So, just how muck of your revenue goes to the truc

Twmaster · Jan 24, 2005

After all the good (not to mention important) discussion about costs on these here forums of late something mentioned twice recently caught my attention. This was the term 'working for the truck'. With tax time looming and much to-to about money/revenue/etc it seems to me this question is just begging to be asked.

What percentage of your revenue goes to your truck? At what point do you feel that things may or may not be worthwhile?

I'll be the first to admit that I have no accurate numbers for my business. I will be fixing that real soon now.

So who cares to share? How close do you track this if at all?

Thanks in advance.

--
Mike N

Faster than a speeding poulet.

Owner/Operator Big 'B'
Experienced
10 years auto transport
2 years local/distance expedite
Laurel, MD (Washington DC area)

Broompilot · Jan 24, 2005

RE: So, just how muck of your revenue goes to the

I found this term did not invent it, when cleaning Central Transport/Universal Am Cam Division. To the truck is the total Gross paid to the truck for a run or per mile. What type of expenses you run is is subtracted and the rest is what you decide to do with build a repair and replace savings account or increase your take home it is all up to us. Many costs are fixed and there is no controlling or very little, insurance, fuel, communications pretty well fixed if your gona run. But saving $ by investing into technology that will pay for itself ups the take home after its paid for. I know its easy to understand just harder to put it into practice. Make more than you spend, do it for a long time, you get the picture. I do not know if this is the answer you are looking.

Tennesseahawk · Jan 24, 2005

RE: So, just how muck of your revenue goes to the

Here's what my co and I are doing as soon as the truck decides to stop breaking down...
We are paying ourselves 60%, and ONLY fuel is coming out of that. Tolls, oil changes, repairs, tires, and everything else truck related comes out of the 40% that goes to the truck. Everything left over goes towards buying the next truck.
As far as taxes go, my accountant advises to put aside 30% of your money AFTER operating expenses. Hope that helps.

T-hawk
Hates boring superbowls.

LDB · Jan 24, 2005

RE: So, just how muck of your revenue goes to the

Larry,

How are you handling the fueling? Do you fill up at the end of your driving shift so you are paying what you are burning or do you just split it evenly? I inquire because I know driving style can have a fairly significant impact on mpg. Based on some people I've ridden with I could easily see the usage split being 55/45 with all else being equal just from the driving style differences. Take care.

Leo
truck 767

Support the entire Constitution, not just the parts you like.

Tennesseahawk · Jan 24, 2005

RE: So, just how muck of your revenue goes to the

Leo... haven't started teaming yet. We're stuck in the repair phase at the moment. We're planning to get as close to 50/50 as we can. I think we'll figure who paid for how many gallons and divide the surcharge according to that percentage. If we think of something else, we'll go with it. But for now, it's not burning fuel

Leo... whatcha up to lately? Email me if you don't want it public

Tom Robertson · Jan 24, 2005

RE: So, just how muck of your revenue goes to the

Mike... correct me if I am wrong.

I think what Mike was asking is...

What percentage of the revenue earned by the truck ACUTALLY goes to maintain your truck? I also believe this question is meant to be answered by O/O's.
He is not talking about the split between driver and owner, but the actual cost for all expenses to operate the truck.

Perhaps other questions can come from this... Is your truck working for you...or are you working for your truck? What is the price of ownership? Is it more important to you to own the truck than it is to make money? At what point does one question these expenses and ask if things might be more profitable to drive for another owner?

terryandrene · Jan 24, 2005

RE: So, just how muck of your revenue goes to the

My business expenses for my van for CY2004 absorbed 37% of my gross receipts.

This percentage included every expense except driver pay and on-the-road food.

Terry

Twmaster · Jan 24, 2005

RE: So, just how muck of your revenue goes to the

Tom and Terry are onto what I was driving at. I should have been a tad more clear. So yes I am talking about as an O/O what percentage of your revenue goes to pay for the truck. This number would be everything related to the truck such as cost of the truck, fuel, repairs, tolls, yadda yadda yadda.

And of course Tom has opened up a can with a slew of other good questions to ponder.

--
Mike N

Faster than a speeding poulet.

Owner/Operator Big 'B'
Experienced
10 years auto transport
2 years local/distance expedite
Laurel, MD (Washington DC area)

RichM · Jan 24, 2005

RE: So, just how muck of your revenue goes to the

We pay ourselves a very small monthly salary,just enough to keep the house and utilities and food going.At the end of each quarter whatever is left over we then take a bonus in the form of a distribution. The salary is taxed as earned income requiring FICA taxes. The distribution is considered ordinary income ,similar to bank interest,stock dividends,rental income etc,so no FICA is deducted from it. I always keep a reserve of $10 K for unexpected mainteance.
We have been operating as a S Corporation for over 12 years and I reccommend it highly.There are many deductions such as 100% of your Medical costs that be wriiten off as a Corporate deduction thus reducing your personal tax liability.
Now my EO colleague Mr F Katz may disagree with this situation,we have been disagreeing for many years, LOL, but it works for us.
Rich M
Owner/Operator
Professional
18 years