[AMikonis1980]

Originally Posted by mike3fan

I would be hard pressed to name 5 dry van general freight jobs that you could make $1.20 a mile for all miles. Maybe $1.20 a mile if you include the fsc, but not averaging in all miles ran. If you can find someone like that especially in MI I would be very surprised.

I think you are pretty realistic in your operating cost at .80-.95 cpm, but I also wouldn't plan on 156,000 miles a year in my buisness plan.

Why would anyone want to run those kind of miles anyway? Too much pressure if you ask me. Concentrate on finding a better company to lease onto (if that's what you are talking about) and get into a specialty type of work ie: Oversized, step deck, tanker or anything that doesn't involve dry van.

2 years ago I averaged $1.70 a mile for all miles and last year was $1.90 a mile for every mile my truck traveled. I don't have the exact break down for the cost per mile with me but my mileage was pretty close to 125,000 each year. I pull chemical tanker.

I never tried flat bed before. Do you think I would be better off starting with flat bed or reefer rather than van?

[Hoyt602]

I guess it all depends on what part of the country you live in and what kind of customers you could get in that area. If you are going to lease to someone then just pick the one that will keep you busy and pay well. If you are going to get your own authority then you would choose what segment you feel would be easiest to find loads off the load boards in the begining. I've done dry van as a company driver and flatbed as an O/O and co. I'll probably never pull van again unless I work with an LTL carrier or something specialized (trade show, etc.). It just seems that you are competing with all the big players (Swift, JB, Etc.) out there doing van and a lot of dry crosses the divide on rail.

In the flat sector you are more suspectible to economic swings as we have seen as of late. Seasonal flow also is a factor as we are soon going to be in the "dead months". Flat or "open deck" historically will pay more than the other arenas. The more specialized you go the more you should get. It can and usually is physical work, so if you don't like sweating you need not apply. Not too many huge flat companies out there, the majority of the open deck capacity is serviced by small carriers of 20 trucks or less. The big flat co.s that come to mind include Melton, Arrow, TMC, ATS, Maverick, Mercer, and a few others. However there individual tractor counts don't rival the large van operators.

By the way, you can view information about most public carriers at Transport Topics (subscription required). You also should look at the financials of any perspective carrier you are desiring to lease with. You may be suprised to see a few big name ones that have been bleeding for some time. How some of them have been in the red for so long and still operate puzzles me. YRC has been selling real estate to raise cash and leasing back the same terminals. After they blow through that cash where are they going to get more? Covenant has been bleeding since last year, maybe before, don't remember off hand. I read somewhere that is was predicted, 4 large long haul and large LTLs that you have heard of will cease operations by the end of this year. The news media says we are out of the depression. Somebody forgot to tell the shippers...

So we have been through and still going through the worst times in this industry that anyone alive has ever seen, as a whole. Coming out of this we should see the best times ever as demand should outweigh capacity for some time.

Don't where all that came from, time to get off the soap box.

[Hoyt602]

Also, I didn't see where you factored in liability ins. with your estimate. You included cargo at $159/ week. Was that cargo and liability both? I would assume so as it comes too around $8200 a year. Keep in mind on the insurance, if you are going to finance it (make payments) they usually require 25% down and pay the rest over 8 months. You can spread the cost over a year for your calculations, but for your cash flow and start up you'll need the money sooner. Of course, if you lease to a carrier you usually don't have to pay (outright) for the ins. They'll either deduct it from your settlement, typically they should be paying a higher than normal % to you if they do it this way. The ones that normally pay btwn 70-85% usually cover the liabilty and cargo with their portion ( which is really you anyways).

And... to pick it apart further (read help you) I would include your wage and profit to the company seperate. If you get your own authority you are building a company, correct? The company should show a profit (in particular for future borrowing needs). Come up with a wage that will pay your household bills and the rest let the company (you in the end) have. When you are small, of course everything left over goes to you after expenses. If you are a sole prop. all that money is taxed at your rate and you of course pay self employment tax. At some point you should consult an accountant and possibly tax attorney to decide if forming a corporation is viable for you. It has helped me greatly in keeping more money then giving it away.

[LOAD IT]

Originally Posted by AMikonis1980

Im a company driver right now and my average year to date is 3220 miles per week. Didnt take a vacation yet

Only a few company drivers can average 3000+ miles per week and you are a money maker for the company when you are doing it the right way. Not running legal, 2 logbooks, etc will only cost you and the company in the long run and the company throws you under the proverbial "bus". When you become an O/O that all changes and you will not want to run 3000+ miles per week average.

[rank]

Originally Posted by AMikonis1980

I calculate $0.90 per mile is cost. So where is the profit?

I think you're starting to get the hang of this. You are way ahead of many others that have been through here. Some didn't believe us and have parked their trucks.

I honestly don't know a small van operation survives. Actually, I don't know a single one that has survived. Speaking about those that have their own auth.

[Musicman]

Maybe I missed it, because I admittedly didn’t read all of the above replies, but I don’t see anything budgeted for INCOME TAX, SELF EMPLOYMENT TAX (meaning double Social Security), ROAD TAXES (NM, KY, OR, NY) (if you run in OR a lot it will bankrupt you), and I didn’t see anything budgeted to make up for the benefits you are losing by being self employed (have you checked out what quality private medical insurance goes for these days?)

[BanditsCousin]

With just a brief rundown of your numbers, I see you buying yourself a 30cpm driving job.

Not that it is any of my business, but what do you make as a company driver? (if you don't mind me asking)

[Red Clay Rambler]

Originally Posted by AMikonis1980

Volvo 780

Truck price out of the door $30,000.00

Trucks mileage 670000

My truck had 630,000 miles on it when I bought it for $12,000 cash. 99 International 9200.

Correct me if I'm wrong, but it sounds like the company you want to lease to is charging YOU for cargo insurance, which is normally something THEY would pay, although it doesn't surprise me that companies are trying to pull this on new/inexperienced owner-operators. I would not lease to a company that required me to pay THEIR cargo/liability insurance for their loads.

[BanditsCousin]

I pay 250 a month for my BIPD, but then again, most o/o's with belly boxes do

[AMikonis1980]

Originally Posted by Musicman

Maybe I missed it, because I admittedly didn’t read all of the above replies, but I don’t see anything budgeted for INCOME TAX, SELF EMPLOYMENT TAX (meaning double Social Security), ROAD TAXES (NM, KY, OR, NY) (if you run in OR a lot it will bankrupt you), and I didn’t see anything budgeted to make up for the benefits you are losing by being self employed (have you checked out what quality private medical insurance goes for these days?)

for road taxes i included
Permits ($/week) $5.75 $300 /year
would that cover it?

how much more do you pay on INCOME TAX, SELF EMPLOYMENT TAX comparing to W2 otr driver?

i dont like the health insurance at my company so i dont have it anyway.