Running under someone's authority

Discussion in 'Ask An Owner Operator' started by chimbotano, Sep 30, 2013.

  1. chimbotano

    chimbotano Light Load Member

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    First, I want to thank you to all of you guys for taking the time to respond. You guys are helping me a lot !!!!!!!!!!!!
    how much should be a fair deduction, payment, fee or whatever we want to call it if I run under someone's authority? A friend of mine has his own company and I asked if I could run my truck under his authority for a least 6 months until I get some money to get my own. I will like to find out a least an average or reasonable amount so he and I could feel good about it.
    Thank you for your help.
     
  2. craggy1982

    craggy1982 Light Load Member

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    I see most companies keeping 20-25% of the revenue for you to run under their authority. I have seen a couple only keep 10% but not often. its whatever you two negotiate and agree too
     
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  3. G3Truks

    G3Truks Light Load Member

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    Probably important to note that your pal has expenses to let you run under his authority. He has t pay insurance, taxes, do fuel tax reports and keep your logs updated and on file. It ain't cheap. Probably fair to keep 15-20% to pay his cost.
     
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  4. G/MAN

    G/MAN Road Train Member

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    You can make your own deal of what you both consider fair. I have known some who pay the carrier from 10-35%. One important factor is whether you will find your own loads or rely on your friend. Another is whether you will pay your portion of his commercial insurance or have it included in the portion that you pay him. If he is just helping you out, you might consider paying your portion of his insurance and add 10%. If you are a hard runner, you might even agree to pay him from 10-20% and he pays the insurance. If you plan on running your authority later, you could go ahead and get your own IFTA account and learn how to do your fuel taxes. That will take a burden off of him and you will have the responsibility of filing and paying the fuel taxes.
     
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  5. Allow Me.

    Allow Me. Trucker Forum STAFF Staff Member

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    I'd say 10% if you're doing everything and he's just letting you use his authority. If he's letting you use his trailer, doing taxes, dispatching you then probably 20% ( agood friend) or 25%.
     
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  6. truckintyger

    truckintyger Bobtail Member

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    I know the company I run as company driver for now charges 10% of gross. Insurance is extra, as is ifta. Logs are kept and filed on them, so as far as i know its a pretty fair deal.

    Has heard of some companies advertise 8% but when you read the fine print (3% factoring, 5% maintenance, etc) it all adds up to 20-30%. So read the contract carefully
     
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  7. Marlin46

    Marlin46 Medium Load Member

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    In the range that everyone else is talking about - I would say 20% if it is your trailer and 25% if it is his trailer. Good luck and I hope it works out for you guys!
     
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  8. SQ609

    SQ609 Bobtail Member

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    I charged other owner ops who ran under my authority 15% of gross + whatever the insurance company charged to insure the truck. I would call the insurance company on speakerphone so they would know how much it would cost to insure their truck. That way they knew how much it would cost them every month whether that truck moved or not. They were happy.
     
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  9. FordFan

    FordFan Light Load Member

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    Close friend gives 8% to run under someone's authority. He pays all bills but doesn't keep any paperwork.
     
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  10. SheepDog

    SheepDog Road Train Member

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    If I was to run under someone's authority I would run my own plates, ifta and Ins., at least bobtail. If something happens and I decide to move on in a moments notice, that can be hard to do when the plates aren't yours, or the ins. and ifta stickers. The more that is mine, the less I have to worry about. I think 10% is good to just use their authority, anything else will add to the percentage. I have a friend that charges 10%, she finds you loads.
     
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