Life on the Road – Trucking News Blog

Today we are going to take a look at owner operator expenses, in particular Variable Cost. Last time we discussed fixed cost, the cost that do not change on a day to day basis, now we will look at the cost that do change.

Variable costs include items like:

• Fuel
• Tires
• Wages paid
• Some permits and usage fees
• tolls
• Meals

See a trend? These are the cost we see on a daily basis, many of these items are paid out-of-pocket. Variable cost are cost that a driver can have the most control over. Making smart decisions while out on the road can really influence these numbers. Just paying attention to fuel tax rates and which States you buy your fuel in can make a difference of several hundred dollars a year. Slowing down can increase your fuel mileage and decrease wear on tires and your truck, you balance that with getting the load to its destination in a timely manner.

Your decisions effect your variable cost most directly and as an owner operator you must make smart decisions or these cost will eat you up. A company with thousands of trucks can get away with sloppy decisions by their drivers, expenses can be spread out, but you as an owner operator must pay attention to where your dollars go.

Now here’s your homework assignment, for the next few weeks carry a notepad with you wherever you go and just make a note of any money you spend. Weather it be for a tank of fuel or a bag of potato chips. Just right down the amount and what it was for and mileage when you fuel, keep it simple, no need for computer spreadsheets or fancy bookkeeping, we just want to figure up where every penny you spend goes. You may be surprised at what the numbers tell you.

Be safe and watch out for the other guy;
Don Rogers