are cpm contracts profitable?

The first thing needed to compare leases is what is and is not included. Base plates, IFTA, UCR, KY, NY, NM, FHUT, Insurance(s) and trailer. Fuel card with a discount too I guess. I think these were designed with ultimate control in mind for the trucking company. A flat fee would equal less arguing over paycheck deductions for any of the items I've stated. Most likely to the benefit of the trucking companies doing these leases.

Being in family trucking, I have done many leases and also L/P's to o/o's. We have even looked into these ourselves to see if we could throw a few trucks on a larger outfit and let them take care of them. I couldn't sleep signing someone up to one of these. - Thanks.

 

Well with that lease to a company thing, you will actually pay yourself that .43cpm as your own driver, the rest will go into your truck business as an owner operator. Most companies will probably deduct insurance and expenses for you and probably have an escrow acct for you, to be used for your own repairs, etc. So basically the only thing different is, its your own truck, you go where you want to go (sometimes) Instead of a $900/wk paycheck, you may come home with $1800/wk or so and you have to do your own repairs and file taxes as self-employed instead of as an employee. You will also pay HVUT2290 tax (about $500/year). So there's not much difference unless you have your own authority and your own trailer, then the potential to make lots of money, is probably greater.

A lot of companies advertise up to $2.00/mile depending on what you're hauling but most only come into the $1.30-1.57/mile range, which ain't sh!.. but some would rather lease with a company than have their own rights. NO EXTRA CRAP LIKE COMPANY RECORDS, DRIVER APPLICATIONS, DRUG SCREENINGS, NO AUDITS, ETC... A leased owner operator has all of that taken care of for him by the leasing company he's driving for.

Hope this helps. #TRUTH KEEP ON TRUCKIN'

 

I think the lane your in and type of freight may be at issue too.....when i had my truck leased too srt(glad i didn,t die in truck) i cleared rigjt at 68 cpm .....now on a percentage not running cali i am clearing right at 92 cpm but holy cow scrutiny being a small company is def much worse than hiding amonst the heard with a large carrier

Either way i think you could work a reasonable truck note into those numbers which i plan on doing this year

 

we offer both a % and CPM for our O/O and the cpm is very simple and productive for both sides. on a CPM rate you get paid for loaded, empty, bobtailing, and it is very easy for you to keep track of the miles you have run and know what pay you have comeing

 

I thinkit was less risk was not 100% sure whatrates were running ......have been burned on percentage contracts before kinda did my homework figured out what lanes i wanted to work in what products etc.....came off a major medical and eight months off so i was a tad gunshy

 

Do you realize it is not about what lanes you want to run? this game is about what lanes pay the most for your trailer type

 

This exchange pretty much sums it up ... IF you know what you're doing, percentage will put more money in your pocket ... if you don't, it will cost you.

CPM smooths out the risk, but at a lower rate of return. Percentage gives a higher rate of return, but comes with risk ... That's business, higher return and higher risk go hand in hand.