Record keeping

Broompilot

Veteran Expediter
Do you or what would be the benefit of calculating profit on each run?

I am just curious, I never did I kept week to week. If you do how much benefit do you recieve and how could it or would it add more to the bottom line?

I understand this question may come with a million answers, not sure if there is right or wrong or if my once a week is the best way to operate and keep my books. (acutally I do it monthly along with weekly if you understand)
 

ATeam

Senior Member
Retired Expediter
OUTSTANDING QUESTION!!! Finally, someone rises willing to question the per-load mentality that, in my view, produces more bookeeping work than benefits.

We know our cost per mile to run the truck and accept or delcine loads on that basis. We do not try to calculate profit per load. I believe it is foolish to do so. So many expenses bleed over from one load to another. A fuel stop may carry you through three loads, for example. If you blow a tire on a run, do you charge the cost of a new tire to that run or all future runs? Either way, what difference does it make?
When you go out of service and deadhead home on your dime, what run do you charge that fuel expense to? The previous one? The next one?

At the end of the year, your account does not need to know what money came from what runs. He or she needs to know how much revenue you generated and what your expenses were. He or she does not even need to know how many miles you drove, loaded or empty. At the end of each week or month, the revenue and expense information can help you keep track of your profit or loss for the period. It does not matter if you completed 10 runs, 20, 30 or zero. You can still calculate your profit or loss.

I know there are a lot of drivers and fleet owners out there that will proudly display the run envelopes they use. I have yet to understand what benefits are gained by per-run accounting. Perhaps they can educate me here.

I believe per-run thinking can be counterproductive. Drivers that turn down runs because "this run does not pay over $1.25 per mile" or "this run is not profitable" end up practicing a fragmented load acceptance strategy that blinds them to how a bad or marginal run may set them up for a very good one.

The successful expediters I know do not think run-to-run. They think month-to-month.
 

maybe_driving

Seasoned Expediter
I put mine in the laptop and print out each month then at the end of the QRT. I add up the totals and pay Big Sam his cut and if the wife is not happy with what is left then somethings not working
 

are12

Expert Expediter
We do the same as Maybe Driving.

We put everything in the laptop and look at it month by month. Then I do a comparison from previous years to see where we stand. So far, that has worked for us.
 

pelicn

Veteran Expediter
We put everything in a spreadsheet, and let it do the calculations. One column shows weekly one column shows monthly and one column shows year to date
 

davekc

Senior Moderator
Staff member
Fleet Owner
We are looking at more than one truck but look at everything by the qtr. We tend to look at runs that of course make our necessary rate in conjunction with freight and vehicle activity in a given area.
That would include Panther trucks, but as well as competitors trucks.
Only real deviation is if we are trying to load someone towards their house. Sometimes alittle different strategy comes into play there.







Davekc
owner
23 years
PantherII
EO moderator
 
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