Is it better to get paid mileage pay or percentage of weekly gross?

Discussion in 'Ask An Owner Operator' started by Falcone, Nov 2, 2013.

  1. Falcone

    Falcone Bobtail Member

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    Jun 19, 2013
    Canton, MA
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    I have a guy offering me either $1.50 per mile or 80% of earnings. He provides driver screening for drivers I want to hire. His wife is an accountant and will handle my taxes. He offers fuel discounts and trailer rental if needed. I just have to my own plates and insurance and operating authority. he will also dispatch my loads for me. Think this is a good deal? Will I have a larger "Bottom Line" if I go with the mileage pay or the 80%. Please give me some input...
     
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  3. rollin coal

    rollin coal Road Train Member

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    Depends on the rates he's getting. I think with percentage, to get the most out of it, you'll need to be more hands on. That said $1.50 would be the safest bet.
     
  4. Ezrider_48501

    Ezrider_48501 Road Train Member

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    %20 for a dispatch service seems expensive :biggrin_25511:

    id ask what the fleet average for revenue is to determine what is better % or 1.50.
     
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  5. Cetane+

    Cetane+ Road Train Member

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    When you have your own authority you have no reason to give someone 20%! You can lease on to almost any one elses authority, use there insurance, save $6000 on insurance alone in a year, they do your paperwork. I can not understand why you want to GIVE away 20% once you have your own authority.
     
    FatDaddy and Ezrider_48501 Thank this.
  6. 062

    062 Road Train Member

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    Is 1.50 all miles,do you have to give up any d/h miles? Have seen co. Not pay the first 50-100 miles of d/h. If willing to pay 1.50 per then should be charging strong rate,so % may be better. One word of caution sounds like you're go to hire drivers for truck, a bad driver will break you as fast as a bad truck. Have found out a lot of o/o in my area selling off trucks for unreal prices,all are older trucks but in good shape.theres not a driver shortage,just a shortage of good drivers!
     
  7. WorldofTransportation

    WorldofTransportation Heavy Load Member

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  8. grozozo28

    grozozo28 Bobtail Member

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    Nov 2, 2013
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    most company pays 80% to o/o without their own authority. so getting that would be nuts. And for the $1.50, after expenses you will end up with .95 cpm.
     
  9. Falcone

    Falcone Bobtail Member

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    Jun 19, 2013
    Canton, MA
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    Can u still run it like your own company and use your company name and hire your own drivers taking that route?
     
  10. 062

    062 Road Train Member

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    Yea missed own authority part,work on 80/20 split myself but, not my authority. Can you negotiate for more % otherwise it would be tight
     
  11. Falcone

    Falcone Bobtail Member

    42
    2
    Jun 19, 2013
    Canton, MA
    0
    Looking to start my own company and work for myself and hire my own drivers whats the best route with getting loads fuel discounts and the whole thing. I want to be as profitable as possible and not fail...
     
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