Poll: Pay per mile, or percentage pay?

chillout · Jan 24, 2009

Hi everyone! For those that don't know me, my name is Carol and I work at EO.com as the internal web support manager.

[FONT=&quot]The purpose of this poll is to collect data to see what O/O’s prefer for collecting their pay. Sometimes pay per mile is looked to as better; in fact, percent pay of a carriers charges could be more attractive. Percentage pay eliminates the guessing or speculation of what the carrier is charging their customer and paying the O/O. Is a fair split of the charges the best way? [/FONT]

[FONT=&quot] [/FONT]

[FONT=&quot]Please respond by participating in this poll; please offer your experiences and comments as well.

Thanks!
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nightcreacher · Jan 24, 2009

I keep getting kicked off here,happened 3 times
Percentage or mileage,as long as you have a company that will keep you moving,no sitting, a mileage contract will work,but for me,I make more with less work on percentage.I was with a company in 2002,03,04,part 0f 05.I ran 200000 miles a year,which made my expenses per mile look good,but actually, all it did was wear my truck out,costing to much in the long run.While on percentage,you can run less miles for a higher pay,keeps the equipment in better shape,and owner happier. Ive run on percentage most of my trucking career,from my first job working for the union.My pay on percentage was higher than drivers that worked mileage

dhalltoyo · Jan 24, 2009

I indicated "By Percentage" in the poll, IF and only IF I can get a copy of the Freight Bill, which, of course, the carrier has to provide by law when asked for by the owner/operator.

davekc · Jan 24, 2009

I would agree. A percentage works IF there is verification of the actual billings to the customer. Over the years, some carriers have been very resistant to do that, or run the load through a self owned third party to make the charges anything they want.
"Trust, but verify"
And, I would do it on every load.
If one is running on the percentage I hardly feel you should even have to ask for it. Just as the driver is required to provide a BOL, the carrier should provide you a bill.
As for percentage loads, we book our own so we always know what the rate is.
We do both and in general, the percentage loads are better on short milage and the milage pay is better on longer ones.

Lawrence · Jan 24, 2009

nightcreacher said:
I keep getting kicked off here,happened 3 times

Night - I really hate that is happening, Can you give me a call in the office on Monday? 888-862-9831 ext 104.

Thanks,
Lawrence

aristotle · Jan 24, 2009

I agree with both Daves. You must get a copy of the freight charges when running on percentage pay. A copy of the ORIGINAL bill. Then compare it to the copy given to the party actually paying the shipping charges. Too much mischief can take place with billing if not verified. Being paid a rate per mile eliminates any doubts and keeps the carrier honest. Unless of course, you get shorted on miles. Human nature being what it is, do your due diligence.

davekc · Jan 24, 2009

I find I am a little sensitive on this issue because I have in the past booked loads when I was very active in the vending industry. When loads went onto my own trucks, I found from two different carriers that we were getting ripped off.
In those cases, we were on a percentage.
The argument that if it pays enough it is ok, doesn't float with me. I don't need to be associated with someone who is dishonest. Simple as that.
If I get ripped off one place, I have to assume I am likely getting ripped off somewhere else.
So now, I take a much different approach.
Brokers are just as bad. And your right, It can be the greed factor that sets in. A call to OOIDA will tell you they field a lot of calls about this very issue. With a deteriorating economy, I would be even more careful than ever.
Never just ASSUME something.

BTW..........not sure why you are getting booted. Have had EO running on a 2nd computer for several hours and not booted once.
Have to think it may be you connection or something?

nightcreacher · Jan 24, 2009

First,we at FDCC have a formula to figure our pay,of course we dont know what customers get as a discount.When ever I have asked to see freight charges,I have never had a dispute with the figures.
Now as far as my being booted,I just did a system check,and everything seems to be ok.
Lawrance,if I get a chance,I'll call you monday

davekc · Jan 24, 2009

As long as they give you the actual bill to the customer, then your good to go. I would verify with a call to a occasional customer that your provided numbers are accurate.
Since I was the unsuspecting customer, that is how I found out. Paperwork from the carrier looked good, but it didn't match what at that time (me the customer) actually paid.
When discovered, this carrier said it was a accounting error so I ordered the same load to a different destination a week later.
Surprise! My percentage paid to the truck was 10 percent less than we should have received. Cancelled the lease the next day.

