Start up operating cost
 

Hey guys , I had to type up a estimated expense and revenues report for my bank. I figured I would post it on here for you guys to look it over and tell me what you think :thumbsup::thumbsdown: any input would be awesome, thanks

Cost of operating 06' Peterbilt 387, 02' StepDeck 48'

Monthly Expenses:
1443.06 monthly (truck) after 9500.00 down payment
500.00 monthly (trailer) after 3750.00 down payment
248.00 monthly (insurance) after 495.00 down
3200.00 monthly (driver @ 800.00 wk)
700.00 monthly (maint. tires, servicing,ect.)
544.44 monthly (escrow, plates, and permits) LandStar deductions
6635.50 total monthly ; 1658.88 weekly ; 265.42 daily@ 25day month

Total does not factor in: gas , comdata fees and charges, communication devices fees, pre-scale receipts,tolls and fuel surcharges. As expenses may vary.

2000 mile wk 2500 mile wk 3000 mile wk 3500 mile wk 4000mile wk
expenses: expenses: expenses: expenses: expenses:
Gas 986.00 Gas 1224.00 Gas 1462.00 Gas 1700.00 Gas 1944.80
Exp.1658.88 Exp. 1658.88 Exp. 1658.88 Exp. 1658.88 Exp. 1658.88
total:2644.88 total:2882.88 total:3120.88 total:3358.88 total:3603.68
cpm: 1.32 cpm: 1.15 cpm: 1.04 cpm: .96 cpm: .90

Exp. /Expenses , cpm / cost per mile , Gas @ 3.40 a gallon

Profit Per Week/Mile (minus cost per mile)

2000 miles wk 2500 miles wk 3000 mile wk 3500 miles wk 4000 miles wk
cpm: 1.32 cpm: -1.15 cpm: -1.04 cpm: - .96 cpm: - .90
@1.75= 855.00/.43 1492.12/.60 2130.00/.71 2766.12/.79 3396.32/.85
@1.80= 955.12/.48 1617.12/.65 2279.12/.76 2941.12/.84 3596.32/.90
@1.85=1055.12/.53 1742.12/.70 2429.12/.81 3116.12/.89 3796.32/.95
@1.90=1155.12/.58 1867.12/.75 2579.12/.86 3291.12/.94 3996.32/1.00
@1.95=1255.12/.63 1992.12/.80 2729.12/.91 3466.12/.99 4196.32/1.05
@2.00=1355.12/.68 2117.12/.85 2879.12/.96 3641.12/1.04 4396.32/1.10
@2.05=1455.12/.73 2242.12/.90 3029.12/1.01 3816.12/1.09 4596.32/1.15
@2.10=1555.12/.78 2367.12/.95 3179.12/1.06 3991.12/1.14 4796.32/1.20
@2.15=1655.12/.83 2492.12/1.00 3329.12/1.11 4166.12/1.19 4996.32/1.25
@2.20=1755.12/.88 2617.12/1.05 3479.12/1.16 4341.12/1.24 5196.32/1.30
@2.25=1855.12/.93 2742.12/1.10 3629.12/1.21 4516.12/1.29 5396.32/1.35

I think it's best to get a truck running on diesel. They are cheaper to operate, last longer and usually have more low-end torque/power.

OOIDA spreadsheet
 

Many things about your figures reveals a lot about you and your operation.You will be hiring a driver and paying him $800/week and your equipment will be leased on to LS?.With the learning curve that usually takes about 6months, and the note on your equipment is almost $2000?.You and your driver will not make it there.Go to OOIDA website and plug in those huge figures you have in their cost per mile spread sheet, and change those figures to cents per mile according to your projected miles per year.Your cost to operate is about $1-1.10pm without driver pay and that is huge to be leased on to LS.
Your use of "GAS" tells me you're either canadian or a newbie in trucking.
I know this because I graduated from LS and I have 3 trucks.

hey henboy1 , I appreciate your input and given you have been there and done that helps alot. I went to OOIDA to fill in my info, but dont have excel. My other computer does, so I will do it tomorrow. My make shift spread sheet does factor in cost per mile with driver. This is how I went about getting cost per mile.

