Driver Pay

Pigeon Post · May 18, 2015

Hey there. I've got a local delivery company in Arizona, and I've recently taken all the necessary steps to start expediting. I've been turning down loads left and right because I don't have the drivers yet. I'm trying to figure out how to structure the pay. I was an independent contractor courier for 17 years before I started really building my business, so I know the driver struggle. I'd like to be fair, but I need to make money on this to make it worth it.
I've set my pay structure to pay drivers as ICs, driving my trucks, I cover all expenses with the trucks. Driver gets no per diem, pays for his/her own food and lodging, and therefore gets the tax deduction.
Sprinter driver: $.40 per mile (loaded and deadhead) average of 2200 miles per week, 3 weeks out, 1 week home
Box truck driver: $.48 per mile (loaded and deadhead) average of 2000 miles per week, 3 weeks out, 1 week home
Straight Truck Driver : $.55 per mile (loaded and deadhead) average of 2000 miles per week, 3 weeks out, 1 week home

I was a driver for a long time before I started this company, so I know what seems like a good gig to me. I'm curious how other drivers feel about this pay structure.

duwayne86 · May 18, 2015

Pigeon Post said:
Hey there. I've got a local delivery company in Arizona, and I've recently taken all the necessary steps to start expediting. I've been turning down loads left and right because I don't have the drivers yet. I'm trying to figure out how to structure the pay. I was an independent contractor courier for 17 years before I started really building my business, so I know the driver struggle. I'd like to be fair, but I need to make money on this to make it worth it.
I've set my pay structure to pay drivers as ICs, driving my trucks, I cover all expenses with the trucks. Driver gets no per diem, pays for his/her own food and lodging, and therefore gets the tax deduction.
Sprinter driver: $.40 per mile (loaded and deadhead) average of 2200 miles per week, 3 weeks out, 1 week home
Box truck driver: $.48 per mile (loaded and deadhead) average of 2000 miles per week, 3 weeks out, 1 week home
Straight Truck Driver : $.55 per mile (loaded and deadhead) average of 2000 miles per week, 3 weeks out, 1 week home

I was a driver for a long time before I started this company, so I know what seems like a good gig to me. I'm curious how other drivers feel about this pay structure.

duwayne86 · May 18, 2015

When u get ready for drivers, let me know. Please Duwayne Owens at this email or 325 262 9336. I live in San Angelo, Tx.

Mike99 · May 18, 2015

Pigeon Post said:
Hey there. I've got a local delivery company in Arizona, and I've recently taken all the necessary steps to start expediting. I've been turning down loads left and right because I don't have the drivers yet. I'm trying to figure out how to structure the pay. I was an independent contractor courier for 17 years before I started really building my business, so I know the driver struggle. I'd like to be fair, but I need to make money on this to make it worth it.
I've set my pay structure to pay drivers as ICs, driving my trucks, I cover all expenses with the trucks. Driver gets no per diem, pays for his/her own food and lodging, and therefore gets the tax deduction.
Sprinter driver: $.40 per mile (loaded and deadhead) average of 2200 miles per week, 3 weeks out, 1 week home
Box truck driver: $.48 per mile (loaded and deadhead) average of 2000 miles per week, 3 weeks out, 1 week home
Straight Truck Driver : $.55 per mile (loaded and deadhead) average of 2000 miles per week, 3 weeks out, 1 week home

I was a driver for a long time before I started this company, so I know what seems like a good gig to me. I'm curious how other drivers feel about this pay structure.

In my opinion will be difficult to run it from AZ. Majority of the loads and the drivers are on the east coast..Pay structure good.

Opel2010 · May 18, 2015

Who pays for the fuel?

Ragman · May 18, 2015

Opel2010 said:
Who pays for the fuel?

At these rates, owner would have to pay fuel costs.

Opel2010 · May 18, 2015

Ragman said:
At these rates, owner would have to pay fuel costs.

I guess so, but how... how do one knows how much fuel it takes? You know there are drivers that are idling the engines night and day. Is he gonna pay for that too?

