You Better Know Your Cents Per Mile First
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- Опубліковано 16 вер 2024
- Immerse yourself in the full video, 'Knowing Your Cents per Mile,' a critical resource for truckers, fleet managers, and logistics professionals.
Understand the nuts and bolts of operational costs with our in-depth analysis of cents-per-mile (CPM) calculations. This full video reveals how a detailed knowledge of CPM can significantly impact your bottom line, boost your operational efficiency, and set you up for success in the competitive logistics industry.
Whether you're just starting out or are a seasoned veteran. Leverage this knowledge to make data-driven decisions, optimize your expenditure, and increase your profits. Turn miles into money by 'Knowing Your Cents per Mile' today."
WD great advice driver keep up the good work, GOD BLESS!!
Thanks Bigamp. God bles
True only to the city limits
My brother I'm suppose to be sleep now, but I just came across some of your videos. Seriously your have the absolute best site on UA-cam. I first started watching you at 5:30am and it's now 9:19am and I'm still watching and learning. God bless you my brother for sharing such important information. You are straight to the point without a lot of unnecessary needed extra blah blah blah talk!
I know this is an older video but just came across your channel. Just got on with LandStar and the information you provide is priceless. Thank you for taking the time to make these videos.
This is the BEST video I've seen on calculating a load.. I have made the same mistake...This video is simple to understand, clear cut, real talk.....Thank You 100
I appreciate that Ann. It’s only going to get better. Keep watching
Thanks so much I totally agree with you. Its important and alot of new owner operators don't understand it.
I’m trying to put out what I know and learn bit by bit
Good info bro I preach this all the time know your numbers. I always tell driver's stop listening to bad info good luck over at landstar
Thanks. Appreciate that
Hey Brother I love your Videos You in the wrong Business you need to be a News Anchor you explain things in a manor for people can understand Thank you for your GREAT VIDEOS!!!
Its not just Cost per miles. It is also fixed cost.
I do it simply this way.
Know your fixed cost per week,
-insurances
-eld
-truck payment
-etc (anything that costs the same no matter if you drive or not)
For me that's $1225 per week
...i drive 5 days a week, maybe 6.
Thats $255 per day fixed costs.
I pay 10% w my carrier on my gross
And I figure .66 per mile fuel and maintenance. Whatever I dont use in fuel, I set aside into the maintenance fund.
So if the load is
1000 miles, at $2300
Its $660 fuel/maintenance
Its $230 for carriers %
And $510 for 2 days driving.
This load I will make.
$900 profit
Now its only $1900
Now that profit drops down to nearly 500 (carrier takes less so its about 560) BIG DIFFERENCE on that load because of the fixed costs. Those fixed costs are the same no matter what. If you driving local and not thinking about your fixed costs, taking $600 a day for your 250 miles you won't be making ANY money.
Simply stated, you break everything out so you know where your expenses are at and where they are going, so you’re always able to see your profit and loss. That’s good. That way you always know before you make a move. Not only that, you’re able to do your calculations at the end of the pay week so you have an idea of what your pay will be and what your business profit is for the week.
I’ve got a lot to learn! 🤦♂️
Glad I found your videos, no sugarcoating it ..I'm trying to get it but I'm a bit nervous. Been a company driver all my driving life. About 15 years
Just take your time and listen to people who are going to be honest with you and who will help you.
Great Wisdom Bro! I needed this. I like how you ended the video
I appreciate that. Be safe
Nice hat. I worked on some giltner trucks when I was a young buck working on heavy equipment. I really enjoy your videos and view on life. I dont drive truck, I've only worked on them. It's a nice change from the trash I listen to over the cb.
Subscribing now! Thank you for ‘this video I am going to get my CDL this week so excited !!! My goal is after working for a company 2 years to get knowledge of the business.My plans are to buy me a truck I am super green but I have a entrepreneurs mind set... So people like you help us green horns... GOD BLESS YOU...
You’re very welcome. Learn as much as you can. Make sure your trainer is a teacher and not about just running and the money. I’m happy where I’m at right now in trucking but you have to put in the time to get here. Also, look for a regional company. You might like that better. Last, don’t get discouraged about anything. Keep you chin up. You can do all things through Christ who strengthens you. Good luck
Willie D - Closing The Gap Thank you for such encouraging words May GOD keep you safe.
God bless you god bless you...
May the Lord continue to shine light upon you and your family...
Thank you so much. May the Lord continue to bless and keep you and your family
Hey willie i run for 90% and am choosing my own load so landstar is dead to me and the company I lease to is not as popular as landstar didn’t last a year with Landstar am so glad I make the change am home every weekend making going money your video very informative all the best …..
