Hi guys, sorry for the confusion the Excel formula is wrong, the TOTAL is 2.25 Which is your break even Point. Thanks for the comments, and sorry about the Mix up. (Ronen)
As owner operator your expenses are minus driver pay. So you brake even at 1.6$. just the matter of how much you want to make after that, some people driver trucks for 0.1$ per mile maybe just to keep rolling
Your RUclips channel is equivalent to a class, the knowledge we get here some of us pay for it. If someone wants to venture into this industry he or she has the full knowledge of it. Thank Ronen.
The way I do it, I ask myself how much it would cost me to run a specific trip before I call the broker or shipper. I take into account the tolls number of days working, price of fuel along route, etc. A short two hundred mile trip from connecticut to new york city can cost you eight hundred and fifty dollars, including tolls, driver pay, hilly terrain, and fuel. The same trip out west might cost me half of that to run. Shippers aren't dumb. They know how much they gotta pay to get their load delivered. Make them pay!
@@stilliraise9201 take the current price of fuel and divide that by how many miles your truck gets per gallon. Then take that number and multiply it by how many miles you are going to travel to get how much the total cost will be for those miles in fuel.😊
$1.60 It’s not worth it as a owner operator. Think about it, Be out of home for days, weeks, months, very risky job, all kind of weather conditions, and one most important thing, NOT enjoying your family, Better stay as a local company driver. But, thank you so much for your helpful information.
top two lines of the excel were .65, .65, the next two were .25, .25 and the number you say is 1.6? Thats 1.8 right there on the top 4 line items. The message was spot on, know and control your costs. My insurance year 3 is 6400 for the year, my truck is older its a 2013 so I dont have a high pay out if it were to get totaled which might explain some of the difference. I do know that my company hovers at 1.5 to 1.7 cpm in costs to run a week.
I'm kinda confused. I was wondering if by lease on my truck ( still hasn't buy it) a Carrier for 3 yrs as an owner of but using their insurance would avoid these higher charges on insurance. Since I'm using my own authority but using their insurance and after 3 yr by using their insurance I can go by myself and would be less.
I assume your saying you didnt pay off your truck, and you were wondering if leasing onto another carrier will lower your insurance costs. It all depends on that carriers specific insurance situation but generally yes you will ride the wave of their cheaper operating cost in terms of insurance. Unfortunately as far as I know if you dont keep your motor carriers authority attached to its own insurance it will become inactive and in turn if it is inactive for too long resets its tenure. My insurance broker has stated in the past he is able to reach out the the underwriters of the insurance companies and plead the case that they were lease ops with years of experience. He said that has worked to lower insurance for new carriers in the past but it wont be 20 grand down to 6 grand. goodluck out there @@stilliraise9201
Those numbers are standard for most carriers in the industry. There is not much wiggle room for profit in trucking everyone is making the same thing per truck(if running load boards) the only difference is how many trucks you have
Its not easy to standup a Trucking company these days. Even if you’re starting with an older truck and put money into it yourself. Youre looking at needing about $50,000 cash at least and will likely be starting with another $50,000 to $80,000 of debt per truck and trailer combo to pay off over the next three years. And if you’re not constantly running truck/s fairly hard (yes 10,000 miles a month is hard) even for OTR. You’ll be out business within a few months. Most people watching this video will become “leased on” owners or drivers. folks who have a truck but not the capital or know how to actually get a trucking business started and in operation for more than 3 years. These drivers will actually probably end up driving for ET not competing.
I’m coming up with about $2.25 right now with my current truck payment ~$2600. Obviously, it changes with the miles you run and more miles mean less cost per mile. The trucks or trailers I’ve paid off I keep that factored into my average cost to afford buying new equipment. Don’t trick yourself once equipment is paid off to take lower paying loads, that just hurts the whole industry. The Freightliner dealer in VA charges $194/hr now I’m pretty sure it was $135/hr 3 years ago, but freight is paying the same….
I would love to buy a truck and put it on with the company I work for mostly running local hauling steel. It’s a 40 mile round trip sometimes loaded both ways paying 160 each way and maybe an occasional run to Texas. We haul billets and pipe I would use their trailers with no fee. Love the old Walmart trucks drove one for about a year apu, fridge and inverter which would save fuel otr. Video was very informative and now I know what to figure in as costs, thank you.
