Percentage vs mile pay, I dont get something
Ok I hear lots of people saying percentage based pay(mostly seen in flatbed work, for co drivers) is the way to go, however I have a big question thats bothering me.
Deadhead? Who pays? I am not a new driver, and dont fall under % pay, but I have a friend starting out, and I dont get it. He had a load to Mass. this past week, since the company couldnt get him a load that day, he sat, then 2 days later, had to deadhead almost an entire day to Delaware to get another load. So do I get this right, he didnt get paid for almost 2 entire days? Percentage of load, would say he had no load, and no pay, unless he got a few bucks layover. Fill in the blanks those of you who get percentage of load for a co driver, is there a provision where if you have to deadhead? Because I cant see how thats better. |
I've only drove for one company that paid me percentage, and that will probably be enough for me to never drive percentage again. I was paid 25% of the load, nothing for deadhead.
We did dedicated hauls of Miller beer from Trenton, OH to western PA. About 80% of the time we went back empty, so bascially, I drove the truck for free 40-50% of the time. I figured my pay in cpm for what I made with the miles I drove. I made a whopping $0.14cpm. Now, I don't know about you, but someone is getting ripped off there. The worst part of it was that the co I drove for refused to show the drivers the paperwork to show what the load was actually paying. Myself, I don't see how any company could afford to haul a load for $1.20cpm loaded for a 300 mile trip, then run back that 300 miles empty. Not to mention the fact that the loads, being beer, were always heavy. So, ya, I think I'll stick with getting paid by the mile. Sure, HHG miles are lower than Practical, but at least it's not so far off that I run for free now. |
Most companies that pay percentage do not pay for deadhead or layovers.
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Any company who pays percentage should be willing to show you the paperwork as to what the load paid. If they are unwilling to do that then they are hiding something. Whether a driver can come out better on percentage will depend on what the load pays and how much deadhead you will need to do. But anyone who pays percentage to their drivers should be willing to show you the paperwork. Most percentage jobs I have seen pay better than mileage, even with the deadhead. I have a hard time believing that any company would only charge $1.20/mile for a 300 mile run and then deadhead back. They wouldn't even be able to break even at that rate.
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I've answered a question like this at LEAST a half dozen times on here IN DEPTH and will NOT type it again!!! I HATE TYPING because I SUCK at it!!!! If you want MY opinions, answers and experiences, CALL me. It's toll free and the number is listed below.
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There is no such thing, as "one size fits all", on that matter.
In some cases, switching to %, could double your earnings, in some, cut it in a half! Anyhow, IMO 25%, is kinda low, for a company driver, should be around 30%! :roll: |
I'm payed by the load / %. If your with a good company , have a good dispatcher and available back haul it is the way to go as you can double your money,especially on short trips where your working out of a dedicated shipper.
A good company will give you a weekly minimum guarantee if your on %. If you are new to trucking mileage pay is a safer bet until you know all the pitfalls. |
I was paid %, we hauled Steelcase out of Grand Rapids, MI. It worked real well, the boss was HONEST and the out bound $$ paid was no secret. Dead head was free. We really had to watch the return freight {produce}as the brokers were cheats.
Always know what you are to be paid and check it twice when you get it. If you don't know, the company will keep it. |
Here's a big point about Mileage vs % OF LOAD that I haven't seen addressed.
TMC and MAVERICK are often mentioned as the two highest quality flatbed companies for new drivers. Guys who drive for TMC believe that they earn more by going % OF LOAD. As one gentleman says, you can prove this to yourself by reading your odometer and figuring what you would have made under TMC's mileage option and comparing it to the % OF LOAD option. A vast majority of the time the % pays better than CPM. But here's the catch . . . I believe that MAVERICK pays better CPM than TMC and they pay loaded and unloaded miles. If I remember correctly, MAVERICK averages around $0.37 for the first 12 months. TMC's CPM pay is formula based, starts at $0.30 and goes up from there. (Call a TMC recruiter to get the exact formula; I don't remember it.) So, to be fair, if all you're interested in is money then you need to compare the top paying program at TMC (% Load, OTR) with the top paying program at MAVERICK (CPM, OTR). Don't just focus on the comparison between TMC's CPM and % OF LOAD. You must compare optimum programs . . . not two programs in the same company! Finally . . . a TMC recruiter told me that he estimates that 29% at TMC = $0.38 cent per mile. So, if you think you're a hot dog and will max out on the % OF LOAD pay scale quickly (29-32%) then TMC is the place to be. Of course, that assumes the recruiter's fact was accurate. :D |
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Honestly I don't think a driver will go wrong at EITHER place. If I were choosing a company NOW I'd still go TMC for a few reasons: They're hiring NOW with no B.S. "waiting list" TMC gives you a CHOICE, %pay or CPM & you CAN switch IMO, nicer trucks. Can't see myself in an automatic MAROON Freightliner If you compare both companies websites, TMC pays more (I make good money) TMC hires in my area NYC, Maverick does not. |
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