Freight Percentage

Welcome to the oil field.

 

I was paid percentage twice in my lifetime. Once with a really good small fleet owner who had maybe 4 tractor trailers plus a supply of reserve trailers ranging from stone, flat, tanker milk and tanker gas etc in storage until needed.

Whatever my truck made that week in the NE generally dozens (Plural between 2 and 40 stops) in the NE above the Delaware River. I got paid 25%. Not one dollar more or one dollar less. There were a few memorable weeks were I took home 600 plus net. This would be closer to 1200 in todays money if not more than that. Most people do not understand how much the American dollar has lost it's value in my life time. That of my Father's and his Fathers and so on. Taking home 2500-3000 a month in a time when Rents were 300 for two bedroom, houses 4 bedroom were 60,000 ($19000 in early 60's as ours were) cars with V8 and air conditoning were 3600 to 8000 depending on model you bought. Even the Mark 4 and certain other cars were stratospheric expensive more than the British Rolls were. These days a proper Wraith unlimited would need 4 lifetimes minimum to be paid off.

I stray from topic. If I was to do that work today I will require 30% plus a viewing of gross revenue vs expenses in fuel and so forth for that week. You are essentially making me a partner in the company with it's fortunes based on productivity in revenue off that truck.

Again the revenue generated for a given load hauled from A to B, whatever it is great and small is always kept as a state secret from the drivers. It would be beneficial to have the information carted to drivers to evaluate a given company based on potential income which would led to more loyal drivers who stay a while. I think it will require generations to stand up.

 

I haul for the oil field on a percentage since May 2015. I ALWAYS know how much the line haul, FSC, deadhead, detention, etc are because I write the waybill that the company man signs. You think a company man is going to sign a waybill that is wrong? Just try bumping the numbers and see if he notices...

... I actually witnessed another driver try that. He was fired.

I will NEVER haul for $/mile or hourly again. Percentage is the way to go IF your freight is high tarrif freight. Sticks and bricks won't cut it. Hazmat and tanker endorsements? Check and katching! Oversized or overweight? Katching! If the company is billing more for a load, then why shouldn't you make more for load?

I ALMOST went company driver a tad over two years ago with a west coast company that pays percentage, with the ability to work into HWH. Instead I bought a truck and stayed with my current gig.

Many times I know the rate because I was the one that negotiated the rate. There are times I find my own freight through brokers, so a rate confirmation is part of the deal.

As others have noted on this thread, if you don't like percentage and think your company is screwing you, then you should move on. At my company it seems every month there's quite a list of 40 and 50 year anniversaries, owner/operators that have been with the company for decades. Even so there are folks that can't stand a good thing. There's ex-O/O's on this forum and drivers in the field that just can't seem to wait to be the verbal turd in the punch bowl.

IMHO folks should take a long view and stop looking at the hood ornament.

 

Loyalty here is measured in months. No one lasts years. To me that is the resume of a company.
I have enough skills and experience that I interview companies not the other way around.
I have purchased my first truck and plan to haul tanker/hazmat.
I will never again be in a position where I'm lied to about the rate.
Just doing time here now until my truck is ready for work. Hopefully after the first of the year.

 

From an accounting perspective-normally costs would be applied to each job, so they have that information, but more than likely wouldn’t be willing to give the driver the information

 

It depends on the company. You replied to @snowwy, who noted that some companies pay percentage AFTER fuel other other costs, or won't show the actual invoices to the customer.

A few posts ago I noted that I almost took a job as a company driver with a company that pays percentage, 25% to start. Late March I sold my truck and trailer, came back to California, and hired on with that company. The driver's percentage is based on the gross invoice to the customer. No expenses are deducted. In fact if I have expenses, like tolls, they are reimbursed in cash as soon as I get back to the terminal.

It really depends on the company you choose. There are some stand up operations out there. One clue is to ask for the average number of years the drivers have been with the company. With my company there's another driver that started last year. The next "newbie" I have met has 8 years. Most drivers have at least 10 years with several north of 30 years. Retirements create openings. Everyone is known by name, not a number. I call dispatch, safety, accounting, or the founder of the company and they all recognize my voice.

 

I know what you mean about the old drivers. We have two guys retiring this summer...right before deer season opens naturally...and we already have their replacements picked out.
I figured you'd like it at Teresi. I keep trying to tell people that jobs like the one you found are out there and that there are a lot of jobs like that but some drivers keep taking the same job over and over again but for different employers.

 

That last sentence is beautiful wisdom. Don't move sideways, move UP.

And yes, Teresi is a company I intend to retire with. John Teresi STILL comes to work every morning at 7:00 am. Amazing gentleman. His sons run the show and they have dialed in the transition to ELDville and solidified the operation. There isn't a weak link anywhere, unless you are looking at me...

Edited to add: John Teresi started the company in 1959. I didn't ask him his age, when he introduced himself to me as I was taking a break during my one man orientation, but he is in his '80's. Remarkable man.

 

Why in the world would anybody take a job that pays 25% after fuel??? What has the fuel got to do with it????
I always paid my drivers percentage, and even though I didnd't have to included their percentage of the fuel surcharge. I did this just to make things simpler, we hauled a lot of freight, an just an agreed rate, the fuel surcharge was just included in the rate.
For you guys that think you might be getting screwed on percentage, figure what the going mileage rate, and if some of your loads pays you well over that , you probablly aren't getting screwed.