Good point. Revenue per mile and total revenue are but two pieces of the larger puzzle. But it is important to know how to calculate them just the same.
Other drivers killing us!
- Thread starter aimeejos
- Start date
Good point. Revenue per mile and total revenue are but two pieces of the larger puzzle. But it is important to know how to calculate them just the same.
That pretty much describes my operation. Way too many variables for a single truck owner/operator to adhere to any one formula. Be flexible, be Gumby; but in expedite, don't be Pokey. Ragman....Translation = I fly by the seat of my pants.
Huh? Sorry I nodded off. Did somebody say something?
paullud
Veteran Expediter
Some of the hardest people to learn from are geniuses and people with a lot of experience.
Sent from my SCH-I535 using EO Forums mobile app
I try and keep it simple:thumbup:
Used to be easier BEFORE...EO.....just run and run, pay my bills, cash left in my pocket..I must be making money...LOL....now people want numbers......gee whiz....
But still to this day the first words out of anyone here is drive for a fleet owner till you get some experience.
Let's wrap up the revenue-per-mile part of the thread.
As others said above, the formula is: Total revenue earned divided by total miles driven.
This is true of one load or of a set of loads, and it is true the same for all expediters.
Notice that it does not matter what kind of miles were driven (loaded or deadhead, paid or unpaid). Notice that it does not matter how the pay was earned (loaded miles paid, deadhead miles paid, or any other pay from the run(s) earned in any other way (fuel surcharge, reefer relocation, lift gate, labor, debris removal, etc.). The formula is simply, total revenue earned divided by total miles driven.
For the three loads above:
The total revenue for Load 1 is $700
($3.50 per mile x 200 loaded miles, zero deadhead pay).
The total revenue for Load 2 is $3,800
($1.65 per mile x 2,000 loaded miles, plus $500 deadhead pay)
The total revenue for Load 3 is $4,410
($2.10 per mile x 2,100 loaded miles, zero deadhead pay).
The total revenue for these three loads combined is $8,910
The total miles for Load 1 is 400 (200 loaded, 200 deahdead).
The total miles for Load 2 is 2,500 (2,000 loaded, 500 deadhead).
The total miles for Load 3 is 2,340 (2,100 loaded, 240 deadhead).
The total miles for these three loads combined is 5,240.
So, using the formula:
Total Revenue/Total Miles = Average Revenue per Mile
We have:
$8,910/5,240 = $1.70
As others said above, the formula is: Total revenue earned divided by total miles driven.
This is true of one load or of a set of loads, and it is true the same for all expediters.
Notice that it does not matter what kind of miles were driven (loaded or deadhead, paid or unpaid). Notice that it does not matter how the pay was earned (loaded miles paid, deadhead miles paid, or any other pay from the run(s) earned in any other way (fuel surcharge, reefer relocation, lift gate, labor, debris removal, etc.). The formula is simply, total revenue earned divided by total miles driven.
For the three loads above:
The total revenue for Load 1 is $700
($3.50 per mile x 200 loaded miles, zero deadhead pay).
The total revenue for Load 2 is $3,800
($1.65 per mile x 2,000 loaded miles, plus $500 deadhead pay)
The total revenue for Load 3 is $4,410
($2.10 per mile x 2,100 loaded miles, zero deadhead pay).
The total revenue for these three loads combined is $8,910
The total miles for Load 1 is 400 (200 loaded, 200 deahdead).
The total miles for Load 2 is 2,500 (2,000 loaded, 500 deadhead).
The total miles for Load 3 is 2,340 (2,100 loaded, 240 deadhead).
The total miles for these three loads combined is 5,240.
So, using the formula:
Total Revenue/Total Miles = Average Revenue per Mile
We have:
$8,910/5,240 = $1.70
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It may sound harsh, but its the truth. If I wanted solidarity I would still be an employee making a guaranteed amount per mile/hour with paid vacation and other benefits. I like what I am doing now and for the most part, do what I want, when I want. Other drivers may be killing themselves, but they are not killing me. Not yet anyway.
In the past when rates were higher and expenses were lower, you could make a lot of mistakes and still make money. Not so today. The numbers have become more important.
Very few fleet owners would instruct drivers to accept every offer - in fact, I don't know of a single one who would do that. Leaving aside the question of employee vs contractor, it's not a productive strategy for maximizing revenue, or for keeping drivers, either.
YUP sure is
jrcarroll
Expert Expediter
Cheri;
They (greedy owners) are out there. They will have you run every load offered, while trying their best to micro-manage the driver (s).