What is the break even point for an owner operator?
#21
09-05-2008, 02:13 PM
Re: What is the break even point for an owner operator?
Originally Posted by Orangetxguy
Originally Posted by charged
Originally Posted by BigDiesel
Originally Posted by charged
Lets take an owner operator that has the following monthly expenses:
authority ? taxes ? .07 cpm maintenance ? .13 cmp other? .25 cpm truck and trailer payment $2000 insurance $700 phone $100 internet $50 load boards $100 no tolls no oversize loads no parking figure gas at $4/gal and mpg at 6mpg including idle time wishful thinking. figure he runs 8k miles/month Does he plan on only working local? Wages (Rookie driver) .335 cpm (because he owns the truck) What does this driver have to make per mile to break even? I can add it up for you. Let's say the expenses are $2950/mo(expenses for which I have costs listed) plus $5333 fuel. He only needs to make $1.04/mile. I have no idea if $0.13 if valid for maintenance, but I have nothing else so I can go with it. Other is pretty high at $0.25/mile. What are you including in that figure? Adding $1.04, $0.13, $0.07, and $0.25 I get $1.49. $1.825-$1.49 = $0.335 Where did you get the other $0.335 from?
#22
09-05-2008, 02:15 PM
Originally Posted by BigDiesel
Originally Posted by charged
I had one question. "My biggest concern is being able to get loads at a rate where I can make some decent money. Since no one seems to share info on good brokers how does one go about finding good ones? Trial and error?" Yet, no one wanted to answer it...Maybe they didn't know the answer so they focused on something other than the question. Kinda like you on this thread you can't focus on the topic. What was funny about that thread is my father has been doing this for what? Two/three months? He hasn't killed anyone. Hasn't lost a load. Hasn't got a ticket. Hasn't been pulled over at a scale for inspection.
#23
09-05-2008, 02:19 PM
Originally Posted by charged
Originally Posted by BigDiesel
Here is what charged posted at this other forum.... It is an interesting read... :lol: :lol:
http://www.thetruckersreport.com/tru...questions.html Yet, no one wanted to answer it...Maybe they didn't know the answer so they focused on something other than the question. Kinda like you on this thread you can't focus on the topic. What was funny about that thread is my father has been doing this for what? Two/three months? He hasn't killed anyone. Hasn't lost a load. Hasn't got a ticket. Hasn't been pulled over at a scale for inspection. You run credit checks on both. You do so as often as once every three months. You learn the business, not by whining or bullying, but by taking hints, by asking pertinent questions, and giving valid and pertinent answers when you are asked a question. 3 months of new operation and hasn't been DOT'ed? Just exactly which scales has he been crossing?
__________________
Space...............Is disease and danger, wrapped in darkness and silence! :thumbsup: Star Trek2009
#24
09-05-2008, 02:20 PM
Re: What is the break even point for an owner operator?
Originally Posted by marylandkw
Some people have multiple incomes. Could be they own a separate business or they are married to someone who can pay the personal expenses.
Someone who goes in with the mindset of "they could own a separate business or they are married to someone who can pay the personal expenses" is setting themselves up for hauling cheap. If they can manipulate the figures to make it seem that they only need $1.04 per mile to operate, then that is where they are setting the bar. Personally, my bar is set at about $1.65 per mile, and I hope I never get that low, because I'm not in business to just pay my home bills and truck bills. I'm in business to earn a profit.
#25
09-05-2008, 02:21 PM
Originally Posted by charged
Originally Posted by BigDiesel
Originally Posted by charged
I had one question. "My biggest concern is being able to get loads at a rate where I can make some decent money. Since no one seems to share info on good brokers how does one go about finding good ones? Trial and error?" Yet, no one wanted to answer it...Maybe they didn't know the answer so they focused on something other than the question. Kinda like you on this thread you can't focus on the topic. What was funny about that thread is my father has been doing this for what? Two/three months? He hasn't killed anyone. Hasn't lost a load. Hasn't got a ticket. Hasn't been pulled over at a scale for inspection.
#26
09-05-2008, 02:23 PM
Re: What is the break even point for an owner operator?
Originally Posted by charged
Not interested in any of those things except maintenance. Mortgage, life insurance, IRA, and health insurance are not mandatory to operate the truck.
__________________
Paranoia is nothing more than the pathological habit of paying close attention. All ideas in this communication are sole property of the voices in my head. (C) 2006, "The Voices" (TM)
#27
09-05-2008, 02:25 PM
Originally Posted by charged
Originally Posted by BigDiesel
Here is what charged posted at this other forum.... It is an interesting read... :lol: :lol:
http://www.thetruckersreport.com/tru...questions.html Yet, no one wanted to answer it...Maybe they didn't know the answer so they focused on something other than the question. Kinda like you on this thread you can't focus on the topic. What was funny about that thread is my father has been doing this for what? Two/three months? He hasn't killed anyone. Hasn't lost a load. Hasn't got a ticket. Hasn't been pulled over at a scale for inspection.
#29
09-05-2008, 02:27 PM
Re: What is the break even point for an owner operator?
Originally Posted by marylandkw
Originally Posted by charged
Not interested in any of those things except maintenance. Mortgage, life insurance, IRA, and health insurance are not mandatory to operate the truck.
#30
09-05-2008, 02:29 PM
Re: What is the break even point for an owner operator?
Originally Posted by Rev.Vassago
EXACTLY. If someone is in business only to break even, it is a lesson in futility, and running all the numbers in the world is irrelevant. The idea is to figure out what it takes to earn a profit after all expenses. It costs me between $7000 - $8000 a month to operate, not counting fuel. That includes everything that I receive a bill for.
Someone who goes in with the mindset of "they could own a separate business or they are married to someone who can pay the personal expenses" is setting themselves up for hauling cheap. If they can manipulate the figures to make it seem that they only need $1.04 per mile to operate, then that is where they are setting the bar. Personally, my bar is set at about $1.65 per mile, and I hope I never get that low, because I'm not in business to just pay my home bills and truck bills. I'm in business to earn a profit. The question was asked not because I want to buy a truck and run w/o making a profit but because I want to know what one would make if his average pay was $1.70/mi. $1.70 minus the break even would be a good approximation of how much a trucker with the given costs could make. |
