END OF YEAR #'S; few thoughts for the newbies

[SquareOne]

Magard is correct...I had a retail business and that's what I applied to the trucking side. I love numbers and breaking it down to the brass tax. I want to know how much EVERY mile on the truck costs.

For me, each mile cost me $0.84. However, my revenue came out to $1.78 for EVERY mile traveled. Thus leaving a $0.94 profit for EVERY mile I put on the truck last year. So, from a retail perspective, the goods (miles) cost me 0.84 and I sold them for $1.78/pc. There's the mark-up....(again these are 9 months of numbers)

EVERY mile means deadheads, trips to the house, trips to wash, or any other trip where there was nothing on my back. I want to know the TRUE costs per/mile and base my next goal off those costs.

Large gross numbers mean absolutely nothing if you can't control what's going out. Much of that control comes from knowing all the little details which eat up your profit. Basically 'death by a thousand cuts'.

My dealership was a consistent 7 figure a year GROSS, but I assure you, I'm no millionaire lol! What's more important....the money that passes through, or the money you keep?? I'll take the latter any day of the week. Less really is more when you learn to money manage diligently. By knowing the CPM and keeping it low as possible, less gross can actually NET you a much greater return.


This method keeps ME on track. Allows me to see in real time where the money is being applied. When you get 'X' amount of miles out of a part or tires you put on 250k ago, you can truly break down the CPM of that particular brand or decision you made last year. 'Was it worth saving the few bucks on aftermarket? What did it really cost you?'. Thats the stuff that travels through my head. Not saying it's ideal.....it's just what works for me. Helps evaluate the condition of the ship BEFORE it begins to sink in these ever changing waters!