Looking for input...real pay package

How is mileage computed ? Charge for truck insurance ? Finger-printing loads ? Live load and un-load ? Many variables to compute.
Buck sixty-five could be OK, or not. Every situation is different, you have to compare apples to apples, oranges to oranges, as best you can.
If you are getting the freight moved and all is going well, then the rate is good.We all want more money, and everyone wants to pay less.
That is the way supply and demand works.

 

I think this discussion has gotten into the weeds about the merit (or not) of what the OP is offering. The problem isn't whether they are offering a package that keeps a driver in the seat. Getting back to the original issue, an owner with four trucks signed on is looking to boost revenue. OP has suggested it's because the owner is a poor money manager, unable to make his current lease work.

This isn't about keeping a driver happy. It's about gross revenue to the trucks.

So, OP: focus on what matters. What is he expecting? Obviously it wasn't all that bad for him to sign four trucks in the first place, and stay with you this long. Also, what's the risk to your business if he terminates, and how prepared are you to shake hands and part ways? It may be just as good a time to review his truck's performance in your fleet while you're worrying over your lease package details. It's a negotiation. Define what you are willing to concede on, while at the same time know where you may have leverage. It may be an opportunity for you to cut him loose and bring on more productive trucks, just as well as it may be to bump the package up a bit somewhere to keep really good trucks on board.

I won't say your getting an understanding of his finances is all bad, as it's a way to get to a point of his discontent. That is, why he suddenly decided the current agreement isn't enough now. On the same token, beware of making assumptions about his business. I'm sure there's more to it than him showing up on a custom motorcycle. Be that as it may, that's really none of your business. He may have a spouse earning a professional income elsewhere, or have other investments feeding his personal cash flow. Or, he could have either bought it before trucking, or got it a lot cheaper recently due to no market for those things. I'd just write it off as him just not being smart enough to know the value of being humble when holding out the tin cup.

 

This has been insightful...ultimately it benefits the whole. It has been mentioned a couple of times, and I agree - his personal finances are not my business! That being said, I need to focus on our business - which, without the owner operators, is non existent. In response to the previous post: I have always worked with drivers from a net revenue perspective...Gross really doesn't mean a lot when companies suck off pennies mile after mile. I realize that drivers need to make a healthy take home pay: after all is said and paid for...what is left to put in the bank.

I have reviewed the last few quarters and found that in the 2200-2300 mile lanes(hub miles), logging 56-61.5 hours: our drivers net take home(after all insurances, plates and permits, tolls(we pay first $400/month-then pay approved),pulling our trailer(we cover maintenance), before tax contributions, calculated with actual averages of 6.47 mpg, .12/mile maintenance, $1425/month truck payment and $645/year bobtail insurance)...essentially all expenses out...$1480-1540/week. Please keep in mind that this number is after the maintenance calculation: including it would bring it to - $1750-1810...however, I believe that it should always be budgeted out: sooner or later you will spend it.

It was mentioned that companies like ours are the problem: I disagree, of course. We spend a lot of time, money and effort to make sure that our drivers are making a living. Also, it was previously mentioned, if our freight is moving - it must be ok; and last time I looked, everything was moving.

Thank you all for your $.02!

 

After seeing more numbers you posted I would have to say YES to your question. After that guy pays a driver, he has little to nothing left. He's taking all the risk for little reward. I'm currently leased and I would not be doing what I do for a take home pay of $1480-$1540/week. With all that being said, he's the one who signed on the dotted line.