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-   -   What is the break even point for an owner operator? (https://www.classadrivers.com/forum/owner-operators-forums/35390-what-break-even-point-owner-operator.html)

charged 09-06-2008 02:13 AM

Re: What is the break even point for an owner operator?
 
Quote:

Originally Posted by Orangetxguy
Quote:

Originally Posted by charged
Quote:

Originally Posted by BigDiesel
Quote:

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?

Looking for others to do YOUR homework I see.... :lol:

I was hoping you would prove yourself wrong.

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.

Your dad might be lucky to break even at $1.825 per mile. MAYBE!

Road use taxes are $0.7/mile? For break even purposes if you are not making anything you should not be paying anything in income taxes.
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?

charged 09-06-2008 02:15 AM

Quote:

Originally Posted by BigDiesel
Quote:

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.

Again no one is going to do YOUR work for you......

I don't think you know which is why you don't post answers. I don't think I have read a post of yours which has been helpful...

Orangetxguy 09-06-2008 02:19 AM

Quote:

Originally Posted by charged
Quote:

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

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.

You spend time and money finding good brokers or qualified shippers.

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?

Rev.Vassago 09-06-2008 02:20 AM

Re: What is the break even point for an owner operator?
 
Quote:

Originally Posted by marylandkw
Quote:

Some people have multiple incomes. Could be they own a separate business or they are married to someone who can pay the personal expenses.
Then what is the reason for owning a business?

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.

BigDiesel 09-06-2008 02:21 AM

Quote:

Originally Posted by charged
Quote:

Originally Posted by BigDiesel
Quote:

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.

Again no one is going to do YOUR work for you......

I don't think you know which is why you don't post answers. I don't think I have read a post of yours which has been helpful...

This is due to your lack of comprehension skills... What do you do for a living other than playing trucking mogul ????

marylandkw 09-06-2008 02:23 AM

Re: What is the break even point for an owner operator?
 
Quote:

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.

Yes they are! Why else would you run a truck???For the fun of it???

Rev.Vassago 09-06-2008 02:25 AM

Quote:

Originally Posted by charged
Quote:

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

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.

You really need to stop listening to "that guy you know who makes $2 per mile running flatbed".

BigDiesel 09-06-2008 02:26 AM

There have been very good responses from some smart and profitable business people here, and charged is still clueless.....

Rev.Vassago 09-06-2008 02:27 AM

Re: What is the break even point for an owner operator?
 
Quote:

Originally Posted by marylandkw
Quote:

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.

Yes they are! Why else would you run a truck???For the fun of it???

When you take advice from a hobby trucker, you get just that. Hobby advice.

charged 09-06-2008 02:29 AM

Re: What is the break even point for an owner operator?
 
Quote:

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 difference between making a profit and breaking even is $.01.

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.


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