my game plan.what do you vanners think?

underdog777

Seasoned Expediter
ok here it is.a 2007 e350 ford.payment 400 month ins 300.here is where i need yalls input.based on avg 1300 miles a week with avg loads with fsc .92 a mile .total pay 1196 a week.ok fuel at 300 a week thats with dead head fuel added into the fuel.that leaves 896 then qc and ins 76 a week 820 left now.then every week put back some for truck and truck ins 170 a week. that leaves 650 a week after that i ll put back 50 a week till i get a maintance account of 6000 .that should cover a major break down.that leaves me 600 a week which is 200 more a week than i make now.so with these figures i cant see not trying it.i know you got cost of living but im already buying food and getting by paycheck to paycheck so i think .if i could hit these miles it would work .what do yall think?
 

Dakota

Veteran Expediter
ok here it is.a 2007 e350 ford.payment 400 month ins 300.here is where i need yalls input.based on avg 1300 miles a week with avg loads with fsc .92 a mile .total pay 1196 a week.ok fuel at 300 a week thats with dead head fuel added into the fuel.that leaves 896 then qc and ins 76 a week 820 left now.then every week put back some for truck and truck ins 170 a week. that leaves 650 a week after that i ll put back 50 a week till i get a maintance account of 6000 .that should cover a major break down.that leaves me 600 a week which is 200 more a week than i make now.so with these figures i cant see not trying it.i know you got cost of living but im already buying food and getting by paycheck to paycheck so i think .if i could hit these miles it would work .what do yall think?

you forgot to take money out for taxes, also eating out unless you are planning on cooking in the van.
 

underdog777

Seasoned Expediter
thanks for input i did forget tax man .i would think 40 a week would cover that with te deductions i could use .what would yall figure for taxes?
 

jjoerger

Veteran Expediter
Owner/Operator
US Army
Don't forget about paying for showers which seems to be a big problem for vanners lately.
 

ebsprintin

Veteran Expediter
Are these numbers supposed to hold up 52 weeks straight? Just remember that each time you route yourself home for anything, including maintenance, you're going to miss a thousand dollar run. Not sure about .92 a mile either. Keep your day job until you can buy the vehicle with cash.

eb
 

underdog777

Seasoned Expediter
yea this is at 40 weeks and already figured in a little extra on the ins. so that would cover my off weeks because 170 times 40 is 6800 van payment is 4800 a year and ins is 1800 a year the pay figure is based on 77 cents a mile with avg fuel at 15 a mile
 

LDB

Veteran Expediter
Retired Expediter
If your insurance is $300 a month there's something wrong. My insurance on a 2009 Chevrolet is much less than that for everything, liability, comp, collision, cargo etc.. Call Shelley and John Benisch at CIS. They are forum advertisers and sponsors. I don't know your situation but they'll tell you if you can save any money on insurance.
 

The Enemy

Veteran Expediter
I second the cost of insurance being high at $300 a month. When my 06 Sprinter was brand new I only payed $140 a month. Now its down to $60, that's for everything.
 

pjjjjj

Veteran Expediter
ok here it is.a 2007 e350 ford.payment 400 month ins 300.here is where i need yalls input.based on avg 1300 miles a week with avg loads with fsc .92 a mile .total pay 1196 a week.ok fuel at 300 a week thats with dead head fuel added into the fuel.that leaves 896 then qc and ins 76 a week 820 left now.then every week put back some for truck and truck ins 170 a week. that leaves 650 a week after that i ll put back 50 a week till i get a maintance account of 6000 .that should cover a major break down.that leaves me 600 a week which is 200 more a week than i make now.so with these figures i cant see not trying it.i know you got cost of living but im already buying food and getting by paycheck to paycheck so i think .if i could hit these miles it would work .what do yall think?

-numbers always look so completely do-able on paper, but they rarely live up to real-life experience
-no way you should be counting on an average of 1300 miles every week for your biz plan.. the vanners can tell you much better, but I sure hear them complaining! Remember all the weeks when freight is on the dead side too, like perhaps 4 weeks per year.. if you average 1000 miles per week for 48 weeks per year, how will your numbers turn out then? That will eat up about $1633 of your estimated revenue per month right there.
-no way you should be counting on an average of $0.92 per every paid mile in a van; if straights are complaining about offers of $1/mile, I don't see how a van could get $0.92 as an average for every paid mile?
-as it stands, if you're doing 1300 PM and you add on 30% for DH, that's about 1700 total miles per week divided by what? 15mpg? So you'll need about 113 gallons of fuel each week? Average price across the land according to EO here is about $3/gallon? That would be about $340/week, and not $300/week? Oops I just checked up there and it's $2.70 average for gas.. but will this hold for an entire year?
-not sure about your QC and ins charges from the company so we'll leave them as stated?
-what about deducting for your carrier's escrow, at least until you have it up to the level they want it at? This of course will remain your money, but you won't have access to it until you're gone from your carrier.
-Save $50/week for RM, but what about the RM you will have in real time, aside from saving for a big pot of major repairs?
-will you have a cellphone?
-will you have internet charges from anywhere?
-will you need toll/transponder money?
-are you planning on keeping your current place of residence? if so, in combination with food requirements, will that continue to eat up the $400 you're currently having some difficulty making ends meet with at your current job? Or are you going to get rid of your worldly possessions and just live in the van?
-another thing to at least consider is the bank charge aspect, charges for exchanging money (will you be crossing into Canada?), charges your bank may charge for accessing ATMs at truckstops which aren't affiliated with their own brand? will your carrier charge for taking advantage of any prepayment options which might be available? for some who may not keep really accurate books, it may seem like just a buck here and a buck there, and perhaps not so bad if you're sticking in the USA, but man, those bank charges can really add up in a month, at least for us Canucks!
-re-do your numbers to more realistic levels, and come back to us
Call me a naysayer if you or anyone wishes to, but I'd sure rather a newbie come out ahead of their proposed plan, than behind.
 
