What percentage should I charge for someone using my authority?

I pay %10 but I pay for everything else that cost real money too. Insurance, plates, HUT, tolls, ifta, inspections, permits, my own trailer ECT.

I run mostly load board freight and a few of his coustemers loads but they are nothing special. Now I would fully expect to pay more than %10 if he had good paying regular freight.

On the flip side he lets me use his shop for no charge. I do help around the farm and help work on his equipment a couple times a year. He passes along a good parts discount at the local dealer and tire distributor.

I alway try and add value to his company even if not in cold hard cash and he seems to appreciate that.

 

I have a friend that pays 12%. Friend pays all expenses and gets his own loads. Company does all the paperwork, including ifta reports.

 

So if he's paying for his own plate and is paying his own insurance ! And only giving you 10% why doesn't he just get his own authority? 10% isn't sh!$ if he's running under your authority! If he has an accident it's your insurance sky rocketing and you will continue to pay that high premium after he is gone!

 

I'm with the 15-20% crowd. My father runs under my numbers for 10% of the gross. But that's a family deal.
Lot of people want to run there own show, but still be safley under somebody else's wings in the process.
It don't work like that.
You are leasing the control of his truck and hiring him to drive it. That's the bottom line.
In the event of a major lawsuit your front and center.
Lot of risk for 10% in my opinion.
And if the guy is a good business man then expect him to go on his own eventually. A non-compete clause could really save your backside some day. Wishing someone well and throwing them some freight to get started is a whole lot different than them taking it and running.
Something to think about.

 

I'd like to thank that twice.

 

I had that at Sammons, now DSV. One year from leaving I could not contact any of their direct customers..
I honored that clause also. I also don't back door brokers I have or still work with either

 

10% is not even close to enough.

At the end of the day it's you backside on the line. It's simple..

HE WANTS TO RUN UNDER YOUR AUTHORITY.

So it's your conditions, there non negotiable... Definitely make sure you have a non compete clause if he is hauling ANY of your freight or from your customers...

One thing about business. You're in business to make money. Are you making enough money from 10% to make it not only worth your while but worth the headaches? I'm pretty sure that's a no.

15-20% gets my vote..

 

I have a guy wanting to run under my authority. I’m new to this also. I don’t know what the going rate is. I know the driver should pay for everything. But im also at, any help will work

 

Do u pay him for the insurance or do u have your own insurance? I though when u lease on using there authority ur on there insurance and have to pay them