Fair Percentage to Run Under Someone's Authority?

Discussion in 'Ask An Owner Operator' started by Proxy, Jun 24, 2019.

  1. Proxy

    Proxy Light Load Member

    107
    35
    Sep 3, 2018
    0
    What would you guys think is a fair percentage to pay an o/o to run under your authority? I hear 80% to be pretty common, but I would like to give him an option to either book his own freight or we keep him booked, that would probably warrant a deviation in percentage pay if he decides to handle it all on his own, thanks in advance for your input!
     
  2. mp4694330

    mp4694330 Road Train Member

    1,432
    1,255
    Aug 30, 2010
    Chicagoland
    0
    At my carrier 87 % with own trailer, 77 % with theirs, insurance included in %.
     
    Proxy Thanks this.
  3. blade

    blade Heavy Load Member

    881
    642
    Jan 30, 2009
    Some where, Mo
    0
    I really don’t think weather or not they dispatch or not should make much of a difference. Insurance there trailer or yours. Too me those are the bigger differences! Are we talking open deck van or reefer that also makes a difference. Are you buying plates or are they?? Also should matter. Anywhere from 77% to 80 should be the ballpark pulling your trailer and should go up the more the o/o has to provide on his own
     
    Proxy Thanks this.
  4. Last Time Around

    Last Time Around Medium Load Member

    482
    560
    Jun 9, 2018
    0
    A percentage of what?
    85% of $100 = $85
    70% of $150 = $105
    65% of $200 = $130
     
    Midwest Trucker Thanks this.
  5. Midwest Trucker

    Midwest Trucker Road Train Member

    1,575
    3,181
    Aug 31, 2018
    0
    Look up what Landstar does. I would follow that model. Most companies don’t charge enough IMO.
     
    Proxy Thanks this.
  6. Proxy

    Proxy Light Load Member

    107
    35
    Sep 3, 2018
    0
    Percentage of the total gross to the truck, they pay fuel, fix own truck etc, the only thing not determined is if they prefer to secure there own loads or have us secure them for him, will be our trailer in either scenario
     
  7. Dave_in_AZ

    Dave_in_AZ Road Train Member

    17,503
    42,775
    May 4, 2015
    0
  8. FloridaDudester

    FloridaDudester Light Load Member

    229
    153
    May 13, 2019
    0
    So, is it fair to assume he would be booking his loads off of the load board of his / her choice? This is an indirect way of me finding out if the load boards are profitable enough to run a business. Lots of naysayer truckers say no way.
     
  9. Proxy

    Proxy Light Load Member

    107
    35
    Sep 3, 2018
    0
    Yea I personally don't have an issue with what board the driver books from. I would think in most cases an o/o running under someone's authority would prefer to book themselves instead of relying on people who have never been behind the wheel. Plus they can schedule around home life
     
    FloridaDudester Thanks this.
  10. FloridaDudester

    FloridaDudester Light Load Member

    229
    153
    May 13, 2019
    0
    That makes sense to me too. I'm starting with my own authority because of my long standing business, already in place and profitable, yet unrelated. I've had that DOT# for nearly two decades and commercial insurance, so it gave me an in with Progressive and better than starting rates for most new authorities.
    I'm just wondering when I hear all the negative talk and "you'll never make it sentiments". So, your guys make their money on the load boards then, right? Do you have direct contracts too?
     
  • Draft saved Draft deleted