What's fair and equitable

[cliff]

Retired company OTR driver looking at driving straight truck. Why? I guess there's still some gypsy in me. Anyway, have been looking for about 8 months and would like a little insight as to what is the acceptable contract rate ($$ wise) for signing on with an owner. I see that 60/40 seems to pop up a lot but no mention of FSC percentages or who is responsible for repair/maintenance of the truck you drive.
As a company driver I received .40 cpm and that was it, they received the FSC, did maintenance and covered all fuel. My question is: "What would be fair and equitable for both owner and myself", to ask for? Without cleaning his pockets or mine. Or should I say; "a good starting point". Not interested, at this point, in becoming a O/O.
A little insight would be greatly appreciated, like I said; "I know very little about the negotiations part of this or where to start. Thank You and any suggestions or advice would be welcome

 

[cheri1122]

60/40 means that whoever pays for fuel gets the higher %, but what the FSC actually is depends on the carrier - there are some with fixed rates, some with variable. I personally find it morally reprehensible to withold any portion of the FSC paid from the person who pays for fuel, but there are those who disagree - trust is a big factor here.
The owner is responsible for all maintenance items [fluids, replacement of belts, filters, lights, etc] and generally, for repairs. Most owners will charge the driver for repairs that they deem to be directly attributable to the driver's negligence, and that's reasonable - assuming the owner is reasonable, of course.
The driver is responsible for keeping the truck in good repair: doing what maintenance they are able [I change lights, but not belts], and seeing that needed work is done when it needs done.
It's all an individual relationship, though. Mostly, if both owner & driver agree on who does what, and neither wants to cheat the other, it can be flexible. If you're not sure, make sure it's addressed in the contract.
I think it's like any relationship: whatever works to make both parties happy is the 'right' way to do it.

 

[Humble2drive]

Also keep in mind that if you pay for the fuel then you should also pay for the fuel tax that is billed separately at a later date.

When I drove for an owner I preferred getting the 60% and paying for the fuel because I liked the independence to decide when and where to deadhead when needed without stressing the relationship. In the end it worked out best for both parties.

As far as tolls go, if you are required to pay the tolls then you are entitled to whatever toll money the carrier contributed. You will not come out ahead financially by paying tolls but again it can give you freedom to choose your own route without getting negative feedback from the owner.

I have seen the issues of fuel and tolls create some serious control issues by owners who want to micromanage their drivers and I have seen drivers who take advantage by touring on the owners dime. It works both ways so I say take the 60%, pay for fuel and tolls and run as independently as you can. It will also help you learn how to control those costs for when you may decide to become an owner.

 

[cheri1122]

There's lots of areas to cause friction: DH, turning down loads, going home - an experienced fleet owner will have these issues settled in his own mind, so it's up to the driver to decide whether he can work within those parameters. But it's always smart to find out what the rules are before the issue occurs, in a less emotional environment.
And dumb as it sounds, sometimes personalities just don't mesh - I drove for one owner who asked me the same question every time we spoke: "Have you got rid of that hitch-hiker yet?" I know it was just his clumsy way of being sociable, but it irritated me beyond belief pretty quickly.
It's like marriage: if you find a good fit, cherish it - and don't screw it up, lol.

 

[Lawrence]

I'll add this. The most common and seems to be most successful for smaller (10 or less trucks) fleet driver operations I know of is where the driver receives 60% of the rate and pays for their own fuel.

The larger the fleet - you will really want to consider another compensation package.

 

[runrunner]

I can agree with most of what is being said,but can add a little. No one mentioned the little extras that come up once in awhile like extra stops,inside delivery,or hand load,etc. I always looked at it as the owner is entitled to a percentage of all revenue,even labor,many disagree with me on that,just make an agreement on that from the beginning so no hard feelings later.I agree who ever pays fuel should get all the FSC. You may find it hard to get an owner that will accept a single,team is the way to go.I think most would agree fuel will cost you somewhere around 20 to 25 percent,it all depends on how well you control deadhead miles and how much you idle. A APU of course helps much. Good Luck!
I forgot to mention,I have never had an owner charge me the IFTA tax,but I don't think it would be wrong if they did as long as I got an copy of the charges.Oh yea,don't settle for less than 60/40.Owner pays all repairs.(As long as there are no leaks I keep the fluid's topped off at my expense,no big deal.)Every time I go home I wash the truck,I keep the inside clean as I go,I stay out 6 weeks at a time.

 

[cheri1122]

RR: keeping fluids topped may not seem like much when you think of a gallon of coolant here & there, but over the course of a year all those fluids add up to a tax deduction, which is simpler for the owner of the vehicle to claim than the driver, IMO.
LDB has a common sense policy towards the accessorials: truck pay [DH, extra stops] is split between owner & driver, people pay [labor such as inside delivery, trash removal] is just for the driver.

 

[runrunner]

RR: keeping fluids topped may not seem like much when you think of a gallon of coolant here & there, but over the course of a year all those fluids add up to a tax deduction, which is simpler for the owner of the vehicle to claim than the driver, IMO.
LDB has a common sense policy towards the accessorials: truck pay [DH, extra stops] is split between owner & driver, people pay [labor such as inside delivery, trash removal] is just for the driver.

