1 Line Haul, 1 Ground Spot, 2 HD PSA's
Sacramento Line haul = Operation includes 1 dedicated run up to 5297 miles per week. Current revenue per mile is at $1.721. Assuming we only get Reno 80% of the time due to weather during the winter, average miles per week over 52 weeks is 5065. Gross revenue from this average = $8716/wk. Flat Rate payments avg $340/wk and Drop and hook payments average $100/wk. Monthly bonus is adds another $150/wk. to the revenue. Gas is currently $3.79 at the FedEx terminal and the truck we run gets 6.9 MPG (2014 Freightliner Evolution). Gas is averaging $2782/wk. DEF is costing $73/wk. Driver salaries are $2688/wk. (employment taxes and bonuses included). Maintenance: 2.5 set of tires per year at $4500 per set = $215/wk. For modeling purposes, budget $1,000 per month for repairs (oil, filters, ancillary - current truck has 500,000 mile warranty for large issues) a new truck payment if you buy new is $2900/mo. Factor $10,000 in lost revenue due to vacation days the truck is not running on major holiday's (this is a high estimate), $3,000 in truck rentals when truck is broken down (this covers 3 full weeks) and another $10,000 lost revenue from days truck is not running and rental is not available.
Lost revenue Holiday/Repair days $20,000
Truck payments $36000
Net $113,426 - asking $375,000 which includes paid for 2007 Freightliner in order to transfer over the contract. IF you use this truck and do not buy a new truck, you will get 5.5 MPG but have no truck payment. Your gas costs would go up by $713/wk - which is $37,116 per year.... the same cost as a new truck and the new truck has a 500,000 mile warranty. We are willing to sell the truck for $140,000 cash along with the business. We are not willing to carry any money back on this business.
Farifield Spot Run: This is a new PSA an has been averaging gross revenue of $2200 per week. Gas runs $350 per week and driver is $1150 per week (includes employment taxes) Maintenance is projected at $100 per week. Bonus averages $800/mo Net owner earnings projected = $40,800/yr. Asking price with truck is $125,000. We just added a second truck to this route that is going through the approval process. There are an average of 6 more spots that we will run this supplemental truck on and net will increase around $400/wk for a total estimated net of $61,600. Asking price for two trucks and spot is $195,000
Redding Terminal: Operation includes 2 home delivery routes. Weekly gross settlements are $4450/wk. Ancillary expenses (scanners, workers comp, car insurance, car wash, uniforms) are $355/wk. With bonus and peak volume, these routes will average $490 additional per week in gross settlements. Gas runs $700 per week and salaries are $1960/wk (includes employment taxes) and maintenance is $400/wk. Net owner earnings projected = $79,300/yr. (UPDATE: Currently running a supplemental route and third driver to attempt to get a new PSA. This is hitting the bottom line by $40,000/yr, but we feel it is worth it for growth. A new owner could drop the Supp, give volume back to the contractor who is responsible for the Ground in this area that we currently deliver, and get the net up. Our goal is long term growth over short term profit here) Asking price of this business: $225,000 - includes 3 paid for vehicles, one is a 2014 ProMaster XT.