Mileage or Percentage…?

30% on "regional freight" where you assess a decent line-haul rate is probably fair. But it all depends on your freight base and lanes and business model. 30% of $1.50 mile is not bad but only if it's not 300 miles out, then empty back.

 

Would have to depend upon how the rate is, How many deadhead miles etc. FS stays with the person paying the fuel bill. Not the driver.

 

Yes, this is why I asked about $/mile for all miles. I don't mind a 300 mile load with 300 miles deadhead if the loaded rate is close to the $4/mile range or better.

A good paying long haul can be better with a backhaul as long as it doesn't chew up time getting into position for another good load. I had the option to find my backhaul or deadhead back as a driver under percentage.

The name of the game is maximize revenue each week and keep the truck in good repair.

 

That's the good thing about percentage, though. If the truck is doing well, the driver should also be doing well. Makes no sense to operate the truck in a losing fashion, although there are some truck owners who don't really care as long as the insurance and other fixed monthly costs get's paid

 

Companies do not get paid by the mile. You shouldn't either. It isn't about miles, it is about profit. Short runs pay more per mile.

 

Yes sir, with me paying all expenses...And still trying to figure out on averages and revenues...Im just a starter and need advice..Thanks

 

Thanks

 

As a company driver I used to drive for a percentage company pulling dry van freight. The thing about percentage is each load pays different as a few here have stated. I liked it as long as I had a choice in loads which I typically did. I would ask what each load paid and decided for myself which to take. After I got comfortable with the system I did really well. Like an O/O I didn't always pick the highest paying load as you also had to plan ahead for the next load. Example a load to Florida might pay really well but the backhauls usually didn't. I tried to stay in the lanes that I knew paid the best.

As a company driver I would not want percentage pay if I didn't have a choice in the loads. As an O/O I wouldn't want mileage pay, percentage with load choices is the way to go.

 

Thanks for the sounding response..So how much would you recommend I pay the driver per load, percentage wise. and what is the average pay per mile from most load boards a company get paid?

 

Your questions beg questions of you, with all respect. Anyone wanting to hire drivers should already have that information dialed in. I would not want to take on the responsibility of providing income for a family unless I have a real good idea how much they will be paid.

Reading between the lines of your posts it seems you are buying a truck or trucks without having been a driver. Maybe you are now or have driven a truck, but certainly certainly haven't spent time as an owner operator.

It would be far better for your future employees if you were driving a truck, getting your loads, and figuring out your lanes and developing relationships first. There is no way I would consider driving a truck for an owner that doesn't understand the business and have established customers.