I'm considering a job that pays the driver by the % of revenue
to the truck (25%).
I've never run this sort of arrangement before.
Usually I ran by the mile, by the load, etc.
I would assume you don't make anything to deadhead
your way back MT from a delivery then.
I was told most trailers would be truckload.
But what if I get a trailer half loaded or with just a few skids??
I would think I won't make much on those loads.
Unless I'm wrong most shippers are charged the truckload rate
whether they are fully or partially loaded.
Can anybody clarify these issues??
Percent of revunue to the truck
Discussion in 'Motor Carrier Questions - The Inside Scoop' started by prime rib, Nov 17, 2010.
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Well, a lot depends on the shipping arrangement made with the shipper/truck company. A shipper can "reserve" 100% of trailer space and pay Truckload rate. Or just ship his freight and let the truck company fill any remaining space. Yes, deadheading is on you, normally. You should clarify with your company 25% of what goes to the driver. Some companies "skim" a little before they pay you the driver. And companies can pay 25% or whatever of the revenue that the load pays or the truck makes. That makes a difference. Hope I explained this so you can understand it.
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Just ask a few questions when running %, is it gross or net?, what is there rates? That will tell you whether or not its worth it, i' ve worked for several o/o this way, , and alot depends on you're drive and greed .lol ...most companies pay on a net basis, then you get your'e % after all expenses are taken out... And there lil 1 for him 2 for me bit... Try to find an o/o that pays this way you will do better, after 2 years with one employer i managed to get to 30% but i ran my butt off too
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Whether you drive for a carrier or an owner operator you will likely be paid on what the truck makes less the fsc. It is rare for an owner operator or carrier to pay a percentage of the fsc since that is used to offset the higher cost of fuel. If you drive for an owner operator who is leased to a carrier then they will usually pay on what the truck makes. For instance, lets say that the load pays the carrier $2/mile. If the owner operator gets 75% then you will be paid your percentage of the 75%. That assumes that the fsc has already been taken out of the equation. When you drive for on percent you won't be paid on deadhead miles, but should be able to earn more money if the owner operator or carrier is getting decent rates. If rates are good then you should earn more. If the economy is off and rates down, then you will make less. It depends on what is going on with rates and the economy. I always made more on percentage than mileage.
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As far as truckload or LTL, you should make the same percentage if that is the arrangement you made with the carrier or owner operator. Most carriers will fill out a trailer unless it has booked the load as a truckload. You can usually make more doing LTL than truckload. It does take more patience. Some people think that they are not making money unless the wheels are turning. It is difficult for them to understand that it is about the rate, not the miles. Rates for LTL are typically higher truckload and will depend on the amount of space they take up on the trailer, where it is going and type of freight. You need to get an agreement in writing so that you are clear on how you will be paid.
rocknroll nik Thanks this. -
You are correct deadhead is 0.00
They also typically pay on the freight rev and not the total gross
So keep that in mind some companies that pay this way will inflate load prices to you by showing or telling you total gross prices which has the FSG in that amount
Be sure to ask
1. Total gross
2. Freight rev
3. Avg price per mike to the truck
4. Do you get a percentage of the relocation fee if they get one ( some give this if it's a hot load ) to move your truck 200-300 miles mt to get a hot load
5. Do you deal with lots of brokers
6. Do I get paid ( the driver) even if the broker / customer don't pay you
7. Wait time -deimurge : do I get a percentage of this
8. Load/ unload : if have to tail gate a load etc do I get this money
9. What's your ratios : loaded vs empty %
Things you may find useful
You can pretty well figure your wage off this guideline be sure you ask the billed prices for everything
You may Also want to add in there ( which I don't think they will pay but )....
1. Break down pay ??? ( highly doubt it but never know )
2. Layover pay ???? ( prob not but ask )
3. 1099-or W-2 employee
4. Idle bonus
5. Any type fuel bonus program or mileage plan -
FWIW
I've never had an hourly or mileage based job. Around my neck of the woods % is normal for all small to mid-size cos. Normal range is 25-30%. I get 27%, will go to 29% in April then 30% in another year or two. $15.00 per hr for any shipper that pays detention.
I'm also very happy with my benefits & how I'm treated by the people I work with.
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