An 80/20 Split

Discussion in 'Ask An Owner Operator' started by madmoneymike5, Jan 21, 2020.

  1. madmoneymike5

    madmoneymike5 Medium Load Member

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    Arlington, TX
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    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!
     
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  3. blairandgretchen

    blairandgretchen Road Train Member

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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.
     
  4. Brandt

    Brandt Road Train Member

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    Landstar took 35% pulling their trailers
     
    D.Tibbitt Thanks this.
  5. Bean Jr.

    Bean Jr. Road Train Member

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    My carrier is 75-25
     
    D.Tibbitt Thanks this.
  6. snowwy

    snowwy Road Train Member

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    80/20 is a good deal.
     
  7. Long FLD

    Long FLD Road Train Member

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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.
     
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  8. jamespmack

    jamespmack Road Train Member

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    80% of nothing, is still nothing.
     
  9. madmoneymike5

    madmoneymike5 Medium Load Member

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    Arlington, TX
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    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.
    I know that's not much to go on, but it's all I can remember. I'll need to go have a second meeting with them. I wish my recording hadn't gone awry.
     
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  10. madmoneymike5

    madmoneymike5 Medium Load Member

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    Arlington, TX
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    I get to pick my loads and most of their existing customers are over 2,000-mile runs from the central US to the west coast. But they are also starting to branch out to the east coast as well. I will make sure my 80% is sufficient to cover my costs or else I won't run the load. Well, usually...unless I have to in order to get into a better freight lane. A $300 loss on a load to get to a $1500 profitable load in a better freight lane is better than the same loss while sitting in a bad freight lane. But that's a subject entirely for another day and thread.
     
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  11. madmoneymike5

    madmoneymike5 Medium Load Member

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    Arlington, TX
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    I'm confused. What are you really trying to say by that because I can't see why on earth you would think I would earn nothing or be willing to earn nothing?
     
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