Question About O/O Flatbed Percentage Pay

Tell us how much you gross weekly and hopefully someone like turbotrucker with his experience can tell you what to expect. I will say this, I talk to many drivers as a yard driver working at a wally-world warehouse. Just last week I had a chance when it was slow to talk to a Swift lease driver who was looking for an empty trailer. He said he worked for swift as a company driver and made .38 per mile (must be rare) but decided to become a lease driver which he's been since may. I sorta interviewed him and he claimed he brought home more when he drove their truck but he's "hoping" he'll get a big tax refund and will decide if it's worth it then. I come to this site because I have an ambition that I want to become a OTR trucker but I would have to give up my business of breeding border collie puppies which brings in good cash but have to devote alot of time to.

 

Typically, looking through ads and talking to people, a flatbedder is running somewhere between 64% to about 82% of the gross of the load with most companies that I see. That seems to be the range that they get paid in, with the higher end being with the driver providing his own trailer, and the lower end for a company provided trailer. You would have to project out your expenses, and see what kind of income you need to support your operation, and talk with the business owner and see what numbers he needs to make his end a go. The higher paying freight you are moving, the easier it will be to make the numbers work for both of you, since the amount of money is larger that you are splitting up. In general, the cheaper the freight you hauil, the bigger percentage you will need to make your dollars work, and the better paying the freight, the lower percentage you can afford to take.

You'll just have to sit down and do your numbers to make the call. Factor in everything, like percentage empty miles, delivery times and waiting periods, distances, fuel costs, maint costs, and any other factor you can think of, and see what numbers you end up with. Agree on detention costs, tarping pays, and all the other things that go with it, and eventually you'll come up with a number that works for you, and it will almost certainly be in the range up above.

 

Burky's advice is right on target, and I only have a couple of things to add to what he offered.

Assuming that he will provide the general liability, cargo, and "automobile" liability insurance coverages, as required by law to be carried on all vehicles leased to the motor carrier, this will represent a cost to him of approximately 10% of the revenue that each truck will generate, depending on the deal he has negotiated with an insurer, and of course the claim history he has amassed while in business. As small as he is, he probably will not have the cheapest rates available out there.

If you are responsible for all other costs, are providing the trailer and equipment needed, and he will be "dispatching" all loads to you through the carrier, then a 10% charge is customary for this service.

So...if you are coming somewhere in the neighborhood of around 75% to 80% of the gross revenue being paid to you, then you'll both be happy with the arrangement. If he offers more, then he is a true friend indeed.

Now...I will also add into this one other thing. Fuel Surcharges.

Hopefully, he is getting a fuel surcharge from his customers, and if so, make sure that any contract between the two of you contains language to that effect, and that all details of accessorial pay items are outlined in the lease agreement. You should receive fuel surcharges, over and above the percentages of the freight charges.

Of course, it would be premature to assume anything, but if you know the man well....then you know how to deal with this. If he is completely open and honest in his dealings with you, then you will do fine.

I will caution you however, that many a friendship has been ruined through business relationships, so I'd advise you both to make sure that you come to an agreement that you both can live with, and put it down on paper as well (a legally drafted lease agreeement is required by Federal law)....and leave nothing to question.