Business Management Breakdown | Profit Per Mile
Please, repeat after me – “The end of the year is almost here.” Again. One more time. This is your anti-procrastination mantra to get your business in gear before 2016 starts. Analyzing your revenue, cost, and profit per mile for each month of 2015 is a perfect place to start. You will be able to fully analyze what factors made you profitable, and forecast what you need to make each month in 2016 to increase your profit margin. We’re going to get into forecasting in just a second, but let’s go over calculating these numbers first.
Profit Per Mile
Once you have your profit, you will divide it by your miles were driven for a set date range. You will use total miles driven, including empty and loaded. Even though you’re not generating revenue when you’re empty, it’s still a factor.
For example: $12,500/10,000 mi = $1.25 profit per mile for January. Breaking the numbers down in a month-to-month analysis will provide you with the most relevant information to prepare for the beginning of the new year. Again, Trucklogics does all this for you based on the income, expenses, and the mileage you entered into your account. All you have to do click a button and a is Profit and Loss report is automatically generated.
Profit & Loss Report
The wait-&-see method is not going to keep your trucking business profitable. You have to get smart about forecasting what you need to operate and turn a profit. You already have the information you need to forecast your profit per mile for at least the next 6 months. Six months might be a little overzealous, so let’s scale it back and explain how to create a profit forecast for three months (January, February, and March).
Planning ahead and having set goals of what you need to make to turn a profit is going to keep you in business. TruckLogics can quickly generate all the information for you so you can thoroughly analyze your miles, income, expenses, and revenue. We even break it down to a per-mile figure so you have all the information you need to forecast future earnings.
Business Management Breakdown | Figuring Cost Per Mile
Business Management Breakdown | Revenue Per Mile
We are hoping you have some questions because we would love to hear from you. Contact the TruckLogics Crew at our Rock Hill, SC headquarters, via phone: 704-234-6946 or email: [email protected].