Pay rate for leasing Owner Operators under my authority

Hey everyone,
I wanted to ask, if I was to lease owner operators under my authority, what would be a fair percentage to charge? I want to pay the percentage of loads, rather than miles or anything else. I plan on doing all the dispatching, insurance, plates, IFTA, invoicing, etc. The only think I would expect them to do would be the heavy duty tax, paying their own fuel, and sending me the BOL. I would pay them every Friday. What would be the difference in percentage if their using my trailer vs their own trailer. I know most brokers charge up to 7% just to pay within 7 days. But I'm stumped on what would be a fair pay rate in my situation. What do you all think?

 

So let me ask ... what experience do you have?

Because there are a lot of red flags with your idea.

 

The range of percent is pretty huge. From 10% of ratecon to 35, with a huge variety in the who pays whats.

 

I will add that owner ops will vary in quality as much as carrier contracts. If a carrier had rip-off lease terms for their owner ops, the good, experienced operators you can rely on wont bother fooling with you so the pickins will be from 2nd and 3rd stringers that dont know better or cant get signed on somewhere better. Youll have lots of headaches to babysit and high turnover if you have to sift the barrel bottoms.

If your lease terms are very favorable to the driver and you actually honor them, drivers will be lined up for interviews and youll have your pick of the litter. Just make sure you sort em good and uphold your end of the bargain.

 

Didn't someone already preach the forum on this idea.

And the end result. Well.

 

I have been dispatching for one driver for about a year now. I have the experience with him, and wanted to grow the business. Can you advise the red flags that you're concerned about?

That's a huge gap! Any idea how people end up deciding what's fair?

I'm looking for exactly that. Having favorable lease terms so that I can have my pick of the drivers. But in kinda confused on what that is.

I looked through the forum. There's been threads around these ideas, but I couldn't find anything with the same specificity of the questions I had.

 

It's not a question. It's an actual topic of the same idea with a few hundred pages.

 

What is fair depends on what you’re bringing to the table. Currently I give 27% for a specialty trailer, pto and blower, dedicated loads from direct customers, weekly pay, $70 an hour labor rate in our shop, fuel card with discounts, and tire discounts.

 

its fair when both parties are content with each other and making a reliable profit they can raise their kids with.

 

I have one o/o. I charge 12% of the gross revenue, plus $600 for cargo insurance. He owns his dry van trailer, gets his own plates and own bobtail insurance.
In my area usually everyone charges 10% for this kind of set up, but I charge a little extra, because I know the quality of my service is worth extra 2%.

 

If I were to be leased on to someone, I would have to know on what number the percentage would be based on first. Direct customers, guaranteeing 7K gross a week per 2000 miles, even 30% is fair without a trailer.

Spot market with a forced dispatch...I opt out. Spot market with picking my own loads and my own trailer + carrier pays the liability and cargo insurance...10% - 15%(absolute max) of the gross.

Essentially, the fair % (not to be mistaken with good) to me would be such that per 100K guaranteed all miles workload, a leased on owner operator should be clearing 80-90K after all operational expenses (fuel, tolls, truck payments, trailer payments, regular maintenance, insurance, registration).
If the above are not met, I'd rather be a well paid driver or be on my own MC#.