Pricing Loads Explained – Calculate Your Floor Rate & Cost Per Mile скачать в хорошем качестве

Pricing Loads Explained – Calculate Your Floor Rate & Cost Per Mile

Trucking 101 – Video 18 builds on what we covered in Video 14 about finding loads as a new carrier. Once you can access freight, the next make-or-break skill is pricing: knowing your floor (break-even point) so you only accept loads that cover your costs and leave room for profit. Key definitions: Floor (break-even rate): the minimum rate where profit = $0. At the floor, you cover the full cost to run the load. Below it, you do not cover costs and your business loses money. CPM (Cost Per Mile): your average break-even operating cost per mile. All-in miles: loaded miles + deadhead miles (deadhead to pickup, and ideally expected deadhead after delivery). Fixed costs: costs you pay even if the truck doesn’t move (truck/trailer payment, insurance, permits/plates, ELD, parking, etc.). Variable costs: costs that change with operation and events on the road (fuel, maintenance, tires, tolls, scales, lumpers, repairs, breakdowns). Driver pay (owner-operator salary): a real cost your business must include for your labor; not paying yourself distorts your true expenses. Core formulas: CPM (break-even): CPM = Total Monthly Costs ÷ Total Monthly Miles Where Total Monthly Costs = Fixed Costs + Variable Costs + Driver Pay And Total Monthly Miles = Loaded Miles + Deadhead Miles All-in RPM for a load (what the load really pays): All-in RPM = Load Revenue ÷ All-in Miles Decision rule (profit test): Accept the load only if All-in RPM ≥ CPM (break-even) Target profitability by setting: Target Rate = CPM × (1 + Profit Margin) Example: Profit Margin = 20% → Target Rate = CPM × 1.20 Accessorial discipline (protects profit): define and enforce rules for detention, layover, lumpers, and tolls so non-driving time and extra costs don’t erase your margin. If you’re ready to move forward, contact us at www.FleetSparkFinancial.com. Thank you for watching, and we’ll see you in the next video.