Percentage vs mileage pay

Simply....it is your choice. In good market times like we are having right now...percentage is a good option, but not such a good option when freight prices are down in a tight economy. I like percentage as I chase revenue and not miles. On mileage pay, your only option to make more money is either to increase your mileage pay and miles....where on percentage you just chase the revenue. Since changing leases from a mileage pay system to revenue I am making more money and driving less miles.

 

Hi mitmaks, well, neither really, but of the 2, I'd say mileage is probably a little better. Reason being, mileage is kind of cut and dry, you know what you are making, where %, you never know a % of what? I worked for a company once that told me I made 29% of the trucking charge. One day, the boss had me pick up a check for the trucking charge, and after I got my pay check, it came out to 22%. When I questioned him on this, all was quiet, and I quit shortly after. Just remember, with mileage or %, when the truck isn't moving, your pay per hour goes down, and visa versa, the faster you go, the more you make per hour. I guess, now that I think of it, it's a horse a piece.

 

Ok so what exactly is the mileage pay. It says nothing about that topic on your comparison so how can we make
a judgment?? I think the revenue percentage pay looks good if the miles are fine. Surely you can calculate the miles and make a solid comparison.
You can't assume anything until you do this.
Good luck.

 

We pay off the net. Which the driver knows how much the rate of each load. After the fuel and 5 percent for maintenance . Half of what is left is the pay.

 

Mileage is a break even proposition at best. Regardless of what "benefits" or "freebies" the company " generously" gives. Percentage is only good if you know exactly what the rate paid is, have the ability and know how to set rates you work for, are able to capitalize on the ups riding out the downs. Maximizing revenue for the time you work is what counts. Miles turned matter not and just because those wheels are turning does not mean they're earning. Sometimes it pays better for them to not be turning at all which is difficult for some to grasp.

 

What folks need to understand is that these "benefits" and "freebies" that companies hang in front of guys like carrots are not free. They are still paying for them, and then some, by the means of working for a ridiculously low mileage rate.

 

My husband and I . We want our drivers happy. The happier the driver the more money is made for everyone

 

I haul chemicals. YMMV but I wouldn't touch mileage pay with a ten foot pole. You are destined to remain in the poor house going that route with what I haul.
Other commodities maybe different, but as far as I'm concerned percentage is the way to go. You just have to be aware of deadhead miles, which could eat into your bottom line.
where I work, deadhead is kept to a min, so if you have to choose between percentage and mileage pay, be very careful and do a thorough comparison.
Good luck.