should i pay my driver BEFORE/AFTER FUEL COST

The bad part is there are more drivers that will break you than drivers that will make you in the independent O/O business. It's hard to find a good driver to work on percentage with no benefits.

 

So very true. I always wanted my own fleet but after working for two carriers one small and one large fleet in the office doing dispatch, safety and recruiting I decided that I would never do that. Nobody is going to drive the truck or take care of the truck like you would no matter what you paid. So one truck for me.

Many years ago their were several owner operators that had several trucks leased to companies but their was money to be made back then.

 

I had as many as four trucks at one time, with six drivers (two trucks were team). I decided I would no longer own more trucks than I could drive myself. If there is a way to rip you off, or do something stupid, you can bet it will be done.

 

Their was a local farmer that got in the trucking business about 20 years ago and had three trucks running hauling cattle. He gave each driver a credit card to buy fuel, repairs, tires etc.... First thing they did was turn the trucks up to run three digits (ex-fleet trucks, Peterbilts from Dick Simon) well he put two motors in their first year. Then he caught one driver buying scanners, radar detectors and cb's at the truckstop with the credit cards then selling them in the parking lot. Another driver was selling fuel in the parking lot. He went thru several drivers and the farmer always paid them what they had coming he was not a cheat. He finally had enough and quit.

Know some would say well he should have never gave them a credit card but things were a little different back then. I worked for one guy that gave me $500 cash a week to buy fuel, back then I would have change left over and never ever cheated the man.

 

I have meet a few "good" drivers driving for o/o but they are few and far between. Most just don't care because they think they have nothing invested. If you have a good driver and he takes care of the truck and making sure freight gets there on time pay him a fair enough pay so that you both make money.

 

It was not th most pleasant experience running with him, however, as strange as this sounds, I am glad had that experience. I did learn a lot. I learned first hand the cost of not doing pre-trips when we got our arse handed to us at a weigh station, our rear suspension was deflated, something that would of and should of been found with a pre-trip, well, we weighed over on our steers and got a ticket, (well, he did), he also go a warning for his log books which were behind. Whatever time he saved by not doing a pre trip was lost and then some.
He also did a horrible job of trying to slide the fith wheel, ended up slamming into and ripping a hole in the headache board, as well as busting the fith wheel air hose and a valve on the trailer, so we actually lost pretty much the whole day and a lot of money. Grrrr, not to mention delivering the load a day late. again grrrrrrr...

For me, guess I am lucky, I don't need to idle the truck so much at night, I stay pretty warm... He had the heat so high, I actually had to step outside the truck to cool down and hopefully get col enough to get back in.... Seriously, I would hop out in my p.j's in 20 degree weather because I was over heating in that darn truck.. and I was wearing boxing shorts and a tank top... there is just no need for that! Again I guess I am lucky that I must be a human thermal generator... because I just don't need to idle and have the heat on at night... We had a three day layover and he went to stay with a family member that lived near by... I stayed in the truck and never had to idle it except to make sure the fuel didn't gel up...

For me, I like to see how effeciently I can do a run... there is a rush in it. Now that I am better at shifting and all, I think it is a rush to see how much more profitable I can run.
One day I want to be an O/O and I know that will be important to my success. I know it is only nickels and dimes, but a dollar is made up of nickles and dimes, and it adds up, the more nickles and dimes I can save, the less wear n tear on the equipment can add a lot of profit... the whole "penny saved is a penny earned" thing.

Also, I guess I am cheesy or vain, but I have that "pride in my ride" thing. I like it looking good, inside and out, running good and running effeciently.

Right now, I am still a rookie and not ready to be an O/O, but, I like to drive and run like I am. I know it is not my truck, but at the same time, it is... either way it is a reflection of me as a driver.

 

For me, benefits are not that important. I was in sales for years as a 1099er and have had to be responsible for getting my own benefits. Which has actually worked out better for me than what benefits most companies offer. If you are only use to getting your benefits thru a company I can see where that would be the most comforble and easy way to go, however, in truth, company benefits are not always the best way to go.
I have full health, dental and vision, disability and a good retirement plan, non of which is thru a company. I would not give up what I aleady have to go with company benefits.

What is important to me, is that I get paid what I am worth. Why should I get paid the same as a driver who does not run as effeciently and as profitable as I. I would prefer that there be an incentive to run effeciently, take care of the equipment, and represent the company well. All drivers are not equal and should not be paid equal. If I run more profitable for a company, I should be paid more than a driver who runs less profitable. If by taking care of my truck and equipment I save the company money, I should be rewarded for that over the driver who is careless and costs the company.

For example, this last guy I ran with, he was a very large guy. He went thru so many bungee's, much more than normal wear n tear. He was hard on them, he would over stretch them, he left several behind because he was too lazy to walk and pick them up. Why shouldn't he have to absorb at the very least some of that cost.

When I was in sales we got a certain amount of money for supplies every 6 months. If you did use it all it was extra money in your pocket, if you were wasteful and needed more it came out of your pocket. Someone like me, who would take care of things and not waste, I always pocket some extra cash, those who were careless and wasted, well, money came out of their pocket. I think that is how it should be.

I would like that kind of set up in trucking. I am sure there has to be a way for an O/O to estimate those costs, the normal or average cost of those things, bungees, windshield washer fluid, wiper blades, straps, and so on... Let me as a driver be able to profit by being effecient or absorb the some of the cost of being wasteful.

I imagine that type of thing won't be attractive to wasteful drivers, so, you would actually attract more effecient drivers who do care. Which is the drivers you actually want in your trucks.

I don't understand why more companies don't operate like that. I mean, if as a driver I have tickets or whatever so insuance for me costs more, why shouldn't I have to absorb that, either not paid as much as a driver with no tickets who inurance is less for. If it cost a company x amount more to insure me, then, that should be reflected in my pay. Which should be incentive to not get tickets and all.

I know I am a newbie and don't know all the in's and out's yet. Just throwing out my thoughts. I just don't see paying all drivers x amount per mile, when not all drivers run each mile as profitable.

 

+1.....But if the load pays gross rate no fuel surcharge then you need figure out that unless of course your driver wants to help to pay fuel.

For example you have a 1500 mile run that pays $3000.00 gross. Take the 1500 x .28mile = $420 fuel surcharge
Trip Gross $3000.00 - $420.00fs =
$2580 Gross & $420fs

If you're paying percentage of say 25% then your driver would make
$645 on that 1500 mile run which turns out to be .43 a mile for your driver.

Ken

 

I also have an O/O working for me that has a driver in 1 of his other trucks & he pays them 50% of net after fuel bill only not his Ins. Paying this way will make a driver think more on his driving habits like putting her in the wind if driver gets poor fuel mileage then he hurts his income not just the O/O he's working for.

Hope that Helps,
Ken

 

I can write up a contract for you to give your driver. Legaly you are his employer & have to take taxes & take care of Workers Comp. For the contract you are the Contractor and he's the Sub-Contractor & you are covered. Feel free to shoot me an E-Mail if you like I'll be glad to help you out knlken@yahoo.com

Ken