END OF YEAR #'S; few thoughts for the newbies
07-03-2020, (Subject: END OF YEAR #'S; few thoughts for the newbies ) 
Post: #19
RE: END OF YEAR #'S; few thoughts for the newbies
Just a quick update for those interested....

Like mentioned in the other posts, I've been trying to get back to the better MPG I had this time last year. Just a recap, I've only recently (April 19' - that's when I started the 1st month of trucking) reached a point where I can compare MPG numbers of 2020 to 2019. It had been driving me nuts trying to figure out where I was losing the .25-.75 over the 2019 Fourth quarter IFTA and the 2020 First quarter IFTA. Just couldn't put my finger on it as I had no way to compare from previous data if it were weather/or fuel blend related. I understand the colder air theory, but surely I would've thought the MPG would return to normal much earlier than it did.

So no real scientific data, but the 2020 Second quarter IFTA filings and the mpg calculations to the pump seem to be a clear indicator of the effect due to seasonal change (and possibly fuel blend here in the south). Maintenances are up to par and driving habits have only improved since first beginning this venture.


2020 IFTA (2nd quarter) - 8.53mpg
Expense/Mile - $0.57 (since beginning of 2020 - present)



Beginning of the quarter to the end showed a slow, but steady progression in MPG. If everything stays consistent, 3rd quarter mpg average should improve by an additional .2-.25 given last year's data I now can compare to.

Hopefully, for all those who are watching every tenth....maybe this will give you a little insite on how the weather will affect those gains/or losses in MPG. Given this info for later this year and early next year, I shouldn't have to chase ghosts when the MPG drops for those 2 quarters.
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 Thanks given by: hookliftpete , Rawze , Volvo8873 , Paccardude
07-04-2020, (Subject: END OF YEAR #'S; few thoughts for the newbies ) 
Post: #20
RE: END OF YEAR #'S; few thoughts for the newbies
SquareOne let me preface this by saying I am in no means saying anything about how you do your stuff. However Looking at your expenses per mile they seem low to me. Now I'm nowhere near in the same boat as you. I don't know what you do, what you pull, where you run, or what your maintenance is. But i wonder if your actually truly including everything...

I say this because I have had several conversations with other O/O's that believe they account for every dime they spend on their business, but when I start asking them specifics I find all sorts of things they don't account for.

Now your fuel mileage is great, mine alone is running $0.52 cpm now. However I'm sure you don't run what I do... My truck drives Rawze nuts cause the only thing aerodynamic about it is the swan on the hood. I pull one of the most fuel wasting type trailers and loads there is with a flatbed, and I run 600hp and 2050 torque. Now I drive like most of the guys on this forum and achieve the best mpg I can, but in my case that's just a 6.1 mpg average. But (and this kills Rawze) I don't care.... See even when fuel was $4+ a gallon I still made more than enough profit for my needs. I live in my truck, I own nothing but this truck and trailer and a pick-up that I never drive... In fact today is 7/4/20 I load monday for home which I have not been to since 7/26/19

Also I spend money on this truck constantly both in needed repairs, break downs, and preventative repairs/replacements as the truck is a 2008 with 1.4 million on it.

However, and without knowing you, your equipment, your maintenance regime ect, I wonder if you are indeed accounting for EVERYTHING...

Basically here is what I do... First if I buy anything, and I mean ANYTHING I get a receipt this don't matter if it's personal or business... If I put coins in a pop machine I hand write a receipt, yes that is a little overboard for the most part, but that's me. At the end of the month I literally can balance my books to within cents. But we are talking business expenses here..

Here's one example of things I find with others.. Paper Towels... I find guys that buy a few hundred dollars worth of paper towels every year for cleaning windows in the truck ect. They buy these with their groceries and never account for them in their business expenses.

Air fresheners, Windex, Paper Towels, Pens, Paper, and the list can go on and on... Re-examine your purchases and see what you might be missing. All to often I find that people think that ONLY truck specific items count as business expenses when in fact ANYTHING you purchase for the use in, on, or for that BUSINESS, not just the truck is a business expense...

What I do is when I go shopping (I prepare and eat all my meals in my truck) I separate everything. If it's not food, or for my personal health, or consumption, and it will be going in my truck then it is paid for separately on it's own receipt and put into my P & L as a business expense because that's what it is.

PrePass, Internet load boards, up to 75% of your cell phone bill, parking fees, all sorts of things like these I find guys not accounting for, but yet they are all business expenses and should all be included in your expense calculations.

Now from what i read your looking good , and doing a great job, specially for someone just coming into this industry blindly. Keep up the good work and congratulations.

Mike


User's Signature: 08 KW W900L 600hp ISX, 18sp, 3:36 rears.
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 Thanks given by: SquareOne
07-04-2020, (Subject: END OF YEAR #'S; few thoughts for the newbies ) 
Post: #21
RE: END OF YEAR #'S; few thoughts for the newbies
2020 IFTA (2nd quarter) - 8.53mpg
Expense/Mile - $0.57 (since beginning of 2020 - present)

Is it fuel only expenses or total?
My mpg is only shy 7 but expenses are almost twice less.
Are you running on JP-7 fuel?
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07-04-2020, (Subject: END OF YEAR #'S; few thoughts for the newbies ) 
Post: #22
RE: END OF YEAR #'S; few thoughts for the newbies
Anything I can attribute to my business is expensed even my 2 ar-15s I built were put into expenses as office security. And ammo expensed as office office safety training. Talked with my tax guy he said that as long as something has to possibility to be used by the company get the receipt and expense it.


User's Signature: 2010 Lonestar - CM871 - 13sp - 3.70s, 2016 T680 - cm2350 - 13sp - 3.36s - skateboarder
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 Thanks given by: LRT1549 , snailexpress , SquareOne , JimT
07-04-2020, (Subject: END OF YEAR #'S; few thoughts for the newbies ) 
Post: #23
RE: END OF YEAR #'S; few thoughts for the newbies
(07-04-2020 )Lonestar10 Wrote:  Anything I can attribute to my business is expensed even my 2 ar-15s I built were put into expenses as office security. And ammo expensed as office office safety training. Talked with my tax guy he said that as long as something has to possibility to be used by the company get the receipt and expense it.

Hell I even expense my dogs food, treats and health care under security.


User's Signature: 08 KW W900L 600hp ISX, 18sp, 3:36 rears.
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 Thanks given by: snailexpress , Waterloo , SquareOne
07-04-2020, (Subject: END OF YEAR #'S; few thoughts for the newbies ) 
Post: #24
RE: END OF YEAR #'S; few thoughts for the newbies
(07-04-2020 )snailexpress Wrote:  2020 IFTA (2nd quarter) - 8.53mpg
Expense/Mile - $0.57 (since beginning of 2020 - present)

Is it fuel only expenses or total?
My mpg is only shy 7 but expenses are almost twice less.
Are you running on JP-7 fuel?


$0.57cpm is EVERYTHING (not just fuel) from Jan 1, 2020-the time of the post.
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 Thanks given by: snailexpress
07-04-2020, (Subject: END OF YEAR #'S; few thoughts for the newbies ) 
Post: #25
RE: END OF YEAR #'S; few thoughts for the newbies
(07-04-2020 )LRT1549 Wrote:  SquareOne let me preface this by saying I am in no means saying anything about how you do your stuff. However Looking at your expenses per mile they seem low to me. Now I'm nowhere near in the same boat as you. I don't know what you do, what you pull, where you run, or what your maintenance is. But i wonder if your actually truly including everything...

-----No offense taken, I appreciate the conversation!---

Yes , the expense/mile is low (it's actually $0.566), and that was my business plan and ultimate goal before I actually purchased the truck and took the plunge as a new O/O. Hopefully, it will continue to get lower as the miles get put on.

That CPM is EVERYTHING.....the entire business...truck, trailer, and forklift. All expenses get itemized into a program and I get to see in real time the actual CPM for EVERY mile the truck travels. The only change I made from the program was breaking down my insurance costs by the month (I pay in full, therefore at this point I would divide that amount by 12 and then multiply by 7 to get the accurate cost of insurance to this point.)


(07-04-2020 )LRT1549 Wrote:  ...I say this because I have had several conversations with other O/O's that believe they account for every dime they spend on their business, but when I start asking them specifics I find all sorts of things they don't account for....

^^^-------This statement is absolutely true. Unfortunately this is also why it seems so many fail at this game. How can you know the health of your Business if you don't know the cost of the goods you sell (miles in this case). Many of the horror stories I read prior to getting into this industry were directly related to poor planning, neglect, and lack of attention to detail.


(07-04-2020 )LRT1549 Wrote:  .... the only thing aerodynamic about it is the swan on the hood....

^.....Thats freakin funny lol!



