Prime Company Driver

Ok i have a question.

Why do they care what your fuel milage is if your a lease operator? Your paying the fuel and maintenace right so what bone is it to them?

--OR-- did i misinterpret the last post about fuel milage in reguards to company vs. lease? I know you gave the info but didnt state whom the 6.75 was to be reflective of I assumed you meant everyone, which draws me back to my original question.

thanks

 

6.75 is for company drivers, lease ops are not required to maintain a certain mpg but you are crazy if you dont hold yourself to the same standard or better yet an even higher standard

 

10-4 on that i figured so but sometimes ya never know and all ya know. thanks for the clear up

 

Here's the deal, and most folks miss this point. When you're running as a lease op, you are operating your own business. That means that a settlement check is revenue paid into a business, not a employee paycheck on steroids. Huge difference.

So yeah, as your own "boss" you can choose to put the pedal to the metal, and ignore what kind of fuel mileage you get. But that only works for so long. When you put the numbers into a profit/loss sheet, the first thing that stands out in the expense area is that there are costs you can't do anything about (lease payment on the tractor for instance) and costs you can control - and by this I mean specifically fuel.

Get a bad case of lead foot, and your costs skyrocket. Even in the best of times, drivers who can't control the need for speed fail miserably at this. The lease ops who have been doing this for any length of time and who are making money at it all agree that to be successful over the long run your fuel costs have to be kept to a minimum. A good number to gage how you're doing is to be getting better than 7 mpg.

All the wheelholders I've run across with $$$$-signs in their eyes and a lease on a fancy-looking tractor could care less about their fuel mileage. They get a couple of good settlement checks, blow them, and assume everything is wonderful. It ain't. And I don't see them around for very long.

Prime is not responsible for how a 1099-contractor does his business. By definition, "you are your own boss" and only you are responsible for running your own business. Outside of some minimal restrictions that have to have a good reason for being (65 mph max to run in Canada for example) - Prime can't tell a 1099 operator how to do things - its the law. That's part of our wonderful free market system that allows us to make the big bucks. It also allows you to fall flat on your face.

 

I understand. I just wasnt clear on the comments thats all. Im all too familier with running a business. had a landscape business for several years and i choose to sell it for more family time. Talk about some seasonal $$ and having to manage and saave $$ for the winter months and all, it was tough and a hard learn at first but figured it out after the first winter running out of money, it wadnt cool the the next few following years were a breeze.!!

Anyhow. Thanks for the info guys. Does Prime govern the lease ops trucks any?

Have agreat evening.

 

65 mph... it's a legal requirement for going into some of the provinces of Canada.

 

If you run your own business. It's always good practice to minimize your cost were ever you can. Example: If you had a store 100, 000 square feet and only open for 10 hours a day. You'll leave your lights on all night with no one in the store 24 hours? That makes no sense.. You make money here and you lose money there... Were is the profit? You might even break even and if this is so. How can you pay your employees and the bills? You'll be in the red. And I'm sure we all what will happen eventually. It's a small example, but nonetheless it's basc math.

 

Just answering a question dude... don't get ruffled!

 

Ironpony, I don't think many users know what a 1099 is... In other words your an independent contractor. Meaning, you work under an larger company or corporation. You pay for the costs, such as fuel, Toll, maintenance, insurance, employees etc, etc. After factoring in all the expenses on your part. You have to make it on your end. Companies tend to go this way because it's cheaper on the their end. I believe it's a 60/40 split on taxes. They claim 60% while you 40%. At the end of the year you're responsible for the taxes.