Yeah, this came across the quallcom about a month ago.

They can up the pay 20cpm, but if they don't have freight numbers just don't matter.

The FIXED cost are around $915 per week.
The average newb wants a new truck, or one of those dammed Classics.
So the average new driver gets piss poor fuel mileage.

I got a used truck and average 6.4 mpg.
My VARIABLE cost was about 28cpm.
89cpm minus 28 cpm leaves you with 51 cpm.

So you havta run 1800 miles just to break even.

A friend of mine got a new truck. His mpg was 4.8.
He ran 3200 miles and got $430 :shock:

 

That is exactly why you get ur self a cheap used economical truck and after you pay off a couple three trucks maybe just maybe you can afford a good cheap truck. If you play your cards right by the time you hit 50 or so and have spent most of your life on the road you can get you the truck of your dreams. 8)


And for those of you who dont know a classic is not economical, its a fuel guzzeling beast that will eat up all your profits and make you go broke in a hurry.



But you dont have to take my word fer it. Im just a greenhorn rookie that dosent know a thing about business truckin or economics.

 

That is one good looking ups truck avatar you got there Brown.

 

Thanks, wish I really had a truck like that. I've decided to change my name to "Futuretrucker" and spread the word about the huge money I'm going to make at CR England. Don't talk me out of it, because you don't know how to work the system like me to make the big $$$$$.

Lease a truck and make big bucks.

 

28cpm variable, so, you're making 51 cpm after you run the 1800 to break even?

I'm a little confused, but always open for an explanation 8)

 

I think BanditsCousin is pointing out the fact that it is fixed cost that typically set the break even point with variable costs setting profit levels given a volume. (volume in this case are the miles run)

Fixed cost == lease payment, insurance, tags and base plate, etc.
variable cost == additional mileage cost, fuel cost per mile driven, taxes based on miles driven, maintenance, etc

You would expect the proposition to be set around your fixed costs and number of miles needed to meet fixed cost.

BTW) One big thing many small business owners forget .. cash flow .. money they need now for "average expenses." Let us say the truck needs some kind of maintenance every 50,000 miles and you average this over the miles driven .. the problem comes when you actually need the cash but you have not driven enough to average this cost out. Also .. many owners do not think about the down time for scheduled maintenance.

Never mind unscheduled maintenance :twisted:

 

Spencerian wrote:
Spencerian, given the following basic list of VARIABLE expenses (what about FIXED?)....I am real interested how you come up with 28cpm???

Variable Expenses / Mo
Fuel _____
D/H Fuel (10%) _____
Taxes (road, use, fuel, fed) ______
Food ______
Truck Wash ______
Servicing (P/M) ______
Major Repairs(escrow) ______
Tires(escrow) _______
Replacement truck(escrow) _______

 

Wow Brown, if only my "London Fog wearing" supervisor @Ontario could see that package car....(of course, then they'd just up the stops per hour....)

 

Wish I had a truck like that too. I'm just glad for power steering and a heater that works in the winter.

 

Ok, here is the math...
Pay was 87cpm empty or loaded.

The average chucklehead that works for England sees $1.25 for fuel and thinks it's great. BUT England also offers a fuel rebate. The rebate changes weekly. It usually hovers around 22cpm. BUT England doesn't cover the rebate. They push the $1.25 per gallon.

So 1.25 per gallon at 6.4mpg is 19cpm.
Say the average price for fuel is $2.40 per gallon. You get a rebate of 22cpm. 22 times 6.4 equals 1.40. So on the rebate I paid $1 per gallon. That equals a little over 15cpm

So variable costs....
.15 FUEL
.06 Variable mileage charge
.05 maintenance reserve (tires, blown turbos, etc.)
.015 FHUT Tax

.275 cpm total variable cost.

Say you run 1800 miles (wich was about all I got).
After variable cost you are left with FIXED cost.

A 1800 mile week leaves you with $918 at 51cpm. Your FIXED cost are $914 PER WEEK. So you just made $4 for running a week for CR England.

Actually you made less.
Your personal taxes haven't been paid.
Regular maintenance hasn't been factored in either. They take out a maintenance reserve of 5cpm, but that is for major repairs and tires. But the funny thing is, they report the maintenance reserve as a cash account you have, so it is subject to taxes!