%pay owner w/own authority
- Thread starter fish62
- Start date
Jack_Berry
Moderator Emeritus
owner paying fuel 40/60 or 35/65 with todays prices.
detention goes to whom? you are sitting and his truck is not making money maybe 50/50?
detention goes to whom? you are sitting and his truck is not making money maybe 50/50?
Thanks Jack, for the info! Is there such a thing as affordable health ins. maybe through OOIDA? oh and yes 50/50 detention and 40/60 was what I was hoping to hear, as that is what will be in contract.
Tennesseahawk
Veteran Expediter
There are a number of variables. First and foremost is what the owner gets for freight. If he is consistently getting NLM freight for 1.50 or less, you should want a higher percentage, a minimum per mile, or a flat rate across the board. I don't recommend the last, as it doesn't give many drivers an incentive to do anything more than an adequate job. More than likely, the 60/40 or 40/60 will go out the window, depending on what the truck grosses.
Secondly, does he want you to share in the fuel pay? To me, that depends on how often pay is, and how far after the invoices are sent that you'll be paid. IMO, it's in the best interest of all involved for the owner to pay for fuel.
Third, do you share in the load-finding duties? IMO, if you do, you should get a bonus if you find one.
Finally, does the owner know what he's doing? That, you won't find out until you're actually working for him, unless you've already driven for a successful independent.
I pay my co-driver 20% of 80%, which comes out to 16% of the tariff. The 80% is what the truck would gross if leased on. The 20% off the top are the costs for doing business, such as insurance, load boards, and factoring. Also, I don't deal with FSC; so he comes out higher than a contracted driver who doesn't pay for fuel would normally get. I also set a minimum he'd receive if we took a cheaper load or LTL. His minimum is .25/loaded mi. On the bad side, we get nothing for relocating, and rarely get dh pay. Any accessorials the company gets, he gets 40% (again, 50% of 80%).
IMO, this is a great chance to learn the business from the inside. Definitely forget most of what you learned before, as it's useless here. You will be going from pressing a button on the qc to dealing with the brokers themselves. It can be more rewarding, both financially and mentally; but it is more work. Learn as much as you can. If you have a good mentor, you'll never go back to driving for traditional carriers. You'll consider doing so to be like going back to Algebra I after you've mastered Calculus.
Secondly, does he want you to share in the fuel pay? To me, that depends on how often pay is, and how far after the invoices are sent that you'll be paid. IMO, it's in the best interest of all involved for the owner to pay for fuel.
Third, do you share in the load-finding duties? IMO, if you do, you should get a bonus if you find one.
Finally, does the owner know what he's doing? That, you won't find out until you're actually working for him, unless you've already driven for a successful independent.
I pay my co-driver 20% of 80%, which comes out to 16% of the tariff. The 80% is what the truck would gross if leased on. The 20% off the top are the costs for doing business, such as insurance, load boards, and factoring. Also, I don't deal with FSC; so he comes out higher than a contracted driver who doesn't pay for fuel would normally get. I also set a minimum he'd receive if we took a cheaper load or LTL. His minimum is .25/loaded mi. On the bad side, we get nothing for relocating, and rarely get dh pay. Any accessorials the company gets, he gets 40% (again, 50% of 80%).
IMO, this is a great chance to learn the business from the inside. Definitely forget most of what you learned before, as it's useless here. You will be going from pressing a button on the qc to dealing with the brokers themselves. It can be more rewarding, both financially and mentally; but it is more work. Learn as much as you can. If you have a good mentor, you'll never go back to driving for traditional carriers. You'll consider doing so to be like going back to Algebra I after you've mastered Calculus.
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The excellent and abundant info that I absorb here never ceases to amaze me. Thanks again for details I would have never thought of. To answer your question, Tennesse, owner pays fuel, no fsc as you say. you are right, I'm about to find out how good this owner is. I like the idea of no SAT-COM for load messages.Tennessea, I see you and I hail from the same area,I-94& Tel.Rd. Dbn Hgts. Fish
Jack_Berry
Moderator Emeritus
will you be a contractor or his employee?
I dunno Fish..
In this case, the owner you'll be working for will not only be the owner of the truck, but he will also be the carrier.
Normally when an OO/driver is signed up with a carrier, the carrier will take anywhere from say 25-40%; then what's left becomes the 100% from which the 40/60 is paid out.
In this case, 40% sounds like a lot to be paid out to a guy who is doing the driving, with no expenses (fuel, truck, etc), and leaving 60% for the carrier/owner to pay all his operational costs of running his carrier biz, plus truck costs, and fuel costs of the trips, etc.
For example, if a load is paying $1000 to a carrier, the carrier takes their percentage off the top, to run their biz operations; let's say it's 30%; Now $700 is paid to the OO. Now the $700 gets split 40/60 or 60/40, or 35/65, or whatever the deal is. Let's say it's 40/60.. you would get $280 ($700x40%) for the driving, truckowner would get $420 ($700x60%) to pay the fuel and truck expenses; and carrier would get $300 to pay for the phones, internet, loadboards, paperwork, dispatching, accounting, permits, etc.
