Actual Cost metrics for Sricity to Hosur warehouse
1. Revenue Calculation (Only Forward Load)
- Revenue per trip (forward load only) = ₹32,500
- Total trips = 90
- Total Revenue = ₹32,500 × 90 = ₹29,25,000
2. Total Cost per Trip (Without Finance Cost, With 15% Markup on Other Costs)
| Expense Category | Estimated Cost (₹) | Markup (15%) (₹) | Final Cost (₹) |
|---|---|---|---|
| Fuel Cost | 14,613 | 2,192 | 16,805 |
| Toll Charges | 3,000 | 450 | 3,450 |
| Driver & Helper | 1,300 | 195 | 1,495 |
| Maintenance & Repair | 5,000 | 750 | 5,750 |
| Vehicle Finance Cost | Removed | ||
| Miscellaneous Expenses | 1,200 | 180 | 1,380 |
| Total Cost per Trip | 25,113 | 3,767 | 28,880 |
3. Total Cost for 90 Trips
Total Cost for 90 trips = ₹28,880 × 90 = ₹25,99,200
4. Profit Calculation
Total Revenue = ₹29,25,000
Total Cost = ₹25,99,200
Total Profit = ₹29,25,000 - ₹25,99,200 = ₹3,25,800
Profit per Trip = ₹3,25,800 ÷ 90 = ₹3,620
5. Profit Margin
Profit % per trip = (₹3,620 ÷ ₹32,500) × 100 = 11.1%
Overall Profit % = (₹3,25,800 ÷ ₹29,25,000) × 100 = 11.1%
Key Insights
- Removing the return load revenue reduces profitability from 35% to 11.1%.
- Profit per trip drops from ₹15,620 to ₹3,620.
- Without a return load, this business remains profitable but with lower margins.
- Strategies to offset the loss:
- Increase forward load pricing (negotiate better rates).
- Reduce per-trip costs further (fuel optimization, toll reduction, driver efficiency).
- Find alternative sources of revenue (parcel loads, priority freight charges).
Would you like to explore cost-cutting measures or alternative revenue strategies?
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