After reading several posts, their seems to be some misunderstanding of what a fleet owner actually does. Just as there are poor fleet owners, there are poor drivers.
Will try to keep the post from turning into a 5000 word essay.
Probably alittle overdue based on some recent posts.
We do the 60/40 with providing 100 percent of the FSC to the driver. In our case, most fuel is covered through the FSC. Since the driver determines habits and fuel locations, it only makes sense they are responsible for the fuel tax.
Some owners pay more than 60 percent. I find that they are upside down in a truck payment, don't want to drive, health or personal issues, or the truck has significant age. In my situation, I could go over the 60 percent, but it certainly won't work with trucks well over $100,000 in costs.
We do pay 100 percent for hand unloads because the driver carries the burden. We also pay 100 percent on EM's because again, the driver carries the majority of the burden in fuel costs.
But keep in mind, we still have an inherit cost per mile as the truck doesn't go down the road for free. We have to eat that somewhere.
Deadheads with us are 60 percent as well as layover and detention. We take on a cost and lost revenue for whatever reason when the truck is tied up. That is a lost opportunity for additional loads no matter how you look at it for it both.
With regards to comments about the owner doing nothing while the truck is on detention doesn't wash with me. When I am calling and researching loads while the driver is SLEEPING, I would say it is a trade off.
Speaking of that, when I book two loads on a truck and the driver gets 60 percent of both loads, and all of the FSC from both loads, should I only pay 60 percent of the first, keep 50 percent of the FSC on the second, and just pay the stop offs?
In our case, I give them 60 percent of both loads and both FSC's. Ummm.....but am I a ripoff owner?
What about when I am looking for a load out of a dead area or a place that is over populated with trucks?
Yes we both benefit.........Imagine that.
Too often in many posts, drivers ASSUME way too much.
Lastly, drivers are a business partner with NO investment. It is not a 50/50 deal. If they share in the risk, then it should be 50/50.
Fleet owners absorb many costs from breakdowns, tows, accidents, and the like. Driver error and level of experience comes into play as well. An inexperience driver can run up huge bills in not knowing what they are doing. Again the owner has to absorb that cost.
Personal agendas of drivers is another big one. You see it all the time when a driver/team does well one month and gets a pot of cash, only to follow it the next month with weeks off.
The owner as well as the driver have to spread that revenue.
We have been fortunate in that we haven't been hit too much with that.
Drivers/teams quit for a variety of reasons. Every time that happens, there is major costs involved from recruiting, getting a team to the truck and orientation, to how long the truck sits empty. For some when I see a 2000 a month payment, that is 5K every two months it sits plus the cost to put a driver on.
Insurance, QC and other fees don't magically stop.
Again, based on some of these posts, some really need a reality check and a understanding of what is involved. Most eventually figure it out when they buy their own truck.
Or.....they buy one and the engine or transmission blows and reality sets in.
After many years, we still enjoy the business. But for potential new fleet owners, make sure you REALLY understand what you are jumping into. It is a "no prisoners" business, and not for the faint at heart. Probably why I enjoy it so much
I will say as well, many of our current and past drivers are members right here at EO. I would like to think we gave or are giving them a fair and honest partnership. From time to time, we even do our best to help drivers that don't even drive for us. We aren't the only ones, so current and future drivers, give us and other owners the evaluation that you would like extended to yourself.
Will try to keep the post from turning into a 5000 word essay.
Probably alittle overdue based on some recent posts.
We do the 60/40 with providing 100 percent of the FSC to the driver. In our case, most fuel is covered through the FSC. Since the driver determines habits and fuel locations, it only makes sense they are responsible for the fuel tax.
Some owners pay more than 60 percent. I find that they are upside down in a truck payment, don't want to drive, health or personal issues, or the truck has significant age. In my situation, I could go over the 60 percent, but it certainly won't work with trucks well over $100,000 in costs.
We do pay 100 percent for hand unloads because the driver carries the burden. We also pay 100 percent on EM's because again, the driver carries the majority of the burden in fuel costs.
But keep in mind, we still have an inherit cost per mile as the truck doesn't go down the road for free. We have to eat that somewhere.
Deadheads with us are 60 percent as well as layover and detention. We take on a cost and lost revenue for whatever reason when the truck is tied up. That is a lost opportunity for additional loads no matter how you look at it for it both.
With regards to comments about the owner doing nothing while the truck is on detention doesn't wash with me. When I am calling and researching loads while the driver is SLEEPING, I would say it is a trade off.
Speaking of that, when I book two loads on a truck and the driver gets 60 percent of both loads, and all of the FSC from both loads, should I only pay 60 percent of the first, keep 50 percent of the FSC on the second, and just pay the stop offs?
In our case, I give them 60 percent of both loads and both FSC's. Ummm.....but am I a ripoff owner?
What about when I am looking for a load out of a dead area or a place that is over populated with trucks?
Yes we both benefit.........Imagine that.
Too often in many posts, drivers ASSUME way too much.
Lastly, drivers are a business partner with NO investment. It is not a 50/50 deal. If they share in the risk, then it should be 50/50.
Fleet owners absorb many costs from breakdowns, tows, accidents, and the like. Driver error and level of experience comes into play as well. An inexperience driver can run up huge bills in not knowing what they are doing. Again the owner has to absorb that cost.
Personal agendas of drivers is another big one. You see it all the time when a driver/team does well one month and gets a pot of cash, only to follow it the next month with weeks off.
The owner as well as the driver have to spread that revenue.
We have been fortunate in that we haven't been hit too much with that.
Drivers/teams quit for a variety of reasons. Every time that happens, there is major costs involved from recruiting, getting a team to the truck and orientation, to how long the truck sits empty. For some when I see a 2000 a month payment, that is 5K every two months it sits plus the cost to put a driver on.
Insurance, QC and other fees don't magically stop.
Again, based on some of these posts, some really need a reality check and a understanding of what is involved. Most eventually figure it out when they buy their own truck.
Or.....they buy one and the engine or transmission blows and reality sets in.
After many years, we still enjoy the business. But for potential new fleet owners, make sure you REALLY understand what you are jumping into. It is a "no prisoners" business, and not for the faint at heart. Probably why I enjoy it so much
I will say as well, many of our current and past drivers are members right here at EO. I would like to think we gave or are giving them a fair and honest partnership. From time to time, we even do our best to help drivers that don't even drive for us. We aren't the only ones, so current and future drivers, give us and other owners the evaluation that you would like extended to yourself.
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