OT - buying a semi advice

Anyway,...

Son was working for a gravel hauler and they shut down. He wants to buy his 2001 Mack for 55K. He has two places lined up for hauling grain and/or fertilizer. Both say there's plenty of work, but who knows.

Would appreciate any advice on putting together a business plan.

Thanks - Dave (IL)

Jdman, the grain and fertilizer are from west of Joliet/Shorewood so I suspect he'd be hauling to the same places you were. They were only quoting 12c/bushel. Shorter distance or just putting the squeeze on?

Thanks again to all.

Been there done that.

I was having problems hauling sand in one of the fastest growing metropolitan areas in the country when D was $1.00 a gal. Was getting $1.40 a hub mile. Had an older truck and no payments so that saved $1 to 1.5k per month in net income required. Insurance was right at $1k per month and the DOT tag was 500 per year.

Speaking of DOT they are always on your case and now counties and towns have their own scales so you are constantly hounded.

Every time you break down (which is often) it's $500 to $1k plus you lost your income for the time you're down so it is double jepordy.

And if you are on the same route it gets mighty boring.

Then there's traffic. Gotta get up at 4 am to get a couple of loads before the 7 am rush hour; then about 10 am that clears out till 11 am when the lunch croud breaks out.

That goes till 1 pm then you have a couple of hours before the 3pm early workers get off and that lasts till 6 pm.

But the pit opens at 6 am and closes at 5 pm. And at the pit are long lines of trucks waiting to get loaded so you sit for as long as it takes you to make a lap..... .and on and on.

Can't win.

Mark

Really it all comes down to who you haul for. You put the answer you are looking for in your post. but who knows

I know nothing about hauling it but it seems to me that grain and/or fertilizer would be a spring and fall job. You need a year round job. Then if you have one some fool wants to do it cheaper so you are out looking for work.

It cost my company over $20,000 a month to keep a truck on the road. We do have a new leased truck and trailer; and that does include driver pay but as you can see it takes mega bucks.

I assume you will be hauling for some one else so you will be under there lease. Even if he is a private carrier and has no authority you can still lease to him and pull under his private carrier authority. You need to check to see what he pays and what he pays for. Some but not all provide the base plate; insurance; reduced fuel prices; ect..... You pay for it in the long run through reduced pay per load.

But to put together a plan for a one truck business would look like this. 1)Truck note
2)Trailer note
3)Insurance
4)Payroll (what you need to make)
5)Payroll Taxes (you need to pay the business side of SS. Extra 7%)
6)Fuel (figured at 5 to 6 mpg and what you figure fuel to cost) We got 7.5 average out of our 2000 Pete but some do not get that.
7)Maintence (oil changes and repairs)
8)Tires (one set per driver per year if you buy new. More for caps)
9)Tempoary Rental Truck (you may need this one day)
10)Dot Safety inspection
11)Home office/ Miscellaneous
Again this assumes you need no authority or IFTA sticker because it is provided in the lease.