60/40 split?

[gotta go]

Anyone see anything wrong with a 60/40 split, with the driver buying the fuel? Also need to add that owner pays all tolls, additives, and expenses otherwise incurred....gets none of the FSC. Also Norpass, prepass, XM radio....direct TV...not currently working, but getting fixed....wiring problem. I just had a team quit because they thought I get too much money, I guess....and they should get more. Anyone toss a figure out there for me....driver preferrably....who can shed some light on average income for drivers after fuel and split? I know how to do the math...been doing it for years!

I drove for one owner who gave me a debit card in my name for all truck expenses, a fuel card, pre-pass, nor-pass, ez-pass, and xm radio. He also made sure that I had $100 of his cash available for tolls etc. not covered. I liked never having to use any of my money and wait for reimbursement. I was paid 40% of gross, excluding fuel surcharge. When the truck was on with one of the big 3 he paid me 2% extra to go through payroll each week for discrepancies. I would have worked for him 20 years+ but he got rid of his trucks. New owner paid 65/35 with me paying fuel, tolls, and expenses up front and being reimbursed for expenses. As the carrier paid bi-weekly, my money was out of my pocket for quite awhile at times. That owner also paid me a bonus 2% on everything over 2500 miles in a week. I did well with him 'cause I left to switch carriers and buy the truck you lust after, Jay. Just a little input.http://www.expeditersonline.com/forum/images/icons/icon12.gif

 

[davekc]

In all most instances, the 60/40 will pay the driver more than a 40 split unless one is DHing all over the place.
The other exception would be a budget carrier with a lower rate and low FSC.
That is also taking into consideration that the truck gets reasonable economy and is equipped with a generator.

There are some good drivers out there but all too often I see in those 40/60 plans drivers selling fuel, excessive idling, excessive dhing, excessive speeding, running loads that have a low FSC, or forced to take a flat rate FSC because drivers aren't focused on the FSC because they have no vested interest, weak maintenance habits and the list goes on.
Again, it doesn't mean ALL drivers are like that because there are some good ones. But why worry about it when it isn't needed. Both parties benefit better when both sides have a vested interest. That isn't just expediting, that is any business.
We did some posts earlier in the year and the 60/40 provided to the driver 1200 to 1500 per month.
Use your carriers figures and determine if it is best for you.

Another word to the wise. If you are on a 40/60 plan, might want to check with your legal council as to whether they are employees or IC. Seen several horror stories in this regard over the last several years.

 

[cheri1122]

A "weekly average" is pretty tough to come up with, as the weeks can vary wildly in loads offered, accepted, time OOS (personal, maintenance &/or repairs), DH involved, etc.
A team (or solo) who would quit the owners because they "weren't making enough money" simply doesn't understand the concept: mileage is dependent upon finding loads (usually the carrier's job), and choosing the loads to accept, (usually the driver's job) - insufficient income is hardly the fault of the owners, is it?
A 60/40 split, with the driver paying for fuel, (because the driver is in control of the fuel consumption) seems the most reasonable plan. What I never understood, though, is the ''bonus' for loaded miles, because few drivers have much control over the loads offered....if I have a week of low miles, it's because the loads offered were insufficient, or nonexistent. Conversely, if I have a week with nearly 4000 miles, it's because the loads were offered - so why should I be rewarded (or penalized) for something over which I have little control?
It would seem more sensible to offer a bonus for time in service, IMO.
Like the Iceman, I have been out since the first week of June!

 

[pjjjjj]

This is just a thought, but perhaps the reason why the bonus for miles is offered is becuz drivers might feel they've made enough money/run hard enough for the week, and now deserve some time off, or want home time more frequently, or be choosey about which loads they'll take going where, or for how much or whatever.
So that bonus might encourage them to work a bit harder, IF given the opportunity by the carrier in the first place, of course.
Not all drivers are willing to run as hard and stay out as long as you are Cheri, and I hope your 'owner' appreciates you! Wouldn't it be a nice 'thank you' to get a little bonus for staying out and doing the miles?

 

[gotta go]

pjjjjj, that was exactly the reason for the bonus. After a year with that owner I received a raise to 70% + the bonus. I left about a month later. He joked that he'd never give anyone a raise again.

 

[cheri1122]

Twould, indeed, Pjjjjjjjjj . Since I'm a believer in the "plant your own garden" theory of happiness, I gave myself a little bonus for all my hard work: a lovely little pendant of a dragonfly, in amethyst & turquoise, made by the Zuni tribe.
Seriously, though: time in service, and loads accepted, seem a more reasonable basis for merit bonuses, than load miles, to me, because I have more direct control over them than loads offered.

