Actual Annual Lease Op Numbers
Topic 25019 | Page 1
What is the experience level of this driver?
Annual Gross Revenue: $232.344
Miles driven: 143,443
$233,344 ÷ 143,443 = 61cpm
Lease op = 61cpm in SOME team training
Company solo LW = 49cpm + 5cpm average bonuses = 54cpm
Operational Costs: $143,592 (This number includes insurance, tolls, QC, apps, fuel tax, prepass in addition and the following)
Truck Payment $45,751
Fuel $45,775
TNT $16,693
Annual Gross - Operation Costs
$233,344 - $143,592
Total NET Revenue: $88,752
Tax Liability: $14,376
Profit: $88,752 - $14,376 =
$74,376
So $88,752 before taxes, no insurances (health vision dental life or disability), no 401k
$74,376 After taxes 61cpm
That is a great breakdown. So, the $74,376 is still before the "benefits?"
I admit, that a small part of me wants a fully decked out Pete with a 360" wheelbase, 120" sleeper. But, the more sane part of me, just really, likes to look at them. 😁
Dm:
Dispatcher, Fleet Manager, Driver Manager
The primary person a driver communicates with at his/her company. A dispatcher can play many roles, depending on the company's structure. Dispatchers may assign freight, file requests for home time, relay messages between the driver and management, inform customer service of any delays, change appointment times, and report information to the load planners.CPM:
Cents Per Mile
Drivers are often paid by the mile and it's given in cents per mile, or cpm.
OWI:
Operating While Intoxicated
TNT:
Trainer-N-Trainee
Prime Inc has their own CDL training program and it's divided into two phases - PSD and TNT.
The PSD (Prime Student Driver) phase is where you'll get your permit and then go on the road for 10,000 miles with a trainer. When you come back you'll get your CDL license and enter the TNT phase.
The TNT phase is the second phase of training where you'll go on the road with an experienced driver for 30,000 miles of team driving. You'll receive 14¢ per mile ($700 per week guaranteed) during this phase. Once you're finished with TNT training you will be assigned a truck to run solo.
Driving 5 years training PSD & TNT
This is his 2nd lease
And I need to make a correction!!! Sorry...
$232,344 ÷ 143,443 = $1.61 PER MILE BEFORE all of the operation costs
THE Operation costs are $1 per mile so the figures are still true, somehow i missed a line when i posted it.
Operation costs $143,592 ÷143,443 = $1 per mile
Which leads to the 61cpm after costs but before taxes
CPM:
Cents Per Mile
Drivers are often paid by the mile and it's given in cents per mile, or cpm.
PSD:
Prime Student Driver
Prime Inc has a CDL training program and the first phase is referred to as PSD. You'll get your permit and then 10,000 miles of on the road instruction.
The following is from Prime's website:
Prime’s PSD begins with you obtaining your CDL permit. Then you’ll go on the road with a certified CDL instructor for no less than 75 hours of one-on-one behind the wheel training. After training, you’ll return to Prime’s corporate headquarters in Springfield, Missouri, for final CDL state testing and your CDL license.
Obtain CDL Permit / 4 Days
- Enter program, study and test for Missouri CDL permit.
- Start driving/training at Prime Training Center in Springfield, Missouri.
- Work toward 40,000 training dispatched miles (minimum) with food allowance while without CDL (Food allowance is paid back with future earnings).
On-the-Road Instruction / 10,000 Miles
- Train with experienced certified CDL instructor for 3-4 weeks in a real world environment.
- Get 75 hours of behind-the-wheel time with one-on-one student/instructor ratio.
- Earn 10,000 miles toward total 40,000 miles needed.
TNT:
Trainer-N-Trainee
Prime Inc has their own CDL training program and it's divided into two phases - PSD and TNT.
The PSD (Prime Student Driver) phase is where you'll get your permit and then go on the road for 10,000 miles with a trainer. When you come back you'll get your CDL license and enter the TNT phase.
The TNT phase is the second phase of training where you'll go on the road with an experienced driver for 30,000 miles of team driving. You'll receive 14¢ per mile ($700 per week guaranteed) during this phase. Once you're finished with TNT training you will be assigned a truck to run solo.
This is a perfect example of why doing a lease with the vast majority of carriers is such a bad idea. $2 a mile is the absolute minimum a truck needs to generate and it's also the number that a lot of actual owner operators look for as a bare minimum. Large carriers can survive on lower rates because of the volume of service provided and they could care less how many people try and fail in a particular truck because one way or another, that truck is going to make money.
Owner Operator:
An owner-operator is a driver who either owns or leases the truck they are driving. A self-employed driver.
These settlements are between 5 and 20 pages, no lie. i have enough friends to give me their settlements but my laptop died in the middle of me posting.
Two year driver solo 1 week
Gross Revenue: $4,172
Miles: 2367
Operation Costs: $2,895
NET Revenue BEFORE taxes: $1,277
Gross Revenue per mile: $1.76 Operation costs per mile: $1.22
NET Revenue per mile 54cpm
CPM:
Cents Per Mile
Drivers are often paid by the mile and it's given in cents per mile, or cpm.
Doing linehaul I made 75k last year at 55 cpm until my 1 year raise in September which bumped me up to 64 cpm. When I get my 2 year raise in September I will be top scale it should be me at or over 70 CPM. All while mostly the 2 shortest runs at my terminal.
I get paid 2 weeks vacation, plus my birthday, health insurance and 401k. Plus I only had to work 5 days a week sometimes 4 when if it was slow. The best part is no financial risk to me, leasing or being a owner sound good on paper but when I researched it a few years ago the numbers didnt add up.
Terminal:
A facility where trucking companies operate out of, or their "home base" if you will. A lot of major companies have multiple terminals around the country which usually consist of the main office building, a drop lot for trailers, and sometimes a repair shop and wash facilities.
Linehaul:
Linehaul drivers will normally run loads from terminal to terminal for LTL (Less than Truckload) companies.
LTL (Less Than Truckload) carriers will have Linehaul drivers and P&D drivers. The P&D drivers will deliver loads locally from the terminal and pick up loads returning them to the terminal. Linehaul drivers will then run truckloads from terminal to terminal.CPM:
Cents Per Mile
Drivers are often paid by the mile and it's given in cents per mile, or cpm.
Operating cost was $1.00 per mile?!?! That’s awful! I haven’t even gotten to do a whole year yet as an O/O, and I’m right around .70 per mile, and that’s not good because I’m still learning and making my share of mistakes. Thanks for showing these real numbers, Rainy. You’re a Superstar! Maybe some will read this and actually comprehend this information. Unfortunately, he probably won’t.
OWI:
Operating While Intoxicated
They're literally setting people up for failure and don't feel the least bit guilty about it, that's the sad part. The company I'm with has a lease program but there's very few drivers in it. One of the biggest differences though is that nobody is buying a truck, they get cycled out every 3 years just like the company trucks so everyone is always in a new truck. Our trucks aren't cheap either , not that any are but to buy this 567 I'm in, set up the same way costs right at $194,000. The W9 is $205,000.
Rainy that is awesome!! My truck costs .80 cpm to start the engine. In chemicals with percentage I do better with some of the shorter loads because they pay pretty good per mile rates and not as many miles. When I run to the west coast they really gotta make it worth my while because my fuel bill goes up 500.00 each way.
My girlfriend is working for a large refer company and some of the things she tells me is mind boggeling. They really push the lease thing very hard and strong. She got me a copy of their lease contract and the numbers. I sat her down and showed her on the calculator where as a general rule she isn’t going to make very good money. They pay mileage not petcentage. I also asked where the rest of the lease agreement was. She said that was all of it. 2 pages. Sorry there is alot missing there.
Needless to say she isn’t going for it.
CPM:
Cents Per Mile
Drivers are often paid by the mile and it's given in cents per mile, or cpm.
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Annual Gross Revenue: $232.344
Miles driven: 143,443
$233,344 ÷ 143,443 = 61cpm
Lease op = 61cpm in SOME team training
Company solo LW = 49cpm + 5cpm average bonuses = 54cpm
Operational Costs: $143,592 (This number includes insurance, tolls, QC, apps, fuel tax, prepass in addition and the following)
Truck Payment $45,751
Fuel $45,775
TNT $16,693
Annual Gross - Operation Costs
$233,344 - $143,592
Total NET Revenue: $88,752
Tax Liability: $14,376
Profit: $88,752 - $14,376 =
$74,376
So $88,752 before taxes, no insurances (health vision dental life or disability), no 401k
$74,376 After taxes 61cpm
CPM:
Cents Per Mile
Drivers are often paid by the mile and it's given in cents per mile, or cpm.
OWI:
Operating While Intoxicated
TNT:
Trainer-N-Trainee
Prime Inc has their own CDL training program and it's divided into two phases - PSD and TNT.
The PSD (Prime Student Driver) phase is where you'll get your permit and then go on the road for 10,000 miles with a trainer. When you come back you'll get your CDL license and enter the TNT phase.
The TNT phase is the second phase of training where you'll go on the road with an experienced driver for 30,000 miles of team driving. You'll receive 14¢ per mile ($700 per week guaranteed) during this phase. Once you're finished with TNT training you will be assigned a truck to run solo.