When paying a Driver

No thanks. It cost way too much money to run a truck to pay 30%. Why not pay per mile with a guarantee? Your driver is going to make more money then you are as a truck owner. I’m all about the driver making great money but you must survive for him/her to keep his job.

 

Over here on the west. 30% would pay more then per mile.

Over on the east. Per mile would probably pay better then 30%.

When I did flatbed it was 25%($.38). For 2 companies. $.35 per mile for one.

 

I pay 25% before any deductions fsc included...usually averages around 60 cpm sometimes if there is a backhaul pushs the avg up between 75 to 80 cpm but ymmv

 

I haul steel at 28% of linehaul. No fuel, accessories, detention or anything else.

I still bang out between $60 and $70,000/year without working too hard.

But I'm just a company monkey. Got a whole office of support types like planners, sales, safety, and dispatch.

 

You're the boss. My advice is keep it simple and predictable. A driver should be able to run his numbers and have them match the gross pay line exactly every time. The more complicated you make it, the more likely it will lead to disputes and missed expectations. Especially in the case of something less than easy to see and count in your head like fuel cost (you are on a discount program, aren't you?).

If you want to incentivize fuel use, offer a mpg bonus and make sure you're clear on how it's calculated. Then make sure you don't get it wrong on payday. For one, even if the fuel receipts have cash price not your price, the gallons are all the driver needs to figure out what they might have coming. For two, since it's a bonus and not baked into regular pay, it's usually seen as extra money versus straight pay, by the driver.

Also expect some unintended consequences. The driver choosing their own loads may refuse offers that would go over a mountain route or close schedule, without considering carefully that a higher rate makes it work. Or the driver gets a pay penalty when there's a performance problem with your truck. IMO, tinkering with a fuel incentive isn't worth the risk of an unhappy driver. At least in my operation. If you want to save on fuel, buy an apu, get fuel efficient tires, etc. Buggy whipping the driver with his paycheck is a bad idea.

FWIW I set the max speed on both my trucks at 75, which is at least 5 over the limit most places I run. For lawsuit protection, not fuel consumption. A crappy and/or careless driver can get bad fuel mileage in a truck limited to 60 without trying too hard.

 

Guess you'll be finding a new career.

That WAS the going rate around here. I think it's up to $.40 or slightly better now.

 

no it is not after fuel costs, that's a cheap owner.

I start at 40% unless the driver picks up the cost of the fuel and I have 7 drivers who do that - then they get 60%.

AND IT IS ALWAYS based on the gross of the truck, not the gross billable of the load.

Speed limiters?

Hire good drivers, you won't have issues than.