(07-04-2020 )LRT1549 Wrote:  ...However, and without knowing you, your equipment, your maintenance regime ect, I wonder if you are indeed accounting for EVERYTHING...

Basically here is what I do... First if I buy anything, and I mean ANYTHING I get a receipt this don't matter if it's personal or business... ... But we are talking business expenses here..

Here's one example of things I find with others.. Paper Towels... I find guys that buy a few hundred dollars worth of paper towels every year for cleaning windows in the truck ect. They buy these with their groceries and never account for them in their business expenses.

Air fresheners, Windex, Paper Towels, Pens, Paper, and the list can go on and on... Re-examine your purchases and see what you might be missing. All to often I find that people think that ONLY truck specific items count as business expenses when in fact ANYTHING you purchase for the use in, on, or for that BUSINESS, not just the truck is a business expense...

What I do is when I go shopping (I prepare and eat all my meals in my truck) I separate everything. If it's not food, or for my personal health, or consumption, and it will be going in my truck then it is paid for separately on it's own receipt and put into my P & L as a business expense because that's what it is.

PrePass, Internet load boards, up to 75% of your cell phone bill, parking fees, all sorts of things like these I find guys not accounting for, but yet they are all business expenses and should all be included in your expense calculations.

Now from what i read your looking good , and doing a great job, specially for someone just coming into this industry blindly. Keep up the good work and congratulations.

Mike


I agree with much of the above. EVERY red cent must be accounted for in order to determine not only your current business health, but also for tax purposes. Not sure about anyone else, but I damn sure don't want to give Uncle Sam any more than I have to! If you don't claim a legitimate expense, you are doing nothing but skewing your business perspective financially as well as costing you more money when that tax deadline rolls around.

- I would be more than willing to share the specifics for those interested to see where the expenses go. I am fortunate to have a dedicated and simple run with little to no elevation change. That helps greatly with fuel mpg (and stress for that matter). I never stay on the road as this gig is local so that too will save a few bucks. My insurance, although not cheap, went down from last year (just over $8700) so that helped the CPM from last years figures. Last year, I replaced MANY items on the truck, so other than new wheels/tires on the trailer and brakes/wheel seals on one truck axle and a windshield, up to this point I have fortunately have had no major $$$ breakdowns. Work has also been very busy, so the more miles without a big $$$ breakdown translates to a lower CPM through averages. Up to this point, other than normal maintenances, everything has been doing quite well.



**BTW, I think Rawze has some ridiculously low CPM numbers as well....it can def be done, just takes a load of diligence and attention to detail**
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 Thanks given by: Waterloo
07-05-2020, (Subject: END OF YEAR #'S; few thoughts for the newbies ) 
Post: #26
RE: END OF YEAR #'S; few thoughts for the newbies
Here's a quick breakdown of the larger categories:

Category CPM

Fuel - $0.268 (56,370mi)
Ins - 0.090 (7 months)
PM - 0.087
Repair - 0.062
Phone/Int - 0.019
WorkWear
- 0.008
Bookkeeping - 0.003
IFTA- 0.001


These are the 7 of the 15 categories I have my expenses divided into to give an idea where the pennies add up. The others are minuscule, but combined make up the rest of the .028 of my CPM to this point in the year.

This is from the beginning of the year to the time of the post. Calculated off of the expenses divided into the miles ran in that period (56370mi).
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 Thanks given by: JimT , hookliftpete
10-13-2020, (Subject: END OF YEAR #'S; few thoughts for the newbies ) 
Post: #27
RE: END OF YEAR #'S; few thoughts for the newbies
Another quick update for those interested....


2020 IFTA (3rd quarter) - 8.58mpg
Expense/Mile - $0.55 (since beginning of 2020 - present)


Was hoping for that IFTA to be closer to the 8.8 - 8.9mpg range, so that is a little disappointing however, I'm fairly certain I can blame weather patterns in the South this year for that. We have has a VERY wet last couple months or so and loads have been @ gross or over majority of the time.

- I'm about .4mpg less from last year this time (according to IFTA). Looking back at last year's loads I noticed the amount of pallets I was hauling was a higher average, meaning they were lighter. The grass was also very consistent in type meaning a little easier aerodynamically since the pallets were close in size. This year has been all over the place with types of grass, so the size consistency didn't exist (maybe this has something to do with it).

Still managed to knock off an additional .02 on the CPM which is nice.
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 Thanks given by: Rawze , Waterloo , hookliftpete





  
  
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