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Group: Forum Members
Last Login: 4/4/2007 12:16:01 AM
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| Ok, obviously I've been asking a lot of questions. Most everyone knows what I am starting out with. According to my calculations, I should be able to make money with the truck and trailer I have and the new trailer I am buying. In seeking advice I've gotten excellant help from many of you experienced TSP's. I've also had others tell me I can't make any money with the equipment I have. That doesn't bother me and usually gives more incentive. But it has got me thinking maybe I haven't calculated my CPM correctly. So here's what I have. Please correct me if I'm wrong. Plus, I've never found a thorough thread on this subject. I know the norm is to calculate using 100,000 miles a year. I reduced that to 72,000. That's 6,000 miles a month. Better to over estimate costs and under estimate miles. I also use 10mpg pulling a trailer when I know I usually get 12, and $3.00 per gallon. My insurance is going to be roughly $10,000 a year. - Insurance - $10,000per year/72,000 = $0.14
- Fuel - $3.00 per gallon/10 mpg = $0.30
- Food/Lodging $60/ 500 miles per day = $0.12
That's $0.56 per mile. The only numbers I don't know is truck/trailer service, maintenance, and repairs. Am I doing this right? And what would you put for service and maintenance? I also thought this might help shippers see what it actually costs to move freight. Thanks, Ed
Ed  Chesapeake Transport Service, LLC Nationwide Transporter of Vehicles, Boats, Motorcycles and General Freight USDOT 1642257 MC 605018
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Group: Forum Members
Last Login: 3/20/2007 12:48:18 PM
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| Eddie, you are on the right track. For a more detailed look at cost per mile expenses, go to the following, and near the bottom of the page is a link to open a spreadsheet. It will have sample numbers in it, but you can replace them with your own numbers. More importantly, it gives more detail on the expenses you need to consider. http://www.ooida.com/trucking_tools/CPM/cost_per_mile.htm
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Group: Forum Members
Last Login: 4/4/2007 12:16:01 AM
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| Thanks Rick, That is exactly what I have been looking for. Ed
Ed Chesapeake Transport Service, LLC Nationwide Transporter of Vehicles, Boats, Motorcycles and General Freight USDOT 1642257 MC 605018
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Group: Forum Members
Last Login: 12/10/2006 11:26:37 PM
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| thats a good start but you dont want to use a calculation designed for big trucks unless you drive a big truck. If your use a 1 ton or less you need to figure in wear & tear on your veh. tires engine trans rearend,,ect. from every thing i havelearned in the past you figure in anywhere from .08 cpm to .18 cpm to your total bid that is in the ball park some where. but as you probably already know everyone her will try to under cut you to get the bid, thinking they are making money. I have worked out a pay scale for my truck of aboput $1.25 per mile to $1.45 pm depending on the milage and weight of what im moving. and any local work I add $15 per hr for pick up and delivery. hope this helps. Lskelso2206
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Group: Forum Members
Last Login: 7/18/2006 10:33:28 PM
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lskelso2206 (5/23/2007)
thats a good start but you dont want to use a calculation designed for big trucks unless you drive a big truck. ....... but as you probably already know everyone her will try to under cut you to get the bid, thinking they are making money. Lskelso2206What makes a big truck different from a 1TON? Besides IFTA, FET & GW, it takes the same things to keep a truck going down the road. Also, not EVERYBODY will undercut you to win the bid. There are some guys who make a reasonalbe bid for the job, once, for what they can do it for and will move on.
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Group: Forum Members
Last Login: 3/6/2006 5:21:41 PM
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| If my trailer has one or two open spots, I may throw a low bid out just to get the job and fill the spot. Costs are already covered by the others, so why not throw a little gravy on top for the old pocket..
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Group: Forum Members
Last Login: 7/18/2006 10:33:28 PM
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| Thats understandable. I will lower my bid in an effort to get the shippers attention but I have limits. I'm sure you do as well.
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Group: Forum Members
Last Login: 3/6/2006 5:21:41 PM
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Yes there is always a limit factor involved. That makes the difference between steak and bologna And i like steak
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