You get better fuel mileage if you run at 60-64mph but if your pulling heavy loads it’s pretty standard across the board amongst all types of trucks aero or hoods
Yeah it depends on the load, if you're pulling flat/drop deck where the load is bulldozer or something - you're getting terrible fuel efficiency to the point that the truck aerodynamics don't even matter 😅
Thanks for all the great! Info fella. I'm gonna be watching all your opening your own small business vids. You've already helped me greatly in realizing the true costs of our industry in Canada. I'd love to sit down with you one day as my mentor/consultant. Until then take care and keep up the great! Work. From a 15 yr veteran as a company driver.
Right now I’m averaging $ .494/MI; Driving 63/65 mph, getting from 7.4 to 8.0 mpg. If I need to drive slower than 63 I will to get at least 7.4 each and every load no matter the weight. Lighter loads I’m getting between 8.7 to 9.3 mpg. The heavier loads I will drive 60 mph until the percentage rises. I have been using this method since February 25th, 2021. I have seen in recent times that more and more drivers are using this approach and it is a good thing. If were an o/o I would still be driving the same way to keep my fuel cost down.
More people should really look at these numbers very closely .not gone get in to all the details but it is a good video maybe people would see and not take thes cheap loads . I agree that 2.25 is a good number . Great job ronen on this video it is the first one that ive seen that breaks it down .
I really wish driver trainer standards were increased for the industry and I wish trucking companies owners would agree on a number to never go below. I know that sounds un American but something has to happen to make the industry healthier. My Dad drove for over 3 million miles. He represented drivers in teamsters negotiations and we lived better than most families. I started driving and was done real quick with how bad the customer, fellow drivers, trucking company owners, dispatchers, recruiters and many more treated the driver who was delivering the product.
Thanks Ronan. I will be contacting u about your consultation fee. Your willingness to share your knowledge is commendable. May God bless u for ur kindness. Michael
Great video. Feel like you should have recognized that number was off though if you use it lol. Unless you were just thinking in your head you were doing it for an owner op before paying themselves. Thanks!
I finally saw one of your trucks in Atlanta today 😅 i would apply to your company but i have 2 moving violations in my personal vehicle that doesn't come off til January
@@nazpash He might be talking to the One man trucks who doesn’t have to pay a driver. FTL doesn’t make sense these days. I like doing partials. Give me two small light partials paying $1.70 each, all day. That will have me moving at $3.40 rpm. Hot market to hot market. Doing 2500 miles a week with gross me $8500 weekly. 1250 miles on the front haul, 1250 miles on the back haul. Run like this you can take home $162k profit a year as a one man truck who work 3 weeks a month.
P,s yes i messed up forgot to add pay in .. another thousand miles for 2nd scenario times .65 we get paid same as your drivers __dryvan.. So minus another $650 kinda balances it out again not much difference and much happier drivers.. Quality of Life is what I'm talking about.. Maybe wouldn't be such a high turnover rate in this industry, j.s.. please share a spreadsheet with us.. So minus the 650 i believe comes down to something like 90 dollars less for u ;however, keep in mind they probably not gonna only run 10kmiles might be more and might be lot better overall life.. Please enlighten us with a spreadsheet, Big Fan!!
Brokers do what brokers do, I can't tell you if they use a formula. I would imagine they try to see how high they can barter the load, then see how low they can get a carrier to take it for and just pocket the difference
Would greatly appreciate it Ronen..p.s also forgot to mention neither this company nor yours I'm sure hauls $2.00 freight so still the revenue is more and if it's reefers like I believe y'all haul even more revenue and profits..Makes a person wonder how much revenue and on profits you're losing out on or how much more your business can be making.. Per month, per quarter, per year??
You don't have to pay insurance if you take your truck an go to lease on to a company then after the 3 yr you go on your own then you just pay $20 k a yr so then you don't have to pay higher.
I do notice that you did not add the down payment of 30k you had to put down that technically will put a small dent in your business because if you made .30 * 100,000 miles = 30k per year net profit but that right there would wipe your first year Its good to add your 30k as well in the expense as a 3 year like your loan this way you can know what your able to pay yourself per year 30,000$ / 3 = $10,000 per year or 0.09 per mile giving you now a new total of what ever your total was plus 0.09 this way you can at least pay yourself
This is disheartening...it can be done but how low rates are and how high inflation is...with the interest rate increases by the FED....looks like hard times ahead if it doesn't loosen up anytime soon.
Yes. As soon as I get on good rate, getting back is terrible. They want a fairly large partial for .65 cents a mile. And even to break even with another partial doesn't happen as I would have to go out of my way to get it. I don't take these loads. Its bad buisness. Either I wait or dead head 5 hours away to get a decent rate. These are stupid rates.
@natelorimer8567 Hopefully no one will run for these loads. If they do it won't take them long to figure out they are just living instead of earning a living.
