Do you pay percentage on total load gross or do you breakout the FSC and just pay percentage on the linehaul?

Thanks.

 

Any company that isn't breaking out the FSC and giving it to the driver 100% isn't worth pulling for.

 

Just to clarify Rev, we are talking about company drivers no? I was talking with my friend, say he gets $2,000 on 1,000 miles, he takes out like $.35 cents times 1,000 for the FSC and then pays like 25 or 28% (I forget) on the difference, in this case $1650. So then 25% of that is $412.5.

$412.50 on 1000 miles is $.41 per mile which is not too bad for a company driver.

 

Sorry, I assumed you were talking about O/O's (hence the O/O forum).

In your scenario, the FSC should be taken out before paying the driver the percentage.

 

Yes! But what about DH miles? Or if the load pays only $1.50 a mile with the FSC (still some DH) What about benefits? :roll:

 

Ok thank you Rev. Sorry about the confusion. Solo, you know I was kind of surprised about that too.

I asked him why would a driver drive for him when they can go to Heartland or something and get $.40 or more per mile. He said yeah they will give him more money but they won't see many miles. He makes sure his drivers are kept moving as much as possible.

You remember that guy on this board, not this forum, but he had his wish list. Actually I use to like those lists but he got flamed a lot. Well I remember he mentioned that he didn't care about the rate he just wanted the miles.

I heard him talking with a guy who called about working for him today. The guy was sitting somewhere in the Northeast for like 4 days now cause the owner won't haul for $1.00 per mile. My friend was telling the guy he would never ever let him sit like that.

I know he has had drivers with him for many years.

 

If the carrier is getting good rates the driver should still make more on percentage than running for miles, even with the deadhead. And I don't know any owner operators or carriers who pay a percentage on the fsc. The fsc is taken off the top and then the percentage is paid on the rest of the money. Sometimes the shipper or broker breaks out the fsc. Most of the time they don't.

 

I just read a letter to the editor in "Highway Star" magazine. The O/O gets 78% incl FSC. The carrier charges the shipper 78% + 22% AND a 25% FSC on top of that.

i.e. on a $5,000 load, the truck gets $3,900 and the shipper gets a bill for $6,250.

 

Maybe I'm not understanding some-thing here but why would a company driver get a FSC ??? The owner of the truck that buys the fuel gets the FSC !!!

 

Merrick, I know in another post you said you were thinking of putting a driver in your truck. I would try a salary of about $700-$900 depending on what works for you and the driver. Also dependant on the area of where the driver comes from and what the average company guy makes in that part of town. This way he would not be forced to try and make too many loads and kill your truck. Then you worry if the driver will do nothing. You can always offer some kind of bonus for a certain amount of work being done that is acceptable to you. That is my opinion.
Alot of guys like the stability of a salary. This may attract a better candidate to drive your truck. I am not saying a percentage guy is no good, but a company percentage guy would tend to be more of a hammer to make more money. Good luck.