dump truck profit

[deere88]

how many hours per week does a dump truck need to be run in order to pay for itself and pay the driver? just wandering because I need one to move my machines, I just dont want to ware it out, just to pay for itself.


I am thinking about the international 7600 with the cummins......whats your thoughts?

 

[busdrivernine]

Alot depends on what the pay rate is for the truck , minus all operating expense that it takes to run the truck . around here we are right now working 10 hrs a day 5 days a week when time changes then we will drop back to 9.5 hrs a day 5 days a week . Hope this helps

 

[PSDF350]

how many hours per week does a dump truck need to be run in order to pay for itself and pay the driver? just wandering because I need one to move my machines, I just dont want to ware it out, just to pay for itself.


I am thinking about the international 7600 with the cummins......whats your thoughts?

Monthly payment + insurance + dot fees + registration + maintanance + driver = x amount. Then divide that by amount paid per hour (minus say $25 hr fuel) will tell you how many hours.

 

[dumptrucker]

It costs me about 35 an hour to run my truck. Now I don't have a monthly payment or a driver to pay. That 35 an hour goes to paying insurance,registration,permits,maintainence,breakdowns,fuel,tires and taxes.
So after all that I am putting about 40 an hour in my pocket. Not to bad.
But add a truck payment and a driver and that is going to drop. About 10 dollars less with a truck payment and another 20 for driver payment. Then you are only putting about 10 dollars an hour in your pocket, ouch! You can make money with a truck if you do it right.

I started out with a cheap truck cost me 10 grand , only a 200 a month payment on it. I ran it hard for 3 years , spent about 2 to 3 grand a year in breakdown costs and was able to make enough money to pay for my newer truck, 40 grand, in cash. Now I have got a good truck with no payment. I still would be running the other truck if this truck hadn't fallen in my lap. I used to laugh when listening to these guys that have to have a pretty truck and go spend 150 grand whine about not making money, and then I roll up with my "junk" and I am charging the same hourly rate as them , but putting more in my pocket.

 

[Bellboy]

How would you work off, or use a semi dump truck, say 20m3?

 

[LowBoy]

I always have to chuckle to myself about the same thing.My last truck ('97 379) I bought used was 3 yrs. old with about 525K on an N-14. I rolled rods & mains in immediately (although could have put the old ones right back in,) and drove it 6 years more. All the while I ran it (note: I went to Kansas and saved 15K on the truck compared to the northeast...no winters in salt, etc.) the guys with the brand new large units with thier $2,500.00/month mortgages all criticized me, the Underdog, for having a used Pete with over half a million miles, no full lockers, 46 rears, etc. I did the same amount of work as they did,with a 1/3rd the payment, ran and paid for it and kept it going another 2.5 years.

They criticized me even more then, because I had no more "writeoffs". I will always gladly trade with them on this issue. They pay $30,000.00 per year in payments to the finance company alone, not counting self employment taxes, etc. Big deal they get to write off a little interest and depreciation...they can only do that for 3 years anyways...and have to constantly stay in debt buying newer trucks every 3rd year with that mentality. It was costing me around 7 grand a year in self employment tax, plus some minor repairs figured in, but way below 30 grand...who had the last laugh then? Why work just to exist is my point.

It's fine to do things like that when you have a good, solid businees that will continue to grow and profit, but in the owner operator trucking sector, things are tight and it takes some dicipline to survive in it.

 

[petersfamilytru]

A cheaper, older dump truck with a smaller engine... You just don't need 525 hp to run at 48-52,000 gvw... Unless your using a transfer dump or pulling a 4 axle dump trailer.

I have an old narrow hood Kenworth W-924 with a small cam 350 cummins. It has plenty of power and will run day in and day out... If there is work, which there isn't. But that isn't the trucks fault!

My new tractor/trailer setup doesn't profit near as much per hour as that old KW dumptruck.

If you look at any of the sand & gravel outfits with 20 or 30 power units, they always run older, low horsepower trucks. It just makes sense! It's the single truck owner/operators who think it's cooler to drive a fancy truck and live in a dump, than drive an older truck and have some money left over!

My dumptruck hasn't work in months... I couldn't imagine how bad it would suck to have payments on a truck that doesn't work.

 

[Bellboy]

I love the old Merc trucks, especially the day-cabs, but what kind of work would you do with them? I always thought you could just put your services out there, but what can you use the truck/ smei trailer setup it for?

 

[Turbo21835]

Hmmm, I havent seen anyone mention the fact that they need to be making enough money per hour to cover replacement cost. Eventually that old clunker is gonna break and you will need to buy a new clunker

 

[dumptrucker]

Hmmm, I havent seen anyone mention the fact that they need to be making enough money per hour to cover replacement cost. Eventually that old clunker is gonna break and you will need to buy a new clunker

Apparently you didn't see my reply. See below.

I started out with a cheap truck cost me 10 grand , only a 200 a month payment on it. I ran it hard for 3 years , spent about 2 to 3 grand a year in breakdown costs and was able to make enough money to pay for my newer truck, 40 grand, in cash.

