When I inquired with a small carrier about leasing on, they informed me that they take 20% of the load revenue and I get the rest. This'll be my first time leasing with a carrier.
The first question that came to mind was, is that a typical split or would I be doing myself harm agreeing to that kind of split?
Then I realized it probably depends on what you get with that 20%. In other words, what am I buying with 20% of the revenue--an amount, mind you, that is greater than my marginal/effective tax rate.
I could list all the things they provide for that amount, but instead, I think it would be useful to know what you would expect to get for that kind of money.
So, is 20% an absurd number, and if not, what would you mind to see from a carrier for that split? If it is an absurd number, what is a more reasonable amount?
Thanks!
An 80/20 Split
Discussion in 'Ask An Owner Operator' started by madmoneymike5, Jan 21, 2020.
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Go ahead and list what they’re offering, who has the freight, trailer etc.
80 isn’t bad, but others offer 90% if you’re just running under their numbers and on your own for everything else.Rideandrepair, Moephilly1, D.Tibbitt and 1 other person Thank this. -
Landstar took 35% pulling their trailers
D.Tibbitt Thanks this. -
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80/20 is a good deal.
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Percentages aren’t important. How much you will average to the truck is what you should be looking at. 80% of 1.80 is 1.44 but 70% of 2.20 is 1.54 and so on.
Dino soar, fordconvert, Final Drive and 12 others Thank this. -
80% of nothing, is still nothing.
Dino soar, Brettj3876, exhausted379 and 6 others Thank this. -
I recorded the conversation between myself and the individual I had the meeting with about leasing. Unfortunately, for some reason, the microphone was muted about 2 minutes into the 30-minute conversation. I don't recall all the details, but I'll try to post what I can remember...
- I pay for plates and permits.
- I can use their shop for maintenance or repairs, or I can go elsewhere.
- No charge for using their trailers.
- Not forced dispatched. I can pick my loads from what they have or I can go to the load boards.
- I pay for Qualcomm, EZ Pass, and PrePass.
D.Tibbitt Thanks this. -
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I’d ask to see what their trucks are currently doing if you haven’t already. It will give you an idea of what’s there. Do they have any direct customers or will you be looking for all your own loads? Do you get paid next week for what you do this week? Stuff like that does have some value.
I pull a food grade pneumatic for a small-ish company. I give up 27%. For that I get a trailer, pto and blower, weekly pay, $70 an hour labor rate in their shop, and they do all dispatching. We have dedicated customers on our outbound loads and our return loads all go to the same place.Dino soar, D.Tibbitt and blairandgretchen Thank this.
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