Canada comission or per mile?

turk64

Seasoned Expediter
hello to all,
I'm going to have 2007 sprinter 170 WB high roof so I just wondering which one is good for me, comission or per mile? I live in windsor, ON. I have fastcard but no experince I need some advice.
thank for the answers
 

terryandrene

Veteran Expediter
Safety & Compliance
US Coast Guard
RE: commission or per mile?

Turk:
You haven't provided enough information for anyone to give you a decent answer. The names of the companies you are considering would likely produce a response from someone who has experiwncewith the company.

Most carriers are now paying a flat, per mile, rate. Some, like FedEx Custom Critical and Landstar, pay a percentage of the tariff. or commission. Your commission should be in the neighbborhood of 60% of the tariff for you to get a fair piece of the action.

A simple answer is for you to try to determine your operating costs first, then find a company whose operating procedures will satisfy you needs. As a Canadian citizen you will have to be aware that you may not carry freight from a US shipper to another US company. Your only load choice from the USA is a load back to Canada. Will your carrier provide this opportunity? If not, you'll have to deadhead back empty.

You might want to consider attending an Expedite Workshop in Monroe Michigan next month. Check here for details.
http://www.expeditersonline.com/sub/workshops/monroe.html
 

turk64

Seasoned Expediter
RE: commission or per mile?

first, thank you replying. I talked with roaring express for now. but they didn't give any info over the phone but they made app. for this month. I was told, they need power of attorney, ownership and e-test. I didn't buy sprinter yet. can you tell me whats power attorney. and am I need some kind of forms and carrie with my van all the time? sorry so many questions but I have no experince. thanks for the answers
 

terryandrene

Veteran Expediter
Safety & Compliance
US Coast Guard
RE: commission or per mile?

I know nothing about Roaring Express, nor the peculiarities of Canadian lease/purchase agreements. I hope you have misunderstood the Roaring people with regards to a power of attorney. I would NEVER give a power of attorney to anyone with regards to this business.

Are you considering buying from a truck dealer or doing a lease/purchase from Roaring Express? That would be a difficult way to enter this business because you may not be able to easily or cheaply get away from the arrangement. Before you sign any agreement you don't fully understand, you should consider consulting a lawyer
 

OntarioVanMan

Retired Expediter
Owner/Operator
RE: commission or per mile?

Most Canadian carriers such as Dynamex pays a percentage 67% if I remember rightly but they were trying to cut it to 65% as always. But thier U.S. Division pays flat rate .76 plus FSC. In Canada a vehicle ownership is in 2 portions...plated portion and ownership portion alot of carriers want the plated only portion in thier name for insurance purpose. Hence you own vehicle, carrier owns plate.

DO NOT go into the kind of debt you seem to be hinting at!!!! NO Carrier is worth it.
 

turk64

Seasoned Expediter
RE: commission or per mile?

terry&rene and ontariovanman thank you for replies. I'm going to buy sprinter from chyrsler dealer. here in windsor, ON I find out roaring express and RJR. so I just called roaring express. I dont understand about power of attorny.I didn'd call RJR yet. but I heard RJR pay per mile plus 8cent fsc and roaring express pay 64% and 8 cent fsc. I took buy out from ford. actualy I dont know much about expetide business. I just talked a couple guys. my sprinter payment its gonna be $250 weekly.I just survive from lung cancer so I can't work at factory.I did truck driving job about 5 years at back home. So I need advise from you guys. thanks to all..
 

OntarioVanMan

Retired Expediter
Owner/Operator
RE: commission or per mile?

turk....ask roaring express 64% of what??? what is thier average per mile charge that you'll get 64% of????

250/wk? 1,000/month? arrg...You took a buyout from Ford? and NO down payment? Did you take 60 months finacing? if ya don't mind.
Keep in mind if you do average miles in this biz...you'll be into drive train repairs (BIG money) about year 4 depending on your driving habits.
 

FIS53

Veteran Expediter
I work out of Mississauga and I'm on percentage. Most local courier companies work on percentage. usually it is 60-70% of the billing to the customer and some have a FSC as well (not all). The expedite specific companies usually pay by the mile. So depending on the company will depend on their payment method.

If percentage make sure it is of the gross billing to the customer. That's what mine is so I get a percent of everything except the taxes. Only problem with this is that the company gets a portion of the extra charges such as tolls and others. Sometimes they charge more than the actual toll charge to cover so we get the portion to cover.

Now for me I've been on the commission method for years and it hasn't been too bad. Sometimes though the jobs don't pay all that much per mile (when coverting to see costs). The short runs pay well and can be rather nice for low expense and high profit. Our lowest rate is $16.25 to the driver even if it goes only 1 mile.

Rob Fis
 
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