Pay, % vs fixed

[piper1]

Looking for opinions about Pay. Some carriers pay a fixed rate and pay something (usually just enough to cover the fuel) for deadhead. Others pay a % of the load and not much else.

My question is what do you prefer and why? Are there any ugly pitfalls to either that you have found?

 

[terryandrene]

A couple of carriers pay a percentage, but most of them pay a flat rate. Some pay a fixed, per mile, FSC; at least one carrier pays a percentage of the tariff plus a weekly adjusted FSC for all authorized loaded and deadhead miles; some carriers pay flat rate plus FSC at a rate that varies by customer.

We have seen many pro and con flat rate comments in these forums. It would seem that the majority of folks would rather have the flat rate so that they always know what the load offer will pay. I prefer the percentage that we receive because all of the loads that I accept meet my minimum requirements, but many run offers pay considerably more than the flat rates that many others enjoy. In the long run, I think we get more per mile on average than the flatraters

 

[greg334]

I prefer percentage because it seems like I have made more money with it.

After comparing like trucks with other companies who receive a fixed rate, they never seem to get exactly what they are supposed to but some sort of reduced rate at times and sometimes higher. Many of us concluded that they are on a more like a commission than they are on a real fixed rate.

 

[ATeam]

I have no objection to the percentage of load arrangement Diane and I now have with our carrier. I do wonder sometimes just how flat the flat rate system is. I understand that fuel surcharges are added to the flat rate. Is there anything else?

Perhaps an example from someone in the know would help. Under a flat rate arrangement, if a team-driven straight truck drove in a month a total of 12,000 miles with 10,000 miles being loaded and 2,000 miles being deadhead, and with the current fuel surcharge added in (approximate is OK), how much revenue would the carrier pay to the truck? What kind of pay detail would the team see on their settlement?

 

[davekc]

We run under both so generally we look at the overall cost per mile.
I think alot of companies have to be flexible for coverage. For example if a truck is going to a dead area, we ask for additional compensation because that is what is required to do the run. We don't do loads that would result in any kind of loss or breakeven.
If one did, what would be the point?
Same deal with something small and the time of day. We aren't about to tie a team truck up for the day for $100.










Davekc
owner
23 years
PantherII
EO moderator

 

[Tennesseahawk]

I think it all depends on the company. % rates fit FXCC and Landstar. However, I wouldn't trust a smaller carrier with % unless they were up front with showing me the tariff when requested.

With C&M, we have a good flat rate with a good fsc. I like being able to figure out what I'm making as soon as I get the milage. It makes for easy calculations. I know that my company will make a good profit on some of the loads, and take a hit on others to get us moving sometimes. Unlike some carriers, we don't have two rates... one for general customers, one for "special" customers. IMO, that just gives the company more opportunity to screw the trucks. Give me one fair rate and I'm happy.

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