So your £3700 a month is @ 44k a year. Are you saying that’s after all costs?
As an IT person, what’s the gross. OST for taxes, uniform, holidays, etc you’d need to earn to start with?
I run 9 artics and I don’t take home anywhere near £3700 per month. I know a lot of very large companies are getting rid of IT staff, so unless you’re geting made redundant I would stick where you are. You won’t earn anywhere near that money running trucks.
Lets compare like with like for your current job which is probably 9 to 5 Monday to Friday. There are 365 days in a year minus 104 weekend days and 28 days for holiday entitlement. Then there will be 9 days when your lorry is scheduled for its mandatory Safety Inspection, Now allow a few more days for unscheduled vehicle downtime and lack of work then we get to around 200 to 220 working days a year.
The driver’s hours regulations apply so you are only allowed to drive for 54hrs one week and 36hrs the next and your daily and weekly working time is also limited. Included in working time will be arranging loads, invoicing, VAT and all the other administrative tasks.
Now look up Commercial Motor cost tables for a 44 tonne artic, include the trailer, and the rental for your vehicle’s overnight and weekend parking, add in a substantial amount for vehicle breakdowns and then factor in that the going rate you will be offered for your lorry will probably be around £1.50 a radial mile, slighty more if you are very lucky . but not to begin with and also you will probably be on 60 to 90 days payment terms with your customers. Note that demurrage is very rarely paid by haulage companies’ customers and that anything between 2 and 4 hour waits to unload are more or less the norm.
Given your criteria are you going to make your £10k a month net profit ambitions? And there is a lot of legal obligation stuff to comply with as well.
I think it’s good for drivers, who don’t earn decent in jobs and become driver owner. But people like me who on 4k net per month, this will be stupid. That’s what I concluded.
I’ve been going 11 months now on my own and my experiences, for what they’re worth are this:
Cash flow is the killer…… fuel invoices won’t wait and can be nearly 2k a week including VAT (which you can get back but not immediately). Some firms have got payment terms of 45 days from end of month. I’m currently waiting on 14k worth of invoices to be settled in mid Jan for work I did in November.
Being the new kid on the block some firms will try it on with rates they offer for traction work. Be savvy - do your sums and if it looks like it won’t pay, don’t do the job. You’re not a charity. On the flip side don’t be unrealistic and start demanding outrageous rates as they simply won’t use you.
Don’t ■■■■■■■ yourself with massive finance or lease payments as when the vehicle is stood (and it may be on occasion in the current climate) you won’t be sleeping at night. Find a second hand unit and a decent independent maintenance provider (not a main dealer) and you might have half a chance of making it.
Stick with one truck and see if it pays. If you try and go too big too soon only thinking of extra turnover, one unexpected bill will sink you. Turnover is not profit!!
coiler:
I run 9 artics and I don’t take home anywhere near £3700 per month. I know a lot of very large companies are getting rid of IT staff, so unless you’re geting made redundant I would stick where you are. You won’t earn anywhere near that money running trucks.
Hi coiler, can I press you on this a little? Would you care to expand on what your set up is? There will be things you don’t want to disclose, but what is it your doing? One driver per unit etc? Work you do ,roughly. Own or rent equipment , kind regards?
Woody
