Second truck at 22 jobs a month, or am I paying $2,400 for idle time
Running one 16-foot box truck, two-man crew, mostly REO trash-outs off one servicer plus overflow turnover cleans from two property managers.
Current month looks like this. 22 haul jobs, average invoice $780. Direct cost per job: crew 2 x 5 hours at $21 = $210, disposal averaging $180 (call it three tons at $60), fuel and truck maintenance $60. So $450 out, $330 gross per job, about $7,300 a month gross margin. Fixed overhead including my draw, insurance, the phone, the accountant, is $6,000. Thin.
The servicer says volume is going up and I'm turning down about six jobs a month on scheduling. Second truck penciled at $2,400 a month all in (payment, insurance, plates) plus a second two-man crew at the same rate.
Six incremental jobs at $330 is $1,980, so the truck doesn't cover itself and I'd need roughly 8 to 9 jobs just to break even on the iron before anyone's paid for standing around. Am I reading the capacity problem wrong, or is the answer to sub the overflow out and keep one truck?