CPM analysis ??

[carl789]

Question from carl789:
Thanks to all of you that have answered some of my earlier questions.

I have a two part question.

Over the past several years (3-4) as you have tracked your CPM, what percentage increase annually are you experiencing? And, what CPM figure do you consider currently to be your individual break even figure?
I understand that DHMiles can be a vexing variable and that your CPM would reflect each of your answers differently.
Thanks in advance

 

[Turtle]

Wow. Just a few of the things that go into my CPM include my pay, fuel costs, fuel additives, truck payment, taxes, tolls, oil, filters and other maintenance, tires, meals, lodging, phone, QC, tolls, health insurance, truck insurance, permits and licenses, truck washes, windshield washer fluid, the list goes on. Unless someone has my exact same expenses, I'm not sure how my CPM is gonna help them out.

In any case, my current CPM is 66.9 cents, and that's based on x-number of loaded miles and approximately 30% deadhead miles. The effective CPM will obviously change if I have more or less loaded or deadhead miles.

Does that help ya?

Slow and steady, even in expediting, wins the race - Aesop

 

[maybe_driving]

My cost per mile for a 22foot St. Truck is .73.6 and my income is .89
that why I'm looking for a new company x(

 

[carl789]

Thank you for your response. Your CPM, based on my own formulas, would be on the low end of CPM. That said, it is clear that your load PayPerMile is too low to support the future of your business.
It is my hope that your CPM issue is confined to your company and is not an emergent trend to the expedite industry.
Thank you for your time.
I look forward to others posting their responses to my questions concerning CPM.

 

[carl789]

Thank you Turtle for your response,

Your X-number is the expected life of your truck.

Given that the average class 7 expeditor has engine warrantees of 250,000 to 300,000 miles, I would consider that as the x-number.

Therefore the X number is divided by the vehicle cost plus interest, yearly inflationary percentages plus average annual fixed cost plus known costs per mile such as fuel.

I may be using a low life expectancy. That is by choice.

 

[Turtle]

Actually, my x-number is 100,000 total miles driven, with 70,000 miles being paid, loaded miles, and 30,000 miles being unpaid, deadhead miles. Rather than my trying to use the engine warranty as a lifespan guide, with is pointless with this Sprinter's engine warranty, and then average it out, I use the actual annual fixed costs of what I pay on the note itself, including double or extra payments. The van is likely to far outlast the note, and certainly will (already has) outlast the engine warranty.

I also factor in money set aside to pay for a new engine and transmission. For example, I set aside $.04 per all miles driven to pay for that. By the time I'll need a new transmission or an new engine or engine overhaul, of even a new van, the money will already be there for that.

Slow and steady, even in expediting, wins the race - Aesop

 

[Broompilot]

Example. The second truck I bought with 580K on it, now has 790K with less than 5K in repairs.

Compared to a brand new 05 while once out of warranty by three months already incurred a 3K repair plus everything warranty did not cover like electrical, regular PM for electric wiring rubbing and not finding it (not covered under warranty).

New truck warranties LIE, they cover only basic parts everything else is kown as O/O failure to detect before it broke.

So I ask this which is the better truck for the $ spent? A good used one or a new one with Warranty?

I know which one cost me less if thats a HINT.

 

[nightcreacher]

broom
you got lucky,and this truck you just bought,dont count your chickens,there is a reason the big companies trade at 300000 miles.
you can just about rebuild that truck,just by replacing parts every week,but in the long run,a new truck is better tax break and will cost you less money,just trade it every 300000 miles.