Can someone starting out with a brokerage turn a profit?
Hello all!
I've recently began the steps to begin research buying my own truck and end dump trailer
i have found in my eyes the best way to "get my toes wet" is through either a rental or lease program for both tractor and trailer
That being said I have called a few local companies who offer what I am looking for (M-F home at night) so far I've had some offers for pulling their trailers and spoke with a brokerage about pulling my own trailer.
Well the broker said he charges 10% flat and drivers are making gross $5000-$5500 a week at around 400 miles a day. So I started doing math and here's what I found
$260,000 gross pay from broker
-$44,400 truck rental year
-$15,750 truck rental maintenance program
-$18,000 end dump trailer rental for year
-$94,000 fuel based on 400 mi @ 5mpg @$4.50 a gallon
-$20,000 insurance for year from progressive
-$10,000 miscellaneous business expenses
That equals a gross take home of only $57,850 a year less 33% for my employee taxes that equals a NET INCOME of $38,759 a year
Thats only $13.59 an hour how in the world can I make money on that? And what am I doing wrong out of the gate that is getting me such a low hourly wage.
Also is $5000-$5500 a week good for end dump driver with their own truck trailer and authority on a home daily Monday through Friday schedule in the Midwest?