my 1st van & driver

[debidoesdiesels]

I have been in the trucking industry for 12 years. I got this bright idea to buy a cargo van, find a driver and put the whole thing to work. I signed on with Panther II. They are usually too busy or transfer me to another person to answer questions. I still have questions about who pays the fuel, whats the best % for a good driver to be paid. As the owner I'm still a rookie and need some seasoned advise. Thanks bunches.:*

 

[terryandrene]

Your question is one without a specific answer, but has been responded to in many ways. The most common answer, and payment ratio is 60% to the driver who pays fuel and tolls; 40% to the owner who covers all other expenses.

That answer may be simple enough for the driver, but a little too simple for the owner. Why would you want to make a 30 kilobuck investment without an estimate of your return? Are you certain you can keep your investment working with a reliable driver(s)? Do you have the capital to cover your fixed expenses in the event of the driver(s) or the van's failure to perform? Have you determined the cost of operating the van for its expected life, including the compensation to the driver, to establish a profit margin?

If you can comfortably answer the above questions to your satisfaction, you might have a successful venture. Good Luck with your choices

Terry

 

[debidoesdiesels]

Thanks for your reply. I was under the impression it was 45 to 50% to the driver. I am not making a profit from this single van. My profit is from my repair shop and semi's going up and down the road. I want to add my vans on, and eventually become profitable with that also. Thanks again

 

[terryandrene]

DDD:
You'd be hard pressed to keep a good driver at 40-50%. As I mentioned, 60% has pretty much been established as the expedite industry standard. Some owners will provide a bonus for those drivers who exceed a monetary threshold. I've seen a percentage of 70% for all money to the truck in excess of $6000 per month. We've seen some variation of lease/buy that have been successfule for owners and drivers,alike. It's a good balancing act to pay enough to keep a good driver without paying too much to lose a driver to his/her own truck.

 

[greg334]

Red Flag <<<----

Sorry but if it is true what you said “They are usually too busy or transfer me to another person to answer questions.†than I would really reconsider Panther ii. Something about this thing of being too busy to answer questions just is not conducive to establish a good business relationship which is very important to your success.

After re-reading your post I would say that you will have problems in the long run if you never intend to have each and every van run as profitable as possible as soon as possible. It does not matter if you are lucky now in business, it matters that you really put profit in everythign you do. Unless you are in a real need for some ‘loss’ income (running a part of the business to offset profits), you should take a serious reconsideration of your plans and revise it into a solid game plan that you can have goals and such for success. The thing is jumping into this game when you may have talked to one carrier is limiting your potential.

hope this all makes sense.

 

[RichM]

I have read both of your posts,the one here and the one on the General Info forum and they have left me confused as to your operations and intentions. One post says "what is the best area for me to run in?'. The other one talks about needing a driver and how much to pay him/her. You also state that Panther will not talk to you.
My question is ,are you truly signed on with Panther or are you contemplating the whole thing?
I don't run with Panther but if you are truly signed on why would they bounce you around when you are trying to get information.Just about all of the carriers will hold your hand for the first few weeks.

 

[davekc]

They have a specific contract coordinator that can be called with their own extension. I think that is for six weeks. In addition, they can call contractor relations. The latter being longer depending on the time of day. They are fielding a larger volume of calls.
Additionally, I may be reading your post incorrectly, but it would seem you would want your driver related issues resolved ahead of signing on with any company.
Are you putting the "cart before the horse"?



Davekc
owner
21 years
PantherII
EO moderator