Home > Forum > Power Only In South Dakota Minimum Revenue Guaranteed

Power only in South Dakota - Minimum Revenue Guaranteed

Sep 29, 2016 at 07:37 PM CST
+ 1 - 1
I am looking for a couple short term trucks (with the potential to become a permanent arrangement) to pull our hopper bottom doubles doing local/regional hauling in central and eastern South Dakota Trucks can start immediately and this will last until sometime in November.

We are committed to making this a mutually beneficial deal and are willing to contractually guarantee minimum revenues to ensure that this is a worthwhile deal for anyone who signs on. Most days trucks will run between 2-6 round-trip short hauls and will total 300-500 miles. Loads are usually available 7 days a week during harvest. There are times when we do hourly type work. We do our best on our end to mitigate time spent in lines waiting to load or unload. There would be some field loading, but only in ideal conditions and the customers we work with do a very good job of getting us loaded and back on the road quickly.

Trucks with a pusher axle are preferred but not mandatory. You will need to license your truck in SD for 150,000# if you have a pusher axle and 142,000# if you don't have one. For trucks that already have SD commercial plates, the cost to increase your tonnage from 40 tons to 75 tons during this time will cost less than $300. For out of state licensed trucks it will most likely cost even less as it goes by percentage of miles driven in SD. Trucks will also need to put an additional insurance policy on trailer. The cost of this is minimal and we are willing to reimburse you for this.

We are paying $2.15/mile on ALL dispatched miles (loaded or empty) for trucks with a pusher axle and $2.00/mile for trucks without a pusher axle. We will pay you once we have been paid, up to 30 days max. At 30 days we pay you regardless of whether or not we have been paid. Quick pay is available for a small fee. Trucks that elect to take quick pay will be paid about 48-72 hours after each load. That could be even quicker depending on what we can work out to get paperwork turned in to our office.

We're not trying to hide anything here and with that said I'll outline a couple of things that are different when pulling doubles. You will only get 3.5-4.5 mpg. Pulling the heavier weights is harder on your truck. But for anyone out there looking for some steady work for a couple months, this is an opportunity to bring home decent money. Most weeks, the truck can expect to gross between $4,000-6,000.

Anyone interested can call or text on my cell or you can email me or message me on here.

Austin Olson
AO Express Inc
6057705600
[email protected]
Replied on Thu, Sep 29, 2016 at 08:32 PM CST
+ 5 - 1
Sir not trying to be negative, but at that rate, you will drive a guy into bankruptcy over night.
Replied on Fri, Sep 30, 2016 at 06:56 AM CST
+ 3
If ur dumb enough to haul 2 loads at the price of 1 have at it
Replied on Fri, Sep 30, 2016 at 08:04 AM CST
+ 1
there would be so much money to be made i will buy 20 brand new trucks to put on sign me up R u -----ng kidding me i would have been embarrassed to post this any one who does this remember if you want to work for free call me i have plenty of openings
Replied on Fri, Sep 30, 2016 at 08:50 AM CST
if this is such a great deal why are you looking for drivers. you should have a line of people waiting to do this
Replied on Fri, Sep 30, 2016 at 08:59 AM CST
+ 1 - 1
I guess If u read the head line it says minimum revenue. That's pretty much it minimum.
Replied on Fri, Sep 30, 2016 at 01:30 PM CST
What a fing joke so after expenses take home will be what a loaf of bread and some government cheese.
Replied on Fri, Sep 30, 2016 at 04:28 PM CST
+ 1
$2.15 ha ha I make that pulling one trailer! This what happens when a farmer gets into trucking. Good luck


Replied on Fri, Sep 30, 2016 at 06:34 PM CST
- 2
Originally Posted by: AMANDA PARKER
Quote: "there would be so much money to be made i will buy 20 brand new trucks to put on sign me up R u -----ng kidding me i would have been embarrassed to post this any one who does this remember if you want to work for free call me i have plenty of openings"

Hey nice lady I know if I was going to go over the road I would definitely come to work for you you seem like a great person. I would love to run the run you got from your backyard to my backyard. I'm just too lazy to go over the road plus I like to bug all the kids. You have a good weekend
Replied on Mon, Oct 03, 2016 at 08:07 PM CST
+ 2
Jason - Over the years I've watched people post on this forum and after a while you start to feel like you can understand who they are. While I don't always agree with some of the things you post, I do think you have a good understanding of the financial side of your business, and I respect that a lot. Everyone looks at things differently when it comes to the business side of trucking. With my trucks, we have certain targets for revenue/mile, revenue/hour, and revenue/day. Of course, we also have monthly, quarterly and annual goals, but I have learned that if we can hit our targets for all three of those categories, we do well.

