Flat rate percentage contracts seem unfair

Discussion in 'Ask An Owner Operator' started by double yellow, Sep 13, 2015.

  1. Long FLD

    Long FLD Road Train Member

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    Here in a couple weeks I will have some numbers to add to this. I pay a flat 15% for trailer and authority. My first 7 months of this year would be what I would call "regional". Wasn't really working weekends, 2-3000 miles a week, taking extra time off, lower expenses. August and September will be balls out long distance cow hauling. High revenue, high expenses, and a higher 15% cut.
     
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  3. ramblingman

    ramblingman Road Train Member

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    Is that revenue before or after they take their 20%? I might need to come hook onto one of your wagons! lol
     
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  5. Long FLD

    Long FLD Road Train Member

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    Ok here's what I have. I give 5% for dedicated dispatch/pay me every week and I give 15% for trailer and authority out of the remaining 95%.

    First half of 2015
    52963 miles
    Revenue $113045.38
    Trailer rent/auth $16152.70

    Third Qtr of 2015
    49838 miles
    Revenue $83916.98
    Trailer rent/auth $11934.78

    My third qtr revenue per mile dropped quite a bit due to the fact I was bouncing back to FL every trip.
     
  6. Derailed

    Derailed Road Train Member

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    He shows both before and after
     
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  7. ramblingman

    ramblingman Road Train Member

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    Incorrect he itemized the cost of each separately
     
  8. Derailed

    Derailed Road Train Member

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    True but he gave you the numbers to figure out before and after there 15 percent cut.
     
    Last edited: Oct 6, 2015
  9. ramblingman

    ramblingman Road Train Member

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    20%. The 15% is the trler rental fee
     
  10. Derailed

    Derailed Road Train Member

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    He said "out of the remaining 95 percent" when he listed the numbers so I assume that's after dispatch fees.
     
  11. ramblingman

    ramblingman Road Train Member

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    I'm looking forward to his reply so we can stop assuming :)
     
  12. Long FLD

    Long FLD Road Train Member

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    I got in a hurry. My dispatch cost was $5652.27 for the first half and $4195.85 for the third quarter. What I list is total revenue before anyone gets their cut. I give up 20% total for everything.
     
  13. double yellow

    double yellow Road Train Member

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    I gotcha now -- 5% of the gross goes to dispatch, and 14.25% of gross (15% of 95%) goes to trailer/authority so you keep 80.75%


    550 miles/day for 3 months straight is pretty crazy
     
  14. ramblingman

    ramblingman Road Train Member

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    well your making me jealous. Here's an AVG month for me. I keep 75% of revenue running their authority and their trailer. Will get to 78% running my own authority.

    Overview
    Total Profit/Loss $12,481.260
    Profit/loss per mile $0.844
    Cost Per mile $0.653
    Revenue per mile $1.496

    That was on 14,795 miles.
     
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