60/40 revisited?

[Tennesseahawk]

In other words, the savings the customers get are passed on as a lower rate for the contractors.

Geez... I know my wife has a hard time understanding me. But I didn't know it was a Canadian thing.

 

[OntarioVanMan]

When P2 brokers out a load, it's put out for bid. E1, or any one else, has no obligation of any sort. They are free to bid what they see fit. P2 is going to accept a bid that will make them a couple of bucks.

As far as major and minor customers, I think that a small volume customer would understand that they won't get the same price break as Chrysler. That same customer is going to charge more per widget for 10 pieces than they would for 100,000.

That seems right.....

 

[Vinnie T]

In other words, the savings the customers get are passed on as a lower rate for the contractors.

Depends on the carrier. The big difference is the FSC the customer pays, that's where they get you and how they pass the discount to the O/Op, the carrier still makes thier margin!

 

[Vinnie T]

i dont know if you know this,but mexicans have been running u s loads for years,they work for u s companies.as far as freight being slow,only if your not with a good company.my revenue is much higher this year for the same time as last year,and not just because the fsc is higher this year.my run count is the same,and my acceptance is about the same.Im just careful that loads dont go into the middle of know where.To expensive to dead head now with $4.00 FUEL COSTS

I think this is a great post and you really hit the nail on the head NC. You MUST be very picky with what you take. Watch the D/h and the area the load is delivering to. I am not sure what FEDXCC does if you refuse a load, but I know with the Cats you are put at the bottom of the list, this could mean sitting for days!

 

[Vinnie T]

If I understand you right, you would like to have your driver's take a cut in pay, so your profit margin stays acceptable. Good luck with that!

That's the last thing I want to see happen. But I think there can be another way to do this besides 60/40 where all parties make out for the better. I could offer the driver 60% and he pay the Fuel but he would make less that way for sure!

It's not like a fleet owner makes much money with a truck, maybe if he owned 50+ units. But with 1-5 trucks your basically treading water right now.

 

[Vinnie T]

Why is it some fleet owners are still buying trucks and some are going broke ? Some say drivers have to take a cut and my fleet owner is adding a bonus program? Maybe you need comuncate with your drivers and not dictate to them on what to do . But like i have heard b-4 if fleet owners want trucks to run beter may they should offer the loads and dh sm to fleet owner let the fleet owner deside weather the load is worth running and the the fleet owner tells the driver what to do and pays the driver for all miles. LOL never going to happen

I usually am involved in the load acceptance process, last thing I want is a driver taking a load to a bad area, not ask for a bonus when need be..there are many reasons why a fleet owner should be involved. I understand most drivers do not want the fleet owner too involved, and I can understand why..some do things that make no sense! I persoanlly do not know of any fleet owners buying trucks right now, if they are it's to replace units. 98% are eithier holding where they are at or getting out of it.

 

[iceroadtrucker]

60/40
The ower gets 60 the Drivers get 40% then split by 2 = 20% After fuel surcharge.
The ower pays the fuel and tolls so 40%
which leaves the owner with 20%. Off the Top.
Some one said about a driver needing a 1000 a week and they live in a Trailer, It should not matter what that person lives in. They Can live in a tent in the woods hoo Cares. As long as Ur liven in Your stature u shouldnt worrie about the person working for U lives in thats none of ur business. The person tell U He she needs to make a 1000 aweek after taxes that is there set price. What do u offer Medical and Dental coverage maybe they pay there own or have there own policy. Get the Pic. Also there are driving Jobs local that these guys can do or get that pay all the bennies and the person can take home 800 a week after taxes med ect, and be home every night to boot. So if U think paying 60 top U and 40 Bottom them Team or Running Single is bad maybe u need to go open up a weenie stand and sell hot dogs.
The person whom is paying less than the 60 40 splits I know I will see you on here Yelling how that driver left ya.
The First owner I drove for paid me off the Top but his Trucks were paid for didnt owe a dime.
No Chains Allowed
ICEROADTRUCKER
Ridge Runner

 

[Vinnie T]

