Percentage vs mileage

Hi all,

As an O/O I am out there hustling and trying to make ends meet. I was wondering, which one is better, percentage or mileage? I am currently getting paid by mileage right now and while there is decent $$$ in it, it only works when my FM is "in the mood" to give me good miles.

Looking forward to hearing your answers.

Thanks

 

Actually suprised no one has answered this one yet.

Advantages of cpm: you know what you'll make every mile (depending on how carrier decides to measure it) dead head or loaded.

Disadvantage: you some potential for great income on most loads, yes, you'll have to eat DH. But, usually averages out to a better cpm ( again, the carrier variable)

Advantages of Percentage: Generally a substantially higher pay per load.

Disadvantage: 1. You eat the DH.
2 . Dishonest Carrier can cheat you a little bit easier (unless your are leased contractor, as FMCSA regs protect your right to see actual freight charges)
3. Or with a Carrier who does not charge a decent rate for their freight services.

 

I prefer a set rate per mile in most cases, it depends on the trailer I am pulling. For the reasons he stated. However I have a bottom cpm which I will not go below and a max on any dead head without pay in either case. You need to know when you are working for nothing and keeping the books on a per load basis is the way to keep up with it and not get overwhelmed.

 

If you go down to the "Storage Trailer" section of the forums, you will find several decent posts concerning the differences between CPM and % pay. While they are based more on company driver than O/O info, the arguments, both pro and con, remain valid, while the numbers will be somewhat different, based on the deal you set up with the leasing company.

 

So the answer is there is no easy answer.

 

If you work for someone who hauls cheap freight, then your best option is goingto be the cents per mile formula. You wonlt get rich, but as long as the miles are there, you will make a set sum each week.

If the boss is not addicted to cheap freight, then it is very possible to make out well with percentage.

It's not an easy business decision to make, because you have to do some serious research to determine which works out best. In rough general terms, if the company offers both choices, there will be almost zero difference in the long run. If they only offer one, then it becomes a matter of choosing the company, and the pay system is ony a small part of that. The easist way to make the decision is to find someone already working ther and ask if you can see the books. Not all drivers will share that info, but if you ask around, you may find a guy willing to be honest about it.

 

% is the best way I see but it depends on the company you lease to but with percentage you share in the gravy when they find it

 

If it were easy everyone would have the attitude of a Trucker instead of having one about them!

 

Looking to put a truck on the road and was wondering if it is better to pay a driver by the mile or percentage?