Monthly Expenses:
1443.06 monthly (truck) after 9500.00 down payment
500.00 monthly (trailer) after 3750.00 down payment
248.00 monthly (insurance) after 495.00 down
3200.00 monthly (driver @ 800.00 wk)
700.00 monthly (maint. tires, servicing,ect.)
544.44 monthly (escrow, plates, and permits) LandStar deductions
6635.50 total monthly ; 1658.88 weekly ; 265.42 daily@ 25day month

I'm going to use my 2500 mile week chart.
1.My total monthly with driver (6635.50) divided by 4wks (1658.88).
2.Then take cost of diesel which is about 3.40 a gallon in florida.
3. 06' Pete 387 is suppose to get around 6.8-7 miles per gallon loaded.
4. Now figure out how many gallons of diesel I need to achieve 2500 miles.
5. 360 gallons x 7 mpg =2520 miles
6. 360 x $3.40 cost =1224.00
7. Now take weekly expenses with driver 1658.88 + cost of diesel 1224.00 and total = 2882.88 total expense for 2500 miles.
8. Finally divide total expenses $ 2882.88 by 2500 miles = $ 1.15 cost per mile @ 2500 miles per week

As the miles per week increase the cost per mile decreases as seen here,

2000 mile wk 2500 mile wk 3000 mile wk 3500 mile wk 4000mile wk
expenses: expenses: expenses: expenses: expenses:
Gas 986.00 Gas 1224.00 Gas 1462.00 Gas 1700.00 Gas 1944.80
Exp.1658.88 Exp. 1658.88 Exp. 1658.88 Exp. 1658.88 Exp. 1658.88
total:2644.88 total:2882.88 total:3120.88 total:3358.88 total:3603.68
cpm: 1.32 cpm: 1.15 cpm: 1.04 cpm: .96 cpm: .90

I plan on doing flat ,or step deck loads which land star is telling me average out a 1.76 per mile ?
Also, what you do differently ?
And I know there's a lot of truckers out there that don't know what it's costing them per mile, and I don't want to be one of them. There accepting cheap freight and making everyone pay the price.

work it the other way too, how easy will it be to FAIL?

That way you will know how much wiggle room you have, and can sleep better knowing where the real trouble starts. And then don't run for less than you need to make money.

How LITTLE mileage will cause business failure? work it down to 1500 and 1000.
What is the effect of over-estimating your fuel mileage? work it down to 6.5, 6, 5.5 and 5.

EVERYTHING turned into cost per mile, including the driver, with a weekly minimum, or he'll quit.

Maintenance is tied to mileage, more miles, more maintenance, watch how you count tire costs...

Here's some places to use as a checklist to be sure you have counted everything:

Truck Operating Cost Calculator

DSI Home Page - Decisive Systems, Inc.

unfortunately, no one is going to hand you their proprietary information, as accurately predicting these costs is what seperates competitors: the successful from the failed...

Good luck!

Thanks LBF
 

I will do that, find the weak point. More miles I put in, the more tire expenses will increase. But income will increase as well, it just a matter of keeping a percent on tires per mile. My mechanic told me to at least put back 800 - 1000 dollars a month for maintenance cost ? Does this seem like a good estimate on tire cost ?

steer: .03 per mile
drive: .05 per mile
trailer: .02 per mile
totaling .10 per miles

I'm definitely not going to go into this blind folded, I want to do it with the reality of cost. I've been working on becoming an owner operator for the past six months, and I have come to the point were I can honestly tell myself that I can do this and make a couple of pennies. I've actually got a job doing something completely unrelated to driving, and my wife is a RN that works from home. I plan on doing dispatching for my driver full time 24/7 while maintaining our current jobs , that way if there is a situation that arises and I have to make changes with driver, lease company, ect. I will still be able to make truck, trailer and insurance payments within a certain time frame. Another benefit is that landstar do as much for the there O/O leaving them with double duties. That's where it's beneficial for me to line up loads while drivers still en route, do permits for any over size loads, negotiate with brokers, and tracking expenses , while building a re pore within landstar.
Me personally would not be qualified to operate vehicle with landstar load, because I don't have snow and ice experience within the last year, but my driver does. He's a old timer friend of mine with 25+ yrs experience in u name it, he's hauled it. He should be making a **** load more money than I'm offering him. He is doing a major favor, that will be returned in full. It's the driver that makes the company, not the other way around..

Anyways I appreciate all feed back, and I have become a lot more aware with your support and wisdom. Thank you !!

This is interesting thread, please keep updating as things happen

If a truck is gonna cost that much maintenance you need a new truck.

my question is if you and your wife have good jobs why get involved with this headache?

anyway, i'd figure it $10k a year for maintenance budget. could be more.. could be less.

the fuel milage i'd drop down to 5.75-6mpg.

also dont forget your quarterly taxes..

Several things the LS deduct for escrow and tags does not last all year
you will have to pay workers comp on your driver
forget 7 mpg plan on 5.5 - 6
Are you sure you and your driver will be accepted by LS, meeting their requirements and getting a lease are 2 different things, they are very picky.