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  • How much do you spend on ....

    I am busy, very busy. Picking up 120-140 a month with 1 truck and starting to think about a second truck, but along with a another truck comes payment most likely, maintenance and salary for some one to drive it and more fuel, tires, etc.
    what I am most curious about is as a percentage how much of gross revenue do you spend on labor? fuel? lot? Do you have a general rule of thumb for how much labor should cost for example?
    Admittedly I do not know my numbers like I should, something I am going to work on. I would say that payroll is pretty close to 30% which I think would be about average and I think with running spotter cars I probably use less fuel than most, but you never know till you compare with peers.
    I know many of you on here are much bigger companies than mine, but the percentages should stay pretty close to the same.

    I just want to make sure before I invest in another truck and more salary that I am not way off in other areas so that I don't get in a bind or regret growing.

  • #2
    I guess an other way of looking at things is, if you plan to get another truck, and another body do you have a plan ready to implement to bring on twice or at least 40-60% more business. If you want to grow the company thats another good way of looking at things.

    But also, if you are tired of working one truck one body so much and want to split the work in half then there is also nothing wrong with that, only that the profits wont be going up if this is what you want to do, you could keep the one truck and get another body if thats your goal.

    It sounds like you want to grow your business, and it seems like you are really busy picking up as many as 120 a month for 1 truck, average of 4 per day 7 days a week. Good Job. I usually see things from other points of view, and thats what would cross my mind, do I have a plan to do another 120 with the new truck, maybe not right away, but in 6 months to a year then I would def do it. Your payroll sounds about right and it could get a little higher depending on the need for office staff and other misc positions that open up as you get bigger.

    Good Luck

    Originally posted by absoluterepo View Post
    I am busy, very busy. Picking up 120-140 a month with 1 truck and starting to think about a second truck, but along with a another truck comes payment most likely, maintenance and salary for some one to drive it and more fuel, tires, etc.
    what I am most curious about is as a percentage how much of gross revenue do you spend on labor? fuel? lot? Do you have a general rule of thumb for how much labor should cost for example?
    Admittedly I do not know my numbers like I should, something I am going to work on. I would say that payroll is pretty close to 30% which I think would be about average and I think with running spotter cars I probably use less fuel than most, but you never know till you compare with peers.
    I know many of you on here are much bigger companies than mine, but the percentages should stay pretty close to the same.

    I just want to make sure before I invest in another truck and more salary that I am not way off in other areas so that I don't get in a bind or regret growing.

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    • #3
      Gentlemen and all, in the 30 years I've been in this business your dilemma is one that the majority of owners have no idea the cost of doing business. Not that owners are not capable of it, but either don't take time or do not know. There is nothing wrong in not knowing, the wrong part comes in not getting with an accountant to do it for you the first time and learning how to adjust the figures for growth etc. I applaud you for taking time to find out what you really need to know to run a profitable business. So many say I am paying the bills and eating but are you really making money?

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      • #4
        really inspire from you!
        Wish you all the best!

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