Get paid .92cpm or a percentage?

That looks like a dealership lot!

 

That's what I thought too until I saw the IEL Repo Parking sign.

 

If you are a driver going on percentage pay, there are many factors to consider. First, is the company's rates, which has already been stated. The second consideration should be the amount of empty miles you will be running. I have a lot of competitors in the specialized hauling business that think nothing of a 500 mile deadhead. Not only do you need a great rate, but also a high percentage to do this for very long. You should get a higher percentage in an operation like this because they are not spending enough on a sales staff or people finding loads to justify keeping a large chunk. One thing O/OPs rarely take into account is exposure. You are generally the one who pays the claim. Is that high RPM going to be good if you have a claim of some sort? How valuable is the item you are hauling? Do you have the choice to wait for a load that is closer? Will they really keep looking for something? I would really only advocate % pay for drivers with a fair amount of experience.

 

Some will argue mileage, others will argue percentage. Percentage didn't work for me. Perhaps it's because I was spending too much on fuel at 6.5mpg (7.5 - 9 now depending on freight weight and speed) or maybe it was because my fixed expenses were nearly double what they are now. Maybe my FM wasn't helping look after my best interests and was simply plugging loads on me without thinking about the three previous loads not paying squat. Whatever the reason, it didn't work for me. That doesn't mean it won't work for someone else. It's only my personal experience.

I prefer mileage mostly because I no longer have to worry whether the next load will pay for itself and the previous crappy load or if it's just a bandaid load to move my truck. My pay is predictable and steady. I know how many miles I need to turn in a week to remain solvent. After I turn the requisite number, the rest, minus fuel, is mine.

Regarding that 9cpm overmileage deal. I ran 12,140 miles last month, or 1,140 over. That,s $102.60 for the entire month that goes into an interest bearing "escrow" account. I hardly think that is going to break the rest of my bank. Especially considering I will get that back, plus interest, when I complete the lease.

The reason I went the way I did was I do not like the confining feeling of having to ask permission to go to Walmart. If I want to go to Walmart, fuel when it's right for me or drive I-55 to I-57 to I-70 instead of I-10 to I-59 to I-40 to I-81, well, I'm allowed to do that and nobody says a thing about it. Not everyone wants the responsibility of routing and fuel use control, so they remain company. That's fine. Me? I don't mind that responsibility, but at the same time, don't want the headaches of figuring out the problems that used truck salesman didn't tell me about, being down for days at a time for repairs I will have to pay for out of pocket. But that's my business model. It works for me, even though it may not be right for you.

 

I appreciate you sharing your perspective on that Injun. I always thought Swift did the fuel and routing to L/O's as well.

KH

 

Re: escrow...interest will go to whomever ultimately pulls the money out. This is highly regulated now after dozens of lawsuits.

Regarding routing: I route myself the direction that is most bebeficial to me. I know a lot of roads the computer never thinks to go. I weigh what will cause wear and tear, which direction will give me better fuel economy, where the cheaper fuel and taxes are and which city headaches I will run into along the way. And go the way I want to go. There is a lot more thought that goesinto routing than where are the hills and what's shortest. Stop trying to undercut me to make yourself feel better.

 

So what did any of you put down for your trucks?

 

Sorry....you ready for this? You're right.

I was feeling pretty cranky with the Memphis planner, misread what you said and jumped to an erroneous conclusion.

Got sent on a banzai run with fifteen minutes' notice and no sleep. Not your fault, nothing to do with you and you were the first target. My bad. I'll try to pay better attention going forward.