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Question for multi truck guys...

Prosteam-sonomacounty

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I'm far from a business guru and this isn't meant to demean anyone. I just wanted to know more about what a multi truck operation can expect for real life profit.
I did some rough math on a projected fictional company that is successful running 4 vans with 4 techs, two helpers (floating back and forth to the busy routes) and a couple office people.

These 4 trucks are producing 150K per year, $600K total.
600K is a great gross total if yer not doing WDR,I would guess.
In order to keep all the vans busy, you'd be at around 30% of your gross to ads.
40% would go to payroll
Fuel, chems, supplies, insurance, etc.. Would be at around 15%
Without factoring in a salary for the owner or property lease, I've got the profit at around 90K before taxes.
What part of, if not all of my math , is wrong?
 

Kipp

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Ad budget should be 15-20 and payroll should be about 35
 

shane deubell

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Not about "trucks", its about revenue and profit.
Plug in the equipment/vans you need.

Trucks is too vague anyway, some people have $10k and others $70k.
THAT would make a big difference....
 
Nov 24, 2012
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I'm far from a business guru and this isn't meant to demean anyone. I just wanted to know more about what a multi truck operation can expect for real life profit.
I did some rough math on a projected fictional company that is successful running 4 vans with 4 techs, two helpers (floating back and forth to the busy routes) and a couple office people.

These 4 trucks are producing 150K per year, $600K total.
600K is a great gross total if yer not doing WDR,I would guess.
In order to keep all the vans busy, you'd be at around 30% of your gross to ads.
40% would go to payroll
Fuel, chems, supplies, insurance, etc.. Would be at around 15%
Without factoring in a salary for the owner or property lease, I've got the profit at around 90K before taxes.
What part of, if not all of my math , is wrong?

lol... good chit.

Only thing I'd manipulate is payroll. It shouldn't go over 30%.

But I'm interested to see what some of the "traditionalist" multi-truck guys like @Spazznout & @Mojo Rising have to say about your calculations. Since they give Me flack for My renegade/hybrid approach to a multi operation.

p.s.
please @Spazznout & @Mojo Rising do not let your replies focus on Me. Please just respond to the accuracy (or lack there of) of the OP
 

Kipp

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When I ran specials in my first few years and was trying to build, I was at least 30%. Spazz threw out the number of 25-35% so I figured I was in the right neighborhood.
Once your in the $600k range in sales your ad budget is higher than when you started as a dollar figure but less of a % of gross. 20% is $120k in marketing. At that point your buying larger quanties of ads driving cost per piece down so you get more bang for your buck.
 
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Spazznout

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When I ran specials in my first few years and was trying to build, I was at least 30%. Spazz threw out the number of 25-35% so I figured I was in the right neighborhood.
If you read my post in another thread on this, I also stated that number was for while you are in a growing phase. Once you have achieved teh size bizz you want , you can cut your ad dollars back to 12-18 percent and then you start to make cash.

But first you have to get past the 3 truck phase where your costs do come in line. truck 4-8 is where the really really good profits start.

I keep my labor around 31%

So using the OPS example number, corrected for numbers that more reflect my percentages it would look like this.


These 4 trucks are producing 150K per year, $600K total.
600K is a great gross total if yer not doing WDR,I would guess.
In order to keep all the vans busy, you'd be at around 15% of your gross to ads.
31% would go to payroll
Fuel, chems, supplies, insurance, etc.. Would be at around 19%

Leaving a 35% profit margin or a NET of around

210,000. Per year.

Now because of the laws of volume, Net margins actually soar for the next 4-5 vans with each new van and crew driving close to $80,000 in Net profits to the bottom line.
 
Nov 24, 2012
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I can tell ya right now if I was a1 truck guy lastk week as I lay in this hospital bed all income woulda stopped. I see both sides but when you think you have freedom try breaking your back as see where your incomes at..

So different than being a Realtor, Lawyer, Chiropractor or any self employed professional.

What happens to their income when they break a back? Oh, thats right, they have zillions stashed away. False! Not True. They are just as vulnerable. I know plenty to know what I'm talmbout
 
Nov 24, 2012
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How are thefts, charge-backs, returns, time theft + your time factored into the cost of running a multi - truck business?
 
