Percent pay @ Landstar vs Schneider Choice

Discussion in 'Ask An Owner Operator' started by US MARINE, Jun 3, 2012.

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  1. US MARINE

    US MARINE Heavy Load Member

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    I been doing some talking to Landstar about becoming a BCO but my fear is the 65% they offer ( not really a fear ) but I've seen rates that they post on the Broker side of Landstar and I've been told that the rates on the Normal LS board are higher than what they put out on the broker site . So if this is true then 65% of 3.00 is a decent deal in my eyes but if most of the loads are in the 1.80-2.10 range ( avg) like ive seen on the broker side I think you take a hit at 65% a big one at that . Schneider offers the same on the Choice Program at 65% I am speaking of the van divisions on both ..

    Ive seen guys offering 78-87% running the boards but I was thinking possibly that LS freight base was pretty vast hence choices and decent rates . But I also know they got junk freight also as every company does .

    Can anyone give me any insight on Landstar vs Schneider Choice ( current rates , etc ) just rough avg

    Things I'm looking for is :

    Fuel discounts
    bulk power on tires, parts etc

    The positive I do see with LS is I can jump to 72% with my own trailer but at the same time it takes me from the drop & hook freight . ( but that's just my assumption )

    thanks
     
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  3. aiwiron

    aiwiron Road Train Member

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    I am not a BCO but we haul for them often, dry box does not pay well from what they tell me and that is coming from BCO's. Now I do know most that get good pay do not tell so who really knows about that except the ones doing it. I do know the rates for Drop and RGN have good rates.
     
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  4. US MARINE

    US MARINE Heavy Load Member

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    Thanks I guess what I'm more looking for is which one is the best program as far as 1. Freight Base 2. Avg Rates ( across the board ) 3. Discounts My original post after I read it kinda doesn't dipict what I was really wondering .. Lol
     
  5. BigBadBill

    BigBadBill Bullishly Optimistic

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    The Choice program is going to do much better on the van side than LS. LS allowed a bunch of bottom feeders in as agents and killed that side for them. Plus they are more focused with working with small and medium carriers taking some of the better freight out of the loop before a BCO sees it.

    SHC ran the Choice board for a while. Seems you line up some decent runs with it. Biggest issue I have heard from people that failed at choice is you have to be able to figure it out. And I guess they couldn't.

    BTW, several cool-aid drinking BCO's on the KR board are all proud that they average $1.60/mile recently. And they own their own van. That gives you an idea.
     
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  6. US MARINE

    US MARINE Heavy Load Member

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    Yeah 1.60 is not that great I can do 1.60-1.64 on a mileage contract on ALL MILES dont get me wrong you can profit at 1.60 but not at the level I'd like to be at long term ..
     
  7. Autocar

    Autocar Road Train Member

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    Any rates you may see posted at the LS broker board are about 80% of gross, on a flat rate. Not good figures for comparison.
    Bill seems to have a bias against LS. Of course I will admit to being biased towards LS, that's why I've been here since late 1997.
    I do know one woman, pulling her own van, pulling down about buck sixty to the truck and her own trailer. But that is all miles. loaded and empty, on the odometer and she has about a 32% deadhead rate. Do the figures.
     
  8. SHC

    SHC Spoiled Rotten Brat O/O

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    Yes, I have ran both sides of the fence here. Depending on where you live or want to run will play a HUGE factor in making money. I honestly think if you are going van, I would take Schneider over LS. SNI has a very large dedicated customer base and once you learn the lanes you can do very well. I know several drivers who run strictly the Midwest with SNI and are averaging $2.00 a mile for all miles driven. LS has a great open deck operation but I don't see how the guys running the vans ate making descent money out here. I've spoken with more than 5 LS van drivers in the last few months that are not doing very well.

    I ran the Choice board back when it first started in 2008 and left for a dedicated tanker opportunity in 2010. I went back with my current truck in 2011 but it is not setup to run a van trailer and the terrible MPG I getting made me leave, not the freight or the revenue. I also wanted to learn flatbed. If I had a truck spec'd to pull a van trailer I would probably still be at SNI.

    If you decided to go with the choice program then let me know and I will lend you a hand at getting on some good lanes, tho I haven't been privy to their load board in a long time but I know a few that have never changed.
     
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  9. BigBadBill

    BigBadBill Bullishly Optimistic

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    Autocar, you are only readying what you want to read. USM knows I absolutely love LS. My business model is based a lot on what they do and most of my drivers have drank our particular flavor of Koolaid. We participate in the ACG program, have personal relationships with owners of some of the better agencies and run about 30% of our volume through LS.

    At one point being that we are very much like LS I thought that LS drivers would be a good target. I was wrong because the ones that can't make it with LS could not make it with us. Since you have been around since '97 and if you are being honest you should be mentioning that LS allowed a bunch of bottom feeder agents in several years ago and destroyed the rates on the van side. Not intentionally just not something they are very proud of and tough to get rid of them.

    80% would be what the bottom feeders put out there. We see loads before they are even posted for the BCOs, get rates that are above what is posted on the broker board. Any one on this board that has a good reputation with LS can confirm that if a load is posted at $1,000 on the board (that is typically at 18% of the gross) will typically get offered at $1,100 (taking it to less than 10%). Exceptions are the bottom feeders, new carriers or carriers with marginal track records.

    Any issue I have with LS is the same I have with any carrier that charges more that 20%. These rates are abusive towards the driver. And while I understand that LS treats drivers better than just about any other company that does not change the fact that they can't provide that level of value for what they keep. Yeah I am preaching. It is just that I believe very strongly that carriers should be providing at least 2x the value for what they keep and no carrier that is keeping 20% or more can get much over 1x.
     
  10. Old Man

    Old Man Road Train Member

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    BBB, one thing overlooked about LS pay is the way they pay the FSC, if you have your own trailer and get 73% with the FSC it works out to 78 to 82 % of the billed amount, depending on the rate and FSC amount.
     
  11. BigBadBill

    BigBadBill Bullishly Optimistic

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    You are correct. I understand they just implemented a mandatory FSC on all loads. I haven't got the details but have had some agents say it is good for BCOs that deal with the bottom feeder agents and not so good if you work with a better agent.

    But don't forget when we are talking what percent a company is taking we are talking apples-to-apples because most give 100% fsc. And when I am looking at numbers I am talking revenue to the truck plus figuring the differences in expenses. Every O/O that is leased should be doing this math on a regular basis.
     
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