How much should I pay my o/o

Discussion in 'Ask An Owner Operator' started by Lindaparr, Feb 4, 2016.

  1. Lindaparr

    Lindaparr Bobtail Member

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    We run out of Iowa to Dakotas, Ohio, Tenn, Mississippi, North TX and in between.

    You all ask why I don't hire another driver and put on another truck. Have you seen the selection of company drivers out there? We need someone that our customers can talk to and work with. I can't find a respectable driver anywhere.

    I can find "dirt bags" with 1 or 2 OWIs that I can't insure, one guy even had a DUI in a CMV, How does he have a license?

    I can find plenty of guys that will only work for cash because they don't want their check going to child support. I can't hire a driver under the table with the paperwork requirements these days.

    I can even find nice respectable, articulate, family men that will work, but Oh wait they want to be home EVERY night.

    Now I know you all may say wait, he must pay #### wages to his drivers. Here is what I pay, $.47 per mile and guarantee $1,400.00 a week Monday thru Saturday noon unless they turn down work or take the day off. If they get stuck in Minnesota in a 3 day snow storm and only get 1500 miles on the week they still get $1,400 for the week and profit sharing at .75% net profit at the end of the year.

    My hands are tied. I can't find a driver been looking for almost 6 mo.


    Now you ask, "why don't I broker the load?" I can't stand brokers, they take >25% to do nothing but find a wheel holder that is flat broke trying to find enough change on his floor so he can buy a shower while the broker is clearing 300K providing no REAL service to this industry.

    This industry is totally screwed. There are millions of trucks out there chasing their tails hauling cheap freight and running the rates in the ground. I would love to raise my rates to my customer but they know what the market is and they won't pay more right now.

    My trucks run for $1.89 per mile and my drivers get over 70K a year plus health insurance and year end bonus. We don't get truck loans @ 6% interest giving the bank some of the profit. We don't factor. We don't use credit cards and pay 22% interest on truck washes, oil changes and scales. We keep our money in our pockets.

    My original question "what is the going rate for O/Os? ". After hearing what you all have had to say I think $2.00 for all miles will be my offer to him. If he says no I will call Landstar and they will find a O/O to do it for $1.50.

    Thanks, Linda
     
    Last edited: Feb 5, 2016
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  3. Terry270

    Terry270 Road Train Member

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    You sound like a good employer and I think based on the miles you are guaranteeing(3000+ per week) and the areas that you are running, $2 a mile for all miles pulling your trailer is a fair offer.

    Also you are spot on with this industry, finding someone who is qualified, dependable and presentable is a rare thing these days
     
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  5. Cat sdp

    Cat sdp . .

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    $2 all miles with a sliding fuel surcharge for when fuel goes up....
     
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  6. TaylorMade407

    TaylorMade407 Road Train Member

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    Call mercer also I'm sure they could help you out
     
  7. lester

    lester Midwest's #1 Feed Hauler

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    Not in northwest Iowa by chance are you? @Lindaparr

    There are many variables people don't realize in what one person thinks is a great rate and the other thinks is garbage.

    I'd be tickled pink to run for 2$ all miles pulling your trailer under your authority, gee wizz I'd be ecstatic actually. One of a few reasons being. Right now my insurance for the 200 mile radius I run, is way way less than your owner op is paying
     
  8. Tropsnart

    Tropsnart Road Train Member

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    Many places that pay well think that automatically makes them a good employer. I think most people would choose to work for less money for someone that actually respects them and the work they do. This company wants to cut out brokers, okay. They want to pay their owner operator less although they claim he's wonderful. They are going to give him an ultimatum $2a mile or they'll just call Landstar. Sounds to me like their owner operator is better off finding a place that values his service more.
     
  9. EMCO_Trans

    EMCO_Trans Light Load Member

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    We are based out of Waterloo, IA. Let me know if you need us to help you haul stuff. PM me for contact info and we can talk.
     
  10. freightwipper

    freightwipper Road Train Member

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    [​IMG]

    [​IMG]
     
    whoopNride and Terry270 Thank this.
  11. Steve62

    Steve62 Light Load Member

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    I make 2.50 a mile every mile turned. I average 10,000 miles a month. And I am very happy to be making that.
     
  12. Lindaparr

    Lindaparr Bobtail Member

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    I don't know what rock you live under but last I checked people go to work to make $. It has been several years since we hired an employee because someone quit. We hire because of growth, growth due to employee productivity and my/brother-in-law's excellent business skills. If they want to have fun they take their bonus check and buy a boat, or buy a set of implants for their wife and motor boat at home.

    My people stick around because there is a future for them. But my O/O decided he didn't want a future here. $2.25 was the best he said he could do. I may have lost a little but he will lose it all.
     
    jbatmick, Terry270 and Mudguppy Thank this.
  13. Tropsnart

    Tropsnart Road Train Member

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    I guess that's why I am independent. I have done work for customers who paid very well but if they were real pieces of #### I moved along. Money doesn't buy respect in my book.
     
    insertnamehere Thanks this.
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