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60/40 Split in a straight?

M

mikefl

Active Expediter
OK Guys and Gals. We have been contacted by a new fleet owner that has signed on a few trucks with a couple of companies.

We was talking and they pay 60/40 after expenses.(Them paying for fuel and all then split)

My thought was 60/40 split!
Drivers get 60%
We keep FSC.
All dead head.
Hand unload and load Ect!
We Pay for fuel, tolls, QC and our WC and insurance.

The owner gets 40%
They pay for everything else.

This is the first time I have heard of this type of split that is the reason for me asking the questions.

My thinking and business side is if they pay for every thing and then split there would not be much tax write offs for us. This would cause us to loose at the end of the day. Yes/No?

Please elaborate on every thing else I may be forgetting.
 
zorry

zorry

Veteran Expediter
The last owner I drove for paid us 40% ,he paid the occ health, sat TV,Sat Radio,all tolls,QC,repars, and a minimum of one Blue Beacon per week.
We all did pretty good.
Your offer seems tilted pretty heavy in the owners favor.
Also, he paid hotels if truck in shop overnite.
I witnessed a team sleeping many nights on a picnic table when the truck was in the shop for an extended repair. This is wrong.
If you're going to be a quality team I'd look for a better offer.
 
BigCat

BigCat

Expert Expediter
Find someone that does either a legit 60/40 where you get fsc and tolls. Don't split everything down the middle as that would be stupid. Now otherwise try not to complicate things and just do a split where they cover all fuel and you just get a flat 40%. When starting in this business you should just do the easier route and let the owner pay fuel and get the experience and then get choosy with how you want to be paid.
 
I

IvanTheGreat

Active Expediter
I just started working this week an getting 55 owner gets 45. Gas tolls and everything else on me. He only pays for maintenance and repairs. It seems at this rate I can do better at home doing construction....it's in a straight btw.. Opinions please
 
zorry

zorry

Veteran Expediter
Big Cat has it right. Keep your deal with owner as clean and simple as possible.
You'll have enough to think about.
 
BigCat

BigCat

Expert Expediter
IvanTheGreat said:
I just started working this week an getting 55 owner gets 45. Gas tolls and everything else on me. He only pays for maintenance and repairs. It seems at this rate I can do better at home doing construction....it's in a straight btw.. Opinions please
Click to expand...

Are you paying for the qc, insurance and comdata fees?
 
cheri1122

cheri1122

Veteran Expediter
Driver
IvanTheGreat said:
I just started working this week an getting 55 owner gets 45. Gas tolls and everything else on me. He only pays for maintenance and repairs. It seems at this rate I can do better at home doing construction....it's in a straight btw.. Opinions please
Click to expand...

The most common split is 60/40, so the owner is giving himself an extra 5%. Whether that's justified [better equipped truck?] is your call. If you don't think it is, then you can try to renegotiate, or stay long enough to earn some work history and then move to another owner and/or carrier.
'Just started working' requires paying your dues towards better things, but how much you're willing to pay is a personal decision. ;)

 
Slo-Ride

Slo-Ride

Veteran Expediter
IvanTheGreat said:
I just started working this week an getting 55 owner gets 45. Gas tolls and everything else on me. He only pays for maintenance and repairs. It seems at this rate I can do better at home doing construction....it's in a straight btw.. Opinions please
Click to expand...

Strictly my opinion here,,
If your already with the building trades and there is work I would think you would do better @ home working a steady job..If your in a seasonal area you could come out and play during winter unenjoyment (layoff) if ya really want to drive that bad..
 
zorry

zorry

Veteran Expediter
I know a guy that offers high end trucks but at 55%. A very good team I know went to work for him and left over income.
I would think the high end trucks would help attract high quality teams. Their expertise should supply the income to pay for the truck much better than a mediocre team giving the owner an extra 5%.
 
denny2010

denny2010

Expert Expediter
My pay is 62% , owner pays for all but fuel. And he lets us run the truck as if it was ours. Very good man to work for.