Anyway, after reading all the comments about how bad the numbers we offered were, I decided to sit down and reevaluate. I think I have put together pretty accurate numbers and I don't believe I missed much. Here is how I arrived at the numbers.

The truck payment was assuming a new glider at a cost of $160,000 financed with no downpayment at 5.5% interest over 5 years. The figures below just show the payment and do not reflect any equity that will be built over the life of the loan. If we were to assume that this truck has a value of $60,000 and was paid for at the end of 5 years, it would have built up an additional $1,000/month of equity over the numbers below.

Fixed Expenses: Regarding insurance, I currently average about $8,000-9,000 per unit which covers a truck, two trailers, and a converter dolly. The cost to license a 40 ton truck in South Dakota is about $1460. I am offering to pay for the tonnage increase so I think $2,000/year should more than cover any other fees that may pop up. HVUT is about $550, over 80k on the interstate is about $65, IFTA costs per year are very minimal when running mostly in state miles. With just one truck, professional fees should be minimal. A cell phone is something everyone has anyway, but I put it on here regardless.

Variable Expenses: It should not be a problem to get 3.75 mpg even pulling doubles. A more likely number is 4.0-4.25. With this truck being new it will have some warranty. If you are someone who doesn't like or want new, just subtract from the truck payment and add to maintenance. You are going to pay the mechanic or the banker one way or another. A smart man once told me you can stop paying the mechanic if you aren't busy but the banker still wants paid. I added in some expense for washing the truck and some more miscellaneous expenses.

If anyone is still actually reading this, I am impressed! I feel a little like Alfred! Just kidding Alfred, I actually really enjoy reading your posts :) But seriously now, for anyone who is still reading, I would like to hear your thoughts. I like to think I understand my business pretty well and know my numbers really well, but I'm sure I could be missing something. Otherwise, in an industry where operating ratios below 90% are considered excellent and 20% profit margins are extremely tough to hit, can someone tell me why this is so bad? With actual numbers rather than just


Gross Truck Income
Per Week 8 week total
$2.15/mile on 2325 miles/week
$ 4,999 $ 39,990




Fixed Expenses Annual Per Week 8 week total
Truck Payment $ 36,674 $ 705 $ 5,642
Commercial Auto Insurance (includes GL, Comp & Collision, Cargo) $ 10,000 $ 192 $ 1,538
License Plates $ 2,000 $ 38 $ 308
Permits/IFTA/HVUT $ 1,000 $ 19 $ 154
Professional Services (accounting, legal, etc) $ 500 $ 10 $ 77
Cell Phone $ 1,000 $ 19 $ 154
Miscellaneous $ 500 $ 10 $ 77
Total Fixed Expenses $ 51,674 $ 994 $ 7,950




Variable Expenses Per Mile Per Week 8 Week Total
Diesel Fuel $2.40/gallon @ 3.75 mpg $ 0.640 $ 1,488 $ 11,904
Tires $ 0.065 $ 151 $ 1,209
Preventative Maintenance $ 0.100 $ 233 $ 1,860
Repairs - Non-PM & non-warranty items $ 0.050 $ 116 $ 930
Truck Wash & Washout $ 0.030 $ 70 $ 558
Misc Expenses and Losses $ 0.050 $ 116 $ 930
Total Variable Expenses $ 0.935 $ 2,174 $ 17,391
Total Expenses
$ 3,168 $ 25,341
Per Week 8 Week Total
Net Income
$ 1,831 $ 14,649
Operating Ratio 63.4%
Net Profit Margin 36.6%

