Quote:
Originally Posted by tankyanker
this is kind of stupid, but how do you O/O's figure your cost per mile? i was reading a thread about cheap freight and a driver described a hypothetical load on which you would lose money: "well your revenue was $1.13 per mile and your cost was $1.70 per mile, so your profit was= negative $ .57 per mile." ok.
but at any given time, how do you know that your operating cost is $1.70 (or X amount) per mile? what are some of the major things that you factor in to you cost per mile besides the cost of fuel? how specific, or inclusive do you get? does it ever vary? or is it more like ... well, in general and with my setup, if i take any load generating more than say $1.90 a mile i should be in the green?
Looks like you're doing your homework.
You will get many a varied opinion, on what it costs to run a truck. There will be a great disparity in how people treat river wages, depreciation & replacement, down time, ect.
Some say that the minimum rate should equal the cost for a gallon of fuel. This would solve many a problem, industry wide.
Make no mistake, it is a sick industry - since 1980, and gets worse by the year. The cash flow will keep you alive, but it is a slow death, when you work cheap.,
Almost nobody figures in the need for a decent wage for a driver to take care of the rig and the family. Wages are too low now, but there seems to be a steady influx of new drivers willing to work cheap.
Another cost that nobody ever figures is the cost related to the economic cycle. Right now, we are headed down. The fear is just now hitting wall street.
A rate that matches the cost of fuel would allow you to use the down time of an economic slump, to do extra mnaintenance and repairs, tighten up loose things, take care of the many things ignored on the home front, ect.
The number of drivers that fail, is high and growing.
Like the old saying: You want to make a small fortune in trucking, start with a large one.
The way liberals are killing our economy, though, means that trucking is just another stop on the merry go round. For some, it is a desperation move.
When all is said and done, you are on your own.
There ain't no safety net.