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jimby82

jimby82

Veteran Expediter
We are on a 40/60 pay. We receive 40% of the run pay (including the small amounts paid for deadhead from previous layover and delivery.) The owner gets 60% of the run, and all of the FSC and toll money.

Our only expense is for the occupational accident insurance. Owner pays all maintenance, repair, toll and fuel costs. We have a T-Check card for fuel, and a Pre-Pass / EZ-Pass transponder. (If we pay tolls out of pocket, we turn in the receipts and are reimbursed within two weeks.)

We have considered finding an owner that pays on the 60/40, with us paying for fuel. In the same truck, I believe we would come out ahead on the 60/40, to the tune of over $1000 additional to us each month. In a different truck, with different (worse) fuel mileage, it would be possible for us to take home less than we do now. Our current truck averages between 10-10.5mpg. (less on reefer runs).
 
BigCat

BigCat

Expert Expediter
jimby82 said:
We are on a 40/60 pay. We receive 40% of the run pay (including the small amounts paid for deadhead from previous layover and delivery.) The owner gets 60% of the run, and all of the FSC and toll money.

Our only expense is for the occupational accident insurance. Owner pays all maintenance, repair, toll and fuel costs. We have a T-Check card for fuel, and a Pre-Pass / EZ-Pass transponder. (If we pay tolls out of pocket, we turn in the receipts and are reimbursed within two weeks.)

We have considered finding an owner that pays on the 60/40, with us paying for fuel. In the same truck, I believe we would come out ahead on the 60/40, to the tune of over $1000 additional to us each month. In a different truck, with different (worse) fuel mileage, it would be possible for us to take home less than we do now. Our current truck averages between 10-10.5mpg. (less on reefer runs).
Click to expand...

You must drive a red KW too.
 
davekc

davekc

Senior Moderator
Staff member
Fleet Owner
In most cases, the 60/40 split will pay better to the driver unless a vehicle has poor mileage, doing constant dh over 30 percent, or a carrier that has sub par FSC program. Really is about that simple.
With regards to only paying 55 percent, several fleet owners that I am aware of have cut the 60 percent because of vehicle prices. I have no plans to change mine but I see where some are struggling when 100k vehicles are now 120k to 150k. If there is no movement in the rate, you may see more of it as the used market is drying up with trucks that are worth anything.
Reefers could be another story with the truck costs and carb rules. Can a fleet owner carry one of those trucks at 40 percent if he is paying 200k to 250k per vehicle? Maybe. Those rates better be consistently high or it will turn ugly.
There's my penny in the pond.
 
LDB

LDB

Veteran Expediter
Retired Expediter
I admit to not reading everything so this may have been covered. This is my opinion and may differ from everyone else's. I see pay in 3 categories, load pay, people pay and time pay.

Time pay covers things like detention and layover when the truck could be moving and generating load pay but it's not. The last time I checked (and every time prior to that) my hour was identical to the driver's hour. An hour of the truck sitting was an identical amount of time for them and for me. I split time pay 50/50 since we have the same length hours. In the future if time shifts so one side has a longer hour than the other I will adjust the 50/50 split.

People pay covers things like hand load/unload, inside delivery etc. and pays specifically for people doing things people do. If I happen to be at the same dock at the same time and participate in the people work then I'll split with the team 1/3 for me and 2/3 for them. Since that is highly unlikely and so far no longer has happened I pay 100% of people pay to the team.

On loads I follow the common 60/40 split giving the team 60% plus 100% of FSC. I also give 100% of DH pay because that is to partially offset the fuel cost of getting to a pickup. Since the team pays for the fuel they get the DH pay.

That hopefully gives at least some insight in one particular system.
 
M

mikefl

Active Expediter
Thank you that is what I was thinking as well. The 60/40 with drivers getting 60 seems to me a better way. You could write all of the fuel expense off at the end of the year. Depends on how the contract is written you could write the truck off as a lease.

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