles let’s say times 18 runs/mo times 575 = about 15,000 -12,500 = $2500 total loaded miles is then 10,350 divided by $2500thats's about .24cpm on loaded miles If you add on the empty/deadhead miles you'll see how fast you’re workin for about .18cpm
First include ALL your expense and I do mean ALL, Which means take all your annual expense and quarterly expense and convert them into a monthly figure. That means everything from base plate, heavy highway use tax, IFTA, tires, repairs, maintenance, other state taxes like KY,NY, NM etc. then add them to your monthly expense, if you have to average for some thing, so be it, like tolls for example say 100 or 200mo, whatever. Don't forget things like, idling, mailing, truck washes, cell phone use and connection card, also loads boards, legal protection, etc. and oh yeah you know that visa card you been running up with fuel? You have to add that monthly cost as well; you might as well be as truthful and realistic as possible. What good is it to lie to yourself? You need to add everything in such a way to reduce your entire operation to what you were paying out when you were a company driver. Oh yeah I almost forgot if you factor include how much you're losing from that or any other variable cost.
Once you add all that up and add your approximate fuel cost you should have something pretty close to what your actual operating cost is.
2. Now divide that total expense by 30 days, you get how much per day, divide the total also by your average loaded miles, you have how much it cost you to run per mile, at least an average.
But wait obviously we're not owner ops. to work for free right? So now
add how much you expect to earn a decent living, I thought when I left the company if I'm making 3000mo as a company driver, if I'm least on I should make around 4500 net and if I run my own authority like double the headache double the money 6000, right? Keep dreamin! It don't come out that way sorry but most OO don't realize this til their in way over their heads. Anyway back on track.... add what you expect to make on top of your total expense lets say for example your total expense is 12,500 you expect to make about 4000 that’s 16,500mo right?
Now legally, physically and logistically you can only run so many miles a month, you should want to have personal and family time, time for God, self improvement, exercise (YMCA) recreation "not just sitting looking at tv and talkin on the cb all yo life.
So you can only make so many runs reasonably a month like 10 to 14
Now it gets deep, divide 16,500 by 14 that’s about 1180 lets keep a days work at 575 miles ( I know you can do a 1000 smart ass, but I bet you can't do it back to back everyday of yo life) that means your rate MUST be about 2.05 per mile on ALL, I said ALL miles, since you can't get 2.05mi in weak freight area You MUST get round trip from the strong area that’s about 4.10 per mile that’s your rate. You can get that from those same cheap brokers that been feeding OO on beanie weenies and ramen all yo life "IF" you correctly position your equipment quote your price and WAAAAAAAAAAAAAAAAIT!!!
Most average about 1.45 on all loaded miles let’s say times 18 runs/mo times 575 = about 15,000 -12,500 = $2500 total loaded miles is then 10,350 divided by $2500thats's about .24cpm on loaded miles If you add on the empty/deadhead miles you'll see how fast you’re workin for about .18cpm
