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

You're going to pay 20% to a dispatch service???

And you're going to try and hire drivers and then pay them as well??

That's nuts.

 

I would say first you need some experience with trucking. Do some research and see how much insurance is for some one with new authority with little experience.

 

You can start a company without using any authority. Best way to do that, is to put your business to a company that deal with only o/o. And you will go in there as a small fleet company. Company might pay you $1.50 a mile/plus fuel surcharge for having so many trucks with them, and then you hire your own driver that will qualify with company you contract with. If you choose that routes and have 3 trucks with good drivers. You will end up making $1200 to $1500 a week from each truck after expenses and driver paid.

 

At that rate you won't be getting anything but the maintenance and repair bills on the equipment, oh, you'll also get to make the truck payments....

The deal you should be making with this guy is something along the lines of... he gets 3%, (5%-8% if he supplies the trailers and pays cargo ins), of the gross, he scans and emails every rate confirmation to you, and you'll pay for your own accountant.

Doubt you'll get that from him, now that he's smelled a fat 20% offer from you.

Find someone else, cause paying 20% of your gross and then hiring drivers is a sure ticket to the poor house. (He's not going to like that his chance to cruise easy street just got detoured, but you're not in business to make other people money, you're in business to make yourself money..... at those percentages and figures there isn't going to be anything left for you.)

 

Think about this, the guy who's getting the money is also doing the accounting....

Smells bad when you think about it, don't it??

Oh, and when the tax reporting gets all screwed up, who's on the hook with the IRS?

Run away from this guy, his deal, and the horse he rode in on.

 

if it was me i would ask for some back pay stubs of what some of the loads are paying per mile. it seems that % has always paid well over the years. also whats the running lanes you will be running. you might get a good paying load into florida on a % rate. but getting a load out not going to be good. if it was me i would roll the % rate... but thats just me. i would do some checking into what some of there loads have been paying also

 

Now, maybe I misunderstood. If the deal is, he gets drivers and pays them out of his 20%, if he funds your fuel purchases and gets you an additional discount, additional as in an added discount on top of the fuel cash price, he supplies the trailers and pays the cargo insurance....

Then sure, that's not such a bad deal....and it would be a toss up, as $1.50 to you after he pays the above, the driver, the trailer, the insurance, isn't bad...I'd probably throw in some kind of caveat, like if I find the load and set the rate, then I get 85%....and I'd probably make it conditional, like I get the greater of $1.50 OR 80% on his dispatch rate...

This leaves you with the tractor payment, the maintenance, the authority, the registration, the permits, the fuel, your taxes on your share.

That's about where it should be, but I'd be curious to what some of the other's think.

 

id like to see your math on that. 1.50 a mile minus fuel and nothing else might leave you with 95 c per mile. before you pay for repairs tires insurance ect ect ect

 

LOL...so after all expenses you are left with .95 out of 1.50?? Really??? I guess he knows that the truck is gonna average 7.3 MPG all miles (lol) and that is the only thing to include as an expense (haha). Everything else is either free, or he just doesnt bother licensing or insuring his truck or doing any maintenance (LMAO!)