200k Gross?

EASYTRADER · Apr 24, 2006

My wife and I are interested in driving a "D" unit for fed-ex. Can some one tell me can a "d" unit gross 200K in a year.

Or more importantly what does a "D" actually gross - assuming you actually DO WANT TO WORK.

Thanks,

John

ATeam · Apr 24, 2006

If you have not already done so, obtain "The Revenue Sheet" from a FedEx recruiter. FedEx puts in writing the fleet averages for the various types of trucks (B, C, D, E), for solo and team drivers. White Glove trucks are not included in the published averages.

Determining whether YOU will be an average, below average, or above average team is a bit more tricky, because no two teams are alike. If you have not already done so, read "Introduction to Expeditng" for more about the variables you will encounter if you jump in.

http://www.expeditersonline.com/downloads/introduction.pdf

davekc · Apr 24, 2006

$200,000 gross is not reflective of the average team truck. Be weary as well that numbers provided or calculated a year ago or another time period might be much different than a current period. While we are staying busy, my drivers are reporting alot of trucks sitting in different areas. Kinda unusually considering this is the "busy" time of year.

Davekc
owner
21 years
PantherII
EO moderator

EASYTRADER · Apr 24, 2006

If I use the FED-EX numbers, after paying for fuel and truck payments
is looks like gross profit on a truck is about 60K divided by 2 people
and I also couldn't adjust the figure for the other BS I'm sure you have to pay.

This leaves me wondering why I would want to buy a truck in the first
Place.

It seems that to make this venture worth while you need to gross
$200k a year.

So I was hoping to get some real numbers out there from people who
drive "D" units or operate them as fleet owners -

Responses like we did 120k gross last year,
Or I operate 3 "D" units and get around 160k gross each.

That would be helpfull.

You guys are all very vague.

I appreciate the help though

Frieghtlinemike · Apr 25, 2006

Hi ER,

I am in the final process of going with FedEx Solo. I did get some figures from FedEx but was told are skewed low for various reasons.

Annual Revenue Averages
Average annual activity for (2002-2004)

D unites teams. No white Glove.

Miles per year 117505
Ave per mile loaded 1.51
Ave total miles 1.03
Loads taken 155
Availability 74
Load acceptance 66%
Revenue 121,368

Note, even some solos are doing above this. The 57.5 % of gross-split is hard to explain to my accountant in terms of go or no go decision.

I want to go. Financial advisor thinks I have already gone-â€œnutsâ€.

}>

LDB · Apr 25, 2006

Let me start by saying this is a question similar to how high is up. There are too many variables that factor into the answer. Additionally, there are subjective factors such as the meaning of "really wants to work". All that makes it impossible to give a definite answer. Yes, there are teams that gross 200k annually, but that isn't the norm.

I would look more realistically at a team that is serious about working averaging $12k per month gross on an annualized basis. My presumption is based on at least 80% availability and 80% acceptance. YMMV.

Leo Bricker, 73's K5LDB, OOIDA 677319
Owner, Panther trucks 4958, 5447
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
----------
Support the entire Constitution, not just the parts you like.

EASYTRADER · Apr 25, 2006

The numbers I recieved from fedex were from 2004 and they were similar
to what to what you have shown.

The thing that really has me puzzled is how do fleet operators make a profit. If you want to buy a truck and make $40k a year net thats great - that puts you above average income in most places.

How does a fleet owner pay an employee and still make money at these
rates - do drivers working as employees earn less than 30K a year?

I think I'm going to purchase a Tractor "E" unit instead. The alour of the straight truck to me has been the bigger sleeper but when I
look at spending 90 to 150k to get one I'm thinking, I can get a new
western star or volvo 880 for about the same.

Unless some one knows where I can get a new straight truck for about
60k - that would make the numbers more workable.

Thanks

Packmule · Apr 25, 2006

I don't think gross is the line you need to be looking at. You can gross 160K and still net more than someone who might gross 200K. It's all about managing your business and running profitable runs, maintaining your truck so repairs and break downs are few, and keeping a tight reine on your spendings while on the road, and many other factors that play to the bottom line.
Everyone in this business has his/her own way of managing their business, you have to find what works for you to meet your goals.
There are many proven guidelines to draw from, other drivers and seminiars, but you must find what works for you and the lifestyle you want to live on the road.

Good luck,
Dan

EASYTRADER · Apr 25, 2006

What else needs to be here,

160k gross
24k truck payments
35k fuel
12k insurance
______________

89K gross profit

At 160k gross a 'D' unit seems closer to being feasable. Any comments
on these numbers?

Tennesseahawk · Apr 25, 2006

I'm going over the figures FX put out for solos.
117505 miles
155 loads taken
That averages out to 758.1 miles per run, both loaded and empty.
Something doesn't seem right. Either the loads are way too long for solos to do legally, which I doubt. There is a ton of dh involved with each and every load, which I doubt. Or, something isn't correct in their numbers.

Using their paid per mile vs per total mile, I've come up with a 32% dh figure. Plugging that into the overall miles and loads taken, I came up with an average of 515.5 mi per run. For a solo? With some companies, I'd buy that. But FXCC? As Mr.Horse said,"No sir... don't like it."

Packmule · Apr 25, 2006

There are many more cost involved in this business such as meals, truck repairs, truck PM maintience, tolls,medical expenses,etc.
A good place to start is by reading this: http://www.expeditersonline.com/downloads/introduction.pdf

Dan

EASYTRADER · Apr 25, 2006

From what I hear going solo is real tough in expedite - some of the guys in Vans post like they are happy - but whether solo or team you still have the fixed cost of the truck which is going to be about
2k a month and then fuel at .31 cents a mile or so.

I was pretty excited about this a few months ago, but the closer I
look it seems like I'd be better off buying a Subway sandwhich franchise - its almost the same investment:-0

EASYTRADER · Apr 25, 2006

Thankyou for your responses - I appreciate your help.

I think I'm going to purchase a tractor rather than a straight truck,
sure they're a pain to park but when you pencil out the numbers it seems to me that a tractor makes the most sense.

John

davekc · Apr 25, 2006

I think if those are provided answers from a carrier...they are quite "skewed". I don't know why these are even offered as examples? Thawk is right in his assessment.
Real simple 117505 miles divided by 155 loads is 758 miles. Hawk already mentioned....but I had to do the math myself to see how goofy this is.
This is possible with a team, but not a single. HOS and 14 hour rule doesn't make this anywhere close to a reality. Even under the old rules, this is only possible with a carrier not using a QC.
I think if these are the provided numbers, one would be wise to seek information from current drivers and not a carrier handout.

Davekc
owner
21 years
PantherII
EO moderator

Frieghtlinemike · Apr 26, 2006

>""I'm going over the figures FX put out for solos.
>117505 miles
>155 loads taken
>That averages out to 758.1 miles per run, both loaded and
>empty.
>Something doesn't seem right. Either the loads are way too
>long for solos to do legally, which I doubt. There is a ton
>of dh involved with each and every load, which I doubt. Or,
>something isn't correct in their numbers.
>
>Using their paid per mile vs per total mile, I've come up
>with a 32% dh figure. Plugging that into the overall miles
>and loads taken, I came up with an average of 515.5 mi per
>run. For a solo? With some companies, I'd buy that. But
>FXCC? As Mr.Horse said,"No sir... don't like it." ""

Those numbers are for D-teams not Solo.

TeamCaffee · Apr 26, 2006

Dont forget to figure in all of the extra costs of running a semi compared to a straight truck. Taxes, insurance and tolls ect. Packmule is exactly right on the bottom line is the figure you need to know.

LDB · Apr 26, 2006

Yes, depending on where you run the difference between 2 axle toll and 5 axle toll is huge. Even 3 to 5 is a big difference. You also have to pay the 2290 tax or whatever number it is plus much higher apportioned tag cost etc. than a D unit. Fuel at 6mpg vs. 8mpg is a huge difference as well. I'm not saying a T/T is a bad idea, just that it's costs are much higher so the difference in bottom line may not be that significant.

Leo Bricker, 73's K5LDB, OOIDA 677319
Owner, Panther trucks 4958, 5447
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
----------
Support the entire Constitution, not just the parts you like.

Tennesseahawk · Apr 26, 2006

If it's a toss-up to you between t/t and straight, I'd say go with t/t. You have so many more possibilities. Sure, the fuel milage is worse, you have more taxes, tolls are higher, and so on. But if you're comfortable driving one, go for it! You'll make more money in the long run, and I'm not talking just gross. You'll NET more, depending on which company you choose to run with. Best logic in expediting... e-unit, team, reefer trailer, find your own freight if you're willing.

x06col · Apr 28, 2006

Hey Easy: The biggest thing the boys and girls here failed to mention to you is the fact that, you have to be in the truck driving it, putting freight on it, and, going down the road. You can't do 200k setting at the house because you didn't want to go there. Or, there's a good game on or, etc. etc. The income is there, YOU just gotta go for it.

tallcal101 · Apr 28, 2006

My drivers gross over $200,000.00,if they wish too.
They work 9 months a year,but when they run,they really run.
I have teams that work the same amount of time and gross $150,000.00
It's your choice.The freight is there.Motivation is a personel matter.
Ofcourse,these are in White Glove Reefers,not surface expedite trucks.Can't comment on the non reefer world.