Your formula is broken. .65 driver .65 fuel is 1.30 alone .25 insurance.10 misc .10 maintenance.12 factoring now you are at 1.87 truck and trailer .33 you are @ 220 5c factoring now you are 225 cost per mile.
Why don't you ever include your fuel discount in these? I know you are not paying that much per gallon for fuel..... There's mud flap app, tcs, and a number of different companies you can go through for a very good fuel discount. The discount through the company I work for is typically $0.50 to a dollar off of what is marked on the pump.
I paid £2800 yes pounds sterling for insurance in the UK for my 1st truck as an owner driver plus £400 for road side assistance in case of emergencies. You guys are being ripped off across the Pond.
2.25 a mile to break even?!?! You just did a video trying to get a guy to take a 1.17 a mile load because it was Friday and there was nothing else to take??
@@NorthAmerican-Trucking-News Calculate my number I have less expenses than you I found my cost dollar $1.90 Then I say something is wrong with your number how come$1.65 I stop your video and calculate your number find your cost is $2.25
Current market conditions do not allow for that. Save your money as a company driver and go to the auction. If you can't save money as a company driver, you shouldn't be an owner operator anyways.
Just buy it outright. If your wanting to pay it off in 6 months it probably won’t happen unless you basically get a small loan, at that point just wait a little and pay all cash
i disagree on non operating expenses being in the cost per mile calculation. insurance, permits, trailer fees, medicals, hazmats, etc etc are running regardless if your truck is moving or not. they are fixed permanent expenses (business expenses). cost per mile is best based on moving/running costs. how much does it cost you to MOVE the truck. if you dump everything into your cost per mile, you will price yourself out of the load market. other costs are calculated as term costs - monthly, weekly whatever period you want to use. thats how its done in aviation when i worked in that industry and i can tell you, people fail there far less often because they generally arent stupid and know how to actually calculate margins :)) you take your cost per mile in operation, you take your fixed expenses. you then determine how many miles (or hours flown) you need in a billing cycle to break even. anything on top is gravy (profit). thats how its done. anything else you are setting up for failure and why truckers are always broke and most run back to company drivers after failing on their own.
If you did not add the fixed costs associated in running your trucking business to your weekly or monthly operational costs on per mile bases, where is the money to pay for those expenses gonna cone from? As a motor carrier in the trucking business, your revenue comes from per mile charges on the loads you move for a shipper(s). Therefore, you can only profit if you know your cpm on all expenses related to your trucking business or else you run the risk of under charging your customers.
@@krashanb5767 that is completely false. this is exactly the stupid mindset im talking about. your cost per mile is just that. your fixed expenses are just that. the 2 are not the same. cpm has expenses you incur from running, you do not factor in your fixed costs either. so even if you run above your imaginary cpm, you can still be losing money due to unscheduled things, such as your engine taking a shit.
Not good like you but briefly here goes.. 65 mph I could barely ever even make 600 miles and I'm talking a whole shift not 9hrs.. So unfair and disappointing.. So these drivers in 65mph trucks maybe getting 10000 miles and that's if they worked the whole month or probably 28 on 2off again so unfair not only to them but the ones that matter or count - i.e family, loved ones.. We sacrifice alot the list goes on and on.. They probably have to do 1or2 resets again torture.. besides practically working the whole month..You get the jist..So here are roughly numbers just using rounded general numbers..65mph truck whole monthly 10000 mls 2dollars is 20000 revenue.. We'll use the lower number for my scenario 11000 mls $2 - 22000 revenue.. 65mph truck 8 mpg 1250 gallon 4.50per $5625,, not 65 7mpg 2021 freightshaker Detroit 1570 gallons 4.50per $7065... 20000-5625=14375 ___22000-7065=14935 i didn't get into all the other stuff but looks just by this you have well closer to $600 more income per month..That benefits you,, please do a spreadsheet.. Not to mention some are doing 13-14k mls monthly; anyways, here's the biggest or most important one you're drivers are not out the whole month working, getting frustrated missing their fam,, sitting at a truckstop on a 34 reset.. I've come across a limited few whom like spending the wknd at a truck stop, that's atrocious majority of us if we have to do a 34 I don't have to mention we like to do it at home period!! I ain't mention how badly it screws with your logs,i.e hos.. Again i try and stay 9-9.5 hrs 90 percent of the time and average is roughly 625-675 per day.. Again never have to do a 34,but the list goes on and on.,not good.. please do a spreadsheet...
