Flat Rate
Percentage Pay

 


Remember this is where you have to do the work to find a company that fits you and your situation.  What works for me might not work for you.
Start a notebook and jot down the date, the company you call, the person you talk to, and the phone number, and their answers.   You might also want to note if you talk to a recruiter or a driver for each company.  Hopefully you are able to talk to both and more then one driver.
Many of the questions below pertain so someone wanting to lease a truck on to a company as owner operators or want to become a driver. 

 

 

  • Ask where their freight lanes are and will you be able to get home as needed.
  • Do they have any directional dispatch to get your home and what are the requirements?
  • What is the average gross Revenue for the vehicle size you plan to drive?
  • Start up costs?
  • Recurring charges backs - mobile communication device - Work Accident insurance - Prepass
  • Escrow and terms for returning Escrow
  • Do they pay dead head miles and if so what is the rate?
  • How do they pay? Direct deposit to bank or settlement card (if buying truck)
  • How often do they pay?
  • For a prospective owner - do they pay base plates, permits, and insurance?
  • What insurance will a driver or owner operator be required to carry?
  • Ask for names of current drivers of the same type of vehicle.  Call them to get more information.

 
There are essentially three elements to a typical run; deadhead miles from point of dispatch to the shipper, loaded miles from shipper to consignee and deadhead miles to a layover location while awaiting the next run offer.  Here is a list of the elements that should be considered for each carrier:
FLAT RATE

 

 

  • Deadhead to shipper pay per mile
    • All miles
    • All miles less deduction
  • Dead head to shipper fuel surcharge per mile
    • All miles
    • All miles less deduction
  • Loaded mile rate
  • Deadhead pay to layover location

PERCENTAGE RATE

 

 

  • Deadhead pay to shipper
    • Percentage of what tariff
  • Dead head to shipper fuel surcharge per mile
  • Percentage

ACCESSORIAL FOR FLAT OR PERCENTAGE

 

 

  • Detention pay
  • Hand load/unload pay
  • Hazmat pay
  • Inside delivery
  • Lift gate
  • Furniture pad wrap
  • Layover pay
  • Dual Driver Services
  • Tolls - All tolls paid or only percentage
  • Fuel Surcharge (FSC) on all miles dispatched miles or only loaded miles
  • Reefer Premium
  • Reefer Pay  - if holding freight over weekend - or detention
  • Canada Pay
  • New York City Bonus pay

Looking at all of these items you will notice this is only a small sampling of ideas and ways to get paid.
Many drivers turn their ears off when they hear flat rate or a lower percentage pay then another company offers.  
If a company pays 55% - 60% - 80% of the rate what is the rate the customer is charged? What is the typical pay per mile and is this only loaded miles or all miles?  What is included in all miles or authorized miles?
If a company pays flat rate what is the flat rate and how does it compare to industry standards.
It all comes down to the bottom line on the settlement sheet and will you be making money?
Remember as a driver or an owner operator there is no guarantee of success so do everything you can to stack the deck in your favor.
 

 

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Linda Caffee

Bob and Linda started their driver careers after their children left home for college in 2000. Bob started as a driver for a large motor carrier with Linda as a rider. They decided to enter the Expedite industry as team drivers in 2005 and purchased their first Freightliner. Both, Bob and Linda have had their Class A licenses since the early 80's starting out driving in the oil field and hauling grain as fill in drivers where Bob worked as a diesel mechanic. Linda worked at the local country courthouse in data processing.

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