Costing Advice

B

Bailey

Cooling off
Aug 26, 2010
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Hi Group.... I need some help/advice. I was asked how much does a highway/cross border truck need to bill in revenue for 1 week in order to keep profitable and constantly improve on services....I gave a figure of $8000.00 CND.
Now I have been asked to give a billed revenue per week for a local cartage truck???? Can anyone shed some light on this one? Any feedback would be appreciated. Have a good day!
 
Although it has been a few years since I operated local cartage trucks, we used to set a minimum of $500.00 per day of revenue. Again, that was some time ago and I'm sure some of the members will be able to offer you a much more current figure.
 
Hi Loaders, thank you very much....that figure was what I had in mind but didnt want to present this without at least one more to confirm.
 
I would say closer to $600.00 these days, depending on how much you pay your driver. Lots of owner operators will run for you for $37-40 per hour but when you add up your inside costs, building, phones, trailers etc you will need to be in the $60.00 range in revenue. Of course the more you have the more spread out your admn costs are and your cost per unit will come down.
 
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Hey Rob, I know the $8000 was an inflated amount....but wouldnt it be nice! Thanks for the posting.
 
A highway power unit should be grossing about $225-$250K per year which includes the trailers associated with it. This is with new equipment too.

A cartage truck would need much less because the equipment is less expensive, the drivers are less expensive too. I'd say for cartage it's probably about $150K annually per power unit.
 
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