Originally Posted by solo379

Using "Steve's" math, my CPM is just $0.51cpm
Using "common sense" math, it's $0.80cpm
Somehow, i feel more comfortable, with the second number! :roll: :wink:

Just following Ranks format, your numbers may vary.

[Dispatch_This]

You guys aren't thinking like businessmen.

How to determine your true truck cost:

What you pay for your truck MINUS what you eventually sell it for, MINUS what the money would have earned if you put it in a safe investment.

Let's assume you pay $50,000 cash for a 2004 Pete, and have decided to sell it in five years no matter what, and get out of the trucking business.

2012 comes along, the wholesale value of your truck is $25,000. Your actual truck cost was $25,000 for five years. If you drove 500,000 miles during that time, than that would be .05/mile.

But wait - If you had put the $50,000 in a money market account at 5% you would still have the whole $50K plus about $14,000 in interest for a total of $64,000.

So your truck cost was 25,000 plus 14,000 for $39,000, or .078/mile.

Rank's detailed accounting is what he has paid for his equipment out of his cash flow over the years. He owns the equipment outright and it now appears on his financial statement as an asset.

What you initially pay for your truck ( cash or loan) is only a small part of the picture.

[merrick4]

Hey Rank thanks for posting your numbers. You know I was thinking, with what you said to Steve, I mean the truck I have is being financed in the normal way though I am about to take care of that, but everything else I have (brand new 2008 trailer, reefer unit, apu) is being financed at 0%. So for instance on the thread I have going I figured for last month I made $5000 but really if I'm paying for the trailer and it cost me nothing to begin with, well it's an expense of course but when it's done it's something tangible. But I guess it's profit as well.

I guess for Steve, he paid cash so there is the opportunity cost of using that money for the truck, but I have all of this equipment and cost me nothing out of pocket. The only true cost is I could have taken the money and put it in the bank and earned a bit more than 5%.

You know what I'm trying to say? That is I'm paying for equipment that cost me nothing to obtain and in the end I will have the equipment.

I should add as I just realized that $15,000 of the trailer was at 5.99% for life but I couldn't live with that and $8000 was just put at 0% and by next week the rest will be paid off, there is only about $2,000 left on it.

You guys can twist the numbers around any way you like to make it sound as bad as you want.

I'm going to do about $195,000 at the end of my first year. I have a spreadsheet with all my costs plus my personal bills. I have no loans and no outstanding credit cards bills. After I've put away money for my maintenance account and paid my taxes, health insurance, cable TV, food, car insurance, car gas, phone, electric and heat I have over $1,000 a week left over.

If you want to analyze return on investment and all that other crap go right ahead. I could trade my truck and trailer in today on brand new equipment and still have more than enough to finance it with my left over money alone.

Everyone is different people. I've paid my dues in life and now it's my turn. I paid $702 a WEEK in child support for 11 years. Now it's my turn.

[solo379]

Originally Posted by merrick4

You know what I'm trying to say?

Not really...? ops:

[Ian Williams]

I'd go with the .40cpm it is much simpler that defining the "net" of the truck.

Now is that Hub, practical or HHG miles?

[solo379]

Originally Posted by Ian Williams

Now is that Hub, practical or HHG miles?

What do you think, is the most accurate?

[rank]

>I paid cash for my truck.
So did we. So what? It still needs to be accounted for.

>I paid cash for my trailer.
So did we. So what? It still needs to be accounted for.

>My maintenance costs were less than $5,000 for the past year.
1. You haven't been at it a year yet.
2. With the amount of time you've been at it, you don't yet know what it costs to maintain a truck.

>I never said anything about family. Sounds like you got a bug up your azz.
Damn right I've got a bug up my azz. You call BS on my expenses? You say I shouldn't ammortize trucks and trailers because I paid cash for them? That's the stupidest thing I've ever heard. Those expenses are real...just as real as every one of the $55,000 in maitenance receipts I went through.

And yes you did bring up family. Why? Because you had money to start with. Anybody with a family has no money.

You are succeeding because you had a nest egg to pay for your stuff (good, but it's not exactly the college fund money is it?) and you do not have to take a cheap load home and a cheap load out every week to see your family.

For you to tell people otherwise is stupid. And it yes it pi$$es me off.

Originally Posted by rank

>I never said anything about family. Sounds like you got a bug up your azz.
Damn right I've got a bug up my azz. You call BS on my expenses? You say I shouldn't ammortize trucks and trailers because I paid cash for them? That's the stupidest thing I've ever heard.

I didn't say that!!!!!!!!!!!

And yes you did bring up family. Why? Because you had money to start with. Anybody with a family has no money.

No I didn't !!!!!!!!!!

For you to tell people otherwise is stupid. And it yes it pi$$es me off.

Your putting words into my mouth I didn't say. Take a Midol and get over it.

[rank]

Rank's detailed accounting is what he has paid for his equipment out of his cash flow over the years. He owns the equipment outright and it now appears on his financial statement as an asset.

Distpach:
You're correct I didn't show the equipment as assets. reason? It's neglible. A 2001 T2000 with 1 million on the clock is practically worthless. Might be worth 15,000 and 5 years ago we paid $115,000. So I beg to differ...what you pay for the truck can be a BIG part of the picture. It just depends. We overpaid for that truck.