Yep. I deducted driver pay from my cost per mile in this example because we were talking about percentage. My cpm including driver is ~1.60.

 

Sodbuster,

In my example, the owner of the truck got paid $4851 but it cost him $3720, leaving him with a net profit of $1131, which he splits 50/50 with the driver.

 

Rank, could you post the breakdown to get to $1.24/mile cost before driver pay? I would like to compare to my formula and see what changes I may need to make. You can pm it if you like.

 

Sure. These are Canadian dollars so deduct approx 5% for US.

TRUCKS
'01 T2000 KW = $115,000 bought in '02 and ammortized over 5 years = $23,000/yr
'01 Sterling = $60,000 bought in '03 and ammortized over 5 years = $12,000/yr
'98 T800 KW = $20,000 bought in '07 and ammortized over 3 years = $7,000/yr
'95 T600 KW = $80,000 bought in '96 fully ammortized = N/C
TOTAL TRUCK COST = $42,000/yr

TRAILERS
'96 Scheltema double drop = $50,000 bought new and ammortized over 10 years is fully ammortized = N/C
'95 Reitnouer Al step deck = $25,000 bought in '97 and ammortized over 10 years is (almost) fully ammortized = $2,500
'99 Reid double drop = $50,000 bought new and ammortized over 10 years = $5,000/yr
'99 Lode King combo step = $10,000 bought in '06 and ammortized over 10 years = $1,000 (what a steal!)
'07 Wilson combo step = $43,000 bought new and ammortized over 10 years = $4,300/yr
TOTAL TRAILER COST = $12,800/yr

Liability Ins = $40,000/year
Cargo Ins = $6,000/year
IRP = $4,000/year
IFTA = $1,500/year
Maitenance = $55,000/year
Cell Phone = $4,800/year
Tolls not included
Fines not included
Employment ins drivers not included
WSIB for drivers not included
Benefits for drivers not included
Pension plan for drivers not included
load boards not included
internet not included
cost of 7,000 sq ft 3 truck garage not included

TOTAL YEARLY FIXED COSTS = $117,00/2006 mileage of 210,000 = $.56/mile

Fuel = .52/mile summer and .65 winter ($3.63/CDN gal and 7 mpg....winter is approx $4.20/gal and 6 mpg = .65/mile)

CPM SUMMER = .56 + .52 = $1.08 + driver
CPM WINTER = .56 + .65 = $1.21 + driver

A guy with 1 truck can make it I suppose, but when you add trucks, you become less efficient (utilization of equipment goes down and employees break stuff, you hav to pay drivers) and therefore cpm goes way up.

It's a tough racket.

 

Truck
2001 Western Star - Paid for
Truck Cost = $0.0
Trailer
2005 Great Dane Flatbed - Paid for
Trailer Cost = $0.0


Liability Ins = $6,200/year
Cargo Ins = $900/year
IRP = $1,200/year
IFTA = $36/year
Maitenance = $5,000/year
Cell Phone = $432/year
Tolls = $1,200
Fines = NONE!!!
load boards not included
internet not included


TOTAL YEARLY FIXED COSTS = $14,968/1 year mileage of 110,000 = $.14/mile

CPM SUMMER = .14 + .50 = $.64 + driver
CPM WINTER = .14 + .60 = $.74 + driver

 

Wheweee! With those kind of numbers one could afford to take off a week a month and still live large! Where can I get one of those trucks with nothin owed on it?? :lol:

 

lol.....Work 9 to 5 your whole life, save some of your money then blow it all on a red truck.

 

here we go again.

BS

BS

BS.

All of our equipment is paid for in full too. Doesn't mean it's free.
You should be ashamed for implying that the cost is not there.

Second, you've been spouting off again lately about how easy it is to make a living trucking and forgetting to mention that you have no family at home. Having a family at home increases your costs, and lowers your earning potential....not to mention the stress and the guilt.

By all means, people, if you are semi retired divorcee with grown up kids and a big nest egg to blow on your childhood dream, go trucking for a couple of years to see the country.

:roll:

 

I paid cash for my truck.

I paid cash for my trailer.

My maintenance costs were less than $5,000 for the past year.

I never said anything about family. Sounds like you got a bug up your azz.

 

Using "Steve's" math, my CPM is just $0.51cpm
Using "common sense" math, it's $0.80cpm
Somehow, i feel more comfortable, with the second number! :roll: :wink: