Goodbye Fogust. Summer is finally here (in San Francisco) and my August earnings for Turo car share hosting are in.
August was a terrific car sharing hosting month for a few reasons:
- Record monthly earnings
- No accidents or claims
- 100% 5-Star Reviews
- High utilization – Possibly too high (more on that below)
Quick note, my Ford Mustang is a dedicated Turo car share vehicle. My BMW X5 is my primary driver and mostly available on Turo for car sharing on the weekends when I’m not using it.
August Turo Earnings Highlights:
August Earnings: $2,035
Rental Days: 33
Ford Mustang has 17 lifetime completed trips and 13 reviews
BMW X5 has 16 lifetime completed trips and 15 reviews
|August Turo Recap – Mustang|
|Miles Per Day||151|
|Average Miles Used:||54%|
The Mustang accumulated 25 rental days which is a 81% utilization rate (25/31). That’s high.
One tweak I’ll make here is to slightly increase my pricing.
The tricky part is that I won’t immediately see the effect. That’s because the Mustang already has a 96% utilization rate for September. Yes, that’s really high but the point is the new pricing only affects future reservations. That means October at the earliest unless a guest cancels for September.
Understand that your pricing strategy for a new Turo car share vehicle should probably be different in the first month or so until you receive sufficient ‘social-proof’. After sufficient five-star reviews, high utilization rates, etc. you can expect to slightly increase your daily rates.
August is the third month for my Mustang.
Pricing strategy is very important and an entirely separate blog post.
One last point before reviewing August earnings. The average reservation used only 54% of the allocated miles. After learning this I decided to change my daily distance from 200 to 250 miles. I made the increase after experiencing two consecutive months of roughly 50% reservation mileage utilization.
I hope this achieves two things: differentiates my car from the others and allows me to command a slight price premium. My theory is that guests stress about mileage limits when making reservations. Can you see yourself mapping out distances before reserving a car?
Going above and beyond the allocated miles incurs a significant cost to the guest. More on this strategy in a future post.
Now I’ll break down my August profit and loss statement for both the Ford Mustang and BMW X5.
Sidenote: I’m mostly happy using Wave as my accounting software. It’s like Mint.com but for small businesses. And it’s free.
Net Profit, meaning after all my expenses, was $2,035. Keep in mind that this number would be higher if my BMW X5 was a dedicated car share vehicle.
Starting from the top-line, my Turo earnings totaled $2,554.
Fuel, cleaning, toll and mileage reimbursements totaled $349.61. The bulk of this was from one guest surpassing their trip mileage by 415 miles.
Keep in mind that Turo keeps 30% of mileage overages (Standard Host Protection Plan).
Expenses, fuel and maintenance costs totaled $183. Sometimes guests fail to replace fuel. It’s frustrating that Turo doesn’t allow hosts to charge an ‘inconvenience fee’. There’s really no incentive for a guest to replace the fuel (other than a host giving a negative review). Be sure to upload the fuel receipt.
Let’s wrap up expenses. I’m slightly embarrassed to admit that I got another parking violation. San Francisco parking police are intense and good at their jobs! What can I say. We’ll chalk this up to the cost of doing business.
My car wash subscription was $39.99.
Total operating expenses of $335.
Subtracting operating expenses from gross profit leaves $2,035 in net profit for August. A monthly record high!
August Earnings Summary:
August was a record month. I reached a monthly earnings high of $2,035. All of my guests were great. They treated my cars good (no accidents or claims). No mechanical issues.
- Fogust in San Francisco is historically a busy tourist time. My Mustang experienced high utilization (maybe too high).
- I gained additional 5-star reviews and completed trips.
- Record high earnings of $2,035 after expenses with 3800 miles driven.
Things to work on:
- Pricing strategy since August and September (estimate) utilization is high
- Research adding another vehicle
- Monitor higher mileage limits
- September will be a record earnings month ($2500)
- Receive 8 five star reviews
- Purchase another dedicated car for Turo car share hosting
How did I do?
Are you ready to start generating monthly income? Want to reduce your cost of car ownership?
I’m happy to provide coaching, guidance and tips (free of charge). Car share hosting is a fun hobby for me.