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

[SquareOne]

Ok, so as mentioned a few months back, I'm finally getting around to reporting my first FULL year as a new O/O (Mar 31, 2019 - Mar 31, 2020). Hopefully the newbies here can get a little insight on what to expect expense wise as well as a profit margin that can be maintained with some due diligence. Here are the important numbers....


Total miles - 92,643
Revenue/mile - $1.81
Expense/mile - $0.78
Profit margin - 232%

IFTA Q1 (2020) - 8.20mpg


Unfortunately, I'm not too happy with the 1st Quarter IFTA. I've been over this damn truck thoroughly and it's up to par. It seems like the weather conditions (temp, wind, etc.) are to blame. I've never ran the 1st quarter of the year, so really I'm was still in unknown territory MPG wise. I will say, it has been picking up as of the last few weeks. My last 3 fill-ups were 8.889 (finally a few 68-70k loads), 8.770, and 8.617 (had a couple of severe storms roll through with extreme head/crosswind). Overall, it seems like the mpg will slowly comeback. Last year IFTA Q2-3 were the best so let's see if that can be repeated.

For expenses, they were 72,261.54. Keep in mind, this is EVERYTHING that contributed to my operation. I have a truck, trailer, and a forklift. The numbers above are for the entire operation. Also something to remember, this included having to rig the entire operation with all that was needed to get started. New guys, make sure to factor in all these nickels and dimes into your business plan. They add up rapidly!


- I've said it before... I'm not a hair on a gnats a$$ to many of the guys on this site alone. I'm still very green to much of trucking outside of what I haul and am constantly absorbing as much info as possible in order to stay successful at this. Being aware the cost of EVERY mile you travel is critical. How will you know what to charge if you don't know what it's costing you (with great accuracy) to make the trip???

Insurance is very expensive. My first year was over 10k and I only travel within a 150mi radius. It only goes up from there depending on where you go and what you haul. The bright side is this--- my renewal this year went down about $980. Keeping your foot out of it and being safe on the highway will pay dividends in the long run...physically, mentally, and financially. ---- (Fun fact, typically if you pay your policy in full, you can save some serious coin. I know I know, not everyone has that kind of money laying around, but if you can manage your money enough to pay off an interest free credit card (they usually throw out a year promotion at 0%), you could save 10-12%+ off your policy.)

Fuel---no surprise--is your biggest expense. VALUE THOSE MPG'S DEARLY!!! My fuel was over 28k last year and I get damn good mpg for what I do. Also, it's just me, no big corporation with steep fuel discounts unfortunately, so I have to shop around for the best price. Be sure to look at the actual cost of the fuel without the tax added in order to get a fair comparison.

Anyway, just a little insight on how my first year as a CDL holder/ truck driver / Owner/Operator turned out. Hopefully this will give other hopefuls something to look forward to. With all the fog in the tunnel these days, it's sometimes hard to see the light at the end. Pay attention to this site and absorb all it has to offer. Practice what is constantly preached here and you WILL succeed.

Rawze and any other contributing members...your help and consideration is greatly appreciated and has been a large factor in my first O/O year.

Stay safe everyone and if any newbs need some advice or have questions, don't hesitate to ask.