Trying to scare people that want to start in the business lol Just started 3 month ago with a 15.000$ truck new trainy fresh overall inssurance is 800$/month for 50k cargo renting a reefer for 1200$/month. Grossing 8k per week on 3600 miles. No dispatcher no broker straight from shipper to costumer. Don't need to hire somebody and pay them 6% just for them to make 3 phone call and give you the first shitty load they find
absolutely wrong calculation - you take fuel in usa $ dollars for calculations , rest expenses you take in Canadian dollars . Make change from usa dollars diesel to Canadian dollars and your price for gallon diesel will be $ 6.50 c Canadian dollars - total expenses per mile around $ 3.25-$3.50 per miles in Canadians dollars - be accurate then you calculate expenses, confirm it is your mistake ?????????????!!!!!!!!!!!!!!!!
Somewhat ok house in 2023- $400,000. Same ok house in 2020 - $200,000. Salary in 2020 - $65,000. Anyone smart should not run for less than, after expenses and before taxes, $130k annually on 40 hours per week. Everyone who is stupid, should make less than $130,000 annually and work more than 40 hours per week for it.
I am so tired of Canadian companies selling out to appeal to an American audience. You must realize how difficult it is for Canadian aspiring trucking entrepreneurs to find the data and numbers we are looking for in CAD to help us be better informed and prepared for going into business? So why not establish your online presence earlier on to connect with your fellow Canadian audience first? And then down the road where you are open to the American market that way as well?: Perhaps by starting a separate social media presence just for the American market if that is the path you want to go down while continuing to look after your Canadian content would be the best way to go. I feel like starting a company here in Canada is done so much more on the blind side because Canadian companies and general trucking organizations who provide resources do not look after and provide proper Canadian content to Canadians. It is a shame. I will do things differently. As I go along, I will put in the extra work to keep proper accounting and journaling my progress so that I could be a strong accurate source for my fellow Canadians. There are many Canadian companies, not just you, who I share this frustration for.
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Hi guys, sorry for the confusion the Excel formula is wrong, the TOTAL is 2.25 Which is your break even Point. Thanks for the comments, and sorry about the Mix up. (Ronen)
That goes down if you are in texas
It means we should charge 5.25 as a flatbed driver
As owner operator your expenses are minus driver pay. So you brake even at 1.6$. just the matter of how much you want to make after that, some people driver trucks for 0.1$ per mile maybe just to keep rolling
So where is this additional 65 cents coming from? Just out of curiosity.
@@frankcasseus1271driver pay
Your RUclips channel is equivalent to a class, the knowledge we get here some of us pay for it. If someone wants to venture into this industry he or she has the full knowledge of it. Thank Ronen.
!!!!!????
The way I do it, I ask myself how much it would cost me to run a specific trip before I call the broker or shipper. I take into account the tolls number of days working, price of fuel along route, etc. A short two hundred mile trip from connecticut to new york city can cost you eight hundred and fifty dollars, including tolls, driver pay, hilly terrain, and fuel. The same trip out west might cost me half of that to run. Shippers aren't dumb. They know how much they gotta pay to get their load delivered. Make them pay!
How do I find price fuel along route?
How do you calculate fuel from point A to point B. Yess I think your way is better
@@stilliraise9201what do you use EFS or RTS? Or something else?
@@stilliraise9201 take the current price of fuel and divide that by how many miles your truck gets per gallon. Then take that number and multiply it by how many miles you are going to travel to get how much the total cost will be for those miles in fuel.😊
Wisdom
It only takes 1 major break down to make you realize $1.60 is not enough to run a truck!
Good video keep it up
start up capital is a thing as well as access to immediate low interest credit. you need both!
$1.60 It’s not worth it as a owner operator. Think about it,
Be out of home for days, weeks, months, very risky job, all kind of weather conditions, and one most important thing, NOT enjoying your family,
Better stay as a local company driver.
But, thank you so much for your helpful information.
💯
top two lines of the excel were .65, .65, the next two were .25, .25 and the number you say is 1.6? Thats 1.8 right there on the top 4 line items. The message was spot on, know and control your costs. My insurance year 3 is 6400 for the year, my truck is older its a 2013 so I dont have a high pay out if it were to get totaled which might explain some of the difference. I do know that my company hovers at 1.5 to 1.7 cpm in costs to run a week.
I'm kinda confused. I was wondering if by lease on my truck ( still hasn't buy it) a Carrier for 3 yrs as an owner of but using their insurance would avoid these higher charges on insurance. Since I'm using my own authority but using their insurance and after 3 yr by using their insurance I can go by myself and would be less.
