As any business owner or individual should be, we are all concerned about the rising price of fuel. Improperly monitored, the fluctuations could quickly be the financial ruin of a transport company of any size.
One thing we all have to do is to never go below a certain point in our overall pricing and this rule must always be followed.
One must know to the fraction of a cent the exact operating cost of your equipment. On my dually trucks I always set aside .12 cents per mile to cover all maintenance, tires, oil changes and the unexpected. This has worked as a good number for me in the central United States and may fluctuate slightly in other areas. I am able to keep all of my equipment very well maintained.
I figure a minimum of .77 cents per mile to pay myself, with no truck expenses being taken from this figure. That is on a simple, non specialized load for which the fees would naturally be higher.
Add to this your cost for insurance per mile based on your monthly insurance cost divided by your average monthly mileage.
Now, factor in your fuel cost per mile based on the highest average pump price in the nation divided by the least miles per gallon your truck will achieve under a load.
Add all of this together and it will give you your cost per mile for a bid.
This system works well for me and I hope you will find it useful.
Happy Hauling, Bill