[charged]

Originally Posted by GMAN

You can't randomly set a figure as to the cost of operating a trucking business. If you take ten people, each will have different costs of breaking even. That is what becomes confusing to some people just starting out. I have spoken to some who only want to consider the cost of fuel when it comes to operating costs. There are costs such as payments, insurance, taxes, wages, maintenance, etc., Two things most forget are wages and taxes. Just because you drive a truck yourself doesn't mean that wages should not be part of your operating costs. Whether you pay a driver or do the driving yourself, you need to consider wages as part of your operating costs. Over the years, I have known of a lot of business owners who forget to pay themselves. If a business can't afford to pay the owner then it isn't a viable business. When you look at what you need to take a load, you should consider wages and profit as part of the equation. If you don't consider wages and profit, then you won't stay in business very long. As a business owner, you also pay all of the employment taxes. I find most people under estimate their true operating costs.

I thought it was fairly obvious that a business that makes no profit is a bad business to be in. The person who does not agree is an idiot. No one should work free of charge.

I was specific about the operating costs and the miles driven monthly.
The break even # is $1.29/mi. Anything over that is what the o/o is making and may be taxable. If the guy makes $1.30/mi he has made $80 for the month and that may be taxable. If he makes $500/mi he has made $29680 for the month and that may be taxable. It is obvious if the o/o wants to eat he needs to make more than $80 so he better make a lot more than the break even.

[Orangetxguy]

Originally Posted by charged

I thought it was fairly obvious that a business that makes no profit is a bad business to be in. The person who does not agree is an idiot. No one should work free of charge.

I was specific about the operating costs and the miles driven monthly.
The break even # is $1.29/mi. Anything over that is what the o/o is making and may be taxable. If the guy makes $1.30/mi he has made $80 for the month and that may be taxable. If he makes $500/mi he has made $29680 for the month and that may be taxable. It is obvious if the o/o wants to eat he needs to make more than $80 so he better make a lot more than the break even.

And hence YOUR faulty thinking Wonderboy.

If the business is not paying wages from the start, it is already a failure. Food, ect, by IRS standard, are paid for, from driver wages. You seem to want to associate wages with profit. Wages are not paid by profit.

Profit is what is left after all the bills are paid...and one of the major bills would be wages. Whether those wages are paid at a mileage rate of say 33.5 cents per mile, or a monthly salary of $2,850.00.



GO AWAY BOY.

[Rev.Vassago]

Originally Posted by Orangetxguy

If the business is not paying wages from the start, it is already a failure. Food, ect, by IRS standard, are paid for, from driver wages. You seem to want to associate wages with profit. Wages are not paid by profit.

Profit is what is left after all the bills are paid...and one of the major bills would be wages. Whether those wages are paid at a mileage rate of say 33.5 cents per mile, or a monthly salary of $2,850.00.

Well, what do you expect? He is trying to treat a business like a company job. :lol:

[Orangetxguy]

Originally Posted by Rev.Vassago

Well, what do you expect? He is trying to treat a business like a company job. :lol:

I've come to the conclusion he is just one more idiot, trying to make us all look stupid.


Like all those that run cheap, his DADDY will go under...IF in fact there is such a creature.

[GMAN]

I have a couple of friends who pay themselves a flat salary. One pays himself $2,000/month. The other pays himself $700/week. These costs are included in their operational costs. Anything left over after salary and other operating expenses is profit. Some owners pay themselves a salary based upon a mileage rate, as they would any other driver they would put in their truck. I understand what you are saying about the basic costs of running the truck, Charged. However, you fail to understand what we are trying to explain to you.

[charged]

Originally Posted by GMAN

I have a couple of friends who pay themselves a flat salary. One pays himself $2,000/month. The other pays himself $700/week. These costs are included in their operational costs. Anything left over after salary and other operating expenses is profit. Some owners pay themselves a salary based upon a mileage rate, as they would any other driver they would put in their truck. I understand what you are saying about the basic costs of running the truck, Charged. However, you fail to understand what we are trying to explain to you.

I understand completely what you are saying. I'll restate it. You and everyone else thinks that the cost to operate a truck includes everything it costs to operate the truck plus whatever it takes for the o/o to live and then some.

I just want to know the base operating costs not including driver wages. It blows me away that no one can answer it. Since no one can answer I calculated it out as $1.29/mile and that figure is the one I will use from now as the base operating cost. Anything more than $1.29 the driver is making something anything less and driver is losing.

[Rev.Vassago]

Originally Posted by GMAN

I have a couple of friends who pay themselves a flat salary. One pays himself $2,000/month. The other pays himself $700/week. These costs are included in their operational costs. Anything left over after salary and other operating expenses is profit. Some owners pay themselves a salary based upon a mileage rate, as they would any other driver they would put in their truck. I understand what you are saying about the basic costs of running the truck, Charged. However, you fail to understand what we are trying to explain to you.

I pay myself salary based upon what my monthly bills are, both fixed bills and variable bills (like food). Anything beyond that is considered profit. But I've beat that that subject to death a long time ago. At least now it sounds like people are starting to see the light.

[charged]

Originally Posted by Orangetxguy

I've come to the conclusion he is just one more idiot, trying to make us all look stupid.


Like all those that run cheap, his DADDY will go under...IF in fact there is such a creature.

If I drove a truck I'd be more than happy to tell you my exact costs and how much I made. Since I don't I can't. I did post several pics of my dads truck during the week I was with him. I posted my driver license in a few posts.

[GMAN]

Originally Posted by charged

I understand completely what you are saying. I'll restate it. You and everyone else thinks that the cost to operate a truck includes everything it costs to operate the truck plus whatever it takes for the o/o to live and then some.

I just want to know the base operating costs not including driver wages. It blows me away that no one can answer it. Since no one can answer I calculated it out as $1.29/mile and that figure is the one I will use from now as the base operating cost. Anything more than $1.29 the driver is making something anything less and driver is losing.

I am curious about why you want to use basic truck expenses as the basis for your break even point? Using your $1.29/mile cost factor, does that mean that your Dad will take any load that pay more than $1.29?

[Rev.Vassago]

Originally Posted by GMAN

I am curious about why you want to use basic truck expenses as the basis for your break even point? Using your $1.29/mile cost factor, does that mean that your Dad will take any load that pay more than $1.29?

Of course it will, because his dad has another business to fall back on that pays the actual home bills. That way he can haul cheap freight and consider himself a success.