What do you think an o/o or independent should PROFIT?
#81
09-19-2008, 01:54 AM
Originally Posted by rank
What's not to understand? It's a pretty simple premise. Driver pay is not trucking profit. If you are the driver, you need to pay yourself as a driver AND you need to hyave profit left over after that in order for the trucking copmany to make a profit.
If you don't, then when you hire a driver, you lose money. Anyway, we are talking about GMAN's math which does not add up. 
#84
09-19-2008, 02:07 AM
Originally Posted by charged
Originally Posted by GMAN
...For instance, if your basic costs (excluding wages) is $1.22/mile and you would need to pay a driver $0.30/mile that would put your costs at $1.52/mile not including self employment taxes and any profit. You need to add 15% to the mileage rate to get your cost of having a driver in the truck. That brings your costs to $1.69/mile rounded off.
This is what I calculated did I miss something? base cost $1.22 + wage for driver $.30 + tax 15%($.05)= $1.57/mi wage plus costs
Originally Posted by GMAN
That is providing you only take $0.30/mile out for your wage. If you want to show an actual profit you will need to add to this figure. If you want to show a 20% profit, then you need to add another $0.34/mile which brings your needed rate to $2.03/mile for all miles. You can add the profit to your wages if you want. If you are a sole proprietorship you will need to add an additional 15% to the profits as well as the wages portion. At $0.34/mile you need to add another 15% self employment tax or $0.05/mile, rounded off. That brings your needed rate up to $2.08/mile for all miles in order to pay yourself a $0.30/mile wage and have a 20% profit.
Or did I miss something? I am sorry about the addition. I was tired when I put those numbers down. Using my examples and numbers your costs including a 20% profit comes to $1.94/mile rounded up. If you are incorporated you don't need to pay self employment taxes on profits. The main concept I wanted you to see is that there are some things most people leave out which must be considered when running a business. Wages and taxes are two very important items which must be factored into any business as well as profit. The percentage is up to you. A couple of other things which should be considered are health insurance and an occupational accident policy or workers compensation insurance. You can pay for them any way you wish. It is up to you as to whether you pay for it out of the company or wages. It is still a cost of doing business.
#85
09-19-2008, 02:28 AM
Originally Posted by charged
Originally Posted by rank
breaking even is a loss
By breaking even you've forever lost the ability to compound that money. If I break even for my entire life, have I broken even? No I've lost. Breaking even is a loss. Don't argue with me.
#86
09-19-2008, 02:38 AM
Originally Posted by rank
Originally Posted by charged
Originally Posted by rank
breaking even is a loss
By breaking even you've forever lost the ability to compound that money. If I break even for my entire life, have I broken even? No I've lost. Breaking even is a loss. Don't argue with me.
#87
09-19-2008, 02:54 AM
Originally Posted by charged
Originally Posted by rank
Originally Posted by charged
Originally Posted by rank
breaking even is a loss
By breaking even you've forever lost the ability to compound that money. If I break even for my entire life, have I broken even? No I've lost. Breaking even is a loss. Don't argue with me.
#88
09-19-2008, 02:58 AM
Originally Posted by rank
AND you need to hyave profit left over after that in order for the trucking copmany to make a profit.
If you don't, then when you hire a driver, you lose money.
__________________
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#89
09-19-2008, 02:59 AM
Originally Posted by rank
Don't argue with me.
__________________
"I love college football. It's the only time of year you can walk down the street with a girl in one arm and a blanket in the other, and nobody thinks twice about it." --Duffy Daugherty
#90
09-19-2008, 03:01 AM
Your time has value. If you waste your time then it is time that is lost forever. When you operate a business and only break even you have essentially lost money since you have wasted your time. If you don't consider your time to be of value, then you have lost nothing.
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