60/40
The ower gets 60 the Drivers get 40% then split by 2 = 20% After fuel surcharge.
The ower pays the fuel and tolls so 40%
which leaves the owner with 20%. Off the Top.
Some one said about a driver needing a 1000 a week and they live in a Trailer, It should not matter what that person lives in. They Can live in a tent in the woods hoo Cares. As long as Ur liven in Your stature u shouldnt worrie about the person working for U lives in thats none of ur business. The person tell U He she needs to make a 1000 aweek after taxes that is there set price. What do u offer Medical and Dental coverage maybe they pay there own or have there own policy. Get the Pic. Also there are driving Jobs local that these guys can do or get that pay all the bennies and the person can take home 800 a week after taxes med ect, and be home every night to boot. So if U think paying 60 top U and 40 Bottom them Team or Running Single is bad maybe u need to go open up a weenie stand and sell hot dogs.
The person whom is paying less than the 60 40 splits I know I will see you on here Yelling how that driver left ya.
The First owner I drove for paid me off the Top but his Trucks were paid for didnt owe a dime.
No Chains Allowed
ICEROADTRUCKER
Ridge Runner

If my guys are out there working staying out 1-2 weeks living in a truck they deserve to make good money! I have paid a driver over 1800.00 a week! I love when I cut my drivers fat checks!

20% off the top? If I am lucky! More like 10%

 

[Tennesseahawk]

Depends on the carrier. The big difference is the FSC the customer pays, that's where they get you and how they pass the discount to the O/Op, the carrier still makes thier margin!

I didn't make it clear OVM and I were talking about E-1 in particular. I agree about the FSC being smaller with bigger customers. When the fsc is a fixed amount, something has to give. In E-1 and FXCCs' cases, it's the rate. And when you have drivers making 40% and no fsc, that is the scenario that works better for the owner.

 

[Tennesseahawk]

I usually am involved in the load acceptance process, last thing I want is a driver taking a load to a bad area, not ask for a bonus when need be..there are many reasons why a fleet owner should be involved. I understand most drivers do not want the fleet owner too involved, and I can understand why..some do things that make no sense! I persoanlly do not know of any fleet owners buying trucks right now, if they are it's to replace units. 98% are eithier holding where they are at or getting out of it.

In your case, I'd agree, to a point. It's good to tutor newbies on the intricacies of their particular company. However, even knowledgable owners aren't out here, and don't hear when TX or GA freight is good or bad at any particular time. But overall, newbs tend to please their company by taking anything it offers. It is the job of an experienced owner to blow that myth out of the water, and drive home a little common sense.

Also, any new or experienced owner, if he/she is smart, will learn from their experienced drivers.

 

[Bruno]

What seems to work for us is we pay our drivers and the Fleet I manage 20% each minus the FSC and paid tolls. The drivers pays their own workmans comp. We pay the fuel, tolls and everything else. You can give the drivers a bonus based on what they gross in the truck.

Here is what you can do.

Give a bonus each month based on the same things as the Four Star Award.

.25% for being in service 70% each month.
.25% for 100% ontime pickup and deliverys
.25% for 70% load except rate.
.25% for no accidents

That only works out to 1% if you hit all four goals. So you set the percentage based on the gross of the truck.

Each driver get 1% extra base on the gross of the truck. To get that you have to run to make the extra money. Here is how it can work.

If the truck makes $14,000.00 the drivers get an extra 1% each. Then every $5000.00 they gross after that they get and extra 1% each. So if they gross the truck $25,000.00 they would get an extra 3% each if they hit all four bonus offers. Now if they only hit 3 of the 4 bonus offers then they only get a bouns based on 2.25% of the gross each. Which would come out to be a bonus check of $562.50 for each driver. The drivers are making the money they need and so does the owner. Its a win/win for both.

 

[pjjjjj]

If the truck makes $14,000.00 the drivers get an extra 1% each. Then every $5000.00 they gross after that they get and extra 1% each. So if they gross the truck $25,000.00 they would get an extra 3% each if they hit all four bonus offers.

How likely is it that the truck would gross $14000-$25000 in a month? Or are we just with the wrong company?

