I’m curious. How many O/D’s worry more about their topline earnings more than their pence per mile? I’m not going to quote my earnings on here, but for example, I know a chap that is hell bent on earning 2k a week regardless of mileage. If I told him I’d earnt £1800 he’d laugh. But at £1.50 a mile I know who’s laughing.
Oh and his V8 gets better mpg than my 6 pot cos it’s got 2 extra pots?
Maybe I’ve got it wrong?
(all figures used are fictcious)
I’m not bothered about either. The figure I use as a guide is my earning each week after fuel is paid for. I find that far more useful then either top line earnings or pence per mile as fuel is the main variable cost.
Paul
PPM or gross earning mean nothing
the only equation that counts is income over expenditure
I was on the phone today for quite a while with channel 4 TV who were after some background info on the industry… they were amazed that we had looked at the company returns over a range of diffenet sized hauliers and were looking at most running on a day to day basis at a 3-4% profit margin. the researcher who knew nothing about our industry tld me that he had just done similar research on supermarkets and they would not stock anything other than a loss leader at less than 60% and most were at over 100%
Rikki-UK:
PPM or gross earning mean nothing
the only equation that counts is income over expenditureI was on the phone today for quite a while with channel 4 TV who were after some background info on the industry… they were amazed that we had looked at the company returns over a range of diffenet sized hauliers and were looking at most running on a day to day basis at a 3-4% profit margin. the researcher who knew nothing about our industry tld me that he had just done similar research on supermarkets and they would not stock anything other than a loss leader at less than 60% and most were at over 100%
I might have this wrong but I understood that the big supermarkets had a profit margin of around 6%?
i generally look at what is left after fuel has been accounted for
i know what the trucks have to earn each week BEFORE fuel
i.e. if a truck needs to earn £600 per week plus fuel at £1000, then i am happy if i earn more than £1600
that will cover costs
Topline and PPM are good indicators (KPI’s ?), the higher the better,
but as stated above It’s :
Turnover
Profit!
End of, imho.
I remember the saying that “turnover is vanity, profit is sanity,” which still seems to hold good today.
I use PPM and top line as a guide as to what proffit to expect for given load or weeks work as i always know what i will be paying for fuel,tyres,etc on a sunday for the week ahead.
as o/d i cant afford to do a weeks work then look at whats left after expenses i need to know it will pay before i do it.
i have tried septic peg and a crystal ball and have decided that working out a price for a job myself up front is always best
moose
some weeks i can do 5 days shunting on the docks at £350 a day and use no fuel, other weeks i,m here there and eveywhere for £450 a day, so i suppose shunting at £17.50 a mile is the better option 
It is subjective but on the whole PPM rather than topline, I’d rather park trucks up than have a low PPM if for nothing more than I don’t like people taking the ■■■■ on the rate.
Bikini Line = Bottom Line
You will never forget it 
dieseldave:
I remember the saying that “turnover is vanity, profit is sanity,” which still seems to hold good today.
Nice one DD. I like that. I had a brief stint runnin sub for a haulier. He would never give me rates upfront. I din’t stay long. I have to admit I have finished my week early if my ppm is high and I have earnt my money, rather that than possibly end up on a fools errand.
MR VAIN:
dieseldave:
I remember the saying that “turnover is vanity, profit is sanity,” which still seems to hold good today.Nice one DD. I like that. I had a brief stint runnin sub for a haulier. He would never give me rates upfront. I din’t stay long. I have to admit I have finished my week early if my ppm is high and I have earnt my money, rather that than possibly end up on a fools errand.
Hi Rob,
Long time no see. 
I have another of those little sayings to go with the first one…
If you don’t know your costs, it’s impossible to know your profit.
That further suggests that just looking at PPM alone (even if it’s a good rate) isn’t all that it seems.
One I was told when I was a nipper was
“It’s not what you earn, it’s what you spend that matters”
Still try to follow it now.
Stan
Its a difficult question because you might earn 300 on Monday but put 125quid in the tank. So, you get 175 pounds to pay your standing costs and wages.
On Tuesday, you might earn 200quid but only spend 50 quid in diesel.
Comapring the two days, you’re 25quid down on Tuesday. However, you’ll have done less mileage Tuesday, less wear and tear and you’ll probably be home earlier. It depends on you’re viewpoint but I’m finding that I’m better off staying local and keeping my fuel cost down these days rather than chasing my arse to make a few quid extra.
Weekly running costs / profitablity
Take a spreadsheet and add a column of all your likely costs including insurance , tax , salary ( you would expect to earn at least as much as a paid driver and adjust salary to incorporate holidays ) , pension contributions , rental of storage unit , vehicle depreciation ( at a realistic rate to fund replacemen ) , if vehicle not owned then lease / hire purchase coosts , repairs , and any other misc expenditure ,.Add at least five columns ( head each column with your estimated weekly milage under various scenarios ) and copy the costs scheduled previously into each column. Sub total these columns and diivide by 52 to give estimated weekly running costs exclusive of fuel . At this stage the column sub totals will all be identical . Next divide the sub total your estimated milage as per the column header and you will have a weekly running cost per mile based ( excluding fuel ) on the milage travel . Then add fuel per mile to each column to provide a cost per mile based on estimated mileage . Add at least 5% to cover profit
Well I think its plain to see that most don’t chase the topline, but I know a few that do. I’ve seen PPM’s yo yo in recent times. 
MR VAIN:
Well I think its plain to see that most don’t chase the topline, but I know a few that do. I’ve seen PPM’s yo yo in recent times.
Ahh yes Rob, but IMHO the critical factor is knowing the costs.
It doesn’t matter how you calculate your costs, whether weekly or per trip, but I’d say that it’s vital that the costs are known (monitored and controlled) somehow otherwise how would you know whether any particular PPM rate offered is profitable?
When I started as an OD twenty five years back the haulier I bought my little truck off said if your fuels 20-25% of your earnings you’ll do OK, how many people on here still keep those figures■■? I wish I did!!!
What I can’t understand when I see the PPM of what some people post on here is that at the moment if your lorry does 7mpg (face it if your loaded each way thats realistically what a 44t motor is doing) then your fuels 50% or above surely■■? How the ■■■■ do you make a living with those overheads??
What is the consensus about what Osbournes going to do in the budget? Why oh why have’nt we got a tax rebate on our fuel bill as we use so much of the ■■■■, I think I’ve just answered my own question with that
If your running for what you consider a good PPM then you need a good top line to go with it or its curtains.
when i started with a volvo f6 4 wheeler and then moved onto fl7 6 wheeler i could run the truck,car and landrover on 30%
i was doing blocks on tarmac untill last may at 44t and just the truck was on 50% and over then at just over £1.19 per litre incl vat so i dont see how they can make it pay now as my price for next week is £138.54 and if i was using the card it would be more!!
i think some folk try to kid themselves that there getting 10/11/12 to the gallon,i only ever got 8 at best on the block work and the crane had a donkey at that, that being said i never had the time to ponce about at 45/50 mph
as for the budget i dont know what he will do,but i do know if fuel heads up around the £2 per litre mark even my good work will be crap unless the cost can be passed on
moose