I'm trying to figure out a formula for operation expenses for my bus so I know how far in distance I should book my gigs to keep it profitable. I get 5.8 MPG might do better slowing down. I need to find gigs then en route towards the next rally or bar I'm playing within that mileage range to pay expenses. These gigs would be at a reduced rate on off nights like Mon-Thur. Cheapest Mon & Tues. higher Wed. & Thur. Maybe even try a door deal. Then I need to figure out a Marketing plan to find and secure these gigs. I'm working on a networking plan on Myspace to help with attendance at shows. I have wasted a lot of time and money here in Nashville trying to find an agent and manager so I guess I must continue on my own. Every body wants money handed to them without any work. One guy said if I was making $25,000 a show he'd be interested. If I was making that kind of money I wouldn't need him. I'd book 4 shows a year, sell some merchandise and take the rest of the year off. I know some of you are entertainers or former entertainers any pointers or help? Or from you other marketing and planning geniuses? I really love this bus and want to keep it.
At 5.8 mpg and at $3.00/gal, that works out to be .51¢/mile. I would add another .15¢/mile for overall maintenance. So that works out to be .66¢/mile to drive the bus. This is not including registration, insurance, payments, etc-just running costs. Good Luck, TomC
You will likely get a wide variance of the numbers you want, some of them may be pretty close. But every vehicle is different and, since you have critical decisions to make, I would suggest you begin right away to track your actual expenses. I do this myself for alll my vehicles, and its easy, informative, and precise. I use this particular program, but there may be others that will work for you just as well:
http://www.egcollins.com/cartrak.htm
tg
I think that the S/W linked is great, but I would try my own spreadsheet to get the same place.
Fuel, oil changes, routine maint, genset maint, minor upgrades, replacem'ts, insurance, registration, initial investment amoratization, etc.etc.
When I get the total dollar amount, I wonder if I should be doing this, and the answer is of course yes, as there is no other similiar manner of comfortable travel, with unlimited flexiblilty of shedule. I drive when I want, etc.
For me it is the essence of freedom, of which this country was built.
Am I getting sappy here ???
Twenty years ago, when fuel was $1.00/gal. a common figure for bus operating expense was $1.00/mile.
You can't use a day to day cost as a bottom line. You have to add up all the up front costs plus the estimated cost of total undercarriage rebuild and divide it by the number of miles you expect to drive the bus, less the salvage value when you sell it. This is your operating expense before you start the engine. The running expense are easy to keep track of.
You may be lucky and never have to rebuild an engine or a front axle but you have to include those expenses if you are going to have money in the bus fund to repair it if it does happen. Things like air bags, brake components and routine engine maintenance are easier to estimate.
Since your bus is a business vehicle, you have to have detailed records for the IRS and your accountant will have suggestions on how he wants it done.
Capt. Ron:
Try this links ==> http://www.truckershelper.com/operationscost.php (http://www.truckershelper.com/operationscost.php)
Might help you get close.
Jerry H.
Capt. Ron,
The sense I get from your post is that you are at a crossroad trying to make some decisions. Years ago when I was starry eyed and wanting to make it the one thing that was constantly drummed into me was that this is a business.
The bus offers you some unique advantages that other forms of transportation will not. Yes there has to be physical money to keep it on the road and one must make money inorder to take full advantage of the situations.
That being said there are some other things you might want to consider. ie ROI, this mode of transport versus the other ways (and motels). tax advantages etc. If you are going to go down the road, no matter what form you take, it is going to cost money. If you were anything like I was I needed a pickup or full size van for all my junk. Neither one of these are that economical to run.
Sense it is getting close to tax season there are some thoughts that you might be able to use. (include in your ROI ect.)
The bus is both your transport and a home so use these things to your advantage.
The bus and all your other equipment should be on a depreciation schedule.
Intalling insulation, dual pane windows, on demand hot water heater etc all have tax credits (use them if you can).
