Driver profit split question

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Do what I do, pay 50% of the NET income which is after operating expenses are deducted from GROSS. Also include a fee per load that company deducts, so basically ur deducting fuel, tolls, scale fee, and per load fee of $160 in my case. Depending how the week goes you can gross 5-7k with a good driver and both of you will be more than happy with pay.

 

How many trucks and drivers do you have ?
How long have you had your operating authority ?
The only EMCO in IA. has one truck and their authority is less than 60 days old.
If this is true how would you even know what a real operating cost is ?
That takes a few years to determine and there is still the unexpected so paying off of net is technically impossible.

 

Interesting thread...we are a small fleet and pay our drivers 25% of the gross most of the time when we breakdown the mileage it comes to .55-.65 + per mile (average weekly miles is 2500-2800). Most of our guys are happy with this program, some have left for greener pastures thinking they were not getting enough mileage. We like the percentage pay better because everyone has "skin" in the game. We feel the days of CPM are going be a structure reserved for larger fleets. We know a fleet located in CA who has done the 50/50 model he splits with the driver after fuel, tolls, and insurance. The truck payment and maintenance is on the owner. He has grown from 3 trucks to 15 in the last 2 years with this model. I would suggest you be very picky with your hiring standards.

 

25% is the standard everyone else has stated that I've asked. The miles you claim now seem above average than a lot are getting right now. Only question I would wonder are you hauling at average or less than rates?
I don't see the 50/50 model you mentioned above as a long term working model. The end result won't be known till the trucks require replacement or major refurbishment. Without seeing the cashed checks and all I would be skeptical of it being a 50/50 split as you describe truck payments and maintenance cost are expensive more so if the trucks are CA. carb compliant.

 

I have 3 trucks, and that is me. Its my 3rd month. I know because my trucks were leased out to a different carrier since April 2015. I am not sure why that website is not updating. I actually have 5 drivers now and am about to add 2 trucks, 1 on Monday and another a week after that so I will be up to 5. The method I use works great and drivers are happy and so am I.

 

The key to using this 50/50 model is not to have truck payments. So far my guys are averaging 5-6k per week gross (Monday-Friday or Saturday) and are happy with their pay and are home most weekends.

 

Truck being paid for is irrelevant. The truck will need major repairs or replacement at some point or do you plan on shutting down when they're wore out ? Or do you plan on lowering pay when you get newer ones?
Your statement contradicts your business model in the big picture.
The FMSCA site updates daily I suspect one truck is your real number of units.
In nine years I've heard the same statement types you're making now and most of those carriers are gone just like a flash in pan. lets recap 5-6K a week gross and home nearly every weekend and authority new since December 2015, A reasonable man would say "yeah, right" and I will leave it at that.

 

I have 5 trucks. 3 are actually parked outside of the building I am at right now, I can easily snap some pics to prove you wrong. If that thing was updating daily it would show 5 drivers and 3 registered trucks with the other 2 being registered and sent on the road next week. Yes you are right the trucks need repairs but they do not brake down every day. They average $6-8000 per truck profit(after driver pay but before any maintenance/repairs). And yes they gross 5-6k every week. Now if you have a 2k payment on the truck then you might be screwed or if I got very unlucky and all 3 of the engines went out, it would be a problem since I am still fairly new and building up my capital.

EDIT: No I do not plan to shut down once I have major repairs.

EDIT #2: No I do not plan to lower the pay, once economy picks up and hopefully the rates on loads go up, drivers will get a chance to make more money. They are the ones out on the road so it would be unfair to lower the pay.

 

We are a northeast carrier so we run mainly PA VA NY New England NC both mix with broker and direct freight,we mainly run general freight nothing special 75% of our lanes are dedicated average truck runs 2.15-2.43 per mile depending on the customer and lane. The carrier I was talking about is actually based out of Indiana and just went into partnership with a CA carrier.