Replied on Tue, Oct 04, 2016 at 11:20 AM CST
Originally Posted by: AUSTIN OLSON
Quote: "Jason - Over the years I've watched people post on this forum and after a while you start to feel like you can understand who they are. While I don't always agree with some of the things you post, I do think you have a good understanding of the financial side of your business, and I respect that a lot. Everyone looks at things differently when it comes to the business side of trucking. With my trucks, we have certain targets for revenue/mile, revenue/hour, and revenue/day. Of course, we also have monthly, quarterly and annual goals, but I have learned that if we can hit our targets for all three of those categories, we do well. Anyway, after reading all the comments about how bad the numbers we offered were, I decided to sit down and reevaluate. I think I have put together pretty accurate numbers and I don't believe I missed much. Here is how I arrived at the numbers. The truck payment was assuming a new glider at a cost of $160,000 financed with no downpayment at 5.5% interest over 5 years. The figures below just show the payment and do not reflect any equity that will be built over the life of the loan. If we were to assume that this truck has a value of $60,000 and was paid for at the end of 5 years, it would have built up an additional $1,000/month of equity over the numbers below. Fixed Expenses: Regarding insurance, I currently average about $8,000-9,000 per unit which covers a truck, two trailers, and a converter dolly. The cost to license a 40 ton truck in South Dakota is about $1460. I am offering to pay for the tonnage increase so I think $2,000/year should more than cover any other fees that may pop up. HVUT is about $550, over 80k on the interstate is about $65, IFTA costs per year are very minimal when running mostly in state miles. With just one truck, professional fees should be minimal. A cell phone is something everyone has anyway, but I put it on here regardless. Variable Expenses: It should not be a problem to get 3.75 mpg even pulling doubles. A more likely number is 4.0-4.25. With this truck being new it will have some warranty. If you are someone who doesn't like or want new, just subtract from the truck payment and add to maintenance. You are going to pay the mechanic or the banker one way or another. A smart man once told me you can stop paying the mechanic if you aren't busy but the banker still wants paid. I added in some expense for washing the truck and some more miscellaneous expenses. If anyone is still actually reading this, I am impressed! I feel a little like Alfred! Just kidding Alfred, I actually really enjoy reading your posts :) But seriously now, for anyone who is still reading, I would like to hear your thoughts. I like to think I understand my business pretty well and know my numbers really well, but I'm sure I could be missing something. Otherwise, in an industry where operating ratios below 90% are considered excellent and 20% profit margins are extremely tough to hit, can someone tell me why this is so bad? With actual numbers rather than just Gross Truck Income Per Week 8 week total $2.15/mile on 2325 miles/week $ 4,999 $ 39,990 Fixed Expenses Annual Per Week 8 week total Truck Payment $ 36,674 $ 705 $ 5,642 Commercial Auto Insurance (includes GL, Comp & Collision, Cargo) $ 10,000 $ 192 $ 1,538 License Plates $ 2,000 $ 38 $ 308 Permits/IFTA/HVUT $ 1,000 $ 19 $ 154 Professional Services (accounting, legal, etc) $ 500 $ 10 $ 77 Cell Phone $ 1,000 $ 19 $ 154 Miscellaneous $ 500 $ 10 $ 77 Total Fixed Expenses $ 51,674 $ 994 $ 7,950 Variable Expenses Per Mile Per Week 8 Week Total Diesel Fuel $2.40/gallon @ 3.75 mpg $ 0.640 $ 1,488 $ 11,904 Tires $ 0.065 $ 151 $ 1,209 Preventative Maintenance $ 0.100 $ 233 $ 1,860 Repairs - Non-PM & non-warranty items $ 0.050 $ 116 $ 930 Truck Wash & Washout $ 0.030 $ 70 $ 558 Misc Expenses and Losses $ 0.050 $ 116 $ 930 Total Variable Expenses $ 0.935 $ 2,174 $ 17,391 Total Expenses $ 3,168 $ 25,341 Per Week 8 Week Total Net Income $ 1,831 $ 14,649 Operating Ratio 63.4% Net Profit Margin 36.6% "

You did a great job putting together those figures but you forgot to include the driver pay and associated taxes/deductions.
Replied on Tue, Oct 04, 2016 at 11:24 AM CST
Originally Posted by: SCOTT BARRAZA
Quote: "You did a great job putting together those figures but you forgot to include the driver pay and associated taxes/deductions. "

He also forgot to add that this is the bulk industry those rates are for dry freight industry those rates are also for double payload on his trailer. 165000 pounds at 2.15 per mile is an absolute joke anybody that hauls that will go broke overnight gain some knowledge in the dry bulk industry and then you'll have guys standing at your door looking for work the rate you're offering is pretty bad
Replied on Tue, Oct 04, 2016 at 11:30 AM CST
Once he factors in a standard 25% driver pay and the payroll taxes your either driving for free or getting paid to drive and giving your truck away for free. I'm just curious if that was an oversight or intentional.
Replied on Tue, Oct 04, 2016 at 01:14 PM CST
+ 1
Originally Posted by: SCOTT BARRAZA
Quote: "Once he factors in a standard 25% driver pay and the payroll taxes your either driving for free or getting paid to drive and giving your truck away for free. I'm just curious if that was an oversight or intentional. "

He also forgot the 20? for workers comp.

