EQNEEDF views on Politics Trucking

SMALL LONG HAUL TRUCKING OR OWNER OPERATOR BUSINESS EXPENSES/REVENUE AND OPERATING BUDET

                ENERGY QUEST National Energy Efficient Development Inc.

Altocumulus Castelanus

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Operations Evening Light and Eagle Claw, A Sailors tale of his Tour of duty in the U.S. Navy (August 1977 to February 1983)

Operation Evening Light And Eagle Claw  A Sailors tale of his Tour of duty in the U.S. Navy ISBN NO. 978-1-4276-0454-5

The Real Cost of Trucking – Per Mile Operating Cost of a Commercial Truck

 

This report illustrates why Small Trucking Businesses are the past. In 2002 they were slowly going out of business. As a Owner Operator you can earn $35,000.00 to $48,000.00 unless your driving over thee limit of hours on the road or driving 7 days a week, $50,000.000 income is possible without mishap expenses, motels, restaurants, etc., but now you can get a long haul trucking job for $75,000.00 so the Owner Operator professional will opt out for no overhead cost, MC/DOT responsibility, etc.

 

Quite frankly unless you just don’t want to work for a trucking company, being an Owner Operator doesn’t pay enough anymore. Long Haul Trucking Companies like the one that follows are receiving more from shippers per mile then any Owner Operator can earn going through brokers and a Small Trucking Business even if the driver is sub contracting, if the driver is being dispatched by the owner of the truck and MC/DOT is not in the drivers name, you will be responsible as an employer for State/Federal unemployment, Workers Compensation and most likely Social Security Employee Tax.

 

Business Plan and Budgets that follow illustrate the actual costs involved in a Trucking Business and upon conclusion you will rather be an employee earning $75,000.00 annually without Business responsibilities and or equipment up keep/maintenance, repairs, insurance and replacement. You won’t have to pay to find loads either.

 

After reviewing the following Business Plan and Budgets you will know whether you will want to risk being an Owner Operator transporting brokered loads, an Owner Operator leasing his tractor out to a company or become an employee. You will also be able to fill out the following general Budget Plan:

 

Reserves

 

a. Insurance * 440.00 (Assumes $50,000 truck value) - (Includes Physical Damage (3.5%), Bobtail ($40), Workman’s Comp ($250), add $500 for liability coverage if under “own authority” or haul passes charge through.)

 

b. Maintenance Costs *

(12¢ per mile to cover tires, lube, fluids, oil servicing, etc.)

 

c. Catastrophic Loss 400.00

($400/month for first 30 months then review.)

 

d. Income Tax *

(Usually 18%-25% of your gross monthly income.)

 

3. Total Monthly Reserved Costs (a+b+c+d) ( )

(Possibly placed in a separate bank account.)

 

4. Your Current Debt Service ( )

(Your current payments for housing, autos, credit cards, etc.)

 

5. Net Income (1-2-3-4)

 

6. Estimated Truck Payment ( )

 

7. Disposable Income (5-6)

(Money available for other living expenses or savings.)

 

*Information provided by American Truck Business Services (ATBS)

 

Even when you factor in two older rebuilt truck and trailers, keeping cash to operate on borrowing $100,000.00 with one employee/driver, a choice of trucks or trailers to use in an effort to always have a working truck for either a flatbed or refer, a Small Trucking Business cannot make a profit investing $63,558.50 and will only go in the whole even with $36,441.50 in cash on hand. As an Operator and Owner you have the opportunity to make a living but reaching $75,000.00 using brokered loads and not direct loads from the shipper, $48,000.00 paid to an employee if you’re an employer is not possible. The Business Start Up Cost and Budgets that follow reflect the amount of income you would have to earn if you’re a Small Business Owner in order to cover all business expenses. Deducting all employee expenses less a personal cost for the same benefits would with wages be an Owner Operator income working with brokers for loads but the per mile income would have to average $300.00 over every $1,000.00 load value which you want to stay at least $1.30 per mile using a 48’ flatbed and 48’ refer would be $1.40 to $1.50 per mile and if you use factoring subtract 5 percent from your load value.

 

TRUCK/FLATBED/REFER PURCHASE AND EXPENSES

Description

Equipment Cost

1998 9500 Eagle International with Sleeper, Fifth Wheel and Mobile Home Hitch

$10,000.00

Heavy Vehicle Title fee of $90.00) ODOT truck license plate. Carriers pay $2.50 for one plate (for tractors) and $5 for two plates (for trucks), plus $8 for a Weight Receipt and Tax Identifier for each truck

$100.50

Truck Maintenance & Repair (Truck Batteries)

$1,000.00

Truck Tire replacements

$500.00

Truck Oil and Fluids (3 to 5,000.00 miles)

$100.00

Semi Truck Inspection Certificate

$150.00

Tarps Heavy Duty Lumber Tarp - 24' x 27' (8' Drop & Flap) - 18 oz. Blue Tarp - $429.99 x 2 plus straps, etc.

$1,000.00

Chains and Binders

$1,000.00

2000 Lufkin 48x102: Overall Exterior Condition: Good 10' 2" Spread Axle Dump Valve Hook

http://equipsellsit.com/modules/showroom/item.cfm?ItemID=5298

$14,999.00

Trailer Title fee (1 time fee)

$100.00

1989 Great Dane 51x102: 1989 Great Dane 51x102 7011TZ-1-48 Overall Interior Condition: Excellent Overall Exterior Condition: Excellent Other Attachments: Maxon Liftgate 5500 Lb Ingersoll Rand Reefer Unit http://equipsellsit.com/modules/showroom/item.cfm?ItemID=10482

$12,000.00

Refer Trailer fridge motor oil change & Maintenance

$150.00

Trailer replacement tires

$500.00

Truck DVD/TV and CD Changer

$300.00

Truck Lettering

$300.00

Live GPS Tracking with Unlimited Web Access

$159.00

Pathway X1 mountable, stationary automatic (Truck and RV) dish tv

$700.00

1993 Kenworth T800: T800 Odometer Meter Reads: 21383 Hour Meter Reads: 47088 Overall Interior Condition: Good Overall Exterior Condition: Good – Montrose, co http://equipsellsit.com/modules/showroom/item.cfm?ItemID=5288

$18,000.00

Truck Liability Insurance

$1500.00

Motor Truck Cargo Insurance

$1,000.00

TOTAL

$63,558.50

Oregon State Business Registry http://sos.oregon.gov/business/Pages/default.aspx

Or DOT Vehicle Title, Registration & Permit Fees

http://www.oregon.gov/ODOT/DMV/pages/fees/vehicle.aspx#heavytitle

Truck Registration - Oregon-Based Companies http://licenseinfo.oregon.gov/index.cfm?fuseaction=license_seng&link_item_id=14009

Truckers Bookkeeping Service -Toll Free: 1 (800) 207-7661 | Fax: (405) 488-1999 - 3909 N. Classen Blvd. | Oklahoma City, OK 73118 http://www.truckersbookkeepingservice.com/main-concern-go?_vsrefdom=p.2394.c.74098

 

Alternate Trucks:

 

1989 Peterbilt 379 Tractor w/sleeper-Odometer reads 294,409, 3406 Cat, fuller 13 speed, eaton 411 rears, tires 90%, airbag suspension, Jake brake & engine retarder, AC, Stereo. Good running truck with lots of miles left on it. $17,500.00 – Cashmere, WA http://equipsellsit.com/modules/showroom/item.cfm?ItemID=3099

 

1989 International 9300 Tractor w/ Sleeper. Odometer reads 126893 miles. Cummins 400 big cam, 13 speed transmission. New brakes, shocks, suspension bushings, sleeper boot, carrier bearing, heater motors, and tires. Heavy duty 14" frame. truck is in good mechanical condition. Runs and drives nicely. $16,000.00 – Colville, WA http://equipsellsit.com/modules/showroom/item.cfm?ItemID=4033

 

WEEKLY AND MONTHLY BUSINESS EXPENSES

WITH ONE EMPLOYEE / TRUCK / FLATBED/REFER TRAILER

Description

1st Week

2nd Week

3rd Week

4th Week

Monthly  Expenses

Oregon State business State registry fee ($50.00 two years – Amount paid weekly or monthly = 2 years)

$0.63

$0.63

$0.63

$0.63

$2.50

IRP and IFTA fee ($280.00 div. 12 for 2016)

$5.84

$5.84

$5.84

$5.84

$23.33 

Heavy Vehicle registration fee ($539.00 div. 12 for 2016)

$11.23

 

$11.23

$11.23

$11.23

$44.91

Business Phone Majic Jack ($60.00 div. by 12 for 2016)

$1.25

$1.25

$1.25

$1.25

$5.00

Advertisement

$2.50

$2.50

$2.50

$2.50

$10.00

Internet Load Sites & Internet Truck Stop

$35.00

$35.00

$35.00

$35.00

$140.00

Office Supplies

$12.50

$12.50

$12.50

$12.50

$50.00

Cell Phone for Truck/Driver

$10.00

$10.00

$10.00

$10.00

$40.00

Business Loan for Truck, Trailer, equipment & Capital

Added later

Added later

Added later

Added

later

Added

later

TOTAL

$78.95

$78.95

$78.95

$78.95

$315.74

 

WEEKLY AND MONTHLY TRUCK AND FLATBED / REFER EXPENSES

WITH ONE EMPLOYEE

Description

1st Week

2nd Week

3rd Week

4th Week

Monthly  Expenses

12,000 miles a month - National average of $4.70 per gallon - Tractor trailer fuel mileage of between 7 to 8 miles per gallon.

429 or 500 gallons (7 miles to the gallon) x $4.70 = $2,016.30 or $2,350.00 weekly or $8,065.20 or

$9,400.00 monthly ($24,195.00 or $28,200.00)

$2,350.00

$2,350.00

$2,350.00

$2,350.00

$9,400.00

IFTA FUEL TAX (estimating, based on $12,000.00 miles & tax diesel receipts)

$50.00

$50.00

$50.00

$50.00

$200.00

OR Road Tax based on 800 miles driven in OR a week x 4 = 3,200 miles x .1638 OR 1/10 OF 1 CENT PER MILE = 163.8 (78,001 - 80,000)

$131.04

$131.04

$131.04

$131.04

$524.16

Truck Maintenance & Repair (Truck Batteries)

$50.00

$50.00

$50.00

$50.00

$200.00

Oil and Fluids (3 to 5,000.00 miles)

$25.00

$25.00

$25.00

$25.00

$100.000

Truck Tire replacements for blown tire

$25.00

$25.00

$25.00

$25.00

$100.000

Truck & Trailer tires replaced every 60-70,000 miles x 18 every six months

$150.00

$150.00

$150.00

$150.00

$600.00

Truck Liability Insurance

$125.00

$125.00

$125.00

$125.00

$500.00

Monthly Live GPS Tracking with Unlimited Web Access

$4.99

$4.99

$4.99

$4.99

$19.95

Pathway X1 mountable, stationary automatic (Truck and RV) dish tv

$10.00

$10.00

$10.00

$10.00

$40.00

Motor Truck Cargo Insurance x 2 trailers

$75.00

$75.00

$75.00

$75.00

$300.00

Trailer Tires & Maintenance

$25.00

$25.00

$25.00

$25.00

$100.000

TOTAL

$3,021.03

$3,021.03

$3,021.03

$3,021.03

$12,084.11

One Truck and two trailers are insured at $36,000.00 vehicle and trailer values, and truck liability and cargo insurance.

The life of a tire depends on proper maintenance, air pressure, rotation, balancing, vehicle alignment, and even proper lubrication of the 5th wheel (where the trailer connects) steering tires will last about 125,000 miles. Drive and trailer tires about 200,000 miles. Until you begin traveling lots of miles? http://www.answerbag.com/q_view/785432#ixzz3CIs4Ion2

Okay, tread life depends on 1. Obviously how you treat them (like you mentioned) 2. The brand name and 3. More importantly, the SPEED RATING. If you get a name brand tire (Michelin, Toyo, BF Goodrich, Pirelli, Bridgestone, Goodyear, etc.) a T or S rated tire should give you 60-70,000 miles, an H rated 50,000 and a Y or Z rated about 40,000. The higher the speed rating, the softer the rubber, the better it grips the road, the less the life of the tire(s). What size are you looking for? Lower profile tires are almost always a higher speed rating than a T or S. Talk with a tire technician, there is so much more to tires than the size. Good luck. https://answers.yahoo.com/question/index?qid=20080715084

Cheap commercial truck tire $60.00 to $165.00

http://www.alibaba.com/showroom/commercial-truck-tire-prices.html

New listing 8 tires BOTO BT556 295/75R22.5 semi truck tires 295-75 22.5 22.5 tires

$2,624.00

New listing 8 tires Roadmaster RM275 11R24.5 semi truck tires 11245 22.5 24.5 tires

$3,104.00

8 tires Firestone T831 - 11R22.5 16 ply semi truck tires 22.5 tire 11r225 11225

$4,368.00

8 tires BOTO BT669 trailer tire 295/75R22.5 semi truck tires 295-75 22.5 22.5

$2,312.00

New Recap Tire Low Profile R 22.5 CSD2 Semi Truck 295 75 LP Retread Volvo 3412

$225.00

2 MICHELIN XDS 2 225 70 19.5 HEAVY DUTY TRUCK TIRES BRAND NEW PAIR TOW TRACTOR G - $799.95

Wide Based Super Single Semi Truck Tires & Wheels, 445/50/22.5

New listing Wide Based Super Single Semi Truck Tires & Wheels, 445/50/22.5

$2,000.00

Tires are very expensive yet there are many options but 144,000 miles safe driving miles is the goal at all times, so $400.00 a tire x 18 every six months = $7,200.00 you must save over a twelve month period in addition to monthly tire mishaps. Tire replacement is based on the sixth month and second year beginning of business traveling $144,000.00 miles annually.

Total miles ran, divided by gallons purchased. This gives the average MPG for quarter. Then that mpg times miles run in each state. This gives you gallons burned in each state. Then each state multiplies gallons burned by their tax rate. The gives you total owed per state you ran in. All states are then totaled. This gives you amount owed in fuel tax for quarter. All state fuel taxes paid at the pump are totaled. This gives you the total state fuel taxes paid at the pump. The fuel tax paid is subtracted from fuel tax owed. This gives you the amount you still owe, or the amount they owe you if you over paid. Note: $200.00 monthly is estimated, totally depends on how much taxes you pay for diesel in each state. You could get a credit for example.

 

WEEKLY AND MONTHLY EXPENSES FOR ONE EMPLOYEE OPERATING A TRUCK AND FLATBED / REFER DRIVING 3,000 MILES

Description

1st Week

2nd Week

3rd Week

4th Week

Monthly  Expenses

Salary - $1,000.00 Weekly for 3,000 to 3,500 miles

$1,000.00

$1,000.00

$1,000.00

$1,000.00

$4,000.00

Social Security Tax (6.2 percent or by 0.062 x $4,000.00)

$62.00

 

$62.00

 

$62.00

 

$62.00

 

$248.00

Federal Unemployment Tax Act (FUTA) (8 percent or by .08 x $4,000.00)

$80.00

 

$80.00

 

$80.00

 

$80.00

 

$320.00

Oregon Employer Unemployment Tax (3.3 to 5.4 percent or by .033 or .054 x $4,000.00)

$54.00

 

                 

$54.00

 

                 

$54.00

 

                 

$54.00

 

                 

$216.00

Workers Compensation Insurance (Drivers rate in 2009 was $11.39 per $100.00 or $113.90 per $1,000.00 x 4)

$113.90

$113.90

$113.90

$113.90

$455.60

Employee Vacation time equals $15.00 an hour x 8 hours a day, totaling $120.00 a day x 7 totals: $840.00 vacation pay annually, second year $16.00

$17.50

$17.50

$17.50

$17.50

$70.00

Drug Screening

$12.50

$12.50

$12.50

$12.50

$50.00

TOTAL

$1,339.90

$1,339.90

$1,339.90

$1,339.90

$5,359.60

 

WEEKLY AND MONTHLY BUSINESS EXPENSES

WITH ONE EMPLOYEE / TRUCK / FLATBED/REFER TRAILER

Description

1st Week

2nd Week

3rd Week

4th Week

Monthly  Expenses

TOTAL

$78.95

$78.95

$78.95

$78.95

$315.74

WEEKLY AND MONTHLY TRUCK AND FLATBED / REFER EXPENSES

WITH ONE EMPLOYEE

TOTAL

$3,021.03

$3,021.03

$3,021.03

$3,021.03

$12,084.11

WEEKLY AND MONTHLY EXPENSES FOR ONE EMPLOYEE OPERATING A TRUCK AND FLATBED / REFER DRIVING 3,000 MILES

TOTAL

$1,339.90

$1,339.90

$1,339.90

$1,339.90

$5,359.60

TOTAL

$4,439.88

$4,439.88

$4,439.88

$4,439.88

$17,759.45

Business Loan for Truck, Trailer, equipment & Capital

$375.00

$375.00

$375.00

$375.00

$1,500.00

TOTAL

$4,814.88

$4,814.88

$4,814.88

$4,814.88

$19,259.45

 

WEEKLY AND MONTHLY REFER EXPENSES RATHER THEN FLATBED

Description

1st Week

2nd Week

3rd Week

4th Week

Monthly  Expenses

Refer Gasoline

$68.00

$68.00

$68.00

$68.00

$272.00

Refer Trailer fridge motor oil change & Maintenance

$12.50

$12.50

$12.50

$12.50

$50.00

TOTAL

$80.50

$80.50

$80.50

$80.50

$322.00

REFER INVOICES ARE HIGHIER THEN FLATBED OR DRY VAN

http://www.thetruckersreport.com/truckingindustryforum/refrigerated-trucking-forum/170825-cost-per-mile-ton-run-reefer.html

Refer Gasoline - 50 gal. tank and usually use around 13-17 gal, per 24 hrs depending on conditions and product like produce needs continues but typical frozen foods can run on start stop mode extending the length of how much fuel it burns – 17 gallons x $4.00 a gal. - $68.00 daily x 5 days =

 

START UP COST, MONTHLY AND THREE MONTH BUSINESS

EXPENSES WITH ONE EMPLOYEE/TRUCK / FLATBED / REFER TRAILER

Description

Start Up

1st Month

2nd Month

3rd Month

Three Months Expenses

Oregon State business State registry fee (two years – Amount paid monthly = 2 years)

$50.00

$2.50

$2.50

$2.50

$7.50

MC#; DOT3 and BOC-3 (1 time fee)

$399.00

-

-

-

-

IRP and IFTA fee ($280.00 div. 12 for 2016)

$280.00

$23.33 

$23.33 

$23.33 

$69.99

Heavy Vehicle registration fee ($539.00 div. 12 for 2016)

$539.00

$44.91

$44.91

$44.91

$134.73

Business Phone Majic Jack ($60.00 div. by 12 for 2016)

$60.00

$5.00

$5.00

$5.00

$15.00

Advertisement

$200.00

$10.00

$10.00

$10.00

$30.00

Internet Load Sites & Internet Truck Stop

-

$140.00

$140.00

$140.00

$420.00

Office Supplies

$200.00

$50.00

$50.00

$50.00

$150.00

Cell Phone for Truck/Driver

$100.00

$40.00

$40.00

$40.00

$120.00

PC*MILER

$300.00

-

-

-

-

Freight Software

$200.00

 

-

-

-

Business Loan for Truck, Trailer, equipment & Capital

Added later

Added later

Added later

Added

later

Added

later

TOTAL

$2,328.00

$315.74

$315.74

$315.74

$947.22

 

START UP COST, MONTHLY AND THREE MONTH TRUCK AND FLATBED / REFER EXPENSES WITH ONE EMPLOYEE

Description

Start Up

1st Month

2nd Month

3rd Month

Three Months Expenses

12,000 miles a month - National average of $4.70 per gallon - Tractor trailer fuel mileage of between 7 to 8 miles per gallon.

429 or 500 gallons (7 miles to the gallon) x $4.70 = $2,016.30 or $2,350.00 weekly or $8,065.20 or

$9,400.00 monthly ($24,195.00 or $28,200.00)

-

$9,400.00

$9,400.00

$9,400.00

$28,200.00

IFTA FUEL TAX (estimating, based on $12,000.00 miles & tax diesel receipts)

-

$200.00

$200.00

$200.00

$600.00

OR Road Tax based on 4,800 miles driven in OR X .1638 OR 1/10 OF 1 CENT PER MILE = 163.8 (78,001 - 80,000)

-

$524.16

$524.16

$524.16

$1,572.48

Truck Maintenance & Repair (Truck Batteries)

$1,000.00

$200.00

$200.00

$200.00

$600.00

Oil and Fluids (3 to 5,000.00 miles)

$100.00

$100.00

$100.00

$100.000

$300.00

Truck Tire replacements for blown tire

$500.00

$100.00

$100.00

$100.000

$300.00

Truck & Trailer tires replaced every 60 - 70,000 miles x 18 (six months)

N/A

$600.00

$600.00

$600.00

$600.00

Truck Liability Insurance

$1,500.00

$500.00

$500.00

$500.00

$1,500.00

Live GPS Tracking with Unlimited Web Access

$159.00

$19.95

$19.95

$19.95

$59.85

Pathway X1 mountable, stationary automatic (Truck and RV) dish tv

$700.00

$40.00

$40.00

$40.00

$120.00

Motor Truck Cargo Insurance x 2 trailers

$1,000.00

$300.00

$300.00

$300.00

$900.00

Trailer Maintenance

-

$100.000

$100.000

$100.000

$300.00

TOTAL

$4,959.00

$12,084.11

$12,084.11

$12,084.11

$35,052.33

One Truck and two trailers are insured at $36,000.00 vehicle and trailer values, and truck liability and cargo insurance.

 

START UP COST, MONTHLY AND THREE MONTHS EMPLOYEE EXPENSES DRIVING TRUCK / FLATBED / REFER TRAILER 12,000 MILES 

Description

Start Up

1st Month

2nd Month

3rd Month

Three Months Expenses

Salary - $1,000.00 Weekly for 3,000 to 3,500 miles

-

$4,000.00

$4,000.00

$4,000.00

$12,000.00

Social Security Tax (6.2 percent or by 0.062 x $4,000.00)

-

$248.00

$248.00

$248.00

$744.00

Federal Unemployment Tax Act (FUTA) (8 percent or by .08 x $4,000.00)

-

$320.00

$320.00

$320.00

$960.00

Oregon Employer Unemployment Tax (3.3 to 5.4 percent or by .033 or .054 x $4,000.00)

-

$216.00

$216.00

$216.00

$648.00

Workers Compensation Insurance (Drivers rate in 2009 was $11.39 per $100.00 or $113.90 per $1,000.00 x 4)

-

$455.60

$455.60

$455.60

$1,366.80

Employee Vacation time equals $15.00 an hour x 8 hours a day, totaling $120.00 a day x 7 totals: $840.00 vacation pay annually, second year $16.00

-

$70.00

$70.00

$70.00

$210.00

Drug Screening

$600.00

$50.00

$50.00

$50.00

$150.00

TOTAL

$600.00

$5,359.60

$5,359.60

$5,359.60

$16,078.80

 

TRUCK/FLATBED/REFER PURCHASE AND EXPENSES

Description

Equipment Cost

TOTAL

$63,558.50

 

START UP COST, MONTHLY AND THREE MONTH BUSINESS

EXPENSES WITH ONE EMPLOYEE / TRUCK / FLATBED / REFER TRAILER

Description

Start Up

1st Month

2nd Month

3rd Month

Three Months Expenses

TOTAL

$2,328.00

$315.74

$315.74

$315.74

$947.22

START UP COST, MONTHLY AND THREE MONTH TRUCK AND FLATBED / REFER EXPENSES WITH ONE EMPLOYEE

TOTAL

$4,959.00

$12,084.11

$12,084.11

$12,084.11

$35,052.33

START UP COST, MONTHLY AND THREE MONTHS EMPLOYEE EXPENSES DRIVING TRUCK / FLATBED / REFER TRAILER 12,000 MILES 

TOTAL

$600.00

$5,359.60

$5,359.60

$5,359.60

$16,078.80

COMBINED TOTAL

$+7,887.00

$17,759.45

$17,759.45

$17,759.45

$52,078.35

Business Loan for Truck, Trailer, equipment & Capital

$+55,671.50

$=63,558.50

$+36,441.50

(Capital)

Loan pay

$1,500.00

$1,500.00

$1,500.00

$4,500.00

TOTAL

$100,000.00

$19,259.45

$19,259.45

$19,259.45

$56,578.35

 

WEEKLY AND MONTHLY REFER EXPENSES RATHER THEN FLATBED

Description

1st Week

2nd Week

3rd Week

4th Week

Monthly  Expenses

Refer Gasoline

$68.00

$68.00

$68.00

$68.00

$272.00

Refer Trailer fridge motor oil change & Maintenance

$12.50

$12.50

$12.50

$12.50

$50.00

TOTAL

$80.50

$80.50

$80.50

$80.50

$322.00

REFER INVOICES ARE HIGHIER THEN FLATBED OR DRY VAN

http://www.thetruckersreport.com/truckingindustryforum/refrigerated-trucking-forum/170825-cost-per-mile-ton-run-reefer.html

Refer Gasoline - 50 gal. tank and usually use around 13-17 gal, per 24 hrs depending on conditions and product like produce needs continues but typical frozen foods can run on start stop mode extending the length of how much fuel it burns – 17 gallons x $4.00 a gal. - $68.00 daily x 5 days =

 

START UP COST, MONTHLY, THREE MONTHS, TWELVE MONTHS AND COST PER MILE BUSINESS EXPENSES WITH ONE EMPLOYEE / TRUCK / FLATBED / REFER TRAILER

Description

Start Up

Cost

1st Month

Three Months Expenses

12 Months Expenses

Per Mile Cost

Oregon State business State registry fee (two years – Amount paid monthly = 2 years)

$50.00

$2.50

$7.50

$30.00

.0025

MC#; DOT3 and BOC-3 (1 time fee)

$399.00

-

-

-

-

IRP and IFTA fee ($280.00 div. 12 for 2016)

$280.00

$23.33 

$69.99

$280.00

.0020

Heavy Vehicle registration fee ($539.00 div. 12 for 2016)

$539.00

$44.91

$134.73

$539.00

.0038

 

Business Phone Majic Jack ($60.00 div. by 12 for 2016)

$60.00

$5.00

$15.00

$60.00

.0005

Advertisement

$200.00

$10.00

$30.00

$120.00

.0010

Internet Load Sites & Internet Truck Stop

-

$140.00

$420.00

$1,680.00

.0116

Office Supplies

$200.00

$50.00

$150.00

$600.00

.0042

Cell Phone for Truck/Driver

$100.00

$40.00

$120.00

$480.00

.0033

PC*MILER

$300.00

-

-

-

-

Freight Software

$200.00

-

-

-

-

Business Loan for Truck, Trailer & Equipment

Added later

Added later

Added later

Added later

 

TOTAL

$2,328.00

$315.74

$947.22

$3,789.00

.0289

 

START UP COST, MONTHLY AND THREE MONTHS, TWELVE MONTHS AND COST PER MILE TRUCK AND FLATBED / REFER EXPENSES WITH ONE EMPLOYEE DRIVING 12,000 MILES

Description

Start Up

Cost

1st Month

Three Months Expenses

12 Months Expenses

Per Mile Cost

12,000 miles a month - National average of $4.70 per gallon - Tractor trailer fuel mileage of between 7 to 8 miles per gallon. 429 or 500 gallons (7 miles to the gallon) x $4.70 = $2,016.30 - $2,350.00 weekly or $8,065.20 -

$9,400.00 monthly ($24,195.00 - 28,200.00)

-

$9,400.00

$28,200.00

$112,800.00

.7833

IFTA FUEL TAX (estimating, based on $12,000.00 miles & tax diesel receipts)

-

$200.00

$600.00

$2,400.00

.0166

 

OR Road Tax based on 4,800 miles driven in OR X .1638 OR 1/10 OF 1 CENT PER MILE = 163.8 (78,001 - 80,000)

-

$524.16

$1,572.48

$6,289.92

.0443

Truck Maintenance & Repair (Truck Batteries)

$1,000.00

$200.00

$600.00

$2,400.00

.0166

Oil and Fluids (3 to 5,000.00 miles)

$100.00

$100.00

$300.00

$1,200.00

.0083

Truck Tire replacements for blown tire

$500.00

$100.00

$300.00

$1,200.00

.0083

Truck & Trailer tires replaced every 60 - 70,000 miles x 18 (six months)

N/A

$600.00

$1,800.00

$7,200.00

.05

Truck Liability Insurance

$1,500.00

$500.00

$1,500.00

$6,000.00

.0416

Monthly Live GPS Tracking with Unlimited Web Access

$159.00

$19.95

$59.85

$239.40

.0017

Mo Motor Truck Cargo Insurance x 2 trailers

$1,000.00

$300.00

$900.00

$3,600.00

.025

 

Pathway X1 mountable, stationary automatic (Truck and RV) dish tv

$700.00

$40.00

$120.00

$480.00

.0033

Trailer Maintenance

-

$100.000

$300.00

$1,200.00

.0083

TOTAL

$4,959.00

$12,084.11

$36,252.33

$145,009.32

1.0073

One Truck and two trailers are insured at $36,000.00 vehicle and trailer values, and truck liability and cargo insurance.

 

START UP COST, MONTHLY AND THREE MONTHS, TWELVE MONTHS AND COST PER MILE WITH ONE EMPLOYEE DRIVING 12,000 MILES 

Description

Start Up

Cost

1st Month

Three Months Expenses

12 Months Expenses

Per Mile Cost

Salary - $1,000.00 Weekly for 3,000 to 3,500 miles

-

$4,000.00

$12,000.00

$48,000.00

.3333

Social Security Tax (6.2 percent or by 0.062 x $4,000.00)

-

$248.00

$744.00

$2,976.00

.0206

Federal Unemployment Tax Act (FUTA) (8 percent or by .08 x $4,000.00)

-

$320.00

$960.00

$3,840.00

 

 

 

.0266

Oregon Employer Unemployment Tax (3.3 to 5.4 percent or by .033 or .054 x $4,000.00)

-

$216.00

$648.00

$2,592.00

.018

Workers Compensation Insurance (Drivers rate in 2009 was $11.39 per $100.00 or $113.90 per $1,000.00 x 4)

-

$455.60

$1,366.80

$5,467.20

.0379

Employee Vacation time equals $15.00 an hour x 8 hours a day, totaling $120.00 a day x 7 totals: $840.00 vacation pay annually, second year $16.00

-

$70.00

$210.00

$840.00

.0058

Drug Screening

$600.00

$50.00

$150.00

$600.00

.0041

TOTAL

$600.00

$5,359.60

$16,078.80

$64,315.20

.4463

 

TRUCK/FLATBED / REFER PURCHASE AND EXPENSES

Description

Equipment Cost

TOTAL

$63,558.50

 

START UP COST, MONTHLY, THREE MONTHS, TWELVE MONTHS AND COST PER MILE BUSINESS EXPENSES WITH ONE EMPLOYEE / TRUCK / FLATBED / REFER TRAILER

Description

Start Up

Cost

1st Month

Three Months Expenses

12 Months Expenses

Per Mile Cost

TOTAL

$2,328.00

$315.74

$947.22

$3,789.00

.0289

START UP COST, MONTHLY AND THREE MONTHS, TWELVE MONTHS AND COST PER MILE TRUCK AND FLATBED / REFER EXPENSES WITH ONE EMPLOYEE DRIVING 12,000 MILES

TOTAL

$4,959.00

$12,084.11

$36,252.33

$145,009.32

1.0073

START UP COST, MONTHLY AND THREE MONTHS, TWELVE MONTHS AND COST PER MILE WITH ONE EMPLOYEE DRIVING 12,000 MILES 

TOTAL

$600.00

$5,359.60

$16,078.80

$64,315.20

.4463

COMBINED TOTAL

$+7,887.00

$17,759.45

$52,078.35

$208,113.40

 

Business Loan for Truck, Trailer, equipment & Capital

$+55,671.50

$=63,558.50

$+36,441.50

(Capital)

Loan pay

$1,500.00

$4,500.00

$18,000.00

 

TOTAL

$100,000.00

$19,259.45

$56,578.35

$226,113.40

1.4825

 

WEEKLY AND MONTHLY REFER EXPENSES RATHER THEN FLATBED

Description

1st Week

2nd Week

3rd Week

4th Week

Monthly  Expenses

Refer Gasoline

$68.00

$68.00

$68.00

$68.00

$272.00

Refer Trailer fridge motor oil change & Maintenance

$12.50

$12.50

$12.50

$12.50

$50.00

TOTAL

$80.50

$80.50

$80.50

$80.50

$322.00

REFER INVOICES ARE HIGHIER THEN FLATBED OR DRY VAN

http://www.thetruckersreport.com/truckingindustryforum/refrigerated-trucking-forum/170825-cost-per-mile-ton-run-reefer.html

Refer Gasoline - 50 gal. tank and usually use around 13-17 gal, per 24 hrs depending on conditions and product like produce needs continues but typical frozen foods can run on start stop mode extending the length of how much fuel it burns – 17 gallons x $4.00 a gal. - $68.00 daily x 5 days =

 

Note: In order to pay all business expenses as an employer with one employee, your bill of ladings must exceed the total business monthly expenses of $17,759.45 or $19,259.45 a month if you borrow $100,000.00 driving 3,000.00 a week or 12,000 miles a month.  Earning $1.30 per mile reflects $1,300.00 for 1,000 miles traveled (dead head miles are included in the total miles traveled but not wait time which could turn the work week into 7-days to travel 3,000 miles, keeping in mind the average driving week consist of 2,800 miles do to wait times for loads and delivery times.

 

Your available income on 1,000.00 miles would be an estimated $1,300.00 x 3 = $3,900.00 = 3,000 miles weekly using a flatbed.

 

$17,759.45 – Truck expenses - $1.48 per mile.

-$15,600.00 – Total revenue ($3,900.00 weekly x 4 = $15,600.00) - $1.30 per mile.

$-2,159.45 – $-.18 per mile.

 

$19,259.45 – Truck expenses with loan - $1.61 per mile.

-$15,600.00 – Total revenue ($3,900.00 weekly x 4 = $15,600.00) - $1.30 per mile.

$-3,659.45 – $-.31 per mile.

                

You would need to earn $1.48 or $1.60 per mile to break even in a trucking business.

 

This report reflects that even if you own your own two trucks and operate only one with either a flatbed or refer, hiring one employee, using brokered loads at $1.30 per mile income, as an employer hiring one employee, it’s not possible to break even or pay a payment on a $100,000.00 loan.

 

As an Owner Operator $5,359.00 spent by employer would be available less $-2,159.45 business expenses in accordance with this report, totaling $3,199.45 plus $150.00 if you only insure one trailer, a flatbed, totaling $3,349.95 monthly income if you own your own truck or flatbed trailer and if you don’t operate in Oregon ($524.16 (OR)), New York, Kentucky or New Mexico, you will save an additional and or other amounts. Of course where ever you are based, will determine the cost of State Employer unemployment insurance cost. You will still have to pay an amount on your personal disability/health insurance. Borrow $100,000.00 and your take home is even less.

 

$17,759.45 – Truck expenses with present employer budget

$-5,359.60 – Spent by employer for employee.

$12,399.85 – Owner Operator Business and Truck expenses home based in Oregon with                                  

                      one semi truck, flatbed and refer insured - $1.03 per mile.

$15,600.00 – Total revenue ($3,900.00 x 4 = $15,600.00) - $1.30 per mile.

$3,200.15 –   Owner Operator Salary home based in Oregon with one semi truck, flatbed          

                      and refer insured - $.27 per mile.

$+150.00 –    Less one trailer insured.

$12,249.85 – Revised Truck expenses with present employer budget less employee

                      expenses operating one truck and flatbed - $1.00 per mile.

$15,600.00 – Total revenue ($3,900.00 x 4 = $15,600.00) - $1.30 per mile.

$3,350.15   – Owner Operator Salary home based in Oregon with one semi truck and 

                      Flatbed insured - $.29 per mile.

$+524.16 –    OR ROAD TAX – If you are not home based in Oregon then don’t visit

                      and save money - .1638 x 12,000 miles = $524.16 or 163.8 (1/10 of a cent

                      per mile).

$11,725.69 – Revised Truck expenses with present employer budget less employee

                      Expenses, Oregon Road Tax, operating one truck and flatbed - $.97 per

                      mile.

$15,600.00 – Total revenue ($3,900.00 x 4 = $15,600.00) - $1.36 per mile

$3,874.31 –   Owner Operator operating outside Oregon, with one semi truck and flatbed

                      Insured Revenue - $.32 per mile including dead head miles.

 

At this point, using cheap recap tires seems necessary to operate in Oregon, traveling 144,000 miles annually, yet if you get 100,000 to 122,000 miles on $400.00 tires, great, add $2,700.00 back into your revenue annually ($225.00). My budget doesn’t cover the cost of new tires the truck has when you buy the truck, but does cover tire purchase every 6 months or 72,000 miles or so, allowing capital the previous year to purchase new tires. If you don’t spend $100.00 a month on tires then you can add $1,200.00 annually back into your revenue. Owner Operator Salary operating one truck and flatbed trailer less disability/health insurance and OR Road Tax, equals $.32 per mile revenue and does not include a $1,500.00 monthly loan payment for $100,000.00 over ten years hopefully or less borrowed if you can, with $36,000.00 going to equipment, $55,671.50 Start Up cost, $7,887.00 Business Cost and $36,441.50 set aside for Business expenses within the first two months.

 

Truck deprecation and loan payment for $100,000.00 is not included in the final $.32 per mile revenue nor does the Refer expenses that follow, although Refer loads pay $.10 to $.20 per load more, and then you must pay Uncle Sam taxes for working your self very hard.

 

Not withstanding the impact a Trucking Business with 1,000 or more trucks has on the trucking industry, making truck expenses less expensive clearly gives large trucking companies an edge over Owner Operators, as they can buy large amounts of replacement parts and tires for their trucks and trailers at discounted prices, while their mechanic work is in house to include discounted prices for equipment, oil, filters, Diesel (IFTA will charge you if you get your fuel from card lock pumps) and services. There are also costs involving attorneys, accountants and scammers who will coast their car into your truck and try to escort bucks from you.

 

Factoring Services

 

Turn Invoices Into Cash For Your Trucking Company

 

Factoring services feature same day funding, no hidden fees, 95% advance rates, and significant fuel discounts.

http://www.rtsfinancial.com/lp/trucking-factoring-services

 

TBS Freight Factoring - 95% To You

http://www.tbsfactoring.com/get-paid-ms?_vsrefdom=p.2245.c.35034

 

Factoring guarantees you won’t get shifted up front for a bill of lading. Loosing $1,300.00 income can really hurt your bottom line.

 

If you still want to be an Owner Operator then get your CDL.