 

[pjjjjj]

Seventy percent, AND you got reimbursed for expenses (other than fuel)?? Wow! So let's see a pic of the lusted-after truck!

hehe, that just reminded me.. I was away yesterday and checking some things on my laptop at a coffeeshop.. when I was finished and packing up, a woman approached me and asked if I was finished with the table.. I said yes, and she sat down.. so I asked if she had been coveting my table.. teehee.. but she said, um no, the other ones are full.. engrossed as I was in my own affairs, I hadn't realized the cafe had filled up! I kill myself sometimes

 

[gotta go]

Seventy percent, AND you got reimbursed for expenses (other than fuel)?? Wow! So let's see a pic of the lusted-after truck!
I was driving for a fleet owner who knew his numbers and was willing to pay his drivers well. Like Cheri, I stay available a lot. I was last home in November. I did get to my daughter and grandson's house for Christmas (with a loaded truck).
I had to put in the comment 'bout my truck 'cause when I met Cindy and Jay at Louisville, he told me that he'd seen me fueling once and fell in love with my truck. If I did it right the link takes you to a thread with a picture of the aforementioned truck. (I know big words but I'm a technidiot.)

http://www.expeditersonline.com/forum/general-expediter-forum/32246-airtabs-expo.html

 

[pjjjjj]

Oh my, I can see why.. beautiful!

 

[pjjjjj]

Seriously, though: time in service, and loads accepted, seem a more reasonable basis for merit bonuses, than load miles, to me, because I have more direct control over them than loads offered.

Your pendant sounds lovely
But back to business.. it goes without saying, that you have to have the load offers from the carrier to begin with, but can you imagine the frustration of an owner, whose driver did in fact have the opportunities, but declined them for personal reasons and 'don't wanna's'? One thing to just get by becuz your carrier doesn't have enough loads for everyone, but quite another to have the offers, and an unwilling driver.

 

[dabluzman1]

Either way I don't understand how drivers could make money off paying for fuel unless they are not on a flat rate and they only except high fuel surcharge loads. Fuel surcharges are not designed to pay for all the fuel. Now if I was opperating as a solo owner I would not be in the Panther fuel surcharge program. I would sift through the loads for high fuel surcharges like .59 cents a mile and .70 cents per mile. That would more then pay for the fuel and some of the cost to run the truck.

I could have easily lost the extra 4% if i was careless.
I purchase fuel at TAs and I check the web to see where the best prices are.
State to state prices vary as much as .50/gallon, right?

Also, as most do on this site I run efficiently. I minimize needless DH, dont idle, travel at speeds less than 65 mph. This helps.

But what you are missing is the additional 20% of the run you will also be getting.

That additional 20% + FSC + efficient running allows us aprox. 44% after fuel and
disability ins. deposited into our bank.

Its easy enough to check. You have the run money, fsc and fuel cost. Figure out some of
your jobs. You may well be better off on a 40/60.
As for Linda and me, 60/40 is best.

Be informed.

 

[ericmoss37]

Yes I was confused I thought the owner still got 60% and the team got 40% and paid for fuel and got the fuel surcharge.

 

[davekc]

Yes I was confused I thought the owner still got 60% and the team got 40% and paid for fuel and got the fuel surcharge.

As far as looking at the larger carriers, I can't see any instance where a driver would come out ahead financially with a 40/60 split unless the truck has no generator, or they are deadheading all over the place.

 

[iceroadtrucker]

Jim I just want to say thanks I can only hope U can explaine to these guys how I take care of the truck and how I run the truck as its seem no matter how I state it, now matter how I put it in writting, no matter how simple I make it they just dont get it.
Well I shake my head in disbelief.

If you can cypher this sentence by sentence and get them to fully understand that would be great. So Jim let em have it and maybe they will see the light if not then maybe they are totaly blind by there set ways.

HERE GOES Nothing

I have went over and over how I get paid,

I have went over and over how I pick choose the loads and how I stay out.

I have went over and over how I take care of a Truck thats not mine but I take care of the thing like its my own as its my bread and butter.

I have said time and time again I down load 40% off the top of the card to pay for Fuel tolls and Maintence shocks tires belts oil grease, lights, fan motors for the Ac unite fueses ect ect. Ive even with the reefer paid for the replacement of the turbo and all the work and being towed as well.
I have done this all by taking 40 of the total amout of the load and down loading to the card then running the truck at slow speed shutting it off.

