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PAY
Iv'e been lurking on CAD for about 8 months now, doing some research.
There is a lot of good info here but I am still trying to decide if I want to get back into trucking. Iv'e looked at many different company's and since I haven't been on the road for twenty years I have to start as a Newb. I'm 48 yrs. old and I have a chance to retire from my present job, and the only other job I ever had was hauling cars back in the mid 80's. I only drove for a short while, I was laid off from my present job at the time. But the reason I'm posting on this Forum is I have a chance to drive for an Owner Operator, whom happens to be my Brother inlaw. His offer is to pay me 50% of what the truck nets. He pulls for a small Refer co. and owns his own Trailer. He gets paid by percentage which 77%. I was wondering if some of you guys might give me your opinion on his offer? The truck and trailer are both paid for. It,s a 2002 Freigtliner Classic XL with 1 Million miles on it. It has a Cat C15 engine. I only mention this because if there are any mechanical problems it will surely reduce the net income for the week. He did say if the engine went out he would just replace it. He says he grossed $250,000 last year. I would also appreciate your opinion on that number, does it sound realistic to you? Thanks in advance, Bill |
Re: PAY
Originally Posted by wild bill: It would help, if he could provide you with the actual miles he has run. I'd also ask him to show 1099, or any other proof on that figure. Yeah, i know, he is your brother in law, but from my experience, business didn't mix well, with the friends and the family! :sad: Anyway, I've heard about 50/50 split after the fuel, but for all expenses for over million miles truck, his revenue, should be pretty high, to make it worthwhile for you!:roll: Welcome to the forum! 8) |
Originally Posted by : Originally Posted by : Net Income = revenue - (all miles X 1.24 + driver) so, if we take a round trip like one that I was trying to put together this morning.... $5,000 for 1375 miles Syracuse to Pickle Lake ON, then DH 625 miles for a Minneapolis to Toronto paying a ghastly $1300 on 1000 miles, it would go something like this. His Cut = ($1300 + $5000) x .77 = $4851 Net To Truck = $4851 - ((1375 + 625 + 1000) x $1.24) = $1131. Your Cut = $1131 x 50% = $565 for 3000 miles Not very good. Ask him what "net" is. Originally Posted by : |
I'd take a hard look at those numbers, even pull out some paperwork on some recent trips and start doing the math to see where you'd be money wise. Then I would compare that number to 25 to 30 % of gross, which is what most company driver percentage pay is just to see what the difference is.
Is he putting you on payroll? or 1099? I also agree with Solo, be careful doing business with family. :D |
The key to this deal is what expenses he will be deducting to arrive at a net income. For example, with current fuel prices, I consider my cost per mile to be $1.24 + driver and calculate my "net" for each trip as follows:
Net Income = revenue - (all miles X 1.24 + driver) so, if we take a round trip like one that I was trying to put together this morning.... $5,000 for 1375 miles Syracuse to Pickle Lake ON, then DH 625 miles for a Minneapolis to Toronto paying a ghastly $1300 on 1000 miles, it would go something like this. His Cut = ($1300 + $5000) x .77 = $4851 Net To Truck = $4851 - ((1375 + 625 + 1000) x $1.24) = $1131. Your Cut = $1131 x 50% = $565 for 3000 miles Not very good. Ask him what "net" is. rank I am confused on your math. should the formula look like this Net To Truck = $4851 - ((1375 + 625 + 1000) x $1.24) = $1131 Net to truck = 4851- cost per mile of 1131= $3720 your cut = 3720 x %50= $1860 could explain 1.24+ driver is that adding a drivers pay to that 1.24???? :? |
pay
Thanks for your opinions, they are much appreciated. It sounds like I
might be better off getting paid by the mile. He had offered to pay me .40 cpm and I thought that was a good offer, then he said he was thinking about it a little more and he thought 50% of the net would come out about the same. I'll have to ask him what his net is and decide then. One more note. he runs mostly North East and goes South East once in a while. He goes into NYC about two or three times a month. It's been a long time since I drove a truck in NYC, is it still as fun as it used to be? LOL, Thanks Again :wink: |
Running mostly NE, I can't imagine he was turning big miles. If he's grossing $250,000 a year that's a serious average per mile for reefer freight...who's the company and are they doing LTL?
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pay
no_worries, yes they do LTL, it's a small company only about thirty
trucks. He does two rounds a week from SE MI. and back. He's off most weekends for a day and a half. He showed me the paper work for the load he is taking to New Jersey tomorrow morning. He will make $2.18 per mile for the trip without fuel sur charge. He did say this will be one of the better paying runs he's had in a while. He says he averages around $1.80 with fuel sur charge. The name of the Company is TM Morley. |
Re: pay
Originally Posted by wild bill: |
Re: pay
Originally Posted by wild bill: But i bet, that's where money come from! 8) |
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