Operating Cost

[Redd202]

Excluding what you pay yourself, how much does it cost you to operate your truck, per mile? (Fuel, maintenance reserve, tire reserve, insurance, permits, etc.)

[PhuzzyGnu]

I'm not even an O/O, but anyone who drives a tractor trailer and voted for anything besides "more than $1.00" is fooling themselves and/or doesn't know their cost per mile.

I would say, even running an efficient operation, if you can get under $1.25 -even without paying yourself- you are doing very well.

-p.

[allan5oh]

WAY less then 70 cpm.

[Redd202]

These are not my numbers or anyone else's for that matter, just something I put together to stimulate discussion. What part(s) are accurate/inaccurate?

Operating Costs

*Edited to update link

[DD60]

I'm not even an O/O, but anyone who drives a tractor trailer and voted for anything besides "more than $1.00" is fooling themselves and/or doesn't know their cost per mile.

I would say, even running an efficient operation, if you can get under $1.25 -even without paying yourself- you are doing very well.

-p.

Agreed.

[allan5oh]

Who is fooling who? I know my costs.

Truck is paid for
I don't pay any type of insurance/base plate

All I do is pay for fuel(average around 7.5 mpg) and repair the truck.

Considering average freight pays around what, 1.50 per mile, maybe 1.60? If the average o/o's cost were a buck a mile, that means they make the same as a company driver.

I certainly didn't buy a truck to make the same as a company driver.

[DD60]

Who is fooling who? I know my costs.

Truck is paid for
I don't pay any type of insurance/base plate

All I do is pay for fuel(average around 7.5 mpg) and repair the truck.

Considering average freight pays around what, 1.50 per mile, maybe 1.60? If the average o/o's cost were a buck a mile, that means they make the same as a company driver.

I certainly didn't buy a truck to make the same as a company driver.

The only real tradeoff for most O/Os is that they are not under forced dispatch and are not governed at a certain speed. To do better than a company driver you have to be above average. A 1.70pm average is barely above that.

[mike3fan]

I'm not even an O/O, but anyone who drives a tractor trailer and voted for anything besides "more than $1.00" is fooling themselves and/or doesn't know their cost per mile.

I would say, even running an efficient operation, if you can get under $1.25 -even without paying yourself- you are doing very well.

-p.

:?

please break it down with numbers that backs up why it cost over $1a mile?

[solo379]

they make the same as a company driver.

But you got the privilege to spend, a lot more than that! :P

[Redd202]

I'm not even an O/O, but anyone who drives a tractor trailer and voted for anything besides "more than $1.00" is fooling themselves and/or doesn't know their cost per mile.

I would say, even running an efficient operation, if you can get under $1.25 -even without paying yourself- you are doing very well.

-p.

:?

please break it down with numbers that backs up why it cost over $1a mile?

Operating Costs
I'd like to see somebody else's numbers, too. The ones I used in my assumptions include a truck payment (which not everyone has) and are probably a little on the high side anyway - and I still didn't get more than $1.00/mile. I only used 2,500 miles/week - running more would bring your cost/mile down, too.

*Edited to update Link

[Bigmon]

It looks like you have 15,000 for tires. You have regular maintenance and unexpected maintenance. Seems like overkill to me. Better off double brokering your loads if your truck needs that much.

Steve, Mike and a few others that post numbers comes no where near that.

[allan5oh]

The only real tradeoff for most O/Os is that they are not under forced dispatch and are not governed at a certain speed. To do better than a company driver you have to be above average. A 1.70pm average is barely above that.

Or below average cost in CPM.

[no_worries]

2006 tractor with a '98 reefer, my costs in 2007 were $.90/mile excluding any truck/trailer payments, interest, or depreciation. Average fuel cost was $3.00/gallon and mpg was 6.35.

These numbers reflect all expenses associated with the business and are properly and accurately accounted for. Keep in mind that some choose to account for their expenses creatively, i.e. not including cell phone charges because, "I'd have a phone anyway" or including food because, "I have to eat on the road." Use standard accounting methods and you'll have an accurate comparison to my numbers, otherwise the comparison is of little value.

[DD60]

$.90/mile excluding any truck/trailer payments


With the cost or payments that would bring it over 1.00/mile.

This time I'm going to stay outside the lions den and just watch. I learned my lesson!!!

[allan5oh]

You cannot figure in depreciation when calculating costs. It's strictly how much money that comes out of your pocket.

We're not calculating net worth
We're not calculating our tax bill

If it's paid off, then your truck is costing you ZERO. Sure your net worth is slowly going down(trucks that old depreciate less) but it doesn't COST you anything.

[Redd202]

This time I'm going to stay outside the lions den and just watch. I learned my lesson!!!

[Redd202]

It looks like you have 15,000 for tires. You have regular maintenance and unexpected maintenance. Seems like overkill to me. Better off double brokering your loads if your truck needs that much.

Steve, Mike and a few others that post numbers comes no where near that.

I agree, as those numbers seemed high to me, which is why I used them. The point I was trying to make is that even with numbers that may be inflated, the cost-per-mile was STILL only $1.00.

For tires, I assumed $400/tire for 18 tires and replaced twice a year=$14,400. Plus tax, that comes out to over $15,000.

The maintenance cost numbers are the same way - I'd rather err on the side of caution, than to undershoot the numbers and lose money. But so far, the majority of drivers appear to have cost that are greater than $1.00/mile.

[solo379]

You cannot figure in depreciation when calculating costs. It's strictly how much money that comes out of your pocket.

And that comes exactly from there! If i spend 100+ grand on equipment, i sure suppose to count it, as a "cost of doing business"! :P

[GMAN]

Fuel is your biggest expense in owning and running a truck. Fuel costs alone should run about $0.60-0.70/mile at today's prices. Whether you have a truck payment or not, you should be putting money aside to replace your equipment. Nothing lasts forever. And unless you include money to pay a driver, even if it is you, then you are not accurately looking at your operating costs unless you work for free. We have broken these costs down previously. You may find them if you do a search. Insurance costs will vary from one owner to another. Length of experience, value of truck, MVR, credit history, all play a part in determining your insurance costs. Your costs will be more if you run your authority than if you lease to a carrier. My insurance runs less than $4,000 per truck. Some will pay 3 times that figure or more. I figure oil changes at about $0.025/mile and tires at about $0.05/mile. Things will break on any truck, regardless of it's age. You should allow something for a maintenance account. Some will put from $0.05-0.15/mile for maintenance. That is only used for major repairs, such as replacing an engine, transmission, rear, etc.,

Everyone operates differently. Operating expenses will vary from one owner to another. You could go for a year and not blow a tire. Next year you could blow 3 in a week. Several years ago I blew 3 tires and had to repair my radiator on a single trip!!! It is difficult to plan for this type of thing, but you need to plan for contingencies.