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pay rate question?

danthewolf00

Veteran Expediter
Offline
what would you rather have ?

1. % of the run like bolt,tri-state and others do

or

2. flat rate set like express-1 (cv .70 sprinter 1.00 a mile)
 

aileron

Expert Expediter
Offline
I prefer percentage all the way. Not to mention that it bugs the #$%# out of me when I see on the customer bill of lading how much they paid and I got a measly 35% from that.
 

chefdennis

Veteran Expediter
Offline
either works for me. Now Dan, you know that at bolt when it is all said and done, they are figuring that final # including the FSC on a CPM......

All I really care about is how it all worked out at the end of the week and the month. Yea I look at each run, but I'll take a short pay run if it benefit me and i am already ahead of or close to my "nut".....
 

ebsprintin

Veteran Expediter
Offline
I prefer percentage. Percentage gives me the ability to attempt to keep my overall rate within a certain range. With a fixed rate I'm stuck with what the rate is. At a fixed rate the carrier has little incentive to raise the fixed rate until they can't keep drivers. On percentage, pain and gain are shared between carrier and driver (in theory). In the end it only matters how the pay day ends up, and I prefer to get there with the flexible option.

eb
 

davekc

Senior Moderator
Staff member
Fleet Owner
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We do both. Percentage benefits the short loads and mileage is better on long hauls. At the end of the day it really depends on what it works out to for ALL miles.
 

guido4475

Not a Member
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With the exception of Landstar always showing the total amount billed to the customer at the time of load acceptance on your Qualcomm, how does anyone leased to any other carrier really know what they are charging the customer? For all we know, they can be charging $5.00 per mile, and we still may get only .77 plus fuel surcharge.
 

davekc

Senior Moderator
Staff member
Fleet Owner
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With the exception of Landstar always showing the total amount billed to the customer at the time of load acceptance on your Qualcomm, how does anyone leased to any other carrier really know what they are charging the customer? For all we know, they can be charging $5.00 per mile, and we still may get only .77 plus fuel surcharge.

The argument is usually if it pays enough it doesn't matter. I think it goes to the integrity of the carrier. Ask your carrier what the customer was really billed and you usually will have your answer as to how forthcoming they are.
 

jelliott

Veteran Expediter
Motor Carrier Executive
US Army
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I agree with Dave on the integrity issue. We have no problem showing an owner operator copies of any billing for loads they hauled any time.
 

guido4475

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I agree with Dave on the integrity issue. We have no problem showing an owner operator copies of any billing for loads they hauled any time.

Youre correct.When I was there Vince offered to show me the proper documentation to back up his numbers. That told me just how honest and upfront youre company was even at the talking stage.I failed to remember and post this as well about Load One.
 

davekc

Senior Moderator
Staff member
Fleet Owner
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While it was some time ago, we left a nameless carrier over this issue. We were on percentage and a customer showed us the bill. Our pay was below our contracted percentage and this carrier lied through their teeth until we showed them a copy they faxed the customer. They then said they did this all the time and if we didn't like it, we could leave. So we did.
Be wary also that some set up a brokerage dummy and funnel loads through it to adjust the pay to the drivers.
 

jelliott

Veteran Expediter
Motor Carrier Executive
US Army
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Youre correct.When I was there Vince offered to show me the proper documentation to back up his numbers. That told me just how honest and upfront youre company was even at the talking stage.I failed to remember and post this as well about Load One.


No better compliment than the simple truth! Thanks!
 

jelliott

Veteran Expediter
Motor Carrier Executive
US Army
Offline
Thanks guys for replying.


As I remember bolt was 62% of 95% they took 5% off the top before everything



I have never understood the two tiered % concept vs. just calculating it out to a single percentage?
 

greg334

Veteran Expediter
Offline
Be wary also that some set up a brokerage dummy and funnel loads through it to adjust the pay to the drivers.

Dave,
I would add that inter-departmental charges are used at one carrier. For example some of their specialized freight gets handed off from internally with a price charged to the "internal" customer than that's what the contractor's rate is based on.

I have seen one of these customer's charges from work I did in the past. If I was paid the amount based on what they were paid, I would have had a $5 a mile load.
 

davekc

Senior Moderator
Staff member
Fleet Owner
Offline
Happens a lot. Or.....they cloak it under a third party billing. The problem comes in when the carrier owns or is affiliated with that third party.
 

Jefferson3000

Expert Expediter
Offline
With the exception of Landstar always showing the total amount billed to the customer at the time of load acceptance on your Qualcomm, how does anyone leased to any other carrier really know what they are charging the customer? For all we know, they can be charging $5.00 per mile, and we still may get only .77 plus fuel surcharge.

I can tell you why we do a flat rate on the longer ones (I will usually give an o/o a "spot offer" on a short one). There might be some where I'm getting &2.00 a mile for the van run, but the next one ends up in a fight and I'm only able to get $1.00 per mile from a broker (and still pay you .85 total money), just to keep your butt from sitting another day.
 

OntarioVanMan

Retired Expediter
Owner/Operator
Offline
the only way i could see me moving to a % base again was if the pay never went under a buck a mile plus fsc.

Dan...do what some already do, just turn down everything that isn't sprinter rate...
But keep in mind they have terminated contracts as well...
 
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