% pay vs cpm, which is better?

You really ought to get into the percentage pay then, imo. I did the mileage based pay for the first 11.5 years I drove. The last 6 months or so on percentage. maybe on the company driver side it averages out about the same, but it's not like that on the o/o. If you've got a head on your shoulders, which I believe you do from your postings, you'll make out much better %age as o/o.

The thing about percentage though, these companies are supposed to show you the customer freight bills where they get paid - by law. Or if it's a broker load, the confirmation sheets where the rate was agreed upon between both parties. The sad truth of the matter is most places paying percentage wont do that and expect you the driver to accept at face value that the percentage you are getting is fair. Which I can promise you if they have something to hide you are getting screwed on your cut. They will hem and haw and act as if you have some nerve wanting that info.

A real company won't do that. This is just something you'll need to vet out of prospective %age pay employeers in the job search process.

 

They can burn you on the FSC . I heard from expedite O/O's that rather than drop a rate some expedite companies will give a few preferred customers a discounted FSC .

 

Alot depends on how much deadhead you get into with your company.

A company that pays mileage for all miles might be better for you if the deadhead is above 20% then a percentage paying job is.

What else is the company paying with your mileage? Tolls? Plates? Insurance? a good fuel discount? all these things add up. Most companies that pay percentage do not pay for many other items like I listed above.

It really pays to do your homework. Ask the recruiter to talk to other owner operators with that company to see what their bottom line is per mile.

 

I get percentage and am guaranteed $.40 a mile minimum for every mile the truck rolls .

 

lol...I hope you make more then .40 cpm for every mile the truck rolls!

 

I'd stay away from companies that offer both options. Too easy for the company to put high dollar freight on the mileage guys. Although with having to cover loads the way most companies do you will surely get lucky now and then.

As far as companies offering to pay for tolls, plates, and bigger fuel discounts to an o/o leasing on. I've been in that situation on a mileage lease where they did offer and cover all that stuff. I do far better out here on my own leased to a company where I pay for all that stuff out of my pocket and run mostly off load boards. It's dependant upon the rates one can get. Plates are a penny and a half a mile. Tolls, because I select where I run, are maybe a few tenths of a penny if that in my operation. The fuel discount of 15 to 30 cents a gallon that I used to get does not make up for the low rate even though I only get 6 cents off now.

Would never again consider working a flat mileage lease as an o/o.

 

True. Most of what i haul it's figured in the overall rate. It really makes no difference to me as long as the rate is fair I'm happy.

 

Company drivers being offered a percentage gig will drive empty miles for free the same as a lease op, o/o, or indpendent.

The difference comes in when you do not get to see the actual freight bills. rollin coal is spot in with the following;

Granted mileage pay will also come up short as well but it is easier to verify the mileage on a pay per mile gig once you find out which program the compnay uses. For a compnay driver I would focus on companies that pay PC Miler Practical miles.

 

You don't necessarily drive empty miles free. Empty miles are figured into the rate on every load I haul. But again 95%, or worse, of companies out there paying drivers percentage will never show their drivers the rate confirmations or freight bills because they are lying and not paying the correct percentage. And the drivers that say something about it end up getting loads of crap until they quit or an excuse is found to can them for rocking the boat. Another thing about working percentage to consider is the type of freight you haul. You do not want to be a company driver pulling dry van off load boards for percentage. Dry van rates are for the most part the pits, the cheapest rates of all trucking. Sure some companies may have solid rates through contracts or brokers finding one like that would be a needle in the haystack situation. Better percentage pay for a company driver would come from flat bed and maybe reefer, although I am not so sure if reefer is all that great, don't really know much about it. The best percentage pay for a company driver would be heavy haul. I have heard of company drivers pulling in a $1 a mile or better on percentage pay with heavy haul companies but that is a specialized segment that requires special skillsets.