westmicher
Veteran Expediter
OK. 40% and I pay fuel. No FSC to the driver. That's what I've been saying.
However, I am not going to give the FSC AND pay another 20% on top of that!
Becoming a fleet owner
- Thread starter jewgmw4ever
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However, I am not going to give the FSC AND pay another 20% on top of that!
runrunner
Veteran Expediter
No Sir,I am not a fleet owner,but I am an experienced driver,started in 1993,would not drive and pay for fuel for less than 60% plus 100% FSC. Have drove trucks leased with FECC and TriState.
westmicher
Veteran Expediter
You pay whatever you want to (if you have a fleet) and I'll pay what I do.
I don't think a current fleet owner has responded yet.
I don't think a current fleet owner has responded yet.
sounds like a bunch of union folks telling the man that just built a zillion dollar factory what, when, and how much they want to make with no investment in the going concern. That said, some feed back I got from the road, that 50 / 50 is not uncommon....everything is split 50 / 50. the perks,, No maintenance cost, no tags cost, no insurance cost,no tire cost, no oil change cost, stuff like that..
Don't Xitch to much as a driver for an owner, just steer and have fun...
Don't Xitch to much as a driver for an owner, just steer and have fun...
runrunner
Veteran Expediter
40% and you pay fuel is fair,I have teamed with owners and I got 20%, of course they payed fuel and tolls. My only expense was meals,etc. That's with the owner on the truck as a driver.
westmicher
Veteran Expediter
I know but math really should be math, right?
westmicher
Veteran Expediter
Thanks Skyraider!
It's always a much clearer view when it's real money, drivers, and trucks! Walk a mile in my shoes and you won't be giving away the farm... at least for long!
runrunner
Veteran Expediter
50/50 was the norm in the past,when fuel went up that all changed. If an owner is paying only 50% today he will likely lose that driver or team when they meet someone on the road who offers them 60%
westmicher
Veteran Expediter
And they will likely lose their new owner when he needs to buy another truck and can't. I've seen it happen many times.
runrunner
Veteran Expediter
There are many owners paying 60% and making a profit, just search the ads here at EO. It takes at least 20% to pay for fuel, some cases a little more, so the driver isn't getting that money,the fuel gets it. One truck would not be worth while,it takes a fleet of at least 10 trucks to make it worth while.
westmicher
Veteran Expediter
All I care about is my trucks. The Promaster easily makes it on 20%!
Like I said already, you pay your imaginary drivers to drive your imaginary trucks to whatever imaginary profit or loss you want.
I'm paying what I pay and I have drivers waiting to drive the truck I just bought and the next Promaster I just ordered while the drivers I have told me they aren't going anywhere else. That's good enough for me. You don't get a vote in my corporation.
Much of this argument depends on the vehicle size and how a carrier pays. It also depends on how big or established a fleet owner is. Typically a fleet owner with a few trucks is going to be running at a tighter margin than a larger or more established one. It is true that most are either doing 60/40 or the 40/60.
I have over the last several years either seen some bail out or making adjustments to their pay. One of the largest out there pays below what those averages are.
Things can be cloaked under all kinds of schemes and gimmicks but it is a reality of the business. Fleet owners are operating at the same rate as, well over 15 years ago, but carry three times the expense.
Just a matter of doing the math. And then some carriers, are paying less than what those rates use to be. Average new straight truck used to be 60k, now it is two to three times that. Fuel, and every other expense is higher.
The other item is how a carrier pays. Some pay lower FSC and a higher rate, and other pay a high FSC and a lower base rate. All those things matter when you start counting pennies and saying whether one way is better or it isn't.
Because of how those numbers line up, I would say it is more profitable over the long term to drive for a fleet owner. The cost to operate ratio is not in a single trucks benefit. I wouldn't have said that a few years ago. That is where a fleet owner has the advantage in most cases. If a truck goes down, one with multiple units has limited exposure where a single operator can be literally forced out of business. Even a accident where your truck is tied up for months can be tough for a single operator. Not unusual to have a truck tied up for three to six months. Can you afford that?
I have over the last several years either seen some bail out or making adjustments to their pay. One of the largest out there pays below what those averages are.
Things can be cloaked under all kinds of schemes and gimmicks but it is a reality of the business. Fleet owners are operating at the same rate as, well over 15 years ago, but carry three times the expense.
Just a matter of doing the math. And then some carriers, are paying less than what those rates use to be. Average new straight truck used to be 60k, now it is two to three times that. Fuel, and every other expense is higher.
The other item is how a carrier pays. Some pay lower FSC and a higher rate, and other pay a high FSC and a lower base rate. All those things matter when you start counting pennies and saying whether one way is better or it isn't.
Because of how those numbers line up, I would say it is more profitable over the long term to drive for a fleet owner. The cost to operate ratio is not in a single trucks benefit. I wouldn't have said that a few years ago. That is where a fleet owner has the advantage in most cases. If a truck goes down, one with multiple units has limited exposure where a single operator can be literally forced out of business. Even a accident where your truck is tied up for months can be tough for a single operator. Not unusual to have a truck tied up for three to six months. Can you afford that?
runrunner
Veteran Expediter
davekc is spot on,100% correct. I'm not fighting any issues,just that if people find a better pay they will most likely take it. I'm not trying to tell anyone how to run there business, I merely stated that as an experienced driver, I would not except less than 60/40 or 40/60. I am aware that others will, and as they gain experience and meet other owners they are likely to jump ship.
Sometimes pay isn't the only exclusive driver in a decision. Who the fleet owner is all the way to the type of equipment they run. For example, a team in a 72 inch sleeper isn't likely to last in that unit if they can find one that is a 100 inch and basically the same otherwise. Hometime is another one. Some are very strict on how much time off they allow and some charge the driver if they are past a certain radius to go home. Lot of things go in the mix.
We have a fleet owner that did the 60/40 deal....HE paid the fuel because of our FSC rate and they were the 05-06 sprinters with great fuel mileage....he even took 40% of the layover pay and 100% of any empty move pay....as a matter of fact took 40% of every darned thing...
shadow7663
Expert Expediter
Would you feel the same about the pay if they were operating straight trucks and not sprinters / vans ?
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I don't give a rats butt about straights....LOL
someone to move 400 miles to drive for 6-7 hours uncompensated?....
someone to move 400 miles to drive for 6-7 hours uncompensated?....
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shadow7663
Expert Expediter
Asking a fleet owner to absorb the costs of moving a large vehicle 400 miles uncompensated? We could go back and forth until we are blue in the face.
As a fleet owner of a cube van , straight trucks, and tractors, My contract pay is set up different for each vehicle class. While I was setting up driver pay the biggest question I have always asked myself was could I raise my family on what I am paying my driver. The answer was yes. I have drivers that have been with me for nearly as long as I've been a fleet owner. The 3 key factors that have helped me 1. The carrier we are leased at cares! 2. Driver pay 3. Being fair to the drivers and delivering a quality atmosphere for them to work in that starts with Kim & I right down to the equipment they drive. The drivers help us make a great team and we don't let them forget that. We treat them with great respect and NEVER break a promise! Not to mention we do some extra things every once and while for them too.
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That is good for you....since you seemed to see a need to explain....
Let me clarify...we have a fleet owner in the EO membership that pays that way....