[GMAN]

Gross revenue has little to do with profit. Some get confused over revenue and profits. You can gross $200,000 in a year and lose money while someone else grosses $100,000 and show a profit. Much of the success or failure in any business is how you manage it and respond to current economic changes.

To compare mileage and percentage lets take a look at a couple of scenario's. Let's say you have a 500 mile run that pays $1.50 to the truck on percentage. Your gross would be $750 for that run. Fuel should run approximately $200 (100 gallons at $2/gallon @ 5 mpg). Your gross profit after fuel is $550. Most of the mileage carriers seem to pay about $0.92/mile. Your gross on this same run would be approximately $460 (500 miles x $0.92/mile). Fuel would cost the same. Your gross profit running mileage after fuel would be $260. That is a $290 difference for the same run. I didn't include a fuel surcharge in these comparisons. The way rates are these days you may or may not be able to get $1.50 to the truck until the economy picks up. The type of freight can also make a difference in your rate. The more specialized your freight or equipment the higher the rate. Flats or step decks could have extra pay such as for tarping or extra drops and pick ups. Vans and reefers could have extra pay for drops or pickups and for assisting in loading or unloading.

A word of caution to the original poster. One thing to look out for when talking to those who run percentage is whether they are quoting you gross revenue or truck money. I know when I was leased to Landstar some years ago, most owner operators would quote the gross rate, not what the truck made. For easy calculations I will use $1/mile as the line rate. At $1/mile Landstar would pay $0.65/mile for power only and $0.73/mile if you have your own trailer. So the truck would actually make $0.65/mile for power only, or $0.73/mile with your own trailer, not $1/mile. I am not specifically picking on Landstar but that can be true of any who run on percentage.

In reality, you can make more running percentage or less than if you run for mileage. It all depends on the rate. I think most who run percentage earn more over the course of a year than those who run mileage. Running percentage you need to be more aware of rates and profit of a particular load. Mileage people seem to be more concerned with the number of miles they run. Percentage has more to do with profitability.

[Fredog]

I reduced my rate to 1 dollar a mile, this gets me more customers than I can handle, now all I have to do is run a million miles a year and I am a millionaire!!
I dont know why no one else thought of this. :thumbsup:

[GMAN]

When you run mileage it doesn't make much difference where you run since all your miles should pay the same, although there are some carriers who pay less on deadhead or a different rate depending on the length of haul. When you run percentage the decisions you make can have a profound effect on your bottom line. You will need to be more aware of freight lanes and rates. You should no longer think about how many miles you can run in the course of a day or week. You will be more concerned about the profit you make on a particular load. Owner operators who run percentage have a different mindset than those who run for mileage. Or at least they should.

[solo379]

With all that said, when you run mileage, doesn't mean you shouldn't think of what you doing. Tho in a different terms. More like wasted time wise. For example, if paid on %, i could loose some time, and still come ahead with the money. On a mileage pay;-time=miles=$$$. Get familiar with your running area, avoid the places you could stuck....and so on.
What I've meant is that running w/o a head, wouldn't get you far, no matter how you got paid.

[GMAN]

Your income could still suffer if you get to an area where there is little or no freight and your company doesn't want to pay for your deadhead to a better area. You can wait 3 or 4 days to find a load in some areas unless you are willing to deadhead out. Personally, I won't sit that long for the possibility to get a load unless I am home.