WTF!! NOT bad....thats 168 hours!! Minimum wage is about $7.45 an hour.....work your 40 at McD's and be home every day and weekends!! Not bad my butt...it's absolutely disgusting!!!
So you figure around 300 a week. You figure wrong OVM. I am going to work for an owner that has an .85 cent per mile contract on top of an average fsc of around 15 cents per mile at Panther. Now, .60 percent of .85 cpm is around .51 cents per mile plus the fsc. The owner will pay for the qualcomm and maintenance etc; I will simply pay for my cellphone and 17 dollars a week in personal injury insurance.
Ok, lets be very conservative here and say that I get around 1,200 miles per week on the average. I can do this "because I know where the freight is due to experience!" Now 1200 miles by .66 cents per mile "which is my cut" and we got 720 bucks. The van I am driving is a diesel that gets 20 mpg. With the average price of diesel being 2.24 per gallon I will need approximately two tanks to run 1200 miles and I will throw in a third tank for deadhead just to get a more realistic number. The is three 30 gallon fill-ups at 2.24 a gallon which comes to about 201.60 Now lets deduct that from 720 and we now have 518.40. Now lets take out 17 dollars for personal injury incurance and that leaves us with 501.40. Then we can take out 100 dollars for food which leaves 401.40. Then we times that by four and now have 1600 and 5.61 dollars for the month minus a 100 dollar cell phone bill for unlimited minutes which leaves a whopping 1500 and 5.61 dollar straight to the bank.
Now if I operate like this for an entire year 'I should have around 15k in the bank to buy a van for around 10k...one that is new enough to lease on with the company of my choice and still have 5k in working capital. It might look like a bad situation for some, but I have made money with fleet owners before. I have even paid 1,100 dollars a month in bills and managed to save money doing it in the past. I have run the numbers and I am losing approximately .24 cents per mile working for the owner as opposed to having my own van at a contracted .77 cent per mile with 15 cent fsc average.
So if I run 1200 miles a week times 4 that is 4800 miles a month times 12 months is approximately 57,600 miles. Lets take 57.600 and times that by .24 and we now get 13,680 dollars. That is the amount of money that I am losing as a driver not owning my own van. Now from that we will take the weekly qualcomm fees, The truck payment, the new set of tires once a year, the oil changes, the 150 a month in bobtail insurance, and the registration fees. Lets say truck payment is 400 a month, qc fees are 140 a month, oil change 60 a month, registration fees 300 a year, tires and alignment 700 a year. All of that adds up to approximately 10,000 dollars that I do not have to pay myself and the owner pays which is a net loss of 3,680 dollars considering there are no breakdowns. The owner makes 85 cents per mile which is 10 cpm higher than the contracted rate that I would get as an owner operator so that is not even a factor here.
But the owner does get .34 cents for every mile I drive which comes out to around 19,584 when I times .34 by 57,600 miles. Now I will deduct 10k from that and the owner makes around 9,584 dollars on a mediocre year. Not great, but when you spread that over several units (manned by dedicated and experienced drivers) you can pull together a good income. Not too shabby. But, all and all, I am still only losing 3,680 dollars on net revnue. Will I complain, heck no!
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