I assume your saying you didnt pay off your truck, and you were wondering if leasing onto another carrier will lower your insurance costs. It all depends on that carriers specific insurance situation but generally yes you will ride the wave of their cheaper operating cost in terms of insurance. Unfortunately as far as I know if you dont keep your motor carriers authority attached to its own insurance it will become inactive and in turn if it is inactive for too long resets its tenure. My insurance broker has stated in the past he is able to reach out the the underwriters of the insurance companies and plead the case that they were lease ops with years of experience. He said that has worked to lower insurance for new carriers in the past but it wont be 20 grand down to 6 grand. goodluck out there @@stilliraise9201
Thanks!
Thank u, I really appreciate it
Considering people will possibly be opening a competitor to ET, this video brings some good insights. Thanks Ronen!
Those numbers are standard for most carriers in the industry. There is not much wiggle room for profit in trucking everyone is making the same thing per truck(if running load boards) the only difference is how many trucks you have
Its not easy to standup a Trucking company these days. Even if you’re starting with an older truck and put money into it yourself. Youre looking at needing about $50,000 cash at least and will likely be starting with another $50,000 to $80,000 of debt per truck and trailer combo to pay off over the next three years. And if you’re not constantly running truck/s fairly hard (yes 10,000 miles a month is hard) even for OTR. You’ll be out business within a few months. Most people watching this video will become “leased on” owners or drivers. folks who have a truck but not the capital or know how to actually get a trucking business started and in operation for more than 3 years. These drivers will actually probably end up driving for ET not competing.
Very good! Thanks for the info. plus other expenses like DEF and license plates, permits
Your videos are an excellent source of information.
I have learned a lot from watching you and I appreciate you.
I’m coming up with about $2.25 right now with my current truck payment ~$2600. Obviously, it changes with the miles you run and more miles mean less cost per mile. The trucks or trailers I’ve paid off I keep that factored into my average cost to afford buying new equipment. Don’t trick yourself once equipment is paid off to take lower paying loads, that just hurts the whole industry. The Freightliner dealer in VA charges $194/hr now I’m pretty sure it was $135/hr 3 years ago, but freight is paying the same….
I would love to buy a truck and put it on with the company I work for mostly running local hauling steel. It’s a 40 mile round trip sometimes loaded both ways paying 160 each way and maybe an occasional run to Texas. We haul billets and pipe I would use their trailers with no fee. Love the old Walmart trucks drove one for about a year apu, fridge and inverter which would save fuel otr. Video was very informative and now I know what to figure in as costs, thank you.
40 mile trip for 160 bucks is not nearly enough. You’d have to be doing 5-6 trips loaded both ways each day to make it worth your while.
$160 for 40 miles I won’t take that.
Really appreciate the content you put out! It really helps those of us who are new to being an owner op
You get better fuel mileage if you run at 60-64mph but if your pulling heavy loads it’s pretty standard across the board amongst all types of trucks aero or hoods
Yeah it depends on the load, if you're pulling flat/drop deck where the load is bulldozer or something - you're getting terrible fuel efficiency to the point that the truck aerodynamics don't even matter 😅
Thanks for all the great! Info fella. I'm gonna be watching all your opening your own small business vids. You've already helped me greatly in realizing the true costs of our industry in Canada. I'd love to sit down with you one day as my mentor/consultant. Until then take care and keep up the great! Work.
From a 15 yr veteran as a company driver.
Right now I’m averaging
$ .494/MI; Driving 63/65 mph, getting from 7.4 to 8.0 mpg. If I need to drive slower than 63 I will to get at least 7.4 each and every load no matter the weight. Lighter loads I’m getting between 8.7 to 9.3 mpg. The heavier loads I will drive 60 mph until the percentage rises. I have been using this method since February 25th, 2021.
I have seen in recent times that more and more drivers are using this approach and it is a good thing. If were an o/o I would still be driving the same way to keep my fuel cost down.
More people should really look at these numbers very closely .not gone get in to all the details but it is a good video maybe people would see and not take thes cheap loads . I agree that 2.25 is a good number . Great job ronen on this video it is the first one that ive seen that breaks it down .
Great info, tolls and cat scales also eat the money a lot
Ronen, very informative video. This has to be your most informative one so far. Keep posting.
I really wish driver trainer standards were increased for the industry and I wish trucking companies owners would agree on a number to never go below. I know that sounds un American but something has to happen to make the industry healthier. My Dad drove for over 3 million miles. He represented drivers in teamsters negotiations and we lived better than most families. I started driving and was done real quick with how bad the customer, fellow drivers, trucking company owners, dispatchers, recruiters and many more treated the driver who was delivering the product.
Standards in trucking need to be raised across the board at this point. Dispatch, brokers, drivers, trainers, everybody.
