Newbie How to - Evaluating trucking companies
I am like many other newbies evaluating companies. After hanging around here for a while you start to see the same questions time and again, and sadly some of the same mistakes time after time keep coming up. It occured to me that some folks may just not know what to look for in a company and how to seperate better companies from the warts on the face of trucking. So lets outline some of the things that newbies should be aware of:
Training trucking company vs provide your own training
1. this seems to be a common source of issues and problems that only seem to get compounded that make the transition to trucking harder, training companies tend to exploit drivers with low pay and lock you into a contract for at least a year in return for the training
2. the recommenations by the pros here on this site is get the training on your own so your not enslaved to a training company
3. Many of the training schools will finance your training and many companies will reimburse you for your training so it is a net win win for you if you take the time to find the better paying/better reputation companies
What is 1 cpm between friends????
When your looking at a company and the pay they offer most of the time the pay is represented in cents per mile or CPM. What is the difference between a company that pay you 25 cpm vs a compay that pays 26 cpm?
Let's assume an average of 2500 miles a week:
.25 cpm x 2500 = $625
.26 cpm x 2500 = $650
Not much right?
How about a month(based on 10000 miles):
.25 cpm x 10000 miles = $2500
.26 cpm x 10000 miles = $2600
Still not too excited?
How about the end of the year(based on 120,000 miles):
.25 cpm x 120000 miles = $30,000
.26 cpm x 120000 miles = $31,200
So that 1 cpm turns out to be $1200 that you could have been making. Now visualize a 3, 4, or even a 5 cpm spread? You see many times that is the difference in pay between a training company and a company that you obtained your own training and went to work for them. So that 1 penny per mile adds up fast, and why would you want to drive for a company making $5000 less for driving the same number of miles? It pays to do your homework and get the best CPM pay you can when shopping for a company.
HHG miles paid vs practical miles
Many of the companies out there still pay by household goods mover miles or HHG. This in a nutshell is paid from zip code to zip code and the estimates range from 10% or more miles that the driver will drive and not get paid.
- Look for honest companies that pay practical miles or hub miles to get you closer to being paid for the miles your actually driving. Driving is hard long work, so why not get paid for them?
Using the above example of 120,000 miles this year at a fiction rate of .25 cpm your annual pay if your paid for the 120,000 miles you drove is $30,000. But what if they shorted you 10% or 12,000 miles of those that you drove? That is 108,000 paid miles, at .25 cpm you pay now for the year is $27,000. A $3000 difference! So when looking for companies to drive for consider the differences in HHG and practical miles... It really is worth it to insist on an employer that will pay you for the work your performing!
When you add up the differences between HHG pay and practical, and then figure the differences in the pay rates between training companies and non-training companies your literally giving away thousands of dollars if you choose poorly. Do youself a favor and do the math and then decide once you have all your numbers. You will be surprised what you may or may not be getting.
Well that about does it for the first installment on some of the things to think about when looking for a trucking company. Why not give yourself the best deal possible? Drivers are in the drivers seat when it comes to pay and jobs due to the drivers shortages that everyone says they are experiencing. So why not do yourself a favor and bargain for the best deal possible? BOL in your job search!
Longsnowsm
__________________
Politicians are a lot like diapers,
They should be changed frequently,
And for the same reasons.
|