Appreciate the breakdown brother!!! Keep it up!!
I’m going to try
Great, excellent information brother. (Each one teach one), love that slogan! You broke that knowledge down with pure accuracy. Thanks, I'm surly ready for the world now.
Great content man.....keep it going. "Know them expenses"
I appreciate that. Will do
Thank you for teaching us about the numbers because there are important in this trucking game. I'm getting the numbers now of how they work thanks
You’re welcome
OMG Mr. Miles. I just found your channel. Guess what I'm from Seattle, WA and live near Dallas, TX now. I'm already learning a lot from your videos so Thank You!!
You’re very welcome
Saw your video this morning and once again I appreciated your video on cpm. I have a few questions regarding the formula but right now I gotta start my day. If you remember I the one that gave commented on your "brokers changing numbers video" video. Right now I gotta start my day. I'll be contacting you soon.
Ok. Later on then
Great video. Don’t run hard . Run smart.
You're absolutely right about the truckers out here talking about they don't move for less than a given amount, that's ludicrous from a business standpoint. You shouldn't move like that. A smart business person knows to spot trends and knows their numbers because if you don't know what you need to to make you don't know the difference when you're making money and when you're losing money. The one thing I will say to any new guys is if you have to pull cheap freight at least make sure it's light and headed to an area you can make up the difference. Example: if you run 2000 miles a week and need to make $2000 a week to cover your expenses then with the 65% you get from a load you should know you need to be looking for cpm at or above 1.54 because 65% of that is your $1
Exactly. You have to know your numbers. Doing the calculation isn’t hard. It’s just that so many drivers weren’t taught this because they were taught to be all about the dollars first.
@@ClosingTheTruckingGap that's a fact sir. Hope you your family and your business have a happy and healthy new year✊🏾
@bill2526 bill2526 there may be truck drivers out here that have low cost per mile that can sustain a business pulling $1 a mile, I'm not saying make it a habit but as long as the rate per mile is covering costs and making a profit to the bottom line then you do what's best for your business
Thank you for the knowledge.
Thank you brother I am just starting in this trucking thinng
Know your operating cost, and after that, only you can decide if it's going to satisfy your life style.
Willie D. I’ve been looking for info like this. Would you be willing to put a video together to help us understand better the point of “knowing your CPM” numbers? Fixed, variable and salary operating expenses can vary for everyone. Would you be willing to create a fictional company and plug in numbers to give us as close to a real world scenario? Looking forward to your response. I’ve just like led your video and subscribed to your channel. I’m looking into getting my own truck. God bless!
You dropping that knowledge bro.💪
Thank you brother I start tomorrow lease I’m gonna use this thanks
Thanks for dropping this knowledge.
Anytime
Thank you Willie. Very good information...
Ty for being 💯 and speaking plain English
Yes sir
Thank you
Appreciate the info I needed this
Great Video.
Thanks for your Time and Knowledge
Anytime
Very informative, Ty alot for breaking it down.
Another informative video my brotha. Next step, your own authority.
This industry is big. I’m taking a look back and deciding my next move
It's always good to walk away from a bad deal; meaning, only fools would deprive/ let someone else ( brokers), dictate their prosperity.
True but most people don't understand what constitutes a bad deal. That is the point of the video.
@@keithj6251 ignorance is no excuse; meaning, be on top of your game.
Trucking is definitely a numbers game
Exactly
You’re so right . I see loads on the load boards going to western Canada out it southern Texas for 8 grand round trip. 2800 miles each way and you get your percentage out of that. I politely declined because the broker didn’t want to bring up the gross and fsc.
That’s ok. There will be more
Great advice. All your expenses need to broken down to cents per mile. Difficult concept for some to understand.
Thanks Lou. It’s the truth. You’re better off going in knowing you’re going to win than not and waiting to fail
THANKS
And if an agent saids it’s 1833 miles That means it’s 1900 miles. They never pay you near the exact miles.
Exactly
Use an excel spreadsheet. That’s what I would use if I was still driving. You put in your gross and set up the sheet to calculate all your variables including the exact fuel for the days that you are running. Then set it up red or green for what u need as profit. Break even is not profit. Pay yourself first and work it backwards from that stay safe
💯 Think like a businessman
Exactly
I never thought about including my mortgage. 👍🏾
Can't really get your numbers down to the penny until you get a full year in. Until then you're making educated guesses on fuel mileage, reliability, lanes, etc.
Great explanation!
Its sad if they dont know this sir. You right everyone not a boss.
This was a Gem OG
Right on. More to come.
This definitely helps bro iam new at this
w, cpm will keep you in business but to scale your business you have to know the going rate in that area, ie 15 day average
A paid off truck should benefit you not the shipper 👍🏿
Facts
CPM are based on making sure you meet all your expenses and that you’re not running for less than that. The 15 to 30 day average helps you know the price that same type load in that lane has been paying. As for a paid off truck, most drivers will be paying on their truck for at least two years. I can’t even consider that now
I’m not affiliated with anyone. Pay up $100 a month to DAT and you get the 15 day average. I’ve made so much on just that number it’s insane. I want to find out where the brokers are getting their prices from. MakeCents mentioned knowing about it in a recent video. I really want to know so I can negotiate better.
It also helps to know how many trucks are in the area. More trucks than loads means the rates are going to be cheaper, more loads than trucks The rates are going to be higher.
Start orientation Monday bro....great info bro
Cool. Like Calvin Leak told me, it’s a learning curve so just take your time. You’ll get it. I’m still learning
What they value, is not what you may value; meaning, they don't know the difference, in reference to money ( money vs. Real money); in other words, you work to live, and not live to work.
Understand
I learned something tonight
Cool. Wait until my new videos. It’s going to change the game
Man, you're a goldmine.
Willy D Great video cause I didn't know I'ma company driver running for free 38 cents a mile.. barely making 😪 $500.00 a week 1000 to 1500 miles
Lol. It’s all good. We all been there. Just keep your record clean and be ready to move to a higher paying better company. Fifty cents and up is a come up.
Great content 👍🙌
Great info! I do want to ask, do you have to cover your own CMV insurance or are you covered under LandStar? I would appreciate a response here but maybe it could be a subject for another video...? Thanks and keep the videos coming! 👍🏼
Well done sir... subbed
Thank you so much, please, how do I charge a broker per mile new in the business
You’re welcome. You first have to know your cpm and what rates are paying or have paid before. A lot of owner operators sign up with DAT so they can see what rates have been over the past 15 to 30 days
And if you don’t know now you know...
💯🚛
Lol. I know now
Is 40 cents per mile with box truck good or bad
Good video 👍 cause you can’t overlook the bottom line.
Thank you.
I'm not an owner operator , and this is just my opinion, but it seems to me 35% to Landstar is a little greedy. What do you get for that?
How do you figure out your personal CPM? To know what not to go under?
You have to make some assumptions. Cost per mile goes up if you run fewer miles ie local. If you don't have a year in to know what kind of fuel economy you're going to average through all 4 seasons, with and without treated fuel you'll have to make assumptions there too. You'll never know exactly how reliable your truck will be. Past performance means very little. Things always break in trucking.
It's only as precise as the data you have to work with.
👍🏾
A lot of times a company driver using the company truck can do way better than a Owner Operator if the Owner Operator doesn't know the numbers.
Willie, did you ever run your numbers with a " breakeven calculator'?
I use a financial calculator called a BAII Plus by Texas Instruments. It is a Business Analyst calculator
I agree with everything with u except ur household expenses that should not be part of cpm everything else I agree.
And I’m going to disagree and I’ll tell you why. When I’m out here working, my check isn’t just for my business and my truck. My job takes care of my family as well. Never mind. This is going to be video. I want to see what others have to say. Maybe we both will learn something new
melis duric I think Willie D was meaning to say salary as an included component of the operating cost picture? Willie D am I right?
Well you have to actually break that down more. If they paying 3800 for a load you need to know your fuel surcharge because you get 100% of that so on this you would do the line haul by 65% then add your surcharge to get what you're getting back then do the math and you will be more accurate
I made it simple. Often times the fuel surcharge is said to be already included in the price. When I leased at Giltner, they kept it separated or there was no FSC at all. That’s why you don’t see it.
Cool beans my fellow landstar driver.
u have to get close to 2 per mile after all the expenses or before
I usually get above $2. Remember, my expenses and cpm is low so even if I don’t get $2 a mile, I’m still good. Like I said, know you’re cpm
This video only applies to owner operators if you work for a company especially if it's your first year you mights we'll get a McDonald's job they are paying 35 cpm meaning you are only making $350 per 1,000 miles foh
Hay Big bro I've been checking out your channel and wanted your honest opinion. Do you think it's a good move to jump in trucking ? I was driving uber, before that i drove cabs and I made ok money. I'm a xcon been out 10yrs. I like how u keep it 100, no cut just real. I have a friend that drive trucks but for some reason he just don't make it maybe he doesn't know his CPM? And it scares the hell out of me cause my bills are almost 4gs a moth. This cov.got Vegas hurting. I appreciate all u do. Each one, teach 1.
What up Gary. Sorry for the late reply. Don’t let your past stop you. It may seem like it limit you but that just means you’re gonna have to do more to get those large gains. I would do it. Find a company that will hire you. Keep a clean driving record and learn everything you can. Get into a walk away lease program, save your money and get a GOOD truck. Lease on to a good company and stay humble, keep the faith and everything else will fall in place.
@@ClosingTheTruckingGap thanks bro 🙏.
I see you got alot of heart and working hard. Some of your load break down and what you are being paid is questionable. Are you pulling from Dat board or you running on some kind of agreement thru gilmer.
I don’t run for Giltner anymore. My truck is at LandStar. I don’t know where Giltner got their freight from. They do have there own brokerage
Question: what is a person’s dollars per mile made up of?
I get 💯 that each driver needs to make a certain dollar/mile (gross dollar per load be damned), I’m just not sure how to calculate my personal dollar/mile. (I haven’t started trucking yet and so I’d like to at least practice this/get good with the calculations before I begin.
Great videos mr Willie. Thank you for making them.
Are you overall happy with Landstar?
Yes. My videos are intended to get your attention while educating you at the same time.
Where are all the so called Christians in this industry?!? I saw one Carrier had the NERVE to charge a driver $50 for a Bible along with his gear, PPE, set up etc. The gall. A Bible!
Nothing but snakes in the grass and serpents out here.
I lost all respect when I dropped a load at 7 am. The receiver said he had one going out!!! Sometimes I sit 3 to 4 days empty, and this Company had one going out in 2 hours!!! So I told my Carrier, and he told the logistics company that I was RIGHT THERE!!! And that logistics company had the nerve to post that load for cheap!! Once I hollered, they gave it to me, but the nerve to have an on time successful drop, then try to go on the cheap with an eager driver. I lost all respect!!!😢
There are Christian’s out here. We’re just keeping the faith. God said, I made you in my own image, so that means we’re very intelligent to say the least. As for that company, they know they can get someone to move it cheaper. It’s crazy. As long as you can take care of home and save, hang in there until you’re blessed with something better. Be safe
i calculated my expenses at $1.20 per mile. Whats a good rate or lowest rate i should accept? I'm thinking of going to landstar and would like to know if i can get over $2.00 per mile loads after the %65
Cool. I aim to get .75 to a dollar over that. If you can get a load paying $2.20 or more, you’re doing good, especially when your needed cpm is $1.20.
how / where %65 come from?
you could be running to make the bank money if your not careful. wish i could deal with my frustrations as well as you can. stack it high that truck eats deep was my take away.
The worst part of all is the company is taking 35%. They are able to run their outfit and make a healthy profit @ 20% but they are greedy and want to be big shots. The owner-operator deserve 80%
Is .48cents per mile good
Where did you get 1325 from?
That number is the miles traveled. I used it as an example to show everybody and to help make it understandable.
Is there an app for this? Has to be right?
What year is your truck ? 2015 or 16
It’s a 2013. I think the last year was either 2014 or 15.
🔥✊🏿
google " break-even calculator"...........
Willie d where you at
I’m in Cali
@@ClosingTheTruckingGap I mean you haven't put out nothing for a while but since I sent that message you put out a couple I really like the air dryer video I learned a lot
Hey man can I talk to you whenever you get a chance about coming over to landstar do you have an email or something?
Yes sir. Email me at silverbacktalk@gmail.com
A lot of guys driving are out of business and don't even know it.
Giltner inc lol
Only way to make money in trucking is get your own truck and your own authority but the government and the Bush crime family has made the price of fuel so high so they could get rid of the owner operators so they could control the trucking industry it is hard to make it
It’s challenging but not impossible
Facts if you don't have your own truck and authority you must aswell do Uber entry level truckers make 35 cpm if you drive 1,000 miles you are goin to make $350 the company says you are goin to drive a minimum of 2, to 3000 miles of week that means you are making $350 per 1,000 miles working for a company get the fu#$k out of here I maid 1400 in a week driving Uber and drove no where near 3k miles
It’s not for everybody. You got to start somewhere. Look at me now.
Don't get caught up in the QUARTERLY TAX bullshit either. Better off waiting till the end of the year and find out you owe $0 :)
You know John Christianson trucking pays a dollar I don't know what you
I’m good. I’m real good
I need to talk to you bro
Email me at silverbacktalk@gmail.com
Cool how you drive and make time to run a UA-cam channel lol
It’s hard. I’m home now so I’m making a few videos. When I’m on the road, I can’t put them out that much
Thanks