Thanks Ronan. I will be contacting u about your consultation fee. Your willingness to share your knowledge is commendable. May God bless u for ur kindness. Michael
2.25$ + 30% taxes = 2.93$ per mile at minimum. and you need to add the company earns 0.65$ + 30% = 0.85$ ((2.93$ + 0.85$ = 3.80$ mile minimum)
I feel your pain. Lol. Ronan just trying to help. But think as a small fleet owner is negative dollars
Your math is off he’s talking cents per miles not percentages.. You have to re arrange your math..
Great video. Feel like you should have recognized that number was off though if you use it lol. Unless you were just thinking in your head you were doing it for an owner op before paying themselves. Thanks!
The break even point you came up with is actually really low I thought it was going to be way way higher. good video as always ronen
He posted a correction.
It's over $2/mile - see his pinned comment at the top.
This was so educational, thank you!!!! 🎉
I was going to say. When you add it up it’s $2.25 not $1.60!
I agree with most of the numbers except repairs and maintenance. I feel that is a very low number to expect when planning
Thank you this video help me a lot
Happy to hear that! Thanks for watching!
Deep insight
Thanks for watching!
I finally saw one of your trucks in Atlanta today 😅 i would apply to your company but i have 2 moving violations in my personal vehicle that doesn't come off til January
I know you put $1.60, but the list of items actually adds up to $2.25 to breakeven.
I’m not sure where he pulled out $1.60 from.
@@nazpash He might be talking to the One man trucks who doesn’t have to pay a driver. FTL doesn’t make sense these days. I like doing partials. Give me two small light partials paying $1.70 each, all day. That will have me moving at $3.40 rpm. Hot market to hot market. Doing 2500 miles a week with gross me $8500 weekly. 1250 miles on the front haul, 1250 miles on the back haul. Run like this you can take home $162k profit a year as a one man truck who work 3 weeks a month.
P,s yes i messed up forgot to add pay in .. another thousand miles for 2nd scenario times .65 we get paid same as your drivers __dryvan.. So minus another $650 kinda balances it out again not much difference and much happier drivers.. Quality of Life is what I'm talking about.. Maybe wouldn't be such a high turnover rate in this industry, j.s.. please share a spreadsheet with us.. So minus the 650 i believe comes down to something like 90 dollars less for u ;however, keep in mind they probably not gonna only run 10kmiles might be more and might be lot better overall life.. Please enlighten us with a spreadsheet, Big Fan!!
Hey how do brokers calculate there cost? And also you think is a good idea to do your own factoring?
Brokers do what brokers do, I can't tell you if they use a formula. I would imagine they try to see how high they can barter the load, then see how low they can get a carrier to take it for and just pocket the difference
Thanks Ronen!
Would greatly appreciate it Ronen..p.s also forgot to mention neither this company nor yours I'm sure hauls $2.00 freight so still the revenue is more and if it's reefers like I believe y'all haul even more revenue and profits..Makes a person wonder how much revenue and on profits you're losing out on or how much more your business can be making.. Per month, per quarter, per year??
Can you make a video for box truck and their overall expenses?
$1.60 / mile doesn’t include paying a driver. The total is 2.25 unless you just want to pay the bills and not earn anything for yourself.
If you notice, Ronan included .65 cents a mile for the driver
@@kevinbugner3346if you notice his formula is broken.
No
That’s profit, not an expense.
@@pats9414 it's profit ?
Can someone make a video on choosing the best gear ratio.
You are awesome ❤
You don't have to pay insurance if you take your truck an go to lease on to a company then after the 3 yr you go on your own then you just pay $20 k a yr so then you don't have to pay higher.
I didn't see you account for pre pass or ez pass an tolls.
Do u know or use navigation that calculates tolls?
RXo is offering 1.5 factory service
Oh?
I like this guy
Are you working with sprinter van too payload 4000p ?
I do notice that you did not add the down payment of 30k you had to put down that technically will put a small dent in your business because if you made
.30 * 100,000 miles = 30k per year net profit but that right there would wipe your first year
Its good to add your 30k as well in the expense as a 3 year like your loan this way you can know what your able to pay yourself per year
30,000$ / 3 = $10,000 per year or 0.09 per mile giving you now a new total of what ever your total was plus 0.09
this way you can at least pay yourself
I'm Over it. U rock though ronen
I wouldn't go under $3 that covers most everything but im new so i might be a little high on it but i don't run my trucks for free lol
wow only 10 cents a mile for maintenance? How much are tires?
Still need a job Sap friendly company needed 4 years experience
WHAT!! That doesn't total $1.65. The fuel , driver& ins comes to $1.55 alone. So what did I miss?