Pigeon Post · May 19, 2015

I'm paying for fuel, tolls, etc. I've got sources for work that will initially take the driver east, and then pinball him around the east coast and midwest until it's time for him to come back. Plenty of stuff going east to west. If he's gotta deadhead back from Texas or California, I'm prepared to eat it. I'm not gonna get rich from it, but it'll add a lot to my gross revenue so the banks will take me seriously, and hopefully make me some good contacts out there.
As far as driver habits, I've got trackers on the trucks that will send me text messages if the driver is idling too long, brakes or turns too hard, speeds, etc. I'll have eyes on the trucks.
Thanks for the feedback on the rates. Unfortunately I really need to hire drivers local to Tucson so they can be ready to jump in the truck when a load comes in, and go straight home when they bring the trucks back for maintenance every 3 weeks, but I'm encountering a fear of 1099 work around here.

deadhead · May 19, 2015

Pigeon Post said:
I'm paying for fuel, tolls, etc. I've got sources for work that will initially take the driver east, and then pinball him around the east coast and midwest until it's time for him to come back. Plenty of stuff going east to west. If he's gotta deadhead back from Texas or California, I'm prepared to eat it. I'm not gonna get rich from it, but it'll add a lot to my gross revenue so the banks will take me seriously, and hopefully make me some good contacts out there.
As far as driver habits, I've got trackers on the trucks that will send me text messages if the driver is idling too long, brakes or turns too hard, speeds, etc. I'll have eyes on the trucks.
Thanks for the feedback on the rates. Unfortunately I really need to hire drivers local to Tucson so they can be ready to jump in the truck when a load comes in, and go straight home when they bring the trucks back for maintenance every 3 weeks, but I'm encountering a fear of 1099 work around here.

The Russians drivers are getting more than you.

Pigeon Post · May 19, 2015

I have no idea what that means.

deadhead · May 20, 2015

Pigeon Post said:
I have no idea what that means.

The next time you stop for fuel look around the parking lot and notice all the old yellow rental trucks all the driver standing around talking you notice they not speaking English.These drivers haul for less money than all of us driver that have driver lic,cargo insurance and ect.Most here work for companies that require our equipment well pass DOT inspection,( they don't).There are more and more each year they come here and are able to fly under the radar, most don't know what a log book is,yet the drive a 16' box truck with dual wheels.Hazmat whats that? Do I need to go on.I interview everyone I meet,and I found that they could care less about our rules.One told me he $.80 cents a mile and he buys his own fuel,I asked how about Insurance he told me he $40 a month on his 1999 Ford window van with the seats removed.Now do you know what I mean.The fight goes on.God Bless America

xiggi · May 20, 2015

You don't need an accent to run cheap. That argument is getting a little old and tired, imho.

coalminer · May 20, 2015

xiggi said:
You don't need an accent to run cheap. That argument is getting a little old and tired, imho.

Those drivers are not the major issue, it's the carriers that take advantage of the foreigners like they do, it's easy to take a van load for 60 cents a mile when you are not paying your drivers anything even close to minimum wage.

Corporate economics 101: it's easier to take money from others than to earn it with hard work.

OntarioVanMan · May 20, 2015

I am sorry....I put in 168 hours a week out here....I don't even get close to minimum wage....

one thing an expediter never should do is look at hourly wage....might as well go to Equador LOL

ya know carriers have to take a kick in the arse as well...they are the ones putting on more vans....even if they are just replacing ones that leave.....they are keeping up the high supply instead of using up the other ones already out there....in the name of profits....

Reduce your fleets and use the ones on the boards now...it may cost you right now but the dividends are it just may increase rates and you can recoup the cost...

deadhead · May 20, 2015

xiggi said:
You don't need an accent to run cheap. That argument is getting a little old and tired, imho.

Im really sorry you feel that way.Yes your right it is really getting old,but if people refuse to address the issue I guess it just go way.We both no its not,we have to face the fact that they here and every month there more on the way.I'll keep beating the drum maybe just maybe we all stand up and be counted.Do you remember when the French truck drive protested the high cost of fuel a few years ago? The when to every fuel stop and parked there truck at the pumps until somebody in the govt got the point,and stopped the brokers from jacking the prices.I don't think that work here in the USA we can't all agree to disagree.Once again I'm sorry you feel like that.

OntarioVanMan · May 20, 2015

deadhead said:
Im really sorry you feel that way.Yes your right it is really getting old,but if people refuse to address the issue I guess it just go way.We both no its not,we have to face the fact that they here and every month there more on the way.I'll keep beating the drum maybe just maybe we all stand up and be counted.Do you remember when the French truck drive protested the high cost of fuel a few years ago? The when to every fuel stop and parked there truck at the pumps until somebody in the govt got the point,and stopped the brokers from jacking the prices.I don't think that work here in the USA we can't all agree to disagree.Once again I'm sorry you feel like that.

I can't quite agree with you 100%....the immigrants are only 1 piece of the total picture...you need a wider picture, aka see the whole business as it has morphed into something different then 10 years ago.....

just the whole way the auto assembly is now done...the improvements in TL and LTL systems....the economic awareness of shippers of the actual cost of expedite/exclusive service...the old yelling out on the dock...."Get me a truck in here".....are pretty much a thing of the past....more scrutiny in their shipping budgets....does the customer really need that?...well, call them and ask...oh you can wait till Tuesday instead of monday and we save $1,000 doing so...great thanks....

