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nsxman2001
Joined: 16 Nov 2005
Posts: 170
Location: Mount Vernon, NY
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| Posted: Sun Mar 30, 2008 4:24 pm Post subject: |
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tankyanker wrote: what is ROI?
ROI Means (Return On Investment)[/list] |
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sidman82
Joined: 21 Jun 2006
Posts: 408
Location: Long Island,NY
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| Posted: Sun Mar 30, 2008 4:58 pm Post subject: |
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| Yes, that is Steve. I do think he knows his cost per mile. I just think he loves seeing you guys try to get it out of him. :D |
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solo379
Joined: 14 Feb 2004
Posts: 3149
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| Posted: Sun Mar 30, 2008 5:12 pm Post subject: |
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nsxman2001 wrote:
ROI Means (Return On Investment)[/list]
Or simply, Profit... :D |
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no_worries
Joined: 18 Apr 2006
Posts: 856
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| Posted: Sun Mar 30, 2008 6:27 pm Post subject: |
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| $1.12, not including driver pay or ROI. That's reefer with our own trailer and 200,000 miles. |
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rank
Joined: 02 Oct 2006
Posts: 1286
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| Posted: Sun Mar 30, 2008 7:55 pm Post subject: |
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~1.90.
Poor fuel mileage, expensive fuel, expensive insurance, a poor US exchange rate and only 210,000 miles a year makes for a big number.
Includes:
-Fuel @ $4.50 US dollars per US gallon & 5 mpg average.
-Drivers pay
-$75,000 in parts and labour
-$45,000 insurance
-3 trucks ammortized to zero when they are 5 years old (4 trucks actually, but 1 is fully ammortized so I don't count it for CPM)
-4 trailers ammortized to zero over 10 years (5 trailers actually, but 1 is fully ammortized so I don't count it for CPM)
-210,000 miles (from previous year's IFTA)
-also include stuff like load boards, cell phones, base plates etc.
-does not include tolls, employee benefits, pension plan, employment insurance.... |
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Rev.Vassago
Joined: 04 Apr 2006
Posts: 5855
Location: The other side of the coin
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| Posted: Sun Mar 30, 2008 8:11 pm Post subject: |
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rank wrote:
-$75,000 in parts and labour :shock:
-$45,000 insurance :shock:
-210,000 miles (from previous year's IFTA) :shock:
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DD60
Joined: 04 Jun 2006
Posts: 473
Location: Rockwall,Tx
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| Posted: Sun Mar 30, 2008 10:13 pm Post subject: |
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no_worries wrote: $1.12, not including driver pay or ROI. That's reefer with our own trailer and 200,000 miles.
:shock: :shock: |
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no_worries
Joined: 18 Apr 2006
Posts: 856
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| Posted: Sun Mar 30, 2008 11:26 pm Post subject: |
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I know, seems a little high. This is the cost I use in quoting rates, it differs from the actual cost in that it's forward-looking. Many of the figures are based on last year's number, some of which will be lower this year. But I never lower cost figures from one year to the next. I increase them if need be or leave them the same, even if they might decrease.
Also, after the first two years of owning equipment (new when purchased) I start using replacement costs rather than my actual cost. So this year, my equipment costs are based on $150,000 tractor and $75,000 trailer. This way my rates are always keeping up with increases in equipment prices (which has been significant the last few years). The alternative is to work with a flat equipment cost for several years and then try to push through a large increase when it comes time to buy new equipment. I prefer to keep costs as current as possible.
If it makes you happier :wink: Our costs for 2007, not including driver pay, ROI, or depreciation, were $.91/mile on 91,000 miles. |
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DD60
Joined: 04 Jun 2006
Posts: 473
Location: Rockwall,Tx
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| Posted: Sun Mar 30, 2008 11:45 pm Post subject: |
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Our costs for 2007, not including driver pay, ROI, or depreciation, were $.91/mile on 91,000 miles.