T4TV'S
This is disheartening...it can be done but how low rates are and how high inflation is...with the interest rate increases by the FED....looks like hard times ahead if it doesn't loosen up anytime soon.
Yes. As soon as I get on good rate, getting back is terrible. They want a fairly large partial for .65 cents a mile. And even to break even with another partial doesn't happen as I would have to go out of my way to get it. I don't take these loads. Its bad buisness. Either I wait or dead head 5 hours away to get a decent rate. These are stupid rates.
@natelorimer8567 Hopefully no one will run for these loads. If they do it won't take them long to figure out they are just living instead of earning a living.
Your formula is broken. .65 driver .65 fuel is 1.30 alone .25 insurance.10 misc .10 maintenance.12 factoring now you are at 1.87 truck and trailer .33 you are @ 220 5c factoring now you are 225 cost per mile.
Don’t forget tolls
Why don't you ever include your fuel discount in these? I know you are not paying that much per gallon for fuel..... There's mud flap app, tcs, and a number of different companies you can go through for a very good fuel discount. The discount through the company I work for is typically $0.50 to a dollar off of what is marked on the pump.
Good one
Another area where a lot of owner operators go wrong is they take too much money out of the company for yourselves?
I get 4.2mpg with a c15
My new Scania R450 runs at 10.6mpg pulling a reefer.
Is it real MPG or literes per km? And is it the computer telling you that or actual calculated gallons being used? Just curious
@@StVickyurpeein trucks gotta go 55 on hwy
@@ivonivan1169 oooooh, explains a lot there.
2.65 or nothing ! Good video
Pop pop pop pop pop pop pop pop!!!!! Please chill with the pops
i bought a $500,000 house and 90,000 car and a $250,000 semi, how come im not making any money?????
I have 750000 dollars house 95000 pick up truck 450000 truck and trailer and I don't make money
@@HaiPham-yn8fm yea, gee i wonder what I'm doing wrong 🤔
This is useless information. The rates are too low whether you live in a tent or a penthouse. The rates are simply too low.
I paid £2800 yes pounds sterling for insurance in the UK for my 1st truck as an owner driver plus £400 for road side assistance in case of emergencies.
You guys are being ripped off across the Pond.
2.25 a mile to break even?!?!
You just did a video trying to get a guy to take a 1.17 a mile load because it was Friday and there was nothing else to take??
The1st 4 lines alone is 1.80 !!!!
Your number is wrong, sir your cost is 2.25$
How did you come to that price
@@NorthAmerican-Trucking-News Calculate my number I have less expenses than you I found my cost dollar $1.90 Then I say something is wrong with your number how come$1.65 I stop your video and calculate your number find your cost is $2.25
I would like to buy my own truck..I want to pay it off in 6 month...
Current market conditions do not allow for that. Save your money as a company driver and go to the auction. If you can't save money as a company driver, you shouldn't be an owner operator anyways.
Just buy it outright. If your wanting to pay it off in 6 months it probably won’t happen unless you basically get a small loan, at that point just wait a little and pay all cash
+DEF around 120$
i disagree on non operating expenses being in the cost per mile calculation. insurance, permits, trailer fees, medicals, hazmats, etc etc are running regardless if your truck is moving or not. they are fixed permanent expenses (business expenses). cost per mile is best based on moving/running costs. how much does it cost you to MOVE the truck. if you dump everything into your cost per mile, you will price yourself out of the load market.
other costs are calculated as term costs - monthly, weekly whatever period you want to use. thats how its done in aviation when i worked in that industry and i can tell you, people fail there far less often because they generally arent stupid and know how to actually calculate margins :))
you take your cost per mile in operation, you take your fixed expenses. you then determine how many miles (or hours flown) you need in a billing cycle to break even. anything on top is gravy (profit). thats how its done. anything else you are setting up for failure and why truckers are always broke and most run back to company drivers after failing on their own.
If you did not add the fixed costs associated in running your trucking business to your weekly or monthly operational costs on per mile bases, where is the money to pay for those expenses gonna cone from? As a motor carrier in the trucking business, your revenue comes from per mile charges on the loads you move for a shipper(s). Therefore, you can only profit if you know your cpm on all expenses related to your trucking business or else you run the risk of under charging your customers.
read what you wrote. read it 10 times till you figure where you went wrong. i just dont have the patience, you are that lost. @@20jallow
@@johndonovan7018you sound a little autistic
If you will run at your cost per mile you will never cover other fixed expenses.
