Unorganized small business owner-operators often lack the tools and techniques needed to track costs associated with miles driven—both loaded and empty (deadhead) miles. Without this visibility, they frequently miss out on profitable load opportunities and struggle to understand their true cost per mile. Investing in the best trucking software can help bridge this gap by providing accurate tracking, real-time analytics, and route optimization. profitability.
Trips’ Profit Sheet:
[table id=4 /][table id=5 /][table id=6 /]
Variable Costs:
- Fuel charges: Fuel is a major expense and often costs as much as driver pay. The fuel charge varies by place and State where you refill and significantly influences per-mile cost. The more you drive, the more is the cost. Tracking the costs over the routes helps establish relationships and provides insights on finding profitable routes.
Fuel Cost per Mile: Total Fuel cost / Total Number of Miles
- Driver Pay: The Trucking industry work environment differ substantially from regular industries in terms of hours of service, payrates and work schedules.
- Dispatcher Pay: The dispatcher is similar to a factory foreman. The dispatcher manages booking the loads, scheduling, coordinating, follow-up, and delivery management.
- Tolls and Special permits: When applicable, these charges also play a role in influencing the per mile cost and should be tracked.
- Fuel Taxes (IFTA): Fuel taxes are based on amount consumed.
Fixed Costs in Trucking:
Insurance: Insurance premiums are typically based on an estimate of monthly miles driven.
Depreciation: Truck and equipment depreciation is calculated based on the number of miles driven. The more miles driven, the greater the depreciation. Assumptions about the residual value and estimated useful life can impact the depreciation cost.
Depreciation Formula:
Depreciation = (Cost of Equipment – Residual Value) / Estimated Miles Driven
Administration:
The costs of doing business, along with all fixed overheads, should be tracked and allocated based on the number of miles driven.