Companies that pay drivers 85% from what load pays.
- Thread starter yayashas
- Start date
What is the percentage on?
It's important. I used to work for a local courier service that wanted to compete with UPS only using IC drivers instead of union guys. When I left, the rates on their main customer were 2.50 a box, and you got a percentage of that. In a good week, my huge Sprinter might make 850 a week. That was at about 50% commission. You can see that the rates were dirt cheap and even if they paid the driver 90% he would do well to stay in business long. HR department had to keep the bearings in the revolving door pretty well greased to prevent them from burning out.
The point of that is that it doesn't make a hill of beans of difference if they pay you a high rate on cheap freight.
I agree with Xiggi otherwise though. Consider the company has to keep lights on, pay office help, pay the lease on their office property and presumably make a profit, and you can see that 80% commission to the driver is not likely to happen. It does make for some great dreams though.
It's important. I used to work for a local courier service that wanted to compete with UPS only using IC drivers instead of union guys. When I left, the rates on their main customer were 2.50 a box, and you got a percentage of that. In a good week, my huge Sprinter might make 850 a week. That was at about 50% commission. You can see that the rates were dirt cheap and even if they paid the driver 90% he would do well to stay in business long. HR department had to keep the bearings in the revolving door pretty well greased to prevent them from burning out.
The point of that is that it doesn't make a hill of beans of difference if they pay you a high rate on cheap freight.
I agree with Xiggi otherwise though. Consider the company has to keep lights on, pay office help, pay the lease on their office property and presumably make a profit, and you can see that 80% commission to the driver is not likely to happen. It does make for some great dreams though.
paullud
Veteran Expediter
Depending on the type of vehicle and how much responsibility you take on it may not be possible. At my carrier we handle the load finding, rate negotiation, and dispatch ourselves so we get the type of percentage you are looking for. If you provide your own trailer then you get 90%, I believe they would take on other types of vehicles(ST,CV) at the same rate but you would need to take on the same responsibilities mentioned before. I would just make sure the company is established so that you decrease the odds of them disappearing.
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paullud
Veteran Expediter
The 90% rate would be if you own the truck and trailer. There are different options available for a trailer lease purchase or rental but those rates are worked out separately with the trailer owner. I do not own the truck I am currently driving, I am an independent driver.
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paullud
Veteran Expediter
Yeah, I get a 1099 and I handle load finding and do everything on my own with no input from the company or the owners (my brothers) to make sure I am correctly classified as an IC. It is a great way to get practice and learn for when I buy my own truck.
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BigCat
Expert Expediter
Ok cool deal then.