Replied on Tue, Oct 04, 2016 at 01:25 PM CST
Mr. Olson,
I have been going over your numbers, and been trying to read those numbers in a per hour senario. If your numbers do indeed hold water, and I am sure that they do, at 2325 miles per week, averaging 45 mph (this is a loose estimate on my part) is 51.67 hours per week. Assuming a 6 day work week, I am coming up with roughly $96.50 per hour. If this is the case, your offering would be very interesting. As my drivers are paid hourly, rather than milage or percentage based, and they would need to be put in a hotel a few nights a week to shower and recharge, I look for at least a rough amount per hours like that on a power only basis. Of course, these numbers can get sideways in a hurry depending on all the conditions we have come to expect during harvest time. Also, hauling in a overweight enviornment would require a few more dollars per hour, in my opinion. These are just my $.02. I believe that most of what is wrong with our industry is that we are not operating on a per hour basis. Dump trucks operate in this method, along with equipment haulers for construction companies. Tow companies operate per hour, and mechanics shops operate that way as well.
Replied on Tue, Oct 04, 2016 at 01:35 PM CST
- 1
96.50 isn't too good of an hourly rate either. Glad too see so many idiots r in the trucking industry. That's wats wrong wrong with it. 125-150 is more like it
Replied on Tue, Oct 04, 2016 at 02:23 PM CST
+ 1
Originally Posted by: ANTHONY BYE
Quote: "96.50 isn't too good of an hourly rate either. Glad too see so many idiots r in the trucking industry. That's wats wrong wrong with it. 125-150 is more like it"

Thanks for the insight there Toni. Really appreciate you bringing your attitude to the conversation, along with facts and figures.
Replied on Tue, Oct 04, 2016 at 04:53 PM CST
I'll give u numbers I pull a reefer barely ever grossed out. I haul for 3.00 a mile. I run 2000 miles a week. I'm done my round in 3 days and do 6000 a week. My grandfather was making 2 dollars a mile in the 80s so family's been truckin for long time
Replied on Tue, Oct 04, 2016 at 08:38 PM CST
Originally Posted by: ANTHONY BYE
Quote: "I'll give u numbers I pull a reefer barely ever grossed out. I haul for 3.00 a mile. I run 2000 miles a week. I'm done my round in 3 days and do 6000 a week. My grandfather was making 2 dollars a mile in the 80s so family's been truckin for long time"

Good for you Toni. And, I really mean that. The point I was trying to make was this. I've lost money on a great per mile basis, and I have also lost money on a great per hour basis. Its all on which side ofthe coin you are looking at. I'm with you on this: trucks are worth 125 to 150 per hour. In all honesty, if I could nail 96 per and 2 plus for 8 weeks pulling somebody elses 100K setup, getting paid by them as l dont have their customers, and could recoup extra fees: I would take it in a heartbeat. If it were in my backyard. Of course, I would like to nail the 150 mark. I just know, in my neck of the woods, in hopper rates, a whole truck and trailer would be hard pressed to get that. This was a power only thread, and I responded to it that way.
Replied on Wed, Oct 05, 2016 at 07:24 AM CST
i always charge more pull someone else's junk. Never have had a good experance pulling others trailers.
Replied on Wed, Oct 05, 2016 at 03:06 PM CST
- 1
I see these numbers pulling 160,000 lbs.. now ive pulled heavy loads like this before.. you just dont show up with a regular highway type truck with light rears..you need at least heavy 40s with the big axles.. your tire wear is less than 100,000 for tires.. about .20 to .30 for maint and repairs.. and if you had a lift axle trucks new are bumping 190,000 for new.. fuel i got for loaded and empty 3.60 mpg.thats 50% loaded.. and we were getting with trailers about 5 a rolling mile.. so without a trailer 3-3.50.. just a thought..
Replied on Thu, Oct 06, 2016 at 07:50 PM CST
If that haul is so profitable, why is he looking for trucks? Why hire outside equipment? Buy your own and keep all the money.