what would you do with this load? and why?

[theend]

If I was entering in as a Newbie, in a van, as a driver for someone else, ( which I have done), how would you break down things for easy absorbtion?
At .85 plm would you take this run? 80 dhm to do 110 lm with 40 dhm to layover?
Regardless of whether you would, would someone break that down so we can understand fsc, both from the driver's viewpoint and the owner's.
I was looking at it straight across the board because I couldn't understand it. i.e. 110 x .85 = 93.50 x 60% = 58.10 for the run (230 miles).
{58.10 = 0.528 plm at 60%}
{58.10 = 0.252 all miles at 60%}.
If the fsc is included in that, how? If not, what should it look like?

What would you have done if you had been offered a load like that - remember this is for newbies.
And, that was the run for the day. So you also have an overnighter somewhere.

 

[davekc]

If I was entering in as a Newbie, in a van, as a driver for someone else, ( which I have done), how would you break down things for easy absorbtion?
At .85 plm would you take this run? 80 dhm to do 110 lm with 40 dhm to layover?
Regardless of whether you would, would someone break that down so we can understand fsc, both from the driver's viewpoint and the owner's.
I was looking at it straight across the board because I couldn't understand it. i.e. 110 x .85 = 93.50 x 60% = 58.10 for the run (230 miles).
{58.10 = 0.528 plm at 60%}
{58.10 = 0.252 all miles at 60%}.
If the fsc is included in that, how? If not, what should it look like?
==============================================================
The fuel surcharge should be a seperate per mile number. In your example that is not provided, so it can be assumed there isn't one.
At your rate and using $1.50 per gallon for a benchmark on gas, the fuel surcharge should be somewhere around .10 to .15 cents per mile additional. Some of that variance depends on what part of the country the load travels. West coast, East coast, and Canada would require the higher number because the gas prices are higher. With a straight truck or tractor, at least double that number. Why? Because deisel is higher and they are averaging only 9 or 10 miles per gallon. A tractor is around 7 to 8 mpg.

How do I get that number?
If your van averages 20 MPG, it will take 11.5 gallons to run it, based on 230 miles. If you only get 18 MPG, adjust accordingly.
11.5 gallons x $3.00 per gallon = $34.50

In your case, 58.10 minus $34.50 = $23.60 profit

Last question..........would I take it? Personally No, unless it is going somewhere that was a better freight location or towards home or something. It depends on what your time is worth to you.
At 60 mph, that is close to 4 hours not counting load times.
$23.60 over 4 hours is $5.90 per hour. Adding a half hour to load and a half hour to unload, and that number goes to $4.72
Hardly worth it.
Not sure if I helped you or not. I should mention, I don't drive a van, but this is how I would view this particular run.

Probably should add, if your owners total CPM on a van is .30 to .40 cents per mile, he didn't make anything either.

Davekc
owner
21 years

 

[theend]

Here's one with FSC.
100 dhm + 484 lm + 50 dhm = 634 total miles
Pay $484
Broke down = 408/76fsc = 484
10.5 driving hrs. +1 = 11.5
a 20 mpg = 31.5 gallons
31.5 g's x 3 = $94.50 fuel

Now, we have surcharge, and the driver should get that, so how do you figure the 60/40? and go from there.
I sat for 4 days waiting for this load.
This time, after you've figured the split, would you figure total expenses, with or without food? Include the 4 days wait.
(Next load 5 days later -for real, but you would include that into the next run, wouldn't you?)
When I got this load I was so relieved to get one that my first thought was $1 per mile. But that's not true, since I didn't figure total miles.
I hope this helps those who are making the choice to own or not to own. Helps them understand the numbers a little easier.
And I guess I'm giving you a 'worse' scenerio. May yours be a whole lot better.

 

[LDB]

As a general rule I divide the paid miles by 4 and all deadhead miles should be no more than this number. In your example 484/4 is 121 and you have 150 d/h. If I'd been sitting 4 days I'm sure I'd make an exception. Even if it was an offer made while I'm on the way to a delivery I might still take it if the destination is a good one. I don't know that I'd have taken your first example that had 120 total d/h for 110 paid but every example has to be looked at individually.

Leo Bricker
OOIDA 677319
truck 4958
73's K5LDB
Support the entire Constitution, not just the parts you like.

 

[davekc]

In your second example you should get $244.80 plus 100 percent of the surcharge. $76.00
Total of run= $320.80

Your owner will get $163.20

Since we don't have vans, I never had a truck sit for four days. I would figure the distance from the last run to the next likely area. I would consider if a day is lost because of traveling to a remote area, but four days sounds like a lot unless it is a repair or holiday.


Davekc
owner
21 years

 

[bryan]

HI
I'd say no to the first one because it is grossing less than 55cpm for all miles.I would of taken the second one as it is paying more than 55 cpm gross.My break even point is 45cpm but I'm in this for a profit so that is why I set my decision maker at 55cpm.
Van loads come in spurts, sometimes you sit for days cause no customers are calling.Then everybody and his brother is calling wanting anything with wheels.Which is another reason why I don't take loads that pay under 55cpm. Vans need to make as much as possible when there is a need for them in order to cover all the lost time in between these busy periods.About the time I accept a bad load a good load comes along.
Straight trucks drivers seem to have a much steadier and predictable life.For me as a van driver the hardest decision I have to make is when to be available and when to take off.If I take off during the busy period its really hard to make that money up. If I sit out on the road during the slow period then I've just waisted time that I could of used taking care other business.
Thanks have good one.

 

[theend]

Taxes and expenses.
The fuel is deductible.
books, dvd's, wrench's, new tires are deductible.
Food and drinks are in the per diem.
As long as I stay with deductions and the per diem, and figure out taxes at 30% I come up with:
23.60 x .30 = 7.08
226.30 x .30 = 158.41
I figure tx after fuel? which is what I did here.
If I'm setting aside taxes as I go then I don't have much left, do I?
158 / 9 days is 17.60 per day. (4 days prior to run and 5 after. Double that if it's just prior.)
Is FSC deductible and did I do the math right on that 2nd run?
2nd ?.
If you are looking for 55 cpm, your profit is what you figure after fuel? And then you use some of that while you're out there, and some to pay bills with? How do you decide how much of it to use while on the road?
3rd ?.
Is it figured out before or after the split?
4th ?.
If I planned on staying out for 4 weeks, and figured a good run like #2 every 2 days (3 per week)making 12 runs x 100 each for fuel, I would want to be sure I had $1200+ stashed away for fuel, plus other sundry expenses like food, showers, repairs, etc?
Only spend on deductibles when I have to part with money?
**Remember this is for newbies. If they really have an idea of what's ahead of them the first half year won't be so bad. If they've done their homework, they know they need things to start off with, and that is more expense on top of all this.
**Your answers are helping me, too. Thank you.
Preplanning and knowledge will let you enjoy the breeze.

 

[terryandrene]

"books, dvd's, wrench's, new tires are deductible"

You indicated the examples were for a driver, not an owner; therefore, none of the above is a tax deductable for you. Unless, I believe, the books, dvd's are for training in your career field and the wrenches are a required part of the job agreement. Wenches aren't deductable either. We assume you have an agreement that stipulates you are an Independent Contractor and not an employee of the owner.

 

[bryan]

Hi
Your figuring tax to high :try this formula (gross + fuel surcharge x60% - truck expense)= taxable income (taxable income x92.35%)X 15.3%= self employment tax. Fuel surcharge is taxable income.
55cpm is gross to the truck I try to keep it simple so I can figure it in my head quickly.This way if I decide not to do the load dispatch still has time to find someone else.And I'm an o/o so I don't have to worry about the split.
You bring up a very good point when you ask how much money a driver needs to take with him or her.I went through orientation with a fellow who was going from being a driver for an o/o with the company to being an o/o.He had been with the company for a few years so he knew the ropes.But apparently he was paid by mile and the owner covered the fuel because, he ran out of money for fuel his second week in.
Heres how it happened. He started out running great,lots of good loads plenty of miles so he's racking up plenty of money. But he could only get $150.00 per week advance on Com Data and it was going to be two weeks until he got a settlement.He ask me if I thought he could make it from Woodhaven MI. to Doraville GA on $25.00 (thats all he had left)I told him I wouldn't try it.So he had to swap out the load in Dayton OH and then wait until Monday to get another $150.00 advance.At the time our carrier only allowed $150.00 advance per week they have changed this to 40% of the load which is a big help for newbees.So the roll that he had going got cut short because he ran out of money. I've never seen him again so I don't know if he made it as an o/o.
I wouldn't even consider coming out here with anything less than $2000.00.

 

[davekc]

Sometimes the obvious is overlooked.

One must have actual income in order to take any deductions.

You can't deduct more than you grossed.

But you can pass some losses to the following year unless they changed something?


Just something to be aware of.


Davekc

 

[theend]

Davekc, I'm thinking ahead on taxes, so they can be taken out of each settlement and put aside. The money's there at tax time if I owe. Is that what you mean?
Bryan, thanks for the equation. That's a big help. And your follow up should be a great help for Newbies.
Hopefully they read this forum and don't get stuck out there like the guy in your example did. It's miserable to be broke on the road.
Someone told me to have enough set aside to pay bills for 3/4 months and enough to cover expenses on the road. I didn't know that ahead of time. It's good advice so I'm passing it on. Actually, with fuel prices soaring I think I would plan on even more to get started.
terryandrene, as a driver exactly what category do I fall in?
Am I considered a contractor? Sub contractor? And, what am I able to deduct if I can't deduct the above?
Are fuel,tolls, and cell phone/s deductible for me if I'm making the pymts? And if I pay for the comp and GPS, can I deduct that?
I kept all my receipts on everything except the occasional soda. Are these void?
*The desire to be your own boss, make your own decisions, and drive to your heart's content, are great incentives, but there's so much to know!!