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TJ959

Veteran Expediter
I know people who have sat home waiting for a load for 9 days in a row or more. I personally think they should have changed carriers but that takes time and costs money too. I have had weeks that didn't break 1000 miles as well. The thing is, nothing will replace good old fashioned working capital. An estimate is only a rough plan and never seems to work out as planned. You can bet that there will be unexpected expenses, delays, breakdowns, and illness or injury to throw a wrench into the works. You need a good backup fund and a good plan and still be ready to recover from a failure to meet that plan.
 

OntarioVanMan

Retired Expediter
Owner/Operator
who the heck does 30% DH? where'd ya pull that number from PJjjj???..mines about 15% which is high and includes me going home...
 

pjjjjj

Veteran Expediter
who the heck does 30% DH? where'd ya pull that number from PJjjj???..mines about 15% which is high and includes me going home...

Well, when we were with a carrier it was actually more than 30%. More like 35 or 37%, but I was being kind here. And when we checked out another 'top' carrier, they confirmed our DH average was the same as what they were stating to new recruits. And actually, I spoke to a few OOs as well, and they pretty well all concurred on this.

Perhaps it is different in a van and you do 'less' deadhead? But I thought one of the reasons why it was perhaps beneficial to even do van expediting was because the mileage is better, therefore one doesn't mind running even MORE deadhead to get loads.

And..

Another point..... the DH numbers (empty miles) listed on the carrier's settlement sheets are not reality. They only include certain, very specific miles, which they even know about, and perhaps even 'approve'. Reality bites.

Where are you getting YOUR 15% number and how can you say that is high?
 

OntarioVanMan

Retired Expediter
Owner/Operator
Well, when we were with a carrier it was actually more than 30%. More like 35 or 37%, but I was being kind here. And when we checked out another 'top' carrier, they confirmed our DH average was the same as what they were stating to new recruits. And actually, I spoke to a few OOs as well, and they pretty well all concurred on this.

Perhaps it is different in a van and you do 'less' deadhead? But I thought one of the reasons why it was perhaps beneficial to even do van expediting was because the mileage is better, therefore one doesn't mind running even MORE deadhead to get loads.

And..

Another point..... the DH numbers (empty miles) listed on the carrier's settlement sheets are not reality. They only include certain, very specific miles, which they even know about, and perhaps even 'approve'. Reality bites.

Where are you getting YOUR 15% number and how can you say that is high?

when I am out here for my 5-7 week cycle...my DH is closer to 10%...AND that is because it is busy enough to just " drop and stop"....I don't have the need to rush back to a truckstop every time....when it is slower then you might want to jack up the DH to maybe 20%....

My personal DH to get home is NOT included because I am different..being in SD...

Now when I was with a Canadian Carrier the DH was about 35%...
 

pjjjjj

Veteran Expediter
I know people who have sat home waiting for a load for 9 days in a row or more. I personally think they should have changed carriers but that takes time and costs money too. I have had weeks that didn't break 1000 miles as well. The thing is, nothing will replace good old fashioned working capital. An estimate is only a rough plan and never seems to work out as planned. You can bet that there will be unexpected expenses, delays, breakdowns, and illness or injury to throw a wrench into the works. You need a good backup fund and a good plan and still be ready to recover from a failure to meet that plan.

Yes, my below calculations don't include any weeks off for 'hometime' or illness or family dues or emergencies. So make it spread over maybe 46 weeks instead of 48, or even 44 weeks. One may think of going home for 3 days, but that plan is also going to affect which loads you take (and miss out on) beforehand, and afterward, not to mention 'during'.

And your point about the working capital is excellent because when something happens that puts you out of a pile of dollars unexpectedly, you are dead in the water if you don't have the funds to float you through it. Like say you're stranded somewhere several states away from home and you need a major repair.. and perhaps there was a glitch in your settlement.. and your credit card is maxed out.. they need to work on your vehicle for 3 days.. you need to stay in a motel.. blah blah.. IMHO one cannot enter this business without a LOT of backup funds available, just in case.
 

greg334

Veteran Expediter
There is an assumption that the carrier will provide the work consistently. Who is the carrier?
 

pjjjjj

Veteran Expediter
when I am out here for my 5-7 week cycle...my DH is closer to 10%...AND that is because it is busy enough to just " drop and stop"....I don't have the need to rush back to a truckstop every time....when it is slower then you might want to jack up the DH to maybe 20%....

My personal DH to get home is NOT included because I am different..being in SD...

Now when I was with a Canadian Carrier the DH was about 35%...

Yes our deadhead is pretty much a deal breaker with the cabotage rules. However, the 'top' carrier, and other OOs I mentioned above, are American, so I still stand behind my 30%... but perhaps vanners can speak up if that is a wrong number for vans.

You need to count your DH to your home, it doesn't get canceled out just because you live in SD... everyone lives SOMEwhere, and it's going to affect their DH. Everyone also gos with their own home-time schedule.. some 2 months, 3 months, 5 weeks, 4 weeks.. 6 months.. infinitely..
 

pjjjjj

Veteran Expediter
There is an assumption that the carrier will provide the work consistently. Who is the carrier?

No... it's averaged... some weeks will be more, and some less, but the OP is hoping for an average of 1300 LM per week.. I suggested perhaps 1000 would be a better number to plan for.. but vanners can chime in and let him know if even that is not a good number to count on in a business plan for a newbie.
 
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