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.91cpm pulling a reefer? Can you break this down? |
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no_worries
Joined: 18 Apr 2006
Posts: 856
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| Posted: Mon Mar 31, 2008 12:48 am Post subject: |
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Sure, but I'm going to consolidate some of the categories...I've got them broken into minutiae :lol: I'm also going to round.
Tractor fuel 42897
Reefer fuel 1855 (lots of dry and dh last year)
Insurance 7829
Tractor repair & Maint. 7931
Trailer repair & Maint. 7123 ('98, when one thing needs fixing, I tend to fix a bunch of stuff)
Plates, permits, taxes 5407
Phone, fax, internet 2000
Misc. 2333 (drug screens, physicals, postage, loadboards, and anything else without a category)
Hotels 1511
Load expenses 1068 (pallets, lumpers, etc.)
Banking and finance 1265
Washes 1143
Prepass, tolls, scales 393
Tires are included in maintenance. |
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Chiefwhatdahey
Joined: 09 Dec 2004
Posts: 79
Location: Shawano, WI.
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| Posted: Mon Mar 31, 2008 1:29 am Post subject: |
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I've posted this site in another post recently, it gives a pretty clear picture what the average cost perm mile is if you are a true trucking co.
http://www.freightrateindex.com/index_files/page0008.htm
The US Freight Rate Index:
The US Freight Rate Index is a comprehensive Cost Per Mile (CPM) indicator that is based on fact. Comprised of 8 main and 65 total cost and cost influencing components, it considers completely, every cost related to freight transport by land. Each component is from the factual source and apportioned per mile, or is a calculated derivative of the actual cost.
The Freight Rate Index or “Cost Per Mile” (CPM) indicator standard equipment model configuration is a full loaded 48 foot trailer with a standard long-haul semi-tractor power unit. This general configuration complies with the laws of, and is usable in, any jurisdiction, and therefore is an average which closely represents the cost of most equipment configurations.
The US Freight Rate Index information presented herein, represents the cost and potential profit for the standard equipment model configuration to travel 1 mile, and is reflected in USD$, or portion thereof. |
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RostyC
Joined: 21 Oct 2005
Posts: 1179
Location: Maryland
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| Posted: Mon Mar 31, 2008 2:58 am Post subject: |
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I wonder how many miles that index is using for a base to get that number?
Also, if you look at the graph below it goes from 2.39 in Jan to 2.26 in Feb and than back up to 2.32 in March, why such a large swing? Fuel has been increasing since Jan.
I wish they had more information explaining these figures. |
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NotSteve
Joined: 20 Mar 2007
Posts: 533
Location: Bar in Mexico
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| Posted: Mon Mar 31, 2008 6:24 am Post subject: |
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sidman82 wrote: Yes, that is Steve. I do think he knows his cost per mile. I just think he loves seeing you guys try to get it out of him. :D
lol....YUP!
I'm on a 2600 mile for Landstar at the moment. Pretty good rate and a light load. |
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no_worries
Joined: 18 Apr 2006
Posts: 856
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| Posted: Mon Mar 31, 2008 9:35 am Post subject: |
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| I'd be curious as to where those numbers come from. Based on those, most big carriers wouldn't have turned a profit in years. Van is the most common mode. When was the last time you saw a 48' van? |
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Rev.Vassago
Joined: 04 Apr 2006
Posts: 5855
Location: The other side of the coin
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| Posted: Mon Mar 31, 2008 9:52 am Post subject: |
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no_worries wrote: I'd be curious as to where those numbers come from. Based on those, most big carriers wouldn't have turned a profit in years.
Most mega carriers' profit margins are extremely thin. They make up for this by having thousands of trucks. If a mega carrier with 2000 trucks makes $0.10 per mile profit off of each truck, multiply that times 2000 trucks, and they are making $200 per mile. Multiply that times 120,000 miles a year for each truck, and they just made $24,000,000 profit off of their $0.10 per mile. |
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