Better see what he has in mind, as this isn't the same type of situation most on here are in.
In this case, the owner you'll be working for will not only be the owner of the truck, but he will also be the carrier.
Normally when an OO/driver is signed up with a carrier, the carrier will take anywhere from say 25-40%; then what's left becomes the 100% from which the 40/60 is paid out.
In this case, 40% sounds like a lot to be paid out to a guy who is doing the driving, with no expenses (fuel, truck, etc), and leaving 60% for the carrier/owner to pay all his operational costs of running his carrier biz, plus truck costs, and fuel costs of the trips, etc.
For example, if a load is paying $1000 to a carrier, the carrier takes their percentage off the top, to run their biz operations; let's say it's 30%; Now $700 is paid to the OO. Now the $700 gets split 40/60 or 60/40, or 35/65, or whatever the deal is. Let's say it's 40/60.. you would get $280 ($700x40%) for the driving, truckowner would get $420 ($700x60%) to pay the fuel and truck expenses; and carrier would get $300 to pay for the phones, internet, loadboards, paperwork, dispatching, accounting, permits, etc.
Better see what he has in mind, as this isn't the same type of situation most on here are in.
Tennesseahawk
Veteran Expediter
That's why I take the 20% off the top for the company. It's all a word game. If you tell the co-driver he'll get 16%, in his mind, that's less than the 20% his friend at Panther is making. If you tell him he'll get 20% of the truck gross (80%), he's making the same % as his friend. Some can't comprehend one is equal to the other (20% x 80% = 16%). In time, the curious will figure it out. And when they see they get 20% of truck gross, which also includes what the other trucks would get in FSC, they're making WAY more per mile than their friend. At the same time, tho, I require more of my driver. He seems happy tho.
I'll find out more after reading contract. Being that the owner is the carrier, doesn't that also increase his % thus eliminating the middle-man? Does 40/60 with owner paying fuel,etc. sound too good to be true? The way it was "worded" to me was I'm to be paid 40% of truck's gross. No quallcom to worry about, no fsc awarded. We split 50/50 occu. ins. cost. Last year I was paid 50/50 of line haul in a sprinter leased with a carrier,different owner, different year I know. With that deal, owner kept fsc & he paid fuel. 24 mpg-He made out big time, but his van, his oper. expence so i was happy.
So Tenn, if its true this owner does pay me 40% of truck's actual gross ,me being a solo driver what more can I do besides drive to ensure both owner and myself are prosperous? I am not too savvy on computer yet to bid on loads. the owner decides at home which loads I will take . I'm not being sarcastic, I'm just trying to learn. If you don't mind me asking,without giving away trade secrets, what does your co-driver do? Just more "hands on" stuff, decisions on what loads to take?.....fish
Tennesseahawk
Veteran Expediter
Personally, you make sure you and your truck look professional. Business-wise, that's between you and the owner.
40% of what? If the truck is only grossing 60% of 1.50, for example, then you would get .36/mi. That's low. But if the truck grosses 75% of 1.75, you would get .525/mi. That's a lot more reasonable. Make it your business to know what goes to the truck. If I were you, I'd also ask for a minimum pay, in case he uses the LTL boards a lot.
You don't have to be computer savvy to watch for loads. It's simple. It would be in the best interests of both you and the owner, if you watched for loads too. But that's just my opinion.
My nephew is my co-driver. What we have is a PS2 and a computer. Whoever is on the computer looks for loads. If one of us is sleeping, the other is on the computer. If we're on a long deadhead, the one who's not driving is looking for loads. We sometimes talk about loads before we jump on them. Usually, he's just happy to be moving, and leaves decisions up to me. Other than that, he makes sure the bars, straps, and blankets are neat and out of the way. Then there's the normal tasks any driver does (or is supposed to do). He knows everything I do as well; so he could run by himself if he had to.
What T-Hawk describes is fair to both parties. As long as the owner/carrier keeps decent paying freight on the truck, you'll do well. The split that you've been offered (if it is truly 40% of the gross billed to the customer) is a an even better split for you as long as the owner/carrier is buying the fuel and paying for the truck expenses. This is business, I wouldn't be trying to talk him "down" from 40%. The 50/50 occ. ins. cost would be fair enough with the 40% split.
Obviously you need to read and understand the contract, but it "sounds" like a better deal than most are getting...as long as the rates are decent. My opinion, of course...which is worth exactly "nuthin"..lol.
Obviously you need to read and understand the contract, but it "sounds" like a better deal than most are getting...as long as the rates are decent. My opinion, of course...which is worth exactly "nuthin"..lol.
Dude, you're being way to tough on yourself. I'd give you a cup of coffee for it in a heartbeat!
Many thanks to: J.Berry,T-hawk, Pj, aaaand Rocketman! I'll buy you a cup of joe and breafast. I just read the contract for first time. Had the owner change some things,didn't sound right,better now. I should be on the road by next week. Will keep every body posted as to how things are going. Looking forward to continuous reading and learning on these forums. Again , Thanks to all and be safe.........Fish the only dumb question is one never asked
Tennesseahawk
Veteran Expediter
Hope things work out! Keep us updated.