what are the procs/cons of percentage pay? is it better/worse then mileage pay?

[ksand773]

I am new to trucking and looking into different options of pay rates. I was offered a percentage job, I think its 35%, and I am a company driver. is that good or bad? am i better off driving for mileage? please let me knmow the pro/con of percetage loads versus mileage loads

 

[Sinister]

35% is a pretty good rate of pay for a percentage driver. The problem now is that rates in basically the entire industry are perilously low.

What kind of freight are you going to be hauling? If there's going to be huge deadheads, then you might want to think about getting paid for all the miles you turn.

If one load is going to be relatively close to the next most of the time, then it shouldn't matter much.

Being on percentage will allow you to figure what the truck is making, and give you more knowledge about how the business end of things works should you decide to stay in trucking, and become an owner operator.

Either way, you have to realize that the guy hiring you isn't going to let one group of guys get too far out ahead of another group in terms of money. It's going to be ballpark either way.

 

[Beechvtail]

With mileage pay you should know with few issues how much money you are making.

With percentage you are being asked to believe the person telling you what the rate is.

Unless you know for a fact what a load pays (almost impossible to know) your employer will have an unfair advantage.

Is 35% off the gross or net? Gets confusing.

I believe percentage and per diem are both employer scams.

 

[Sinister]

That depends really. If youre driving for some two bit outfit, then yeah, I'd be real scared about being on percentage. But if it's a larger, stand up company, then it shouldn't be a problem. I understand TMC pays on percentage, and say what you want about them, but if they made a habit of ripping people off they wouldn't be as big as they are, not last as long as they have.

Per diem is also something I've worked for, and I have to say, tax free money is nice. Especially since I hve no faith whatsoever in the government to actually pay out what I'm putting into Social Security.

 

[Chae Transport]

Honestly it is no different then any of the others, (1) you need to look at the varibles to the load. Whats the shipper paying to move it. (2) Whats the time that you will have consumed. (3) What is the expenses involved. It all depends on the commodity, the shipper, the carrier, the driver. The freight and lanes will normally dictate the rates offered

 

[Mike]

I understand TMC pays on percentage, and say what you want about them, but if they made a habit of ripping people off they wouldn't be as big as they are, not last as long as they have.

Actually, I have to debate this statement.

TMC is a cut-throat company, so any percentage that you are getting as a driver would be much better if this company was hauling freight at decent rates.

One sad thing about this industry, is many drivers will drive for much less money than they should accept, and put more stock in the looks of the truck they are driving. TMC has nicely equipped Pete's, and I am afraid that is what keeps these drivers behind the wheel.

Same goes for many of these outfits that run illegal as hell. They pay much lower than most companies, but they put a driver in a fast truck, and safety departments are non-existent. The result is you got solo drivers running for .25/mile and running 4-5K per week.

Now, as for the topic, neither pay setup is better than the other. If you are going percentage, you need to know what kind of rates (on average) the company is running for. 35% might sound good, but what if the rate average is $1.00 per mile? Another company might only pay 25%, but might be hauling for closer to $2.00 per mile.

 

[lunachic]

And not one of you brought up DEADHEAD.
0%on 0 = 0
Most companies only pay DEADHEAD after the first 100 miles, some more miles after.
Know matter which way you go read the fine print, and ask questions.

 

[Sinister]

Actually I did mention deadhead.

 

[patriciajnsn]

I am new to trucking and looking into different options of pay rates. I was offered a percentage job, I think its 35%, and I am a company driver. is that good or bad? am i better off driving for mileage? please let me knmow the pro/con of percetage loads versus mileage loads

Like sinister says,35% of the load is excellent pay to start.I think most get paid 25%.If I were u I would go for the percentage first and if you're not happy with that then take the mileage pay by how many average miles u drive a week.I think it averages about the same.I drove for an o/o who was leased with SMX and received 25% and it was'nt any more then company drivers make.

 

[Bruce K]

I have been out of trucking for 3 decades and am coming back in -so you probably shouldn't listen to me anyway. For what its worth I drove for 25% of the gross pay to the truck back in '75 and '76. I made very good money, but Bullwinkle's right - I was a driving animal. That same company, Moodie out of Plover, Wisconsin is paying 22% today.

I would never run today the way I did in '76 - it's just too dangerous. I was young at the time and didn't know any better. Incidently, Moodie was a great company to work for and never pushed me to run the way I did. It was all my idea and I didn't last long.

Mileage or cents per mile - I doubt it's going to make much difference really. One thing I had back in the day was access to the actual paperwork so I knew what the truck was getting paid. Dave and Robert Moodie were good about that and I usually worked direct with brokers anyway.

Keep the Shiny Side Up,
Bruno K

 

[patriciajnsn]

Yep it is dