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Matt · 05-26-2018, **(Subject: Over The Road Versus Local )**

I've gone from local, home at 6 every night weekends off to OTR and gone a month at a time and everything in between. Money is relative, what you call good I might not get out of bed for and vice versa. I run OTR 5 days out home on weekends, I have a girlfriend at home and right now this works for me. If I get married and start having kids well maybe I will have to reevaluate my situation. That's the beauty of it though, I dont have to initiate a massive career change if I need a different lifestyle, just a change in operation.

Look hard at your lifestyle and look for a job that fits it. If it doesn't work then readjust.

Hammerhead · 05-27-2018, **(Subject: Over The Road Versus Local )**

(05-25-2018 )Rawze Wrote: The only true answer is how much in taxes someone pays at the end of the year. I.E.> how much did they keep and could "buy a new kitchen stove" with? and therefore owed taxes on. that is where the rubber meets the road.

No point in bragging about $350k a year gross if you qualify for E.I.C lol.

This is the part the vast majority in this business just can't understand.
The second thing most don't understand and/or properly evaluate, then calculate for, is risk. If one of the job options involves a lot of high traffic congestion/close proximity work, a smart business person would budget ONE insurance deductible per year.

Edited to add: Not that a guy is going to have an accident every year, but the increased risk means by budgeting ONE per year, when the inevitable does happen, you will have a slush fund to cover the downtime...

Volvo8873 · 05-27-2018, **(Subject: Over The Road Versus Local )**

I talked to another owner operator that was complaining about how he had to pay 10000 in taxes in one year. This same guy cannot get above 5.5 mpg and complains on how the company that we contract out never pays enough.

I do my own books and have a local tax service file taxes for me. I remeber the lady telling me that alot of the owner operators fuel bill was closer to %50 of their gross income. Is this true? Or did I not hear what she exactly said maybe?

dhirocz · 05-27-2018, **(Subject: Over The Road Versus Local )**

I run local when they can keep me moving with decent freight. Considering I'm running half deadhead miles, often times the extra mileage and lower costs offset the extra money I would make, and I have home as a bonus, not just for home time but repairs as well.

When I run the system, 80+% of my miles are loaded.

I don't mind running farther out if the money is there...but there is an extra risk of breaking down farther from home you also need to consider.

Nilao · 05-27-2018, **(Subject: Over The Road Versus Local )**

My fuel cpm is .35. Not bad grossing 1.33 a mile all expenses paid except fuel.

Chamberpains · 05-28-2018, **(Subject: Over The Road Versus Local )**

(05-27-2018 )Volvo8873 Wrote: I do my own books and have a local tax service file taxes for me. I remeber the lady telling me that alot of the owner operators fuel bill was closer to %50 of their gross income. Is this true? Or did I not hear what she exactly said maybe?

Yes, you have to do the math and a mind numbing amount of truckers and companies operate at that and more. They go out of business fast or live very long miserable trucking lives. 12 years ago I made a very large spread sheet on the computer, showing in 5 cent increments, fuel prices compared to MPG to get my exact CPM (cost per mile) on fuel. Thats fuel price divided by MPG. It starts at $.50 all the way up to $10 per/gal. It's a quick reference guide to know what fuel is costing me at any fuel price. I made it so big because I knew fuel wasn't getting any cheaper and I had better be prepared to quickly adjust my rates and be ready for new and very large fuel prices. BE READY FOR IT OR GO OUT OF BUSINESS in short order.

So if your fuel cost per mile (FCPM) is close to your actual dollar per mile (DPM) then your in bad shape business wise. I keep mine below 33% as an OTR operation. But during the recession in 2008 rates customers paid compared to fuel costs didn't adjust quickly enough and I was forced to operate at 50% for a good year till i figured ways to get MPG up and maintenance costs down till the costumers and brokers could get the rates adjusted. But thats how a recession works on trucking. Now I operate my business like 2008 never ended and that keeps me miles ahead of the game during good times and also prepared for the next "hard time".

Volvo8873 · 05-28-2018, **(Subject: Over The Road Versus Local )**

(05-28-2018 )Chamberpains Wrote:
(05-27-2018 )Volvo8873 Wrote: I do my own books and have a local tax service file taxes for me. I remeber the lady telling me that alot of the owner operators fuel bill was closer to %50 of their gross income. Is this true? Or did I not hear what she exactly said maybe?

Yes, you have to do the math and a mind numbing amount of truckers and companies operate at that and more. They go out of business fast or live very long miserable trucking lives. 12 years ago I made a very large spread sheet on the computer, showing in 5 cent increments, fuel prices compared to MPG to get my exact CPM (cost per mile) on fuel. Thats fuel price divided by MPG. It starts at $.50 all the way up to $10 per/gal. It's a quick reference guide to know what fuel is costing me at any fuel price. I made it so big because I knew fuel wasn't getting any cheaper and I had better be prepared to quickly adjust my rates and be ready for new and very large fuel prices. BE READY FOR IT OR GO OUT OF BUSINESS in short order.

So if your fuel cost per mile (FCPM) is close to your actual dollar per mile (DPM) then your in bad shape business wise. I keep mine below 33% as an OTR operation. But during the recession in 2008 rates customers paid compared to fuel costs didn't adjust quickly enough and I was forced to operate at 50% for a good year till i figured ways to get MPG up and maintenance costs down till the costumers and brokers could get the rates adjusted. But thats how a recession works on trucking. Now I operate my business like 2008 never ended and that keeps me miles ahead of the game during good times and also prepared for the next "hard time".

Well mine was 35% of gross last year. Changed driving habits this year and have a different truck I should easily get it below 30% this year. When she told me that I was kind of surprised I guess that it is that high but I see your point in regards to rates. I get a fuel surcharge were I pull out of.

AHMLLC · 05-29-2018, **(Subject: Over The Road Versus Local )**

(05-28-2018 )Volvo8873 Wrote:
(05-28-2018 )Chamberpains Wrote:
(05-27-2018 )Volvo8873 Wrote: I do my own books and have a local tax service file taxes for me. I remeber the lady telling me that alot of the owner operators fuel bill was closer to %50 of their gross income. Is this true? Or did I not hear what she exactly said maybe?

Yes, you have to do the math and a mind numbing amount of truckers and companies operate at that and more. They go out of business fast or live very long miserable trucking lives. 12 years ago I made a very large spread sheet on the computer, showing in 5 cent increments, fuel prices compared to MPG to get my exact CPM (cost per mile) on fuel. Thats fuel price divided by MPG. It starts at $.50 all the way up to $10 per/gal. It's a quick reference guide to know what fuel is costing me at any fuel price. I made it so big because I knew fuel wasn't getting any cheaper and I had better be prepared to quickly adjust my rates and be ready for new and very large fuel prices. BE READY FOR IT OR GO OUT OF BUSINESS in short order.

So if your fuel cost per mile (FCPM) is close to your actual dollar per mile (DPM) then your in bad shape business wise. I keep mine below 33% as an OTR operation. But during the recession in 2008 rates customers paid compared to fuel costs didn't adjust quickly enough and I was forced to operate at 50% for a good year till i figured ways to get MPG up and maintenance costs down till the costumers and brokers could get the rates adjusted. But thats how a recession works on trucking. Now I operate my business like 2008 never ended and that keeps me miles ahead of the game during good times and also prepared for the next "hard time".
Well mine was 35% of gross last year. Changed driving habits this year and have a different truck I should easily get it below 30% this year. When she told me that I was kind of surprised I guess that it is that high but I see your point in regards to rates. I get a fuel surcharge were I pull out of.

What kind of driving habits did you change and what kind of truck do you have now? Also, what were you driving before? Congrats

Volvo8873 · 05-30-2018, **(Subject: Over The Road Versus Local )**

(05-29-2018 )AHMLLC Wrote: What kind of driving habits did you change and what kind of truck do you have now? Also, what were you driving before? Congrats

I am currently driving a 2011 Volvo 630 with a 2250 ISX. The 13 speed transmission is a godsend for me I can keep it in 12th which brings me about 1600 rpm at 63 mph. Its perfect for me being loaded to 80,000 one way and empty on the way back. I wish the rear was a little taller but it works for me.

As far as driving habits? I SLOWED DOWN and stopped using the cruise when loaded (I still use it when empty and flatter ground) I am now starting to pop it out of gear when coming down a big hill.