@@krashanb5767 that is completely false. this is exactly the stupid mindset im talking about. your cost per mile is just that. your fixed expenses are just that. the 2 are not the same. cpm has expenses you incur from running, you do not factor in your fixed costs either. so even if you run above your imaginary cpm, you can still be losing money due to unscheduled things, such as your engine taking a shit.
Not good like you but briefly here goes.. 65 mph I could barely ever even make 600 miles and I'm talking a whole shift not 9hrs.. So unfair and disappointing.. So these drivers in 65mph trucks maybe getting 10000 miles and that's if they worked the whole month or probably 28 on 2off again so unfair not only to them but the ones that matter or count - i.e family, loved ones.. We sacrifice alot the list goes on and on.. They probably have to do 1or2 resets again torture.. besides practically working the whole month..You get the jist..So here are roughly numbers just using rounded general numbers..65mph truck whole monthly 10000 mls 2dollars is 20000 revenue.. We'll use the lower number for my scenario 11000 mls $2 - 22000 revenue.. 65mph truck 8 mpg 1250 gallon 4.50per $5625,, not 65 7mpg 2021 freightshaker Detroit 1570 gallons 4.50per $7065... 20000-5625=14375 ___22000-7065=14935 i didn't get into all the other stuff but looks just by this you have well closer to $600 more income per month..That benefits you,, please do a spreadsheet.. Not to mention some are doing 13-14k mls monthly; anyways, here's the biggest or most important one you're drivers are not out the whole month working, getting frustrated missing their fam,, sitting at a truckstop on a 34 reset.. I've come across a limited few whom like spending the wknd at a truck stop, that's atrocious majority of us if we have to do a 34 I don't have to mention we like to do it at home period!! I ain't mention how badly it screws with your logs,i.e hos.. Again i try and stay 9-9.5 hrs 90 percent of the time and average is roughly 625-675 per day.. Again never have to do a 34,but the list goes on and on.,not good.. please do a spreadsheet...
.65 /mile huh? why not just work at wally then?
2.97 per mile bro
Trying to scare people that want to start in the business lol
Just started 3 month ago with a 15.000$ truck new trainy fresh overall inssurance is 800$/month for 50k cargo renting a reefer for 1200$/month. Grossing 8k per week on 3600 miles. No dispatcher no broker straight from shipper to costumer. Don't need to hire somebody and pay them 6% just for them to make 3 phone call and give you the first shitty load they find
absolutely wrong calculation - you take fuel in usa $ dollars for calculations , rest expenses you take in Canadian dollars . Make change from usa dollars diesel to Canadian dollars and your price for gallon diesel will be $ 6.50 c Canadian dollars - total expenses per mile around $ 3.25-$3.50 per miles in Canadians dollars - be accurate then you calculate expenses, confirm it is your mistake ?????????????!!!!!!!!!!!!!!!!
Have you ever driven a truck?
What makes you think he hasn't?
are those canadian or american dollars?
It’s not worth the problems to own a truck any longer.
Somewhat ok house in 2023- $400,000. Same ok house in 2020 - $200,000. Salary in 2020 - $65,000. Anyone smart should not run for less than, after expenses and before taxes, $130k annually on 40 hours per week. Everyone who is stupid, should make less than $130,000 annually and work more than 40 hours per week for it.
Not hard at all price per GALLON = RPM
I am so tired of Canadian companies selling out to appeal to an American audience. You must realize how difficult it is for Canadian aspiring trucking entrepreneurs to find the data and numbers we are looking for in CAD to help us be better informed and prepared for going into business? So why not establish your online presence earlier on to connect with your fellow Canadian audience first? And then down the road where you are open to the American market that way as well?: Perhaps by starting a separate social media presence just for the American market if that is the path you want to go down while continuing to look after your Canadian content would be the best way to go. I feel like starting a company here in Canada is done so much more on the blind side because Canadian companies and general trucking organizations who provide resources do not look after and provide proper Canadian content to Canadians. It is a shame. I will do things differently. As I go along, I will put in the extra work to keep proper accounting and journaling my progress so that I could be a strong accurate source for my fellow Canadians. There are many Canadian companies, not just you, who I share this frustration for.
Garbage loads as your examples is why people are going out of business
Yeah :(
Your math is WRONG!!!!!!! This is wrong. The format is correct! But the math is wrong!
Show your math
@poonetidestroyer8955 can you add? It's plain as day the numbers don't add up..... Do your own math
Made some mistakes very regrettably trying to learn
Where are trailers for $30,000 I'll take 10
Auctions are the best place to buy trailers.
Thank you
ion care what no one say you’re all right
and you know what them says about first impressions
🫡
Thank you
Thank you
You're welcome