How to Calculate Owner Operator Costs / Cost Per Mile - Owner Operator Trucking
Вставка
- Опубліковано 11 вер 2024
- Welcome to our channel! In today's video, Ryan will share with you how to calculate your cost, owner operate costs and owner operator cost per mile.
Hope the method will help you to enter into owner operator trucking business with a better understanding of your business cost and equip yourself with better chance to succeed. Enjoy.
Feel free to drop your comments and questions. I will respond to every single comment.
Thanks for your support as always!!
📢Exciting News:
Our online store is officially launched - Shop the largest collection of DPF, DOC, SCR & One Box at a price you will like!
► DPFDiscounter.com
Business Info:
Diesel Emissions Specialists offers expert diagnostics and repairs for diesel emissions aftertreatment systems. Rely on our skilled technicians for comprehensive solutions, including DPF cleaning, DOC, SCR, and One Box parts. Ensure your diesel engine runs efficiently with our top-tier services.
► www.emissionsp...
► Address: 1120 High Ave SW Canton, Ohio 44707
► Phone: 330-573-5396 (for business only)
► Email: info@fttfleet.com
Shop the largest DPF, DOC, SCR & One Box collection at a price you will like!
► dpfdiscounter....
Get the most advanced electric APU power by Lithium Starting Batteries for $5,500 today!
► www.polarfoxap...
Connect with us on Social Media Platforms:
► UA-cam: bit.ly/35YO3kN
► Instagram: bit.ly/3C7hRy6
► TikTok: bit.ly/3QxGHMT
► Facebook Page: bit.ly/2QqBuZ0
► Threads: bit.ly/3KmNp6P
► Trucking Facebook Group: bit.ly/34TbQXQ
My Favorite Products for trucking & truck repair needs from Amazon:
► amzn.to/3xZkDn3
Awesome Products and Services We Recommend:
► OTR performance diagnostic tool (super easy scan tool every trucker needs) - use promo code road3333 to get $100 off: bit.ly/3O3wshT
► Rock Rooster offers the best work boots for you. Use channel-exclusive promo code road3333 to get 12% off of your order today. bit.ly/3HFLFDu
Want to work with our channel? Email us for more details
truckingandfixingwithryan@gmail.com
-----Disclaimer-----
The information and instructions provided by Trucking & Fixing with Ryan UA-cam channel is for general informational purposes only. All information on the channel is provided in good faith, however, we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information on this channel. Some product links are affiliate links which means if you buy something we'll receive a small commission.
Problem with these owner operators is they don't know their costs and pull loads super cheap and ruin it for all the others. It then in turn becomes "a race to the bottom" Truckers wake up and don't pull anything for less than two bucks a mile. Whey should the brokers get rich off of your hard work and labor carrying most of the expense, liability, etc.
The idiot brokers are doing the same thing in their industry, under bidding one another
Messing up the Industry when Nobody takes Time to Educate or Learn
And the dispatcher should know better too.... have them stop agreeing to cheap loads.
Great, great info. Everyone that puts out videos talks about know your numbers (fixed costs) but I haven’t found anyone really go down the list like you did. I really appreciate that. My credit is jacked up right now. My wife and I are trying the snowball debt payoff system. It worked for us in the past but this COVID thing kicked off and derailed that. I’ve been liking your videos and commenting when appropriate. Keep these videos coming and sharing your numbers and breaking things down for all of us. God bless.
Thanks for the compliments!
I hope you have gotten back to the hussle. I appreciate you empowering another by recognising the good work of sharing. We must learn and appreciate the gift and power of sharing. My son wants me to get involved in this imdustry and having said yes, i am now slapping my brain with info. All the best.
You are the best trucking u-tuber out of them all, you are a business man & help people by sharing & a Great Mechanic & share to the humble truckers how to fix & maintain there trucks & on top of all this you show people what to look for when they go to buy a truck, u are the MAM
Thank you Ryan, for all the insightful information! On this topic and all the other topics. Talk about people taking cheap freight sounds like that guy didn’t understand anything about his cost of operations! 😡 that just drives the whole industry down when people take cheap freight like that he might as well go back and be a company driver! Anyway thanks again 👍
Yes, I agree, but I guess there are a lot of reasons people do it. One, they don't know their costs, or are taking a load just to get somewhere else. Two, people have bills, some people, unfortunately, may be in the position where they have to take a load to make a truck payment, insurance payments, etc., even if they won't be making anything to pay themselves. This is why I try to keep my costs low, by doing maintenance and repairs myself, and always looking for deals on everything else, its also good to build a savings fund when the rates and volume are good to get you through the low times. The third problem is the mega carriers, they work on such large economies of scale, that they can pull loads a lot cheaper than use, and they will to keep their trucks and drivers moving. Thanks for the comment!
