The way I look at it, my dear Rev, and I do believe that you do so too, is that if you're running a trucking business, how can you not include a key cost component like driver's wages into your cost structure ? Only after doing so, can you be in a position to assess how sound your venture is, or if you've simply bought yourself a job. Even though I'm a company driver, every o/o leased to my employer that I've spoken to, pays himself a fair wage, and what he has left after that & after allocating to reserves, does he consider as profit. And this profit is why an o/o is in business for himself, not just for the wages which he can earn as a company driver. For eg, one guy I've spoken to, pays himself CDN$5K every month as wages, and after all his expenses & reserves, banks 4-5k every month as profit.

 

Agreed! I have to say that my equasion is removing 2 zeros from your gross income and doubling what you have left is pretty accurate to letting you know what your net will be.

 

You should be able to pay yourself that amount of money and take care of all expenses unless you have a major breakdown. You may find it very difficult to get much more than that until rates come up. A friend of mine, who is leased to a carrier, grossed about $1,300 last week. He has been doing better most weeks but it has been difficult. Another who is leased to another carrier only made just over $600 after fuel week before last and that was running almost coast to coast. As long as you understand that you may need to live with cheap rates and less available freight then you may make it work. I would still not recommend anyone buy a truck right now unless you have a good cash reserve. There is simply too much uncertainty in the marketplace.

Owner operators run their businesses a variety of ways. Some consider what they have left over after fuel as their profit. Others pay themselves a flat salary and some pay themselves mileage as they would being a company driver. Sticking with a salary is probably the best way to do it since your costs will be more fixed and predictable. The problem may come in if you have several weeks without enough profit to pay yourself a salary. That could create a cash flow problem. In any case, I think you are on the right track in the way you want to set up your business.

 

You've heard correct. Do yourself a favor, keep your current job...
He is full of it,....or simply using a "truckers math". Unless you are in a very specialized field.

 

He did say it was CDN$5,000. That comes out to $750 American.

 

Umm, not quite....I've seen his balance sheet & P&L. Besides, he's not the only one with those financial stats.

 

You used to make over $200,000? As a truck driver?

 

Not according to this...

WikiAnswers - What is 5000 canadian dollars in us dollars

 

Almost as funny as a driver I heard on the CB say his heating bill use to be $300 and this year it went up 50% and he was now paying $650.

I asked him if he had trouble with his logbook numbers too......He said no... why?? LOL

 

It was a sarcasm. But it was based on real numbers. $750 wages and 4-5 grand profit, sounds reasonable. if you are doing good, and want to count it that way.....