aileron · Jan 25, 2009

Percentage all the way.
When I started in expediting I was with a company on a fixed rate. I was offered a short load that was paying me $220 including a fuel surcharge, but they told me to pick up the check also since that company was known to not pay for the freight. The check was for $660. My jaw just dropped, they made double the money that I made on this run.
So, as soon as I could I came to FedEx. Well, they just changed to a flat rate now, will see how it works. But I don't see me running short loads any more. And it helps to be debt free.....

truckrnnr · Jan 25, 2009

I have worked both milage and percentage. My thoughts on this vary depending on where you are leased to. I always prefered milage w/fsc. My reason was that I knew what i was making,and I was happy with it. (if the company made out really good they would pass along a GREAT fsc to me)
I'm not to concerned with how much the company makes as long as I make mine (I'm in business to make money the same as the company)

Now for the percentage issue. This could be GREAT if you're with a good company with a customer base, and accounts.
If you're with the smaller company who gets everything (or a majority) from an internet bid board,you're gonna get screwed every time. The company simply does not car what you make as long as the load is covered,They get their percentage no matter what.

My preference would have to be milage.

nightcreacher · Jan 25, 2009

truckrnnr said:
I have worked both milage and percentage. My thoughts on this vary depending on where you are leased to. I always prefered milage w/fsc. My reason was that I knew what i was making,and I was happy with it. (if the company made out really good they would pass along a GREAT fsc to me)
I'm not to concerned with how much the company makes as long as I make mine (I'm in business to make money the same as the company)

Now for the percentage issue. This could be GREAT if you're with a good company with a customer base, and accounts.
If you're with the smaller company who gets everything (or a majority) from an internet bid board,you're gonna get screwed every time. The company simply does not car what you make as long as the load is covered,They get their percentage no matter what.

My preference would have to be milage.

Ok I'm going to agree with you on one thing,if your with a small company that doesnt have a customer base,yes a mileage contract is better,if and this is a big if,that company doesnt make you sit for days at a time.What happens if you on a mileage contract,and the idea behind this with most companies is they think you dont have a good reason to trurn loads down,they thn send you to the middle of know where,they tell you to sit there till they find you aload,and 2 days later then decide your to far from the freight.On percentage,if it didnt pay enough to deliver and layover you wouldnt have done it

truckrnnr · Jan 25, 2009

nightcreacher said:
Ok I'm going to agree with you on one thing,if your with a small company that doesnt have a customer base,yes a mileage contract is better,if and this is a big if,that company doesnt make you sit for days at a time.What happens if you on a mileage contract,and the idea behind this with most companies is they think you dont have a good reason to trurn loads down,they thn send you to the middle of know where,they tell you to sit there till they find you aload,and 2 days later then decide your to far from the freight.On percentage,if it didnt pay enough to deliver and layover you wouldnt have done it

My view on this (solo point of view) is even with milage pay,.....if it puts me in a dead area , I still have the option to refuse it, And still have the option to move to a better area. I have turned down less than 2% in my 12 years,but the option to refuse is mine for any reason.

nightcreacher · Jan 25, 2009

Going tell you a story,I was with CON-WAY NOW for 3 years,great people but,pay sucked.First six months we were put on a dedicated run from Salem IL to Maybrook NY and return. 18000 miles for 20000 dollars,home every Wed night and every weekend.ran 10 round trips a month.That was 2002,in 2003 that dedicted ended,so I hen was running to Oregon and Washinton state ,mileage was great except,they used the load boards,and there fore no fsc.Didnt take long till credit cards started getting full.2004 they were wanting us to drop are rate,they said how do we pay yoou 1.05 when we are only getting .95,guess what,charge more.Finally,my drivers liscense was back in order,and back to FDCC I came.Yes on a mileage contract you don hve to take a run,but since it paid less in the first place,now you are sitting for free

truckrnnr · Jan 25, 2009

It seems as though some of you just want to argue,and get the last word. It's kinda like dealing with a 4 year old.
I'll try one more time to simplify my view on milage pay. If I'm happy with my milage rate and it is enough to pay my expenses,and myself, and I'm happy with it,..........Why should I care how much the company makes,or doesn't make on the run?
I can't speak for anyone else, but I'm not a greedy person, I don't feel that I'm entitled to more just because the company may be making more.
This subject can be debated from here to eternity and everyone will still have their own opinion,.........The proper thing to do is to respect that persons opinion the way they respect yours. It's a very simple,yet so few do it.

Both milage and percentage pay have advantages and disadvantages, there are alot of variables involved.