I like the level of details you share with us! Thanks
Thank you for your service in the military.
You are welcome! 😃
Thank you for the information you have shared. I’m a company driver now for about three years but for a couple weeks I tried out lease purchase with a company in Chicago and it didn’t end well with the truck breaking down my first trip or two. I’m a company driver now with the mindset of a lease/owner operator and trying to soak in as much knowledge as I can before I make my first purchase.
Good luck!
This is how to run a successful business! Way to go brother.
Thank you!
Bro I really hope ur channel takes off this is definitely the most informative channel I have came across as far as owner operator and maintenance thank u for all u do
Thanks
Thought it’s been a year since you posted this video, but I always come back to a recap .. thx for the video ..
I am glad to hear that. Thank you!
Thanks for breaking that down I needed that info
No problem! Thanks for the comment!
All good info! Keep up the good work!
Subscriber here, great info this definitely helps making a decision to become a trucker.
Hi Guys, thanks for checking out our channel and videos. We just started our channel not long ago. We are hoping to deliver many good advices to our fellow truckers. We also need your support and help to get more and more people to discover our channel, feel free to sub to our channel and like our videos. Leave a comment below to show some support and welcome any questions as well. Thanks a lot!!😀👍👍
Enjoy the videos!
Thanks
so do you divide the fixed cost by the miles driven, that gives you the cost per mile ??.. awesome video new dispatcher here...just what i was looking for to help my carriers
Great video with great info. Only one problem. GO ARMY, BEAT NAVY!😂
🤝
Thanks for sharing!
Forgive me Ryan if I miss the part where you recommended seeking out a attorney that specializes in 🚚 , this link just popped up good information. First thing is to seek out a attorney and they going to recommend getting
EIN number (business social security#) and set up LLC (safeguard personal assets 🚗 🏠 🚤) this way if things go south the 💩 don't end up in your Name or on your Social Security # . Never Never use your name or social security # once you start 🚚 leasing /Owner operator .
Can you Elaborate on the part about never using your name or ssN a little more please ?
Your videos have been very helpful to me. Thank you.
You are welcome!
theres a company out there that makes this way easier. I got my cost per mile for free i just had to answer a few questions and they shot me a report. I even use them to track my loads and they show me the profit on each load
Thank you.
You are welcome
Thanks for information great video
thanks for sharing!
Still a great vid 2 yrs later. I just refigured my costs to make sure i still know what the hell im doing out here lol. Im up to $1.10pm right now. Seems very high but I guess thats fuel cause my other costs are fairly low. With a truck payment im at .45cpm before fuel. 🤷🏻♂️
Thank you for the comment 🙏
Very useful information
You mentioned that you’ve always driven for %. For a new company driver hauling flatbed, would you say that is the way to go? I have an offer to haul otr steel at 24% of gross. I’m probably taking it right out the gate, hope to learn the game, the buy an older truck & get the authority. But that’s a year or so out… thoughts?
Thanks for the info, I dig the complete breakdown style of your content.
Good video, appreciate it :)
You are welcome!
I once had a 8300 model international day cab. The most uncomfortable truck I had ever driven. I paid 24,000.00 in one year for repairs. O course when it is in the shop you are not working. It almost put me out of business.
Nice vid Ryan. I'd like to know what happens when you've driven to a shpr and the load cancels. Do you get any compensation for those miles? Thanks
Thanks for the comment! In the event you show up for a load at a shipper, and they cancel without prior notice, you will get a "Truck Order Not Used". I have only had this happen once, I have typically gotten at least 24 hours notice on canceled loads by the agents. I believe you will get $150 in that situation, but you have to be at the shipper, someone can correct me if I wrong on the that, like I said this has only happened once to me, and it was about 2 years ago.
I'm getting ready to buy my first truck and wanted to ask you how do I get it into my business name? Do I just use my personal credit score to buy it and have it put into the business name or buy it personally then transfer it to the business name later or how's that work?
Good job appreciate it..
Gang here
Thanks for this video. As of today 2/5/23 what would you put for fuel cost per gallon to do the fuel math?