 

[jwc]

Our fleet owner is buying trucks giving bonus and treating us like roaylty . After changing companys owning our own truck What i have discovered that fleet owners that hire a manager that driver to stay the blank away from if in the first meeting they are complaining about drivers stay away from if they are paying less than 60/40 \/ 40/60 split stay away from if they got a ten page contract run from them the only word to hear is as long as your making me money i'll leave you alone and if you not then i'll show you how to do it i hold a high acceptance rate and sometime i get some flack from owner but when i get flavors payed back boy i get a pat on back is our relationship between driver and fleet owner perfic ( no Way) but if there's a better fleet owner out there let me know Wev'e droved for fleet owners that paid less and complaned all the time about eveything and we were never doing it right we ran 4000 miles on week 600 DH 4600 all together and was told we had to many extra miles like i say for fleet owners who want to micro manage you they should get the load offers then give them to the driver

 

[LDB]

.25% for being in service 70% each month.
.25% for 100% pickup and deliverys
.25% for 70% load except rate.
.25% for no accidents

Now if they only hit 3 of the 4 bonus offers then they only get a bouns based on 2.25% of the gross each.

Is it 2.25% or would it be 2.75% for 3 of 4 being 3 of the .25% above plus the other 2% for the other bonus levels? Do you base the above on a strictly calendar month basis and if so how do you handle when the month splits a week that could affect say the 70% level depending on what they do that week?

 

[Bruno]

Is it 2.25% or would it be 2.75% for 3 of 4 being 3 of the .25% above plus the other 2% for the other bonus levels? Do you base the above on a strictly calendar month basis and if so how do you handle when the month splits a week that could affect say the 70% level depending on what they do that week?

Leo

The team would get .25% for each category they hit. They hit 3 of the 4 so they would get .75% once they hit $14,000.00 and .75% for every $5000.00 they make to the truck.

So if they made $25,000.00 the could make an extra 3% each, but since they only hit 3 of the 4 categorys they only get .75% for every extra 1% bonus they could have made. Lets say they only made 2 of the 4 categorys the would only get .50% of each 1% bonus they could have made. Hope this helps explain this better.

 

[butterfly610]

Why do people always say they will reward drivers who earn a certain amount, or run a certain amount of miles? You can make informed decisions about taking certain loads, but you really can't MAKE the carrier give you all good loads. You don't have total control over what you are given, if you were, a lot of people wouldn't gripe so much. It's almost like the driver has no control over each month and just has to kinda hope they get some good ones in there to earn the extra money. Also, the acceptance rates? Can a driver help it if they get like 6 loads in a row that make no sense, because in some areas or certain situations, it's happened. I"ve had to turn down that many and then got one that was really long and was a much better choice. You just never know, this is such an unpredictable business at times.

I'm not trying to be offensive to anyone, just asking. Our company does a similar thing where the truck that runs the most miles in a month gets a bonus. Not very achievable as we have no control over the miles we get. Maybe it's easier with a smaller company. Ours is kinda big, so that might play a part in it. Just a question though....

 

[nightcreacher]

my co gets 22% before fsc and tolls.He is an employee so he has taxes taken out,the only thing I dont have for him is insurance,but he has that with his wife.I tried that bonus system ,to many variables.When I had my other trucks,i didnt micro manage,just had good people with a good work ethic.

 

[LDB]

OK, I thought the additional financial levels were separate categories that were 1% regardless of other factors so they could conceivably get any level from .25 to 3.0 in .25 increments.

 

[Jack_Berry]

here ya go. i was getting 60 after the owners 40 off the gross. well what was left and the fsc barely covered fuel for a 1200 mile load i had. he then shorted me on money i spent on maintenance. long short i was returning the truck for him and 60 miles down the road i heard a loud metallic screeching and lots of white smoke under the truck. i called him and left the truck on the side of the road awaiting a tow and left with my wife in the rented sprinter.

GOD takes care of HIS own.

 

[cheri1122]

Butterfly makes a very good point: a bonus based on miles run, or acceptance rate, is a bonus that involves factors outside the driver's control. I've received a bonus one month for doing what I do every month - just happened to get more miles in that one month. Didn't accept more loads, because I very rarely turn any down - so the bonus isn't something I get for working harder or smarter, it's just luck, IMO.
The driver controls in service percentage, on time percentage, and safety - but miles and acceptance percentages are not entirely within our control. I can't force the carrier to offer loads when there aren't any, and I won't accept a bad load, so the bonus feels kind of bogus. (And no, I didn't give it back!)