Hi, I have a 2000 Chevrolet Express 3500 Extended van. I have been looking at different ads, and am stumped on something. Can anyone tell me the difference between a mileage rate, and a percentage of billed revenue? Also, I live in Michigan, which carrier would be good for me living in Michigan?
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Please explain revenues
- Thread starter Left Turn
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With mileage, you know up front what you are going to make, ie, if your contract reads .85 cpm, then you can eaisly figure out what you made after your trip with expenses.
On the percentage side, your contract will specify what percentage of the tariff (what the company booking the freight is charging the customer) you will receive, i.e, 60%. 70% etc. If the company is charging the customer $1.40 and your contract is 60% of the gross, you would make $300.00 on a 500 mile run.
Now, how do you know what the trariff was, mostly you take the word of the company. As I recall Federal law says that you have a right to view the billing statements. Hope this helps
On the percentage side, your contract will specify what percentage of the tariff (what the company booking the freight is charging the customer) you will receive, i.e, 60%. 70% etc. If the company is charging the customer $1.40 and your contract is 60% of the gross, you would make $300.00 on a 500 mile run.
Now, how do you know what the trariff was, mostly you take the word of the company. As I recall Federal law says that you have a right to view the billing statements. Hope this helps
You state you live in MI. Check out CTX in Warren MI. I ran with them for a year and did pretty good. It is my understanding that CTX has made a lot of improvements. There are others (probably many) in the state. CTX more than likely is still paying a percentage.
My personal preference- flat mileage pay because you can't really go wrong with it. Like stated above, unless you are checking up on the company on a regular basis, how do you REALLY know what they are charging to the customer? I 100% believe I was major league ripped off by some companies I ran for in the past who paid by percentage.
Why do I feel this is so? I can look back at records I have. One company I used to run for lost an account to the company I run for now. The shipper at this account stated to me that the company I now run for charges half of what the old company charged to run the freight. Old company only gave me .90 a mile to run these D loads, where I now get $1.20. I feel the numbers simply can't add up to the old company that paid percentage being honest.
-Weave-
Why do I feel this is so? I can look back at records I have. One company I used to run for lost an account to the company I run for now. The shipper at this account stated to me that the company I now run for charges half of what the old company charged to run the freight. Old company only gave me .90 a mile to run these D loads, where I now get $1.20. I feel the numbers simply can't add up to the old company that paid percentage being honest.
-Weave-