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I Need Some Advice From CV Drivers and/or Fleet Owners

M

McLeod

Seasoned Expediter
I am a broker/carrier/freight forwarder. I have 15 drivers, most of them being cargo vans. They are all owner/operators. I do a lot of expedite work, but most of our deliveries are made within a 300 mile radius. When I do send a driver out on an overnight trip, he will wait until I find them another load, but rarely do I have a driver out more than 5 days.

I was approached by friend of mine who is interested in being an expediter. He knew I already ordered a 2015 Promaster and was asking what I planned on doing with it. I purchased it because I was tired of spending $1500 a month renting vans from Enterprise, not because I have a bunch of work lined up for it.

What is a fair split if I own the van and I'm paying for pretty much everything other than fuel. I want the driver to be able to make a living, but I'm still trying to make a profit. Also, what needs to be inside the van to make it comfortable for someone who is going to be living in it? I would appreciate any suggestions or ideas. I've always treated my drivers well and I want to make sure he is comfortable and we both make money.
 
xiggi

xiggi

Veteran Expediter
Owner/Operator
Typical pay is 60/40 if driver pays fuel 40/60 if owners pays it. Driver should get extras paid like hand unload, layover, ect.
 
paullud

paullud

Veteran Expediter
How do you calculate pay? Do you have just all in rates or do you separate fuel surcharge?
 
paullud

paullud

Veteran Expediter
The problem with doing a typical split in that scenario is that your situation will not be typical. Usually in the 60/40 split the person paying for the fuel gets the 60% and the fuel surcharge. You might want to consider something different where you pay for fuel and then give him a bonus for fuel mileage performance.
 
paullud

paullud

Veteran Expediter
OntarioVanMan said:
a percentage figure would probably work best then....if they are O/O they pay all the fuel and you pay a % of the bill....you are the boss...so figure out what YOU need for your margin and put the rest on the table....your O/O's will let you know real quick if they love or leave it....
Good luck....Ken aka OVM
Click to expand...

He's talking about putting a driver in a van that he owns, not O/O.
 
M

McLeod

Seasoned Expediter
I still want the driver to maintain the contractor status, which leads into a whole other question about leasing the van to the driver. How would I set that up? I'm guessing the monthly rent is $1.00 or something similar.

What I've heard so far is that the normal split would be 40/60 split, with the 60 going to me if I'm paying for everything. I did some calculations and based the numbers off of $1.30 per mile and a 500 mile trip. At the suggested split of 40%, the driver would receive $260.00. Is that a normal rate? It seems a little high to me. Would the driver be responsible for anything other than driving as far as expenses? I realize I will not get $1.30 all of the time, but between my own freight and what I can pick up from other carriers, I will at least average that amount.

Also, I'm looking for ideas on what kind of generator to buy for the van. What is the best setup and what do I need to run a laptop, a light and maybe a mini fridge?

Thank you for all of the answers so far.
 
paullud

paullud

Veteran Expediter
McLeod said:
I still want the driver to maintain the contractor status, which leads into a whole other question about leasing the van to the driver. How would I set that up? I'm guessing the monthly rent is $1.00 or something similar.

What I've heard so far is that the normal split would be 40/60 split, with the 60 going to me if I'm paying for everything. I did some calculations and based the numbers off of $1.30 per mile and a 500 mile trip. At the suggested split of 40%, the driver would receive $260.00. Is that a normal rate? It seems a little high to me. Would the driver be responsible for anything other than driving as far as expenses? I realize I will not get $1.30 all of the time, but between my own freight and what I can pick up from other carriers, I will at least average that amount.

Also, I'm looking for ideas on what kind of generator to buy for the van. What is the best setup and what do I need to run a laptop, a light and maybe a mini fridge?

Thank you for all of the answers so far.
Click to expand...

How many miles a week are you going to be able to average? The rate seems pretty tough to average for all miles including deadhead but not impossible.

Usually the contractor is responsible for their own OCC insurance and they are also responsible for all of their social security. Do you use any sort of taking like Qualcomm that they would pay for?
 
M

McLeod

Seasoned Expediter
All communication is made through the driver's cell phone. I have the drivers download a scanning app that allows them to email me their paperwork.

I have no way of knowing how many miles per week we will be averaging. I'm assuming it will be between 1500 & 2000. I know there will be deadhead miles and I will pay the driver. I always pay my drivers for deadhead miles. I'm usually able to work something into the rate I quote my customer.

I almost want to hop in the van and take it out on the road for a month and make sure both parties can make some money. My wife would kill me, but I need to know. I could always use the guy locally and I'm positive he can make money, but he wants to go over the road.
 
T270_Dreamin

T270_Dreamin

Veteran Expediter
Owner/Operator
60% to driver 40% to the owner. Split fees and pay all bonuses to the driver is how I do it. Once the driver starts to get experienced and they start talking to other fleet owners that are offering more they will demand more so get some sort of contact and if they have good work ethic and want to go out and run 1300-2500 mile weeks, month after month they are worth keeping.
 
xiggi

xiggi

Veteran Expediter
Owner/Operator
McLeod said:
Would the driver be responsible for anything other than driving as far as expenses?
Click to expand...

Yes all their time away from home which for some reason I'll never understand a lot of drivers place no value on. Also representing you in a professional manner, food on the road etc.
 
crich

crich

Expert Expediter
Fleet Manager
US Navy
McLeod said:
All communication is made through the driver's cell phone. I have the drivers download a scanning app that allows them to email me their paperwork.

I have no way of knowing how many miles per week we will be averaging. I'm assuming it will be between 1500 & 2000. I know there will be deadhead miles and I will pay the driver. I always pay my drivers for deadhead miles. I'm usually able to work something into the rate I quote my customer.

I almost want to hop in the van and take it out on the road for a month and make sure both parties can make some money. My wife would kill me, but I need to know. I could always use the guy locally and I'm positive he can make money, but he wants to go over the road.
Click to expand...

you should do what you gut tells you. most fleet owners are given 60/40 splits and running for carriers that pay less than a buck all in. so I would suggest you pay yourself the carrier .40 and pay a driver 60% of whats left so .60 per mile and they pay for all the fuel or .40 and you pay. at 2000 miles per week that will give him $800 per week or 1200 per week if he pays.

I just run a 1000 miles in the last 24 hrs. it cost a whopping $130 bucks for fuel only.now keep that .40 before you pay a driver anything you will need it to replace/repair van and then you are on a even playing field with the rest of the comments on this thread.
 
Moot

Moot

Veteran Expediter
Owner/Operator
McLeod said:
I am a broker/carrier/freight forwarder. I have 15 drivers, most of them being cargo vans. They are all owner/operators.
Click to expand...
You have 15 drivers who are O/Os. Is there a reason you wish to dabble in fleet ownership? If its because you ordered a new Promaster and want to help out your friend, that's commendable. It could also end your friendship.

He knew I already ordered a 2015 Promaster and was asking what I planned on doing with it. I purchased it because I was tired of spending $1500 a month renting vans from Enterprise, not because I have a bunch of work lined up for it.
Click to expand...

What were your original plans for ordering the Promaster? Why were you paying $1500 a month to Enterprise for renting vans? Who was driving them?
 
M

McLeod

Seasoned Expediter
Moot said:
You have 15 drivers who are O/Os. Is there a reason you wish to dabble in fleet ownership? If its because you ordered a new Promaster and want to help out your friend, that's commendable. It could also end your friendship.




What were your original plans for ordering the Promaster? Why were you paying $1500 a month to Enterprise for renting vans? Who was driving them?
Click to expand...


I ordered the van before I knew my friend was interested. I rent vans when I have more freight than drivers. For instance, tomorrow I have to rent a van so I can cover a 200 mile run. I will pay a driver $120 and van rental/gas will be $180.00. I will make about $50.00 on the run. These situations happen several times a month. I have some local courier drivers that will drive the cargo van when needed and the same friend has driven for me as well.

I'm not interested in ruining a friendship over a few bucks. Like I said before, I want us both to be able to make some money. If that isn't possible, the van and my buddy stays in town and I continue to broker freight outside of my area. I'm getting the vibe that this isn't a great idea.
 
Zoli

Zoli

Veteran Expediter
McLeod said:
I ordered the van before I knew my friend was interested. I rent vans when I have more freight than drivers. For instance, tomorrow I have to rent a van so I can cover a 200 mile run. I will pay a driver $120 and van rental/gas will be $180.00. I will make about $50.00 on the run. These situations happen several times a month. I have some local courier drivers that will drive the cargo van when needed and the same friend has driven for me as well.

I'm not interested in ruining a friendship over a few bucks. Like I said before, I want us both to be able to make some money. If that isn't possible, the van and my buddy stays in town and I continue to broker freight outside of my area. I'm getting the vibe that this isn't a great idea.
Click to expand...

Just for curiosity , how do you handle insurance on a rent van? Cargo and liability ?
 
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