Visible Costs vs Hidden Costs
The problem
Most operators only think about:
- Fuel
- Tolls (when applicable)
There are hidden costs silently eating your profits. Visible costs represent only 60-70% of your total operating costs.
Real cost table
Straight Truck / Sprinter Van (per mile)
total operating cost per mile — based on 100,000 miles per year.
The most important hidden costs
1. Depreciation ($0.05-$0.08/mile) — the most "invisible" but very real:
- Van purchase: $80,000
- Value in 5 years: $30,000
- Loss in value: $50,000
- = $0.10/mile in losses
You don't see this money leave daily, but when you sell your van, you'll feel the impact.
2. Van payment ($0.15-$0.25/mile)
If you run FEWER miles, this cost PER MILE goes up:
- 6,000 miles/month: $1,800 ÷ 6,000 = $0.30/mile
- 10,000 miles/month: $1,800 ÷ 10,000 = $0.18/mile
Your fixed cost per mile improves by running MORE miles (as long as you stay profitable).
3. Insurance ($0.08-$0.12/mile) — typical annual insurance:
- Liability: $6,000
- Physical damage: $3,000
- Cargo: $1,500
- Total: $10,500/year = $0.105/mile
You pay this EVEN WHEN YOU'RE NOT MOVING. That's why you need to maximize profitable miles.
The hidden cost rule
When your van is MOVING, it's generating costs. When your van is PARKED, some costs keep running.
There is NO "day off" for: Insurance, Van payment, Depreciation, Licenses.
Calculate your real costs
Step 1: Monthly fixed costs
Step 2: Average monthly miles
Step 3: Fixed cost per mile
Step 4: Variable costs
Step 5: Your total cost per mile
Save this number. You'll need it in the next lesson.
Cost red flags
- Fuel >$0.55/mile → Review your driving style
- Maintenance >$0.15/mile → Your van needs attention NOW
- Fixed costs >$0.50/mile → You need more miles or lower payments
- Total cost >$1.30/mile → Hard to be profitable — review your operation
Hidden costs are REAL.
Just because you don't see them every day doesn't mean they don't exist. Your van ALWAYS costs money — the question is whether you're earning MORE than it costs.