Paying gross percentage off load instead of CPM, who knows?

I pay percentage and send the rate confirmation to the driver when I send it back to the broker. I figure our rate including deadhead, so that has not been a factor. I'm sure I would make more by paying cents per mile but I want everyone to be happy and it makes it more of a partnership to pay percentage.

 

In 37 years, I have run both mileage and percentage contracts. I have had carriers that were thieves on both sides of the ledger, and I have had decent carriers on both sides of the ledger. Any contract is only as good as the company behind it. And unfortunately it is nigh onto impossible to determine what you have until you work for them for about a year. Each has it's advantages for both the carrier and the driver. How operations uses you will determine whether you survive or not. If you are a good driver worth keeping and it is a decent company, things will work out.

 

It is no secret that I have been a HUGE proponent of percentage pay. And my harping from 4-years ago is even more important today.

So a couple things to be aware of:

- As mentioned before - Percent of what? Companies that have mostly contracts with commodity shippers is going to be a problem. These shippers are working with carriers that are moving 1,000's of loads a week and are making a good living making pennies per mile. That doesn't work with a percentage business.

- How are they dispatching you - most large carriers work on a 3-tier system. Driver manager, account manager and load planner (or what ever fancy title the decide to give each person at the time). This is a sure sign of failure for a percentage system. This is a mileage based, mega carrier model and the person that you work with (driver manager) has no to little control over the loads that you get. What most will do is alert the load planners that you are not making your targets for the week so that they can look at getting you a better load.

- How strong is the company in the spot market - with the changes in the market over the past several years this is becoming more and more key going forward. Long haul trucking as we know it is dying. Last minute, regional runs are pay more gross than many runs of twice the distance. If the carrier can't at least supply some freight from this market you will not be able to take advantage of capacity issues.

- Spot Market Part 2 - How good is the company at explaining this? If they can't explain to you why this is important to you as a percentage driver, how do you expect them to take advantage of this on your behalf.

- Are they still selling mileage - They just don't get it. I understand that drivers are still focused on miles, miles, miles. But it needs to be about the gross and the net.

Carrier failures are still fairly high. You would expect that with the capacity issues that we are seeing that a company that made it past 2009 would be very strong. The problem is that many of these companies that failed have not adjusted their business model and are still fighting for the same freight with increasing costs. The changes are accelerating making it harder for the old business models to survive (unless you are large and can absorb the increased costs with additional business divisions).

 

Company with own authority, one person operation running couple of trucks now, looking for o/o or two at the moment.

 

Absolutely....personally I wish I could move from Chicago, too crowded, too expensive...but if I want to stay married, here I am. There is no 'yard' or anything at this point...may never be... so where you live is not important to me, though the best money loads are around here, at least for us.

 

Patches, I'm depending on you son. I lived in a truck, showered behind a gas station. Went where the job was. Some have no idea. Love it.

 

Good Man, (used) wardrobe. Don't need sharp clothes to do my job. Just a Sharp Mind, & lightning, reflexes. A to B. This much. If you don't like it, Hire a Lesser contractor. Your choice.