Cost of In-House Drivers

The Operations Cost of a Driver

March 2009

 

  1. DRIVER  $2345.33

At $10.00/hour x 8 hours/day x 5 days/week

Monthly Salary ($10.00 x 8 x 5 x 52 weeks divided by 12 months): $ 1733.33

Monthly Benefits (Health Ins, days off, etc): $100

Add 30% (on average) for:

Worker’s Compensation Insurance @ 12%

Matching FICA 7.65%

State and Federal Unemployment

Payroll Fees and Taxes Total Taxes and Fees: $ 512.00

  1. VEHICLE  $393.00

$15,000 Automobile, amortized over 4 years

Sold in 3 years, leaving residual of 20% at $3,000. Cost= $333/ mo

Loan/ Note @ 8% = $60/ mo

  1. BUSINESS INSURANCE  $125.00

Liability, Comprehensive Collision, Cargo

$500 Deductible

  1. GASOLINE/ FUEL  $260.00

@$12.00/ day (11 x 5 x 52 / 12)

  1. REPAIRS/ MAINTENANCE (this can be MUCH higher)  $150.00
  1. OVERHEAD & BACKUP FACILITY/ REPLACEMENT   $275.00

OVERHEAD:

Some portion of your costs for office space, rent, phones, utilities, parking, etc

BACKUP FACILITY/ REPLACEMENT COSTS:

Use of another vehicle or rental when a car is in for repairs/ maintenance

-(If this vehicle isn’t covered under business insurance, the business is liable)

Backup driver if employee is sick, vacation, absent, or for training purposes

-(If this is a key person being pulled from their job, you are losing money twice)

Administrative hours/ “headaches”/ support/ for an employee

-(What is your time worth?)

YOUR TOTAL COSTS FOR ONE DRIVER EACH MONTH  $3548.33*

* Convenience of not having to deal with sick drivers, accidents, insurance, repairs, towing, plus access to the entire Front Range of Colorado: PRICELESS

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