An 80/20 Split

Good to know. I'll make it a point to ask whether or not I get all the fuel surcharge whenever it is broken out, or if it's still an 80/20 split. Would this be a deal-breaker for you? If so, why?

Ah, okay. I've never used that kind of equipment, so that explains why I didn't know what it was. I've always pulled vans/reefers and a very, very occasional intermodal.

 

Fsc is supposed to come out of load. 100% to truck. Before 80/20 is taken

 

No FSC on brokered loads is only a few pennies difference per mile when you do the math. 20% is about what it takes to make an o/o worth it. The 10% deals always make you pay for your insurance and nickel and dime you to make up the rest. If you already work for the carrier now and they know you want to lease to them, ask to see what your truck would have made at 80%. Then subtract your estimated expenses and see if you like the margin. If you’re making .50 plus benefits now, then .75-.80 is a good labor cost basis depending on bennies. It would suck to take on the risk and stress of an o/o to net less than you do now.

 

Not a dealbreaker, but if they’re collecting it then I’d try for it. But if the rate of the load is the rate and it’s not broken down you’d have no way of knowing.

 

If I recall correctly, I'll be paying for all of my insurances.

 

Well, I figured I'd give myself a $0.02 raise (to $0.52) and include what I pay myself in my cost per mile analysis. Whatever profit I make above that would be banked into my LLC's checking account for rainy days, future growth, and a small quarterly bonus for myself. (I follow a modified version of Profit First by Mike Michalowicz.)

 

On an 80/20 you’ll pay bobtail and physical damage on your truck. They should pay the cargo and liability.

 

If you’re making .50 now, and you have benefits like medical, worker’s compensation, etc, that all is a cost of labor. If you’re truly running a business, then you should be able to insert an employee in your place without affecting your profit margin, which means accounting for all those costs that come with employees

 

Thanks. I'll make sure to ask them when about this I get back to the office Monday.

I failed to mention that I'm not taking "advantage" of their benefits. Their medical and dental plan are very expensive and I have better coverage elsewhere. (I'm a veteran and my wife works for the government.) The company doesn't have a 401k and I'd rather invest on my own in an IRA. There is no paid time off; you can almost take as much unpaid time off as you want with some advanced notice.

If I did replace myself, I know of a service I could use for dirt cheap to open a 401k and group medical my driver, even for 1 employee...that'd put me ahead of my own carrier right off the bat. But first, I need to learn the business from the ownership perspective. I'll think about replacing myself in a few years.

 

Red flag!

If thier name is on the truck and insurance they should cover it as far as im concerned for 20%.

You should carry bobtail/non trucking.