Is my cost and cost per mile in the Ball Park?

[Jamin_Joe]

Got the call friday that my MC# has been approved and before officially starting want to verify that my estimates are good.

My fixed expences include:
Insurance, govt. Fees, pay, savings act. Deposit, membership fees, truck routien maint(6weeks), 2 major truck repairs, and a fee overnight stays per month at hotel.

Due to my intrastate limitation, the base miles used are 1200 per month for 16'box truck rental.

Variable costs are based on the most expensive, the box truck.

Truck rental, mile surchg, Insurance surchg, fuel based on 10.5 mpg.

Got an estimate of needing $1.49 per mile to break even, this doesn't include any dead head miles. Do need it figure out if I have any wiggle room to increase cost per mile to cover that cost.

So the question is, are shippers willing to pay $1.50 per mile for intrastate runs?

what do you all think and what would you expect to be paid if you were me?

thanks

 

[xiggi]

Renting a truck is not what you want to do. It is the wrong way to start a business.

Sent from my - Fisher Price ABC - 123

 

[paullud]

Short runs typically pay considerably more per mile than longer runs so you should be well above $1.50/mile. The big issue will be getting shippers/brokers to work with you since you have a new number. The ones that are eager to work with you may have a history of not paying so I would run credit checks on them.

Sent from my SCH-I535 using EO Forums mobile app

 

[Jamin_Joe]

It has been a real challenge with the Eye issue. Most of the companies that I taked do want Interstate, class b cdl prefered. If I can run under 10,000 lbs gvwr on the truck rating I could do it. Most vans that I looked at are rated over that.

I want to avoid debt incase this fails.

OODIA is looking into the new medical vision restrictions. I have been in contact with the local FMCSA office to verify diffrent questions about the rules. Its an uphill battle.

I am hoping that one this VP at the trucking company I worked for gets back soon. I may be able to be an independant contract driver to do airport/military and hot freight pickups using one of the trucks from their leasing operations.

It has been a real problem over the years getting employers to see past the eye issue, I can do everything others can. Guess they are afraid of Legal issues.

 

[runrunner]

It has been a real challenge with the Eye issue. Most of the companies that I taked do want Interstate, class b cdl prefered. If I can run under 10,000 lbs gvwr on the truck rating I could do it. Most vans that I looked at are rated over that.

I want to avoid debt incase this fails.

OODIA is looking into the new medical vision restrictions. I have been in contact with the local FMCSA office to verify diffrent questions about the rules. Its an uphill battle.

I am hoping that one this VP at the trucking company I worked for gets back soon. I may be able to be an independant contract driver to do airport/military and hot freight pickups using one of the trucks from their leasing operations.

It has been a real problem over the years getting employers to see past the eye issue, I can do everything others can. Guess they are afraid of Legal issues.

Have you applied to the FMCSA and been rejected for the Vision Wavier?

 

[JoeS]

With your own authority and those limitations, you should be doing LTL. That's probably the only way you can make that work.

 

[Jamin_Joe]

I would have been granted the vision waiver under the old qualifications. The new one disqualified Drivers with Monecular Vision, which in my case disqualified me.

The best way to discribe my vision is that of having two flashlights shining on the wall with the lightbeams intersecting. The left flashlight has a circle darkend with a sharpie inthe center towards the right. The right flash light makes the void unnoticable.

Since my left eye cant make out the largest E, leagally makes me blind in the left eye and fall under the monecular classification, dispite normal periheral vision.

The Nurse at the Opthemologist told me that many of their patients that are Professional Drivers with years of experience cant drive professionally any more because of the new restriction.

Since I can no longer get a CDL, the load weight of under 26,001 lbs can not be exceeded and am restricted to Intrastate. Can cross state lines in a non CMV, gvwr under 10,000lbs.

Talked to an inspector who verified that I dont qualify under new requlation.

 

[zorry]

Go retest.Memorize a few lines of the chart with your good eye.

You don't have a vision problem. You have a memory problem.

Think like a politician !

 

[Jamin_Joe]

7If I could do it, I would. There is too much documentation to get away with it. With my luck, I would go to the local rent a quack out of state and they would fail me and the I would bre stuck out of state. I always got caught whenever I tried to break the rules.

 

[Jamin_Joe]

What should I charge?

 

[paullud]

What should I charge?

More than what it costs you to run the trip. I don't know that there is anyone that could give a solid answer to that question because you are getting involved in a different market. I would start by finding out what the competition charges, possibly with a few fake loads. I would check what an airport to business run would be billed at, northern VA runs pickup or delivery, and see what LTL rates look like.

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[str8trk]

What should I charge?

Joe ... The real questions you should be asking are "is there a demand for what I plan to do" and if so "what are the prevailing market rates". Figuring our your cost components is obviously important, but, if there's no demand for the services you intend to provide then the information you've compiled is little more than random numbers on a spreadsheet. Having read some of your other posts, the only thing that is really clear about the path you are embarking on is that you would like to pick up and deliver cargo.

I applaud you for having the drive and desire to start a business and not be deterred by your vision challenges. That said, the absence of a validated revenue base / market need and a corresponding business plan to service those needs will likely lead you down the unfortunate road to failure.

Although I generally contend the cargo van/sprinter equipment model is marginal for most people, given your circumstances, it may be the best choice. Limiting your payload is a better scenario than limiting your coverage area to VA.

 

[Jamin_Joe]

I do agree that the most important question is demand and the amt. Shippers will pay.

I did see that the definition for Commercisl Vehicle is 10001 gvwr, saw many regular vans and even pickups are rated over that.

Decided to contact the brokers, try to sell services to local industry, or try being hired as an independant driver with a shipping company.
All options are on the table.

I am so greatful that Xiggi advised me against buying that truck and the rest of you all for your advice.

My numbers are all my fixed costs and the major unknown are the actual variable costs based on miles, fuel, etc.

Am gonna try, but not spending another penney before having a load and will watch cost vs income very closely and if things dont look good, I cease operations before losing it all.

 

[str8trk]

So you're going to test the water with what vehicle ?

 

[Jamin_Joe]

Still trying the brokers, the load boards loads are more for Power Units. Am very close to renting a 16' box, but over 8k curb weight, that only leaves 4k to reach the 12k max weight posted on door, for the inspector to see.

26' is a bit big for me to feel comfortsble driving.

Got to get a load first before rolling. Landstar and CH Robinson loads might be ok, havent been set up yet.

 

[str8trk]

Unless you can secure a very consistent source of revenue, renting a truck will bleed you dry ... Probably fairly quickly. Running intra-state only severely limits your opportunities ... As I said previously, better to limit your payload capability than operating range. Landstar & CH aren't going to produce anything for you on an intra-VA level. You can down-load the Landstar carrier packet from their web-site ... Make sure you understand the insurance requirements. FMSCA minimum coverage requirements are not sufficient with Landstar ( or most reputable brokers for that matter ).

 

[BobWolf]

Check your P.M. I dropped you some tips.

Bob Wolf.

 

[Jamin_Joe]

Dove into the water yesterday and rented a truck. I am now burning up the phone line trying to get loads. Maybe a big mistake, but got to try. Will try for a month to see if this works.

I am excited and nervous at the same time.

 

[Murraycroexp]

Your cart just ran over your horse, so to speak.

 

[BobWolf]

He is in a model similar to what I'm running, yes its tougher than O.T.R. but If you work smart there is money to be made, you sleep in your own bed, and eat home cooked meals. Although you may need to nuke them when you get home. L.O.L.

As for renting a truck? If he has a decent rate and freight volume he can make money, and if it all falls apart he can walk away and not be out 50 grand for a truck he cant afford to keep, or have to sleep in the truck with a bat to fend off the repo man.
It boils down to working smart not just hard.

Check your PM I shot some more info your way.

Bob Wolf.