So Im just a wheel turner ok good Im just a wheel turner
Well When is the last time you climbed up on the trailer to replace a light on it to save your owner money A wheel turner dont do that. When is the last time you pinched off a line to get the trailer to a shop when U had a blown air bag ?? to save your boss a road call. A wheel turner dont do that. When is the last time u crawled under the truck and go all greasy fixing airlines. a Wheel turner dont do that.
When is the last time on your million mile truck U replaced the serpetene belt your self?? a wheel turner dont do that.
How about a voyage repair while your under load to the Exhaust as the Jakes ate a hole in it during the trip and when U stoped to swap drives you found it?? A wheel turner dont do that. Ya man I run this stupid truck off of 40% I down load to the card to keep this thing running down the road. Like I said and gave you all examples of how i get paid. I give examples of how I run the truck.

So Im just a wheel turner Ya I am I dont own the thing.
Ya want to know somthing else. Tenn and a few others on here have jeered me and what ever who cares I came out here and done the above for the last 3 years.

Yup your right Im just a wheel turner but then again if Ididnt do it well I still be sittting along side the road some where or should I say this old truck would.

for one last time here is how I get paid

DH pay 50.00 DHFS 150.00
Run pay 2000.000 RFS 500.00
Tolls 00
Total Pay 2700.00

My pay add 2000.00 run pay and 50.00 DH pay together
thats 2050.00 now take that time 20%= my pay 410.00
thats 410.00 for me and 410.00 for my Co driver.

Now look at the total pay 2700.00

Take 2700.00 times 40% = Money down to the card for
fuel tolls and maintence. = 1080.00 again for fuel tolls and maintence.
Note that 40% is off the top where My pay is off the bottom

So now you have it 410 for me 410 for co add 1080 for the fuel and tolls leaves what 800.00 left over so I take it then the big guy gets that chopped up so to speak but 800.00 is what is left after I and my co driver get paid and The money is down loaded to the card. what ever is left he gets just for being the ower.
Taxes ok Qual Com ok INS ok well I would think he still makes more than us. thats is a example off of just one load. weather the price is higher or lower the man reguardless is making money
and more than us. 0 payments on it helps too.

Any way when I get a run I look at the total miles DH and Pratical. I look at toll Roads. I look at can I don this load with the monie I Down load to the Card. I get 6mph to the gallon so viabley if the run miles are 1900 miles
so thats 1900 Divided by 6mpg =316 gallons times 4.25 =1345.83 well then u tell me can I do the load even though it paid 2700 bucks ??? well 2700 times 40%= 1080.00 so your answer would be nope cant do it. Rest my case.

So if I can down load enough monie to pay to do the load Then I take it. IF I cant then I dont take it. Peroid.
It would be stupid to do a load for free unless your in a bad area and it would get u to a better area. However Ur in a good area U dont take a looser load just to make a buck that puts u in a bad area. Get my drift.

Any case I run the truck I choose the loads.

But as Mr Million dollar plan and TennHawk stated Im just a wheel turner.
Well Give me a Reefer and a Truck Ill make U money and take care of the equipment like it was mine.
Some people are into self Preservation in other words they take care of them selfs and not the equipment Im not like that I take care of the equipment first then when thats done I take care of my self.

I put the Equipment first have it ready then Me.

As far as DH goes Thanks Jim Its been since May and Its time.

To the rest of ya have a safe one.
By the way If a person can keep there equipment up, fixed running ready to rock ola with the IATOLLA of which June 18th reefer has been in the shop UNSAT I wont say no more.
Im going to depart Florida in a Few Min I del Yesterday I gave it 24 hours so that will help with the fuel and toll as 24 hours is all I need and no refusels to get my DH to Lay over pay. For Jacksonville FL.

Jim Thanks maybe U can explaine it to Hawk and the rest.
at least U can read and sipher my writtings the right way. Thanks Man I appriciate it.

 

[sweetbillebob]

After reading some of the posts, I am feeling pretty lucky. We are direct hires to our fleet owner. He pays us 35% of "gross" minus the tolls. And since we are direct, he is paying 1/2 of our SSI, (another 7.62%). Any out of pocket I take out of an advance or use T-Chek if I can. He sets goals for truck gross and rate/mile, which varies every month based on cost of fuel. We rarely talk unless I have a question or need him to pay for some maintenance. We can take almost every deduction at tax time that a contractor does except for health insurance.

By the way, I think he is looking for a "good" husband/wife team.

Our truck is very nicely equipped, 2007 Freightliner w/Bentz 100" sleeper, 48" bed, convection/microwave oven, full size RV frig., Onan APU, TV/DVD, separate sound system front/back, sink w/cold H2O (periodic filling required).

We have to pay XM, and we also installed satellite that we paid/pay for (I will take it with me if/when we leave). He pays for little extras we add to truck like, rugs, fans, storage enhancements, etc. We don't ask, just purchase and submit receipts, taking money from advance to pay for it. (We never spend out of pocket.)

