Question to current contractors: do these numbers look right?

[dezguy]

Poverty Thresholds Versus Poverty Guidelines for Households With Four People, 2017

Household Size and Composition

Poverty Threshold / Poverty Guideline

Two parents, two children $24,858 / $25,100

One adult, three children $24,944

Four unrelated adults $12,752 (for each adult under age 65) $11,756 (for each adult age 65 or older)

One adult (mother), two children (family 1), one unrelated adult under age 65 (family 2)
$19,749 (family 1)/ $12,752 (family 2)

Two parents, one child, one relative (for example, aunt)
$25,696


According to these 2017 (latest figures) results, your $30,000+ income ISN'Tn poverty wages.
U.S. Poverty Thresholds and Poverty Guidelines: What’s the Difference? – Population Reference Bureau

You're not living on those wages, you're surviving.

 

[IVE GOTTA PACKAGE 4U]

You're not living on those wages, you're surviving.

What about healthcare and saving for retirement?

 

[bbsam]

Says the man that is currently sitting back collecting checks from the hard work of others. Lol

On the sale of routes worth $0.

 

[Route 66]

What about healthcare and saving for retirement?

 

[IVE GOTTA PACKAGE 4U]

View attachment 278258

I still remember talking to the old RPS guy. The only way he could make a got d living was because his wife had a good job with benefits.

 

[Operational needs]

People like to be self righteous and act like there’s a moral failing when employers pay a market level wage. These guys also like to feel superior to the people doing their jobs for less as if they have better skills or are somehow more deserving of better money. I think it’s just delusion.

No. I just know how expensive it is to live where I do.

 

[59 Dano]

People like to be self righteous and act like there’s a moral failing when employers pay a market level wage. These guys also like to feel superior to the people doing their jobs for less as if they have better skills or are somehow more deserving of better money. I think it’s just delusion.

I know I'm more generous when I'm pretending to spend money that I'm not really spending.

The people who think Cletus should get $20/hour driving for Ground don't realize that if the pay was that high, Cletus wouldn't have the job because a guy who pays $20/hour is going to want someone better than Cletus for that kind of money.

 

[59 Dano]

Is $15/hour a livable wage, in your opinion? Could you house, feed and clothe yourself off of $36000/year, before taxes?

With the cost of living around here? Absolutely. And if I was married, it'd be even easier.

 

[59 Dano]

So, you wouldn't recommend it but this guy and dano believe paying someone poverty wages is acceptable.

The poverty line in the US for a single adult is $12,490. The example you presented was $36,000.

 

[dezguy]

What about healthcare and saving for retirement?

Pft!!! You'd be more concerned with being able to feed yourself to worry about trivial things like healthcare and saving for retirement. That's for your boss, not you!

 

[59 Dano]

You're not living on those wages, you're surviving.

$15/hour is a jackpot for some people and they'll hang on as long as they can. Others would bail out as soon as they find something better. And for yet others, they wouldn't bother filling out an application for that kind of insulting chump change.

The reason someone takes a job for that kind of pay is that it's the best they can do at the moment.

 

[dezguy]

The poverty line in the US for a single adult is $12,490. The example you presented was $36,000.

There must be some cheap ass places to live down there because there is no way someone would survive on $12,490 up here.

 

[dezguy]

$15/hour is a jackpot for some people and they'll hang on as long as they can. Others would bail out as soon as they find something better. And for yet others, they wouldn't bother filling out an application for that kind of insulting chump change.

The reason someone takes a job for that kind of pay is that it's the best they can do at the moment.

I'm sorry but I don't know one person, outside of maybe a student that would think $15/hour is the jackpot. $15/hour isn't much more than minimum wage in most provinces.

 

[59 Dano]

There must be some cheap ass places to live down there because there is no way someone would survive on $12,490 up here.

We're talking about living on $36,000 USD. It's not a big deal for a single person with no kids to live on that in much of the country.

 

[59 Dano]

I'm sorry but I don't know one person, outside of maybe a student that would think $15/hour is the jackpot. $15/hour isn't much more than minimum wage in most provinces.

I'm not debating the cost and wages in Canada in terms of Canadian currency.

 

[bbsam]

News flash: Labor in the US is basically seen as a necessary evil to be managed to the least negative affect on profit.

 

[Cactus]

News flash: Labor in the US is basically seen as a necessary evil to be managed to the least negative affect on profit.

But yet many businesses hire consultants and pay them boatloads of cash so they can hear the same things their own employees have been telling them for years and for free.

 

[bbsam]

But yet many businesses hire consultants and pay them boatloads of cash so they can hear the same things their own employees have been telling them for years and for free.

But the consultants show companies how they can save even more money by screwing employees.

 

[Cactus]

But the consultants show companies how they can save even more money by screwing employees.

Tough to argue that but it all depends on how much you value your workforce. Lots of companies willing to bite the hands that feed ‘em.

 

[STFXG]

Got a couple of route infos from sellers in GA and TN. Do these numbers look right based on a 1mil gross?

From what I read online and my noobie knowledge, labor is in line at around 45%, could definitely be lower. Truck repair/main should be a lot higher at 11-12%.

Please advise on any inflated/deflated/missing/alarming things that you see. Thanks for your time.

Driver mgr payroll: 468k
Employer matching tax: 30k
Vehicle payments: 47k
Insurance inc workers comp: 40k
Fuel: 109k
Repair/maintenance: 71k
Uniform: 1k
Scanners: 8k
Vehicle registration: 2k
Accounting: 7k

Peak expenses:
Drivers pay: 11k
Training: 2k
Tax: 800
Truck rental: 5500
Scanners: 500
Fuel: 3k
Uniform: 1k

The sellers have either been on the market for a while or have worked on an exit plan for a while. The Freightliners will be money pits. They might be doing the maintenance themselves. Uniforms cost is realistic if they have a stock pile of old uniforms they pass on to new drivers. If you expect to cut your cost of labor down you are crazy. 45% is hard to hit with quality employees. You’ll spend a lot on turnover and training. First year in you should feel good if you break even. Good luck with the show.