Now as someone mentioned in another thread....we are more for exclusive use...when a shipper wants his shipment to be handled less....minimize damage....

The insurance issue...another piece of the puzzle...

and plain old over capacity.....

only opinion......

deadhead · May 20, 2015

OntarioVanMan said:
I can't quite agree with you 100%....the immigrants are only 1 piece of the total picture...you need a wider picture, aka see the whole business as it has morphed into something different then 10 years ago.....

just the whole way the auto assembly is now done...the improvements in TL and LTL systems....the economic awareness of shippers of the actual cost of expedite/exclusive service...the old yelling out on the dock...."Get me a truck in here".....are pretty much a thing of the past....more scrutiny in their shipping budgets....does the customer really need that?...well, call them and ask...oh you can wait till Tuesday instead of monday and we save $1,000 doing so...great thanks....

Now as someone mentioned in another thread....we are more for exclusive use...when a shipper wants his shipment to be handled less....minimize damage....

The insurance issue...another piece of the puzzle...

and plain old over capacity.....

only opinion......

you are right,however the capacity has gone down with the rates..........

brohammerllc · May 20, 2015

Time to throw my hat into the ring:

Yes, the eastern European drivers are part of the problems. They are willing to drive for a cheaper rate, some do not have the required insurance on their vehicles, and some do not follow the rules (HOS and such).

Another part of the problem are the carriers themselves--many of them are there to make as much money as possible and the heck with the drivers. For the last five years I worked for a carrier that only required me to pay for my non-trucking liability insurance--he covered the primary trucking insurance (as required for a carrier by the Feds) and the cargo insurance. Unfortunately, he was forced out of business. Now, the "new" carriers I am looking at require that I provide the primary trucking insurance and my own cargo insurance. Do I get a higher rate of pay for this--nope.

Fuel prices have been all over the place for the longest time. Not much we can do about it--an idea: fuel surcharge. Most carriers have worked out a fuel surcharge program. But many keep part of that surcharge even though they don't pay for the fuel. And when the US Congress tried to make it a law that "whoever buys the fuel gets the surcharge", it didn't pass because of pressure for various lobbyists.

When I first started expediting, if you got a round trip load, you were paid the full rate outbound, but only 50% rate on the return trip because "you have to come home anyway". Truckers took less money for "backhauls" because they wanted to get some home time. Carriers finally wised up and decided that any load could be someone's "backhaul", and lowered rates.

Unfortunately, we have allowed this to happen to ourselves. We have to pay our bills, so we take loads that will only generate enough monies to break even. We will "stretch" the laws when it comes to running legal because we have been sitting for too long, and who knows when that next load will show up. And, as a group, truckers are slow to adapt to changes and to accept new ideas.

Mike99 · May 20, 2015

brohammerllc said:
Time to throw my hat into the ring:

Yes, the eastern European drivers are part of the problems. They are willing to drive for a cheaper rate, some do not have the required insurance on their vehicles, and some do not follow the rules (HOS and such).

Another part of the problem are the carriers themselves--many of them are there to make as much money as possible and the heck with the drivers. For the last five years I worked for a carrier that only required me to pay for my non-trucking liability insurance--he covered the primary trucking insurance (as required for a carrier by the Feds) and the cargo insurance. Unfortunately, he was forced out of business. Now, the "new" carriers I am looking at require that I provide the primary trucking insurance and my own cargo insurance. Do I get a higher rate of pay for this--nope.

Fuel prices have been all over the place for the longest time. Not much we can do about it--an idea: fuel surcharge. Most carriers have worked out a fuel surcharge program. But many keep part of that surcharge even though they don't pay for the fuel. And when the US Congress tried to make it a law that "whoever buys the fuel gets the surcharge", it didn't pass because of pressure for various lobbyists.

When I first started expediting, if you got a round trip load, you were paid the full rate outbound, but only 50% rate on the return trip because "you have to come home anyway". Truckers took less money for "backhauls" because they wanted to get some home time. Carriers finally wised up and decided that any load could be someone's "backhaul", and lowered rates.

Unfortunately, we have allowed this to happen to ourselves. We have to pay our bills, so we take loads that will only generate enough monies to break even. We will "stretch" the laws when it comes to running legal because we have been sitting for too long, and who knows when that next load will show up. And, as a group, truckers are slow to adapt to changes and to accept new ideas.

The problem is not east europeans drivers , the issue is the Russian and Ukrainian drivers ....They have the fantom yellow trucks and they signing up weekly on Sylectus...