Must be W/G, T/VAL, Explosives/Radioactive qualified, DoD and Art not required.

I should add, we stay out for 2 to 3 months at a time, then go home for a week or so when a run gets us close enough. Some of the other teams who go home more get "when are you getting back on the road" phone calls that we do not get. Long DH home is an issue for him, and since we live in MI, we do not get the opportunity much. If we lived closer to runs, we would get home more often, but would not stay home as long.

 

[greg334]

So as we know you really are not allowed to book your own loads at FedEx, finding a load is more or less out of the question.

Jim this is the issue for me.

I sat in the west DHing on my own dime begging for some thing to bring me back east, when I could have gotten load after load after load to move the truck they refused to even listen. The excuses I and a number of others got from FedEx were as I mentioned in another post; not for straight trucks, not for people who have been out for less than 2 weeks, 4 weeks 2 months and a lot of other things. And to beat all, they only worked banker’s hours.

From what a select few have said, they have no problems with picking loads off the boards and calling the Fed up to get them to book the load, so the conclusion is that after being told that the official policy was not to allow the contractor to find their own loads, there is favoritism towards these select few special contractors or as one CC said these are the exceptions to the rules.

In IRT’s case, FedEx should not have any issue getting him loaded to anywhere he needs to go. I can see where he can relieve some problems with Freight/Ground in areas that may have to pull in another truck for those divisions. According to FedEx, it is not about the profit, it is about the coverage, so using a CC E unit to take a trailer full of packages to another hub does not sound like it is brain surgery.

But as Mr Million dollar plan and TennHawk stated Im just a wheel turner.

Well IRT, I think you would actually do great with your own truck with all that good knowledge behind you. The problem is that even though you do well in a reefer trailer, you should do well in a dry box if you have your sh*t together.

 

[Detmike208]

You asked for a drivers view... We drive for an owner..40/60..owner pays for fuel, maintenance on the truck. He gets all the FSC, all other pay is 40% to us 60% to him. We pay tolls, which are reimbursed if we are in service 70% of the month. He requests that if we are going to DH home, to be less than 300 miles Any maintenance is either paid by us and reimbursed or done with a comcheck.
We don't take advances, we wait til the settlement comes in and our money is direct deposited into our account. We requested it be that way.
We take care of his equipment, he takes care of us.

I have to admit that we are pretty close to Pelican's outlook. We are on a 60/40 with the owner paying the fuel. Although sometimes it seems like I'd be better off paying the fuel and keeping the surcharge but that was never an option for us.
We pay the tolls but we could submit them for reimbursement but we choose to just write them off our taxes. Our owner pays all maintenance and to be quite frank, the support we get from the owner makes us not want to nickel and dime him to death. Our success is his success, or at least that's what we think. We don't go home to often but when we do, we pay anything over 100 miles.....not that we have to, but we feel that it's appropriate. Our owner has never asked for it. We're never gonna get rich....but we're happy with our situation and that's certainly worth something. It's important to us that our owner is as happy with us as we are with him. He has entrusted us with a very expensive piece of machinery and although I've never met him, hopefully he thinks as well of us as we do of him.

 

[Dispatched]

My drivers all choose 60/40. Most found they make more $'s than choosing 40/60.

 

[Tennesseahawk]

I have to admit that we are pretty close to Pelican's outlook. We are on a 60/40 with the owner paying the fuel. Although sometimes it seems like I'd be better off paying the fuel and keeping the surcharge but that was never an option for us.
We pay the tolls but we could submit them for reimbursement but we choose to just write them off our taxes. Our owner pays all maintenance and to be quite frank, the support we get from the owner makes us not want to nickel and dime him to death. Our success is his success, or at least that's what we think. We don't go home to often but when we do, we pay anything over 100 miles.....not that we have to, but we feel that it's appropriate. Our owner has never asked for it. We're never gonna get rich....but we're happy with our situation and that's certainly worth something. It's important to us that our owner is as happy with us as we are with him. He has entrusted us with a very expensive piece of machinery and although I've never met him, hopefully he thinks as well of us as we do of him.

I find everything fine and dandy up until the last sentence. You've never met him??? Equally as important is that he entrusts you with expensive equipment, and has never met you? Frankly, I find this disturbing that two ppl can agree to a contract, yet has never been face to face. It's great that everything is working out, but in both of your cases, you got LUCKY the other wasn't a screwball.

 

[Dispatched]

You've never met him???

I find that equally disturbing. Tho we have only 5 D Units, we make it part of the hiring process to have dinner with ALL drivers and if applicable, their Wives. You must have face time with those in your fleet family. We take hours with our drivers before they even leave out for first dispatch.