It is just as easy for the driver to claim a tax deduction as the owner,after all the driver deducts fuel,as for splitting revenue whatever is agreed upon is what is fair. I just stated that I don't think it is unfair for an owner to expect a percentage of all the revenue a truck generates. That is just my opinion. The reason I feel that way is because the agreement is a 60/40 or whatever split of revenue.I don't feel anything is just for the driver because if that truck wasn't there there would be no labor charge being paid,I'm doing the labor yes but the truck is sitting extra time while I'm doing that labor.To me telling my owner he does not deserve his 40 percent of that labor pay is the same as telling him he gets no share of detention time. I want the owner to make money,just as I hope he want's me to make money. That is also why I keep the fluids topped off so I'm not sending him receipt's claiming you owe me for a gallon of oil or whatever. It really is not that much. Like you said if you get a good owner cherish them. If the truck is in the shop and the owner buy's you a room, I'm sure no one will complain. I try to give and take,not be greedy,that's just me. In my opinion the owner deserves a share of any revenue that truck earns.That's just me.

 

[psm127_dad]

... If you're not sure, make sure it's addressed in the contract.
I think it's like any relationship: whatever works to make both parties happy is the 'right' way to do it.

Very important to get a contract. It protects both the owner & the driver. A contract will also set expectations for both parties. There are still a few owners out there who do not have contracts or... never seem to get them to you. Beware! stay far from anyone who is not willing to put it in writing.

 

[Lawrence]

Very important to get a contract. It protects both the owner & the driver. A contract will also set expectations for both parties. There are still a few owners out there who do not have contracts or... never seem to get them to you. Beware! stay far from anyone who is not willing to put it in writing.

That's is some of the best advice out there.

When it comes to driving and finding a reputable fleet owner - we always recommend that drivers check out Expediter Services first, they have a well oiled machine and understand fleet drivers well.

 

[crich]

I don't think 60/40 is a good option. cause 60% of nothing can leave you the driver with nothing. I thought you asked what was fair. why would you sell yourself for 60% of nothing? if you spend your time sitting in a truck he or she is collecting 100% of your time how will you get 60% of that back? this is what I do you tell me if you think its fair. I pay my cargo drivers nothing to sit at home and ask them their day rate. if I am interested in paying their day rate I contract them. I pay the fuel and com-check them their day rate every day they are away from home if they drive 1 mile or 1200 doesn't matter. they get what they ask for doesn't matter what the load pays that's none of their business. its all mine fuel surcharge included.

 

[Turtle]

I don't think 60/40 is a good option. cause 60% of nothing can leave you the driver with nothing. I thought you asked what was fair. why would you sell yourself for 60% of nothing? if you spend your time sitting in a truck he or she is collecting 100% of your time how will you get 60% of that back? this is what I do you tell me if you think its fair. I pay my cargo drivers nothing to sit at home and ask them their day rate. if I am interested in paying their day rate I contract them. I pay the fuel and com-check them their day rate every day they are away from home if they drive 1 mile or 1200 doesn't matter. they get what they ask for doesn't matter what the load pays that's none of their business. its all mine fuel surcharge included.

Doesn't really give them much incentive to accept loads.

If you tell them which loads to accept, then you're not contracting them, you're employing them.

 

[crich]

not really so most load offers come when they are home. if a load is under 500 miles I expect them to drop and go home if I don't have another load booked for them yet. once they are home the day rate ends until they accept another load. I run a 24 hr clock and that's why I pay day rates.

 

[xiggi]

I don't think 60/40 is a good option. cause 60% of nothing can leave you the driver with nothing. I thought you asked what was fair. why would you sell yourself for 60% of nothing? if you spend your time sitting in a truck he or she is collecting 100% of your time how will you get 60% of that back? this is what I do you tell me if you think its fair. I pay my cargo drivers nothing to sit at home and ask them their day rate. if I am interested in paying their day rate I contract them. I pay the fuel and com-check them their day rate every day they are away from home if they drive 1 mile or 1200 doesn't matter. they get what they ask for doesn't matter what the load pays that's none of their business. its all mine fuel surcharge included.

Doesn't make much sense to me. What kind of money are we talking in a day rate without that info there is no real way to judge. Most likely I would take a percentage deal over that anytime. Who owns the van in your case i couldn't tell for sure in your writing?

Sent from my Fisher Price ABC-123.

 

[crich]

Doesn't make much sense to me. What kind of money are we talking in a day rate without that info there is no real way to judge. Most likely I would take a percentage deal over that anytime. Who owns the van in your case i couldn't tell for sure in your writing?

Sent from my Fisher Price ABC-123.

Drivers are confused when you ask them what they are worth on a daily basis. I don’t tell
them anything other than the contract is for anyone who has a clean driving record and can pass a drug test and that they must be added to my insurance without raising my premium. The only duties they have are to safely operate the vehicle, secure freight and fax paperwork.

 

[xiggi]

Drivers are confused when you ask them what they are worth on a daily basis. I don’t tell
them anything other than the contract is for anyone who has a clean driving record and can pass a drug test and that they must be added to my insurance without raising my premium. The only duties they have are to safely operate the vehicle, secure freight and fax paperwork.

Your still saying nothing about what you actually pay. Huge red flag.

Sent from my Fisher Price ABC-123.

 

[davekc]

Doesn't really give them much incentive to accept loads.

If you tell them which loads to accept, then you're not contracting them, you're employing them.

Bingo. There is no way I would recommend someone run that way as a independent contractor.
Have to agree with Xiggi if someone can't say what they pay, well........there is usually a reason. And usually not to the contractors benefit.

 

[crich]

Good thing I don't count on your recommendations. it's plain as day you get what you ask for. I don't hide anything.

 

[zorry]

I'm guess if you say you need $50 per day you get the $50 per day contract.
If you say $65 per day you get the $65 per day contract.
Then he counts a day as 24 hrs ?
That can be two days work.
Am I understanding it right ?

 

[davekc]

Good thing I don't count on your recommendations. it's plain as day you get what you ask for. I don't hide anything.

Ok what is the daily rate? I'll ask for arguments sake, 500 a day. Am I good to go since I asked?