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Percentage pay vs Mileage pay?
Question:
Which is better and why? or do they equal out in the end. Any info would be great. Also is there any web sites i could where i might find more info on this subject. Thank you. Jimmijam GO NY Giants. Answer: I've only done mileage and hourly, but from what I understand percentage is good if the load pays good, but then if you get a long run that pays squat, then your left flappin in the breeze. If at first you don't suceed, get a bigger hammer Answer: I've pulled freight both ways.I currently pull on a mileage plan but have seen times percentage might pay better. If i was just starting out i'd have to go with mileage pay due to the fact you should get paid empty miles and loaded miles. Answer: Percentage isnt very good for general freight. It works when the majority of the freight is high paying speciality or multiple picks or drops. You also have to know your carrier well and get copies of the broker/load sheets. If these arent know, you probably will get screwed on percentage. You got to figure if drivers wages are variable then the need to find good paying loads is reduced. Also deadhead is a minus at percentage for the driver. I did percentage and made out well but it takes a team to replicate my income Am now a O/O and will always do percentage as 1. Answer: Skiffman I'll be haulin steel coils, will this work better. I have been told haulin steel you can do better with percentage. Let me know what you think. Jimmijam. Answer: I'll be haulin steel coils, will this work better. I have been told haulin steel you can do better with percentage. Coils don't pay all that much,that's why they are paying percentage. I think mileage is always better for a"driver" especially a newbie. 23% of nothing equals? Mike Answer: Steel coils is general freight. I've never made much more than $1.20ish hauling coils as a O/O. Usually less. Your "back hauls" are probably cheaper yet. As a newer driver, you are better off at cents per mile. Find out what the loads pay and the miles involved before agreeing to percentage. Talk with other drivers for this company. The only way I've seen drivers make out on percentage is to cheat like h*ll. Myself included. Its not worth it. TC Its impossible to give advice on your deal when no one knows the numbers. I also know little about freight in your area. Answer: I am a new driver and i appreciate all your advice and help. I am having a very difficult time trying to decide where to start my trucking career. I have looked into a lot of companies and talked with alot of different recruiters and drivers as well.I'd like to get into flatbed instead of dry van or reefer, The company i'm looking into only runs east of the big river and hauls mostly steel. Any further advice, company suggestions that pay by miles and run flatbed. i'd really appreciate your wisdom. THANK YOU very much. Once again this site has been outstanding. The people hear are the best,I hope someday to meet some of you on the road. Jimmijam Answer: Go with the MILEAGE , at least you are BASICALLY sure of what you are getting paid. The % deal might have a few flaws such as the load being a FAVOR to the customer , booked at low $ and you get the raw deal. Answer: We had a recruiter for Kane Transport come in. Kane is out of the Alexandria/Sauk Center area in Minnesota. Not a big company, but they do great volume and have a great rep. They pay 25% of every load. There's no seniority when it comes to pay--the old timers do get prefs on vehicles, certain times off, this, that and a few other perks. There is no mileage pay. I'm going to talk with a few of the drivers and find out myself what they're averaging in pay. *********************************************** Look before, during, and after when making those right-hand turns! Starkman Answer: I've worked both percentage and mileage, as a Driver and now as an Owner Operator. Some worked well, others didn't. A lot will depend on your company's operation. For example, back in the early 80's, I made more money per mile as a company Driver pulling a food grade air can (dry bulk tanker) regionally, earning 25% of the gross, than I did in the mid-80's running general dry van freight OTR as a company Driver on mileage. As an Owner Operator, being paid by percentage has always worked better for me. Normally, I'll run less miles for more money than I would if I were being paid by the mile. Again, a lot depends on your company's operation. With you just starting out, like RoadHugger says, take the mileage pay until you learn more about the business. At least you'll know what you're making for all miles. Normally when you work percentage, you won't get paid for deadhead - and - you have to trust your company's integrity with your numbers. Many will 'skim off the top'. In other words, that load you're under might be paying them $1,000 but they'll tell you it only pays $800 - or maybe even $700 - then pay you from that. Also, it's been my experience that many companies who don't pay for deadhead will tend to abuse this privilege. Some would have no qualms about sending you 500 miles to pick up a 250 mile run. Look what has now happened to YOUR revenue per mile, but it's not costing THEM a thing, right? Good luck in whatever you decide to do. Happy trails and 'Just say NO!' to cheap rates Answer: Well, there might be an exception here . . . We had a recruiter for Kane Transport come in. Kane is out of the Alexandria/Sauk Center area in Minnesota. Not a big company, but they do great volume and have a great rep. Just a word of caution. Great volume does not meen great rates,low rates low pay. If they truelly have a great rep. they would not need a recruiter,people would be knocking on their door. Current employees would be bring in freinds,family and neighbors. They pay 25% of every load. There's no seniority when it comes to pay--the old timers do get prefs on vehicles, certain times off, this, that and a few other perks. There is no mileage pay. And remember that 25% of 1k is more than 25% of 100. The few other perks probably consist of the better paying loads. I'm going to talk with a few of the drivers and find out myself what they're averaging in pay. Make sure you talk to drivers on the top and bottom of the seniority list. You're doing good so far with the training and attitude and I'd hate to see you make a mistake with employer. Leave no stone unturned when choseing that first employer. Mike Answer: I have worked both milage is a better way to go because like someone said you are getting paid your deadhead.Percentage looks good until you get somewhere annnnd deliver than you have to deadhead 4 or 5 hundred miles to your next load now you lost the good money you earned.just my humble opinion. aman Answer: I appreciate all of your responses, I origanilly ask this question because the recruiter told my class at school that percentage pays basically the same as mileage. He also told us that WE WILL gross between 7 & 9 hundred $ a week. He also said when i asked about deadhead that about 1 in every 75 loads u may have to deadhead other than that they don't do deadhead. I'm always careful not to believe everything i hear from recruiters, so i thought i would ask those how have nothing to gain by telling me of their personnal experiences. And i've found a wealth of info hear at truck.net. The company i'm looking to start with is relatively small about 750 tractors or so and is all flatbed. They have a nice benefits program and say i"ll be home on the weekends,this is a plus because like so many of you out there i have a family and don't want to be gone for weeks at a time. I want to stay away from companies like werner,swift,crst. I've read way to many negative things about these companies. So i'm trying to find a smaller company to start with. I only hope I'm making the right choice. Again i want to thank all who have responded to my post TO EVERYONE OUT THERE STAY SAFE AND HAVE A VERY HAPPY HOLIDAY A very greatful newbie Jimmijam Answer: I appreciate all of your responses, I origanilly ask this question because the recruiter told my class at school that percentage pays basically the same as mileage. He also told us that WE WILL gross between 7 & 9 hundred $ a week. He also said when i asked about deadhead that about 1 in every 75 loads u may have to deadhead other than that they don't do deadhead. You've already forgotten rule number one. Never believe a recruiter. Percentage does not pay the same as mileage,you will perform free"driving" on the percentage pay. The percentage pay increases company profits not yours. Ask him if he will make up the difference if you don't gross those figures. They don't do deadhead? That's an outright lie. The truth being they don't pay you for it,if you believe that you're only going to deadhead once out of seventyfive times,you are in for a rude awakening. The concensus in this thread is mileage is the better choice for a Newbie,think about it. Mike Copyright ? 2006 - 2007 www.thankhealth.com Privacy Policy
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