How do you figure out the average price of gas? Is that if diesel is 4.99 a gallon that you take that times average mpg for your truck that could be 5.5 and come up with .91? Thx
I didn’t see liability or cargo Insurance, would it be correct to say you are operating as a Lease Owner rather than an Independent Owner Operator ?
I guess we would be considered independent owners ops leased to another carrier. I don't have my own authority, and really don't have any interest in going that route( thats a whole discussion in itself). In the current arrangement, general liability insurance and cargo insurance is covered by Landstar, when I'm loaded. When I'm not loaded, or unladen, I pay own way on that coverage, that is listed at about $1080 per year. Other than that, I have my comp-collision coverage to pay my truck bank note off in the event of a total loose or major repairs, which runs me $135 per month or $1620 a year. Thanks for the question!
Good answer.
Do you have a video explaining why you wouldn't want your own authority?
35% could be $50/$60k per year that Landstar is making from YOUR efforts.
You seem to be a fine communicator and wouldn't have any problem working with load board brokers?
What is the formula to add miles if I was driving 85 miles twice a day for a year not the gas just the miles
Hey Ryan, Excellent channel! I'm curious as to which is the worst of two evils, buying a new tractor with high payment or used sinking money into it and loss of time while being repaired? I know you've mentioned several times to be mindful if buying new, but I can't help but see less break down cost & time, peace of mind, etc., almost amounting to same, same buying new or maybe better yet, gently used.
I have gone to both paths. Only thing about buying new is that you have higher fixed cost. Means that you have to pay the truck payment even if you are not working. Yes, you always have to work on the used truck. I would recommend buying new or gentle used truck if you don’t do your own maintenance and repair. Buy used otherwise to reduce your fixed cost.
@@truckingandfixing Thanks for the reply. Great points!
Hey Ryan, quick question. So say your break even including your salary is 1.50 a mile. You book a load for 3.50 a mile. Does that 2$ a mile just go into a savings? Or what do you do with that?
you have flexibility to use the additional $2/per mile. I just take it as my income and put it into my bank account.
Thanks for the video. Great information. Have you ever run the numbers on going independent and using the spot market? I had my own truck and ran part time with an inexpensive truck and flatbed. but never did a deep dive. I wonder if the expense of a newer truck can be made up in fuel economy and maintenance costs.
Also. I agree on the megas. The LP agreements are set up to fail. Truck expenses are paid by the lessee until they give the truck back and it turned over to another driver. Company makes money on this leases allowing them to haul cheaper freight and lower the spot rate on specific lanes.
I have looked at going independent a few times, but what I have found is that the fixed costs are just too much, and those costs come every month whether you are running or not. The problem is that with just one truck or even five, you don't get any reasonable discounts on fuel, tires, insurance, etc. By the time I pay $2k to $2.5k a month in fixed costs, not including a truck payment, then you subtract that as a percentage, you are right back down to 70% or so on the load. I am pretty happy with what I make now, so it does not make much since for me to take on the extra risk, work, and stress for 5 or 10% (maybe) more.
@@truckingandfixing Thats true... I ran some numbers if I bought a newer truck and also a dry van. I come in around 1.35-1.39 per mile , thats including paying myself .45/ mile and being ultra conservative on what insurance will cost, whereas yours are well under $1.00.
The only difference would be I pay myslef an industry standard then take additional money at the end of the year as ROI so I dont have to pay payroll taxes.... Still it looks like Landstar is better.
Thanks, Is that 1.50 pretax
Support
How do u do it by the week please
Did you do ok with the sfi lease I’ve had 3 trucks before used but my payment was between 1000 and 1250 per month that 1250 per week kinda scares me
Thanks for the info. I'm 23 and only been driving for 2 years. Do you suggest saving up and buying a truck with cash vs making payments and going to landstar now? Thanks for your videos sir.
Sorry for the long delay. For some reason, your comment didn't come up in the UA-cam app, I didn't see it until now. I will make sure to answer your questions in greater details in our upcoming Q&A video this weekend. Stay Tuned.
@@truckingandfixing thanks!
When you find you’re fix cost what math are you using to find 0.23 cents mph? Sounds like a stupid question but I rather ask haha ty
How does one research the details of lease to own or owner-operator at a specific company? I can't find anything published and the lack of transparency casts suspicion in my mind.
Most lease purchases and owner-op lease on's will give you a contract to sign during orientation, or after you have been approved to come on. If there is a company you are interested in, or a truck lease purchase deal you are looking at, I would call a company recruiter or sales representative, (depending on what you are looking at) and ask if they can provide you with a copy of their contract prior to signing on. If they are on the level, they should not have a problem doing that. I have a Landstar contract (current), old Schneider lease on contract, and a SFI Lease purchase contract, you can email use if you are interested in what these look like, our email is on the "about" page. With these contracts, i always recommend taking them to an attorney that specializes in that field if you don't understand something. You can usually have an attorney review any contract for $100 or so, which could save you $1,000s on a bad deal!
Good video. I believe your numbers. Is there any app on Phone that helps the owner operator for accounting? Business without accounting is playing with fire!
I was considering quickbook self employed for our accounting software. I am not aware of other softwares.
Hi Ryan, Thanks again. Great video!
Two questions; when you work for Landstar you have to sign an exclusivity contract with them or you can work for other platforms (e.g.Uber freight) if you please?
I did not see Taxes (Fed and State) on your video. Do you consider this expense as a fix or variable? Do you add this expense to your base RPM? Thanks Ryan. Have a great day
Hi, as far as i know, you can only pull Landstar freight. As for taxes, I don't really get specific on that issue because it is different for everyone. My wife pays in taxes on a W2, we have 2 kids, and I have a farm as well, which is a large deduction. So, I typically am tax neutral, meaning I don't pay in quarterly, and I usually don't have anything due at filing, or get a small return. So in my specific situation, taxes on my trucking income are not a big expense to factor.
@@truckingandfixing Thanks Ryan for answering my last question. On your list of fixed costs, you have comp/collision $1620 is that per month? is that your regular truck insurance payment? Im about to make a career change, but I have a few concerns. I was wondering if you could be my mentor or can help me out I would really appreciate it. My email is enmuro69@gmail.com . Thanks again Ryan !
Is lone star leasing a good one to go for a truck
I mean lone mountain
All good stuff! Just curious, what's the year, make, model and engine of your truck?
Here is a detailed video about my truck. Hope it helps! My 2013 Kenworth T660 and Cummins ISX 15 Engine Familiarization - Owner Operator Trucking
ua-cam.com/video/_bdsVCjlv9w/v-deo.html
Hi Ryan
Thanks for the information. I was working in trucking company as a sales in back home but in Canada just trying to get my AZ and then work for some company for a year. After that i have a plan to be an owner operator. Do you think which type of the trailer make more money for owner operators?
I am doing dry van, it is stable, flatbed has up and downs. I only do dry van, the money is okay in my opinion.
it's better to do a break-even analysis (this is similar but there are more formulas)
Also, a break-even analysis is vital in making decisions such as adding new equipment or a new driver
If you own a truck you should understand your cost per mile.
U r saying u use around approx 33k of fuel per yr. Doesn’t LS pay fuel? How do figure that in ur cost?
You pay for fuel. So it is your expense
How much do you feel like you need to make per mile yourself to make all of this worth it?
I am aiming for $2.5 plus a mile load. It really depend on your fixed cost. Figure out your fixed cost/mile and based on your personal situation, then you will have your own $/mile target.
Hi Ryan! My husband gets paid by percentage (88) Say he takes a load for $2100 how can he figure out how much that is per mile?
It is depends on his fixed cost/anual (truck cost, fuel cost, and other expense) devided by his annual miles. It doesn't have anything to do with the load he is taking.
2.00 a gallon lord I’ll kill for those prices
Pretty much if you are not getting at least two bucks a mile, you are working and making less than a company driver.
Agree!
Fuel surcharge, I guess I shud say. So is the 33k after the surcharges applied ?
Fuel surcharge is income. 33k is fuel charge.
Gotcha. Thx for what u do
👍
So how did you get .23cpm?? I'm new to trucking. What did u add or subtract etc 22790= .23cpm you lost me there🤔
22,790 divided by 100,000 miles a year brings you to .23 cpm
Would $2.31 to the truck be any good?
Yes, it is pretty good
@@truckingandfixing .thanks for quick reply.
Cargo ins?
No cargo insurance at Landstar, they cover that in their percentage!
So your minimum you will drive for is what?????? $2.25 $2.50
I’m a 26ft box truck and bro I charge $3 a mile
Jesus, what part of the country are you located?
You spend 1300$ month for full 😂😂😂 yeah right
What is your email?
Please get to the point! Please please get to the point!!
You talk to much get to the answer.
This information was so helpful to me because I want to go into trucking and needed to know some vital information that can help one succeed. I have few questions but I Sent it to your email. You might want to check your email and get back to me.