I like the way that you have broken things down. There are a few items which I think are off. Your insurance should be $0.08/mile rather than $0.04 if your premium is $8,000. You may check on your base plate and permits costs. I pay $1,600/year just for the base plate. You will also pay $39/yr for UCR, $550/yr for 2290 (Heavy Highway Use Tax), and there are a couple of other states such as New York or New Mexico where you need to pay an annual tax or buy their permit. I would count on spending between $1,800-2,000 for base plates, permits, UCR, etc., Your factoring fee is probably in range if you plan on doing recourse factoring. In fact, you may be a bit high for recourse. However, in doing recourse factoring you need to consider that you may have some charge offs during the year. If you go with a non recourse factor then you could be looking at somewhere between 5-8%. I would not pay more than 5%. Some people may pay early for a cash discount so that you won't need to worry about factors for those accounts. Lastly, you need to remember to pay yourself if you are the driver. There should be enough profit to pay yourself as you would a driver and still have a profit. In today's business climate, the main thing you need to do is survive. That means running for a profit. One thing that I particularly like in your figures is the low equipment payment. I would check on the trailer lease or rental. Trailers usually rent for a little higher rate than you are noting. If you have a company who will rent you a trailer for what you noted then that is great.
|