[Joymax_Trans2]

Finally, there are few who understand Accounting 101 & Business 101.

[Dispatch_This]

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.

rank- Well, $15,000 dollars is nothing to sneeze at...

According to your numbers, you recouped your entire investment in 2006 based on $23,000 a year. So now your free-rolling.

If I were in the same position, I would be looking at my P & L next January and asking, "What has my net before tax profit been on that truck over the last 6 years, and if I add $15,000 to that amount is it more than what I would have earned in a money market account?

Not trying to single you out , rank. Your numbers look pretty accurate and they make a good example!

[merrick4]

Originally Posted by geomon

RostyC....glad to hear you bought a truck. What did you end up with? Pictures???

Truckdobe...those are all typical business costs that you listed. I suppose most people simply don't account for that in their business so have no idea of their true costs. And like gman alwasys says....are slowly running themselves out of business. For Truckdobe, $1.03 + $.60 (wage/bennies) = $1.63 so that is the breakeven point for running the business at cost or profit.

Of course each person's situation and costs and totals will be different but people; you should be adding all these into your business plan to make sure you end up in the black and not the red 8)

You know I account for all of that. I have it all entered into Quickbooks but as I'm only out here 2 months, how do you guys break it down per mile? I don't know how many miles I am going to run this year. I'd like to know my operating costs though.

[rank]

rank- Well, $15,000 dollars is nothing to sneeze at...

Don't get me wrong...I'd rather have it than not have it. But if you add it back into the equation on the plus side, it lowers my cpm by less than a penny a mile.

According to your numbers, you recouped your entire investment in 2006 based on $23,000 a year. So now your free-rolling.

That truck was paid for years ago. When I "ammortize", I estimate the # of years that we are likely to have the truck and use that as the ammortization period. That T2 has a 475 Cat that seems lazy as a pig and everything is shaking like crazy....we'll probably trade it soon on something else (NOT a $120,000 truck if I have my way).

If I were in the same position, I would be looking at my P & L next January and asking, "What has my net before tax profit been on that truck over the last 6 years,

I've never done that simply because the convenience factor of having our own trucks outweighs any savings that may come rom using an outside carrier. But, for giggles, and to hold myself up for riducule by the esteemed members of the board, I'll make an (weak)attempt.

I estimate what I would've paid an outside carrier $900,000 to run 300,000 loaded miles in 6 years......so we saved $900,000.

The truck cost $100,000 (after deducting the $15,000 present value). Add in $40,000 for mait (it was only a year old when we got it)+ $200,000 for driver + $350,000 for fuel + $60,000 for ins = $700,000. So the $100,000 truck made approx $200,000 over 5 years.

Not trying to single you out , rank. Your numbers look pretty accurate and they make a good example!

Single away. It bothers me not.

[rank]

Originally Posted by merrick4

how do you guys break it down per mile? I don't know how many miles I am going to run this year. I'd like to know my operating costs though.

I use my IFTA miles but you'll need to estimate. If your cm is too high, just run more miles.
8)

[RostyC]

Originally Posted by geomon

RostyC....glad to hear you bought a truck. What did you end up with? Pictures???

It's going through inspection now geomon, then to a shop for service, I'll post pics as soon as I can. I never take pics of my trucks without at least two coats of wax.

[Truckdobe]

[quote="merrick4

You know I account for all of that. I have it all entered into Quickbooks but as I'm only out here 2 months, how do you guys break it down per mile? I don't know how many miles I am going to run this year. I'd like to know my operating costs though.[/quote]


Mine (cpm) fluctuates from year to year and last year was a bit high b/c I was doing some major rebuilding before, stupidly, deciding to buy a new truck... I know my averages from years past and have a pretty good range to work with.

If you only have 2 months, it would be hard to get a good look at a full year b/c of seasonal fluctuations, holidays etc... It is a start, particularly if your freight doesn't fluctuate greatly.

[geomon]

I never take pics of my trucks without at least two coats of wax.

...got ta git her looking purty before having her shake a leg at us eh :P

[GMAN]

Originally Posted by merrick4

You know I account for all of that. I have it all entered into Quickbooks but as I'm only out here 2 months, how do you guys break it down per mile? I don't know how many miles I am going to run this year. I'd like to know my operating costs though.

You won't be able to be entire accurate in your operating costs, but you can certainly calculate your current operating costs. You will have a much better picture after a full year of operating. Right now, you have 2 months of operating costs. At least it is a start. Just take all of your expenses, deduct from your total revenue and divide by the total miles you have driven. I prefer using odometer miles. You should have written down your initial odometer reading when you bought the truck. You can look at it now and see exactly how many miles you have driven. If you do this each month for a while, you will begin to get a better picture of your actual costs.

[RostyC]

Originally Posted by geomon

...got ta git her looking purty before having her shake a leg at us eh :P

LMAO.......yep gotta be purrty! :lol: