Well I sat down the other day and ran all of my numbers from last year. My conclusion was that I ran too much for too little, which I already knew, but now I have the numbers to back it up. I only used the numbers from the time I started running under my own authority and ignored the miles I ran under lease since they were skewed so far to the bad side of the ledger.
When leased, I was running for about .27 per mile. By the time I added in all of the expenses involved I was clearly in the red. Thankfully that didn’t last long and better things came out of the experience.
As it turns out, once I was in charge of things, overall, I ran for an average of .93 for every mile I drove. When I looked at all expenses, and I do mean all, truck payment, insurance, fuel, lodging, maintenance, fees & permits, licensing, etc., my per mile cost was .72 leaving a profit margin of .21 per mile driven.
This isn’t bad for the first year, especially considering I went into this as ignorant of the trucking industry as a person can possibly be. As I noted before, all of the bills got paid on time and there’s money left for the tax man. It’s not great though, and this year I’m working hard to up the profit margin as much as humanly possible.
Now, projecting for this year, I’ll have lots less in expenses since most of the permits and such are cheaper after the initial application process. I won’t have the equipment expenses either. I’ll also have higher paying customers this year as I’ve weeded out those who don’t pay a rate I like.
On top of that, my customers now mostly run truck only or power only loads which will exponentially increase my fuel mileage and decrease my fuel costs from what they were when I was dragging that 40′ trailer around and averaging between 5 and 8 mpg.
With all of that in mind, I have been beating the shrubbery around here for a new customer or two and it appears I did find a couple to add to my list.
I knew when I started this whole business that it would take time to learn the ins and outs of the trucking industry, to get the company on it’s feet, and that it would take a lot of energy and effort. And it has. But it’s starting to feel more and more like all of the work involved is worth it.