Percentage vs. Per Mile

If you are paid per mile, All loads are average. If you are paid percentage, you have great loads, good loads, average loads and poor loads. I like the choice.

 

Most carriers pay drivers mileage. Those in a more specialized area of the industy are more apt to work on percentage. If a driver works on percentage, the rates seem to be between 20-25%. I have hear of some who pay as high as 30%, but I don't see how they can afford to pay that high of a rate for very long. Most freight carriers who pay percentage pay owner operators around 65% for power only and 75% if you have your own trailer.

I prefer percentage to mileage. Whether you are a company driver or owner operator, you have an opportunity to earn more on percentage than mileage. The key is to find the better rates. You need to have more business savvy to do well dispatching yourself on percentage. When you are paid mileage, it really doesn't make any difference where you run or the rate, since you are paid the same rate regardless of where you run.

 

the percentage pay is linehaul only. and you have no idea what the linehaul is. so bascially you get ripped by the company.

it doesn't account for the total haul. your also sucseptible to long deadheads. deadhead was free labor.

mileage pay. should be self explanatory. but a lesson i learned with the last company. i only got paid 25% of actual deadhead miles. but i wasn't deadheading as much as the percentage pay.

that was my experience. others will vary of course.

people swear by the percentage. when we swtiched to mileage. it was a toss up as to who made more money. i was the last percentage guy. i was also the most deadhead.

 

I am an IC with Prime INC. I receive 72% of each load, with the contract attached to the settlement each week. I pay all costs, but am reimbursed for trailer wash and washout, lumpers, and I don't pay for trailer repairs. I can turn down loads. I receive all accessorials for each load, and also receive all detention pay. All loads (except Tyson & Budweiser) have detention clauses in the contracts. I get fuel discounts through Prime's fuel contracts, as well as all maintenance at reduced rates. I have averaged $1.66 per mile last year and netted $61k. I ran 148k miles. (some team miles in there)

 

It shouldnt matter what the company is getting. You should know your operating cost and adjust fire from that. If you dont like the linehaul , dont haul that load.

 

148k miles and only netted 61k? you do realize that's right at 40 cents a mile right? most company drivers make more than that. I'm not picking on you or trying to start an argument, I just don't understand why an owner operator would be content earning less than company driver pay.

 

If my Landstar Contract tells me i am getting 72% of the Linehaul and that is the ''deal''...I #### well better not be getting ''skimmed'' off the top by landstar and my 72% better be based on the ''real'' numbers.If they are ''skimming'' on the top,then they are committing a CRIME and stealing from drivers..I believe Alot of drivers are getting screwed day after day because we DO NOT have acsess to the ''real'' freight bill...

Until drivers can see the ''original'' bills,everything is based on a hand shake and hopes that the company is not screwing you or lieing to you..

 

I have asked why for 25 years...It blows my mind..