What do you think an o/o or independent should PROFIT?
#21
09-17-2008, 05:10 PM
Join Date: Aug 2005
Location: jackassville (winnipeg, mb)
Posts: 3,280
Re: What do you think an o/o or independent should PROFIT?
Originally Posted by BigDiesel
Originally Posted by allan5oh
Hauling regular freight, dry van or deck freight.
IMO... a buck a mile for an o/o, independent even more(depending on circumstances of course). Of course he would say the only way to do it is to cut expenses to the bone. I don't think an o/o should have to do that. $1 a mile with truck payments? maybe not, but I don't think one should have to get 10 MPG, have a 100% maintenance free truck, paid off, to make near $1 a mile profit. My expenses are already very low, probably lower then 95% of the industry. However, my problems with profit are not expense related, but revenue related. I've honestly only ever heard Kevin say once "you have a revenue problem". 
#22
09-17-2008, 05:22 PM
Re: What do you think an o/o or independent should PROFIT?
Originally Posted by allan5oh
Originally Posted by BigDiesel
Originally Posted by allan5oh
Hauling regular freight, dry van or deck freight.
IMO... a buck a mile for an o/o, independent even more(depending on circumstances of course). Of course he would say the only way to do it is to cut expenses to the bone. I don't think an o/o should have to do that. $1 a mile with truck payments? maybe not, but I don't think one should have to get 10 MPG, have a 100% maintenance free truck, paid off, to make near $1 a mile profit. My expenses are already very low, probably lower then 95% of the industry. However, my problems with profit are not expense related, but revenue related. I've honestly only ever heard Kevin say once "you have a revenue problem". I am surprised that you tend to fall into lockstep with that snake oil salesman, as your mechanical and technical knowledge of trucks is beyond question and reproach.
#23
09-17-2008, 05:39 PM
Join Date: Aug 2005
Location: jackassville (winnipeg, mb)
Posts: 3,280
Did you even read my post?
I agree with him on a few important things. Good fuel mileage, buy older trucks, pay them off and keep them for a long time. But as far as lease deals go, dear god I do not. I remember him not too long ago talking about an 85 CPM lease. DEAR GOD HANG ME NOW!
#24
09-17-2008, 05:42 PM
Originally Posted by no_worries
At the end of the year, I would make more as a company driver. Partly because I can get some higher-paying driver jobs, mostly because I'd be running a lot harder. But most O/O's would do better FINANCIALLY in a company position.
I posted once, a breakdown of what you'd have to pay yourself as an O/O to equate making $.50/mile as a company driver. It's nearly $.60 if the miles are identical. That's just to make up the difference in bennies and employment taxes. Tack on all your operating costs and a little something for your risk (ROI) and you see why the situation is what it is. I'd like to hear why you are an owner operator. I could guess, but to hear it from you would complete the picture. Me, I just talked to a new company today...maybe 8) ...
#25
09-17-2008, 05:52 PM
Join Date: Aug 2005
Location: jackassville (winnipeg, mb)
Posts: 3,280
So I wonder exactly how you guys think profit should be calculated. Should drivers wages be included, even though when you're self-employed there's no such thing as a wage? Or salary for that matter?
How do you "pay yourself" when the bank account going out is the same as the one going in? Even if it wasn't it still doesn't matter in the eyes of the government. Your profit is how much income you had. There's no column on the tax forms for "profit" and "drivers wage" now is there? Of course, incorporation is a little different.
#26
09-17-2008, 06:12 PM
Originally Posted by allan5oh
So I wonder exactly how you guys think profit should be calculated. Should drivers wages be included, even though when you're self-employed there's no such thing as a wage? Or salary for that matter?
How do you "pay yourself" when the bank account going out is the same as the one going in? Even if it wasn't it still doesn't matter in the eyes of the government. Your profit is how much income you had. There's no column on the tax forms for "profit" and "drivers wage" now is there? Of course, incorporation is a little different. A sole proprietor needs to include wages, est. taxes, replacement costs, etc in their cpm......... This is a thought process that some just cannot grasp here.
#27
09-17-2008, 06:35 PM
Join Date: Aug 2005
Location: jackassville (winnipeg, mb)
Posts: 3,280
wages in their CPM?
Is this reported to anyone? No. It is an imaginary number If one sole-proprietor has a "Wage" of 30 cpm, and another 40 cpm, yet their revenue and costs are exactly the same, did the first one have more profit(according to you, they would). Of course they didn't! Yes a corporation is different, especially with employees. You can put a hard number on it. But a corporation with just you as an employee, drawing a wage of 40 cpm, that wage is profit because you own the business. "replacement cost", how is this figured in when your making payments on your current truck? Are you supposed to make payments to the current truck and a "replacement cost" fund essentially doubling your cost? Again, another imaginary false number. I deal with real numbers, not ones that belong with the tooth fairy.
#28
09-17-2008, 06:35 PM
Originally Posted by allan5oh
So I wonder exactly how you guys think profit should be calculated. Should drivers wages be included, even though when you're self-employed there's no such thing as a wage? Or salary for that matter?
How do you "pay yourself" when the bank account going out is the same as the one going in? Even if it wasn't it still doesn't matter in the eyes of the government. Your profit is how much income you had. There's no column on the tax forms for "profit" and "drivers wage" now is there? Of course, incorporation is a little different. Separating "profit" from driver's wages, rather than a buck, I'd rather hear what guys think of making 10,20 or 30 cents profit. Talking about a buck a mile is like GMAN talking about the whole industry wising up and refusing to run cheap freight! :lol:
#29
09-17-2008, 06:39 PM
Originally Posted by allan5oh
wages in their CPM?
Is this reported to anyone? No. It is an imaginary number If one sole-proprietor has a "Wage" of 30 cpm, and another 40 cpm, yet their revenue and costs are exactly the same, did the first one have more profit(according to you, they would). Of course they didn't! Yes a corporation is different, especially with employees. You can put a hard number on it. But a corporation with just you as an employee, drawing a wage of 40 cpm, that wage is profit because you own the business. "replacement cost", how is this figured in when your making payments on your current truck? Are you supposed to make payments to the current truck and a "replacement cost" fund essentially doubling your cost? Again, another imaginary false number. I deal with real numbers, not ones that belong with the tooth fairy.
#30
09-17-2008, 06:41 PM
Join Date: Aug 2005
Location: jackassville (winnipeg, mb)
Posts: 3,280
according to the CRA and IRS:
The profit is their wage. There's no two seperate transactions, they're both exactly the same, and the same number. Their wage/profit is what is taxed. How can you figure out how much CPM is taxed when it's based on profit, not CPM? |
|