Nov 24, 2012
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Who's running the business, and how many hours is that person having to devote to a multi truck operation?

Is it a separate GM who's compensation is accounted for in the payroll # ?
 

212.0

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So different than being a Realtor, Lawyer, Chiropractor or any self employed professional.

What happens to their income when they break a back? Oh, thats right, they have zillions stashed away. False! Not True. They are just as vulnerable. I know plenty to know what I'm talmbout
Talking about where I'd be in my current situation. Glad I'm not the cleaner.
 

Spazznout

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Who's running the business, and how many hours is that person having to devote to a multi truck operation?

Is it a separate GM who's compensation is accounted for in the payroll # ?
I take a set weekly paycheck as well as my operations/office manager is an a base/commission structure.
Our labor is included in the above percentages.
 

Spazznout

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What is different is the amount of money each truck brings in.
I am just using MIKES example number above with my percentages.

Move that per truck average up a good bit.
150K on a truck is a bit on the low side.

We budget for 45 weeks of work per year and 6 days per week during those 45 weeks. With the 150K per year number that breaks down to just over 500 dollars per day gross per van. That is terrible. As a multi truck you want your vans to be averaging at least 850 or more per day.
Id be willing to bet @Rob Allen average per van per day is closer to the 1K mark.

So using a more typical or conservative multi truck daily average and a realistic winter climate that has a slow winter.

@850 per day @4 vans @6 days per week for 45 weeks. = 918,000 dollars in gross.

Now go back and try reworking the numbers.

IF you live in a good weather state such as yourself mike these number can be bumped up by at least 5 additional weeks of work. Thus putting your gross well in excess of 1 million dollars with 4 trucks on the road.

Now add in a second evening and night commercial crew on your same trucks.

Those jobs become Highly profitable. Highly.
 

Spazznout

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PS I am NOT a 4 truck guy yet.

I hope to break that barrier late this summer/early fall.
as of now 2 full time techs and I run the 3rd van.
1 full time helper and 2 part time.

Hence why I run a 30% marketing budget right now.
I am reinvesting my money back into the business to drive the growth as quick as I can to get to that 4th truck. At that point I will reduce my advertising exposure to around 23-25% and begin to take a little more profit from the bizz each year until I have reached the goals for size that I have. At which point I will reduce my advertising to under 18% or a level that will keep the business sustainable.
 
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Nov 24, 2012
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What is different is the amount of money each truck brings in.
I am just using MIKES example number above with my percentages.

Move that per truck average up a good bit.
150K on a truck is a bit on the low side.

We budget for 45 weeks of work per year and 6 days per week during those 45 weeks. With the 150K per year number that breaks down to just over 500 dollars per day gross per van. That is terrible. As a multi truck you want your vans to be averaging at least 850 or more per day.
Id be willing to bet @Rob Allen average per van per day is closer to the 1K mark.

So using a more typical or conservative multi truck daily average and a realistic winter climate that has a slow winter.

@850 per day @4 vans @6 days per week for 45 weeks. = 918,000 dollars in gross.

Now go back and try reworking the numbers.

IF you live in a good weather state such as yourself mike these number can be bumped up by at least 5 additional weeks of work. Thus putting your gross well in excess of 1 million dollars with 4 trucks on the road.

Now add in a second evening and night commercial crew on your same trucks.

Those jobs become Highly profitable. Highly.

I'd say 1,000 per truck per day working 8 days a week 63 weeks per year is a far better number.

lol

living in the eye of the perfect storm having such low marketing cost yet being sold out as you've stated is awesomeness personafied
 

Spazznout

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I'd say 1,000 per truck per day working 8 days a week 63 weeks per year is a far better number.

lol

living in the eye of the perfect storm having such low marketing cost yet being sold out as you've stated is awesomeness personafied
Low ad costs.....LOLOLOLOL
bros............I spend more than most o/o make per month on advertising.
NOT a slam on anyone. Just want to keep it in perspective for you.
Driving growth and building a brand and brand recognition is NOT cheap.

I had a mid 5 digit advertising budget last year.

I am NOT painting any pie in the sky rosieness.

I am reinvesting a lot of money back into my bizz each year to create growth.

Keeping it to the basics adn NOT trying to reinvent the wheel is the key for ME.
 
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