 

[Dwan Hall]

how many hours per week does a dump truck need to be run in order to pay for itself and pay the driver? just wandering because I need one to move my machines, I just dont want to ware it out, just to pay for itself.


I am thinking about the international 7600 with the cummins......whats your thoughts?

I didn't think dump trucks were suppose to pay for them self. I thought they were a necessary evil.

Dose not mater if it is paid for or not you still have to spread the cost of the truck over the total time you own it. The longer you own it the less the investment cost. excluding maintenance and fuel which needs to be factored into the over all cost.

You need to fill n your own costs as ever ones is a little different.

cost of truck / total hours expected use
if your truck cost $100,000.00 and you ran it for 20 hours per week for 5 years it would be around 200,000miles or 4800 hours @ 40 mph.
$100,000/4800 = $20.00 /hr.

Fuel @ 8 gal/hr * $4.00 = $32.00
driver + benefits $20.00 that is if you can get someone to drive for that price. should be at least $37.50/hr.
Maint.? depends on the truck, driver, etc. lets say $4.00/hr
Tires 10*$350/20,000miles @ 40 mph = $7.00/mi
insurance? $2,000 year/ hours used =?
Highway use tax/Hours used =?
business property tax / Hours used =? This one does not apply to all states.

Using these figures it should cost someware around $80.00 per hour to operate. a little less if it is used a lot.
If you are the driver you still need to take a wage.
the owner or company also needs to make a profit.

Get the picture?

I was told 1/3 for the co.
1/3 for the truck
1/3 for the operator. was a good rule of thumb.

 

[nedly05]

I didn't think dump trucks were suppose to pay for them self. I thought they were a necessary evil.

Dose not mater if it is paid for or not you still have to spread the cost of the truck over the total time you own it. The longer you own it the less the investment cost. excluding maintenance and fuel which needs to be factored into the over all cost.

You need to fill n your own costs as ever ones is a little different.

cost of truck / total hours expected use
if your truck cost $100,000.00 and you ran it for 20 hours per week for 5 years it would be around 200,000miles or 4800 hours @ 40 mph.
$100,000/4800 = $20.00 /hr.

Fuel @ 8 gal/hr * $4.00 = $32.00
driver + benefits $20.00 that is if you can get someone to drive for that price. should be at least $37.50/hr.
Maint.? depends on the truck, driver, etc. lets say $4.00/hr
Tires 10*$350/20,000miles @ 40 mph = $7.00/mi
insurance? $2,000 year/ hours used =?
Highway use tax/Hours used =?
business property tax / Hours used =? This one does not apply to all states.

Using these figures it should cost someware around $80.00 per hour to operate. a little less if it is used a lot.
If you are the driver you still need to take a wage.
the owner or company also needs to make a profit.

Get the picture?

I was told 1/3 for the co.
1/3 for the truck
1/3 for the operator. was a good rule of thumb.

Excellent post, Dwan!!:thumbsup

 

[Greg]

Fuel, license, maintenance, tires, hired driver screw ups, you will never break even let alone make money.

 

[dieselcat]

Fuel, license, maintenance, tires, hired driver screw ups, you will never break even let alone make money.

where are you getting your information? obviously it makes money or people wouldnt be doing it :beatsme

 

[Greg]

Sure are a plile of them for sale around here now. Lots of guys getting in and getting out in short time. Ya, I got dump trucks but they only get used when they have to. A lot of aggregate suppliers have trucks too. Seems like the quarries subdizie the the trucks and are a necessary evil to deliver material.

 

[Buster F]

The only time i made money with my dump truck was the day i sold it

 

[Dwan Hall]

where are you getting your information? obviously it makes money or people wouldnt be doing it :beatsme

Like I said earlier "I thought they were a necessary evil."
@ less then $100/hr. you may be able to make a wage for the driver but you will not make a profit for the business and pay the overhead.
Why are people doing it? because they have to support the other equipment on the job. and they do it at a loss.

 

[CM1995]

driver + benefits $20.00 that is if you can get someone to drive for that price. should be at least $37.50/hr.
.

$37.50 at 40 hours per week = $1500 gross per week
50 weeks per year = $75,000 gross

I have a Class A, hiring?

 

[Dwan Hall]

(driver + benefits $20.00 that is if you can get someone to drive for that price. should be at least $37.50/hr.)
That is my cost for a driver not the drivers gross. Health insurance, Unemployment tax, My part of the union fees, including fringe benefits, etc. Driver gross is about $26.10/hr.
My small business is set up for 2 people. (wife and me)

Sorry no employees here.

 

[CM1995]

Just a little ribbin' Dwan, the cost of living in Alaska is more than down in the lower 48, especially the southeast.

Our going rate for a driver is $13-15 per hour plus all the other expenses you mentioned, other than union dues, which puts us in the $20 +/- range per hour for total labor burden.