New to Expediting

[33trucking]

Hi all, my cousin and I just entered the expediting business and things are going great. Revenue stream is real good. We look to add another truck as soon as we can. Currently we are running a Class D FL70, we bought it used and after a few tweaks its full steam ahead. My cousin is the driver and part owner. Being a part owner he understands that bills get paid first then he gets paid. Currently he earning more in a two days on average than he made in a week working for a local shop doing delivery's. Like I said we would like at some point to bring another rig onboard and a driver or team. We are about to experiment with some pay schemes to see what would work best for us but just as important the driver. The 60/40 split with drive paying fuel seems popular. My question is besides fuel, should any other expensed be included in the drivers 60%? Our main concern is the safety of the driver so we are not sure what criteria to use as a baseline, such as avialability ?%, load refusal % etc...
Thanks folks enjoy America's B-day.

 

[terryandrene]

33:
I'm just a driver; wife is owner so our split is about 10/90. She leaves me enough for food and an occasional powerball ticket. Noone else seems to be around right now so let me give you an opinion.

I've often believed an owner has to pay enough to keep a driver interested with the proper money mix, but not so much he'll save enough for a down payment to get his own truck. on the other hand, as a driver, I'd want enough to meet my needs if you expect me to stay avail and on the road. How 'bout 60/40 up to a monthly amount necessary to meet your financial needs, i.e. $8000 gross to the truck, then 70/30 beyond that as an incentive to work harder for you and himself.

You've indicated your contentment with your carrier so why not provide your driver the same standards to which you've agreed. I have a suspicion that would be 70% available and 70% load acceptance. These percentages should be viewed as targets rather than absolutes but I think most of us try to achieve them 'cause it's generally best for the bottom line, also keeps the company happy.

 

[Rangus]

Terry by "70% availability" does that mean being "in service" an average of 7 out of 10 days. Are 70% availability and 70% load acceptance considered good in the industry?

 

[RichM]

70% availability and 70% load acceptance are sort of the accepted ratio's in this industry..

 

[terryandrene]

>Terry by "70% availability" does that mean being "in
>service" an average of 7 out of 10 days. Are 70%
>availability and 70% load acceptance considered good in the
>industry?

Sorry for delay; I've been on the road doing my 70%.

Yes, as RichM sez, that is my carriers standard and generally that discussed by others. Easy to achieve and seems agreeable to the personal and financial bottom line.