Percentage or Mileage

Discussion in 'Ask An Owner Operator' started by Jar-Head, Dec 7, 2013.

  1. Dec 7, 2013 #1
    Jar-Head

    Jar-Head Road Train Member

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    I have a opportunity in front of me to which I can go percentage in tanking . I feel like I have a decent contract but it's not the end all be all . Just wondering if it makes since to trade to percentage or stay put . My current numbers are as follows currently pulling a dry van all 48 usually around 42,000 to 44,000 .

    Current contract
    1.52 all miles ( current as of 12-1-13 )
    Company paid plate & permits
    Hazmat pay of 0.06 loaded only
    Bonus 0.05 all miles loaded & empty
    the 1.52 does not include the Haz or Bonus just base and Fsg only the Haz and bonus is extra bonus paid every 1/4 on all miles

    The other offer

    63% of 100 was told avg gross before 63% is 2.20 to 2.30
    100% fuel was told 28-30% of gross
    dead head 0% (no rev )
    was told loaded % was running around 59-61% ratio so deadhead around 40%
    loaded avg to the truck is 1.98 to 2.20 ( that includes fuel ) but does not include deadhead so my thought is the money to the truck would drop off to at least 1.65-1.75 may be a little off there .
    Plate paid by contractor via settlement deduct @10% Gross LH weekly until paid cost is 1850 yrly

    my question is does it make since to change with the given numbers . Would like to get some suggestions
     
    Jar-Head, Dec 7, 2013
    Jar-Head, Dec 7, 2013
    #1
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  3. Dec 7, 2013 #2
    MysticHZ

    MysticHZ Road Train Member

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    Stop thinking and start doing the math. You have all the information you need, boil it down to the actual numbers. That will tell you what to do.
     
    MysticHZ, Dec 7, 2013
    MysticHZ, Dec 7, 2013
    #2
  4. Dec 7, 2013 #3
    Dr_Fandango44

    Dr_Fandango44 Road Train Member

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    Just a thought and observation on your numbers. 40% deadhead sounds pretty high if that's how I'm reading it. I'd be concerned about that. If you go % it's a no brainier that deadhead is critical. What you have at the moment with mileage sounds pretty good to me. Really good. I'm a bit surprised the MT miles matches the loaded miles. I've never encountered that before but YMMV. I'm in the same type of business as you but switched to % because it made more sense. My deadhead is as low as I will ever get it. Plus I can fuel at many of our terminals which are all over the US and pay very low fuel prices, which helps. But pay scales can be all over the map. It maybe best for you to stay put, with miles for now.
    good luck.
     
    Dr_Fandango44, Dec 7, 2013
    Dr_Fandango44, Dec 7, 2013
    #3
  5. Dec 7, 2013 #4
    Jar-Head

    Jar-Head Road Train Member

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    I understand the numbers and they are correct on my end . The deal I'm can't really compute is this
    what do you figure the following is worth this is what I'd be loosing and have to cover out of the 63% to give a full accounting

    currently have in addition to the 1.52 loaded and empty

    Haz mat 0.06
    bonus 0.05
    plate
    fuel taxes paid / ifta
    tolls @ 100%
    scales @ 100% ( reimburse )
    faxes & copies paid 100% ( reimburse )
    detention affer 2 $ 30.00 a hr ( guaranteed )
    Qualcomm - free
    permits
    layover $ 250.00 per 24 $ 300 if delayed because of a load
    cash price - 0.02 fuel price
    paper logs
    pre pass paid
    pay hold - turn in Monday paid by Friday ( 4 days )


    other deal

    63%
    Contractor pays : the following ( below out of the 63%)
    100% tolls
    100% plate
    fuel taxes
    permits
    plate
    detention 63% when collected
    permits
    ifta
    pre pass
    ez pass
    100% scales
    no layover pay
    no tank wash pay ( for contractors )
    pay hold - 10 days ( turn in by Saturday get paid Monday 10 days latter )
    paperless logs

    as as we know empty = free

    im just not sure if the % deal is better than my current mileage deal when you weight it all in and take everything into account
     
    Last edited: Dec 8, 2013
    Jar-Head, Dec 7, 2013
    Jar-Head, Dec 7, 2013
    #4
  7. Dec 7, 2013 #5
    Jar-Head

    Jar-Head Road Train Member

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    Exactly the deadhead % which is an avg is what scares me cause we all know about averages they can go up and down most likely up in trucking ... Lol
     
    Jar-Head, Dec 7, 2013
    Jar-Head, Dec 7, 2013
    #5
  8. Dec 8, 2013 #6
    Dr_Fandango44

    Dr_Fandango44 Road Train Member

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    Austin, TX
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    Looking at it sensibly and comparing I'd stay with mileage definitely, because you can't predict the deadhead. There's the crapshoot. You're depending on the skill and astuteness of the dispatch to keep the deadhead to a minimum. If you're correct and it averages 40% that tells me they don't have a comprehensive layer of accounts throughout the country or even in a specific area. For instance I won't go to anywhere near the west coast because of very limited back haul coming out of that region. I'm reasonably successful at keeping my deadhead down to 300 miles and below between trips. Therefore the 40% is a deal killer for me and you've got all the other stuff to consider too. IMHO I think the company should pickup the tab on most of the expenses you have to pay via the percentage arrangement.
    In your case mileage is the way to go but you can't say that for all tanker/ chemical haulers. It's a case by case situation.
    Hope this helps, but if I were to consider a comparison, I would get my accountant to crunch the numbers but realize that the mileage gives you a more definite picture because there's no wasteful deadhead to consider as a variable expense
    Good luck.
     
    Dr_Fandango44, Dec 8, 2013
    Dr_Fandango44, Dec 8, 2013
    #6
  9. Dec 19, 2013 #7
    Jar-Head

    Jar-Head Road Train Member

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    thank you

    I have been thinking about it allot and called back and asked different people about the deadhead % at the other offer and they said it would be anywhere from 30-35% once I avg up everyone's answers and the avg rate to the truck would be 1.90-2.15 before deadhead and expenses but that does include the fuel .

    I forgot got to mention on my current deal that I also get almost HUB Miles not the normal 7-10% off that you see some mega carriers do such as HHG miles I may be off 1% on some but most are within 1-2 miles with a few paying more than I run 5-10 miles so I really can't complain with my mileage deal when you add up the total compensation package I get
     
    Jar-Head, Dec 19, 2013
    Jar-Head, Dec 19, 2013
    #7
  10. Dec 19, 2013 #8
    nawarra1

    nawarra1 Light Load Member

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    What's your company name, you are currently leased too? Looking for to lease somewhere.
     
    nawarra1, Dec 19, 2013
    nawarra1, Dec 19, 2013
    #8
  11. Dec 20, 2013 #9
    Jar-Head

    Jar-Head Road Train Member

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    If I told you that it wouldn't be good no more .. Lol

    PM me and I'll let you know
     
    Jar-Head, Dec 20, 2013
    Jar-Head, Dec 20, 2013
    #9
    nawarra1 Thanks this.
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