Unlike us who are using our bus for fun anything you spend to keep it on the road is a cost of your business. (as long as you can keep in the black)
This is still to long but it is shorter than what I had origanlly planned.
Best wishes for you
Skip
Ron, having a bus is just like being in the trucking business. When a trucker won the million dollar lottery, everyone wanted to know what he was going to do with the money. He said he thought he would just keep on trucking until he spent it all!
Ron,
It would seem to me that the expense to operate the bus is basically a fixed cost, therefore, work on improving the income part of the ratio. One way of improving the ratio would be to roll into an area and stay a longer number of days and do gigs in multiple bars or for multiple nights in the same bar. Is there such a thing as an event scheduling company that can provide this service like brokering trucks?
Quote from: captain ron on February 09, 2007, 08:48:09 PM
I'm trying to figure out a formula for operation expenses for my bus so I know how far in distance I should book my gigs to keep it profitable. I get 5.8 MPG might do better slowing down. I need to find gigs then en route towards the next rally or bar I'm playing within that mileage range to pay expenses. These gigs would be at a reduced rate on off nights like Mon-Thur. Cheapest Mon & Tues. higher Wed. & Thur. Maybe even try a door deal. Then I need to figure out a Marketing plan to find and secure these gigs. I'm working on a networking plan on Myspace to help with attendance at shows. I have wasted a lot of time and money here in Nashville trying to find an agent and manager so I guess I must continue on my own. Every body wants money handed to them without any work. One guy said if I was making $25,000 a show he'd be interested. If I was making that kind of money I wouldn't need him. I'd book 4 shows a year, sell some merchandise and take the rest of the year off. I know some of you are entertainers or former entertainers any pointers or help? Or from you other marketing and planning geniuses? I really love this bus and want to keep it.
Ron - the way I look at the bus for vacation use may be of help. Forget the math for now, but just look at it from a (un)common sense perspective.
When on vacation, the longer I stay at a particular area in the bus, the more cost effective it is. Here I am trading off the cost of a room against the cost of a campground (or not if in Wally World etc).
If I am rolling big miles every day to get somewhere, it gets expensive quick and air travel starts looking cheaper for the family.
So back to your situation, to help keep expenses down you want to land in a town where you can stay for a few days (Fri and Sat to be sure) and hit the medium sized towns during the week while moving to a bigger town on the weekend. Of course getting work for a multi-week stay is the best. This will probably mean lots of different venues.
Take an area like Phoenix. There in the valley there are three large towns, all connected. I have a friend that lives there and a three or four months back he and I took in a band we both like (Southern Culture on the Skids) at a place called The Rythm Room. This place would be a good fit for your act. They book a lot of different talent there on the weekends etc; everything from Linda Rondstat to The Drive By Truckers. This makes the place sound bigger than it really is; the room is really not that big and people can dance or sit at the bar during your show. If you could get a mid week gig there, then look for other bars and clubs in the area, I think you could stay quite busy in the Valley of the Sun! The number of bars, restaurants, clubs and such is staggering in the area. Head out of town on a bike ride and you will find spots too that may help cover expenses if not really making what you like.
There are bike shops galore in the area (one of your demographics) and lots on the road. This is a college town, that could be a plus for your show. There is a mix of no nonsense rural type thinkers (even if they are in an urban area) as well as the Scottsdale yupsters. Believe it or not, both types turned out for the Southern Culture concert.
As a small businessman, you will have to work the phone yourself while tooling down the road and between gigs for now (marketing, production, accounting, sales; do you think of yourself and your tasks in this way?). Watch who shows up at your shows and how they react. People usually like to talk to performers after a show. Find out what they liked about the show and ask them what it would take to get their sister, brother, best friend, or whoever to come. Use this info to widen the appeal of your show and your business will begin to grow. That usually means curbing some of your artistic sensibilities, but bringing in the bacon, to some extent, means "going commercial".
If you can get into an area and meet some folks you think are a fit your type of show, they will be able to tell you where the right spots for you to try are.
Good Luck with your business!