$1.26 per mile is not enough in my opinion. All you will do is wear your truck out and never take any time off until you go bankrupt.
You need to consider all the expenses, and your expenses may be different from the next person?s. I recommend the Ooida cost per mile spreadsheet available at
http://ooida.com/trucking_tools/CPM/cost_per_mile.htm or SteveBooth?s spreadsheet (perhaps he would post a link to it). It is not possible to say if $1.26 per mile is a good deal without more information.
NoProblem: Am I understanding correctly that you are going to pay $1.25 per mile to owner operators? I am guessing that $1.00 per mile plus fuel surcharge will come out to about $1.25 to $1.30. No pay for deadhead up to 70 miles? And you are going to charge for trailer rental, plates, insurance, etc? Not for me thanks. :roll:
I will start off with a few basic costs that may or may not be correct for your situation.
Fuel at $3.50 per gallon and 5.5 miles per gallon will cost you $0.63 per mile for every mile traveled. Consider that you may only be paid on HHG short miles for 90% of the paid miles and you run 10% of the time deadhead as well and the fuel cost per PAID mile will top $0.73.
Driver wage should be $0.50 per mile for a self employed person. A self employed person is responsible for all taxes, social security contributions. If they can earn in the mid forties as a company driver then they ought to be worth $0.50 self employed.
Tractor payment will run usually about $2500 per month. Divide that payment by an estimated 10,000 paid miles and that is $0.25 per mile.
So before we THINK about the trailer payment, Collision/cargo/bobtail/health insurance, business liability insurance (separate from truck), licenses, permits, accounting and legal fees, fuel, tires, preventative maintenance, repair, telephone/internet bills, tolls, fines, cargo claims, ? the list goes on, An owner operator needs a minimum of $1.48 per mile to think about leasing on.
Echo the sentiments about the truck should be getting 100% of the fuel surcharge.
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Nothing is foolproof to a talented fool.
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The Road goes ever on and on
Down from the door where it began.
Now far ahead the Road has gone,
And I must follow, if I can,
Pursuing it with eager feet,
Until it joins some larger way
Where many paths and errands meet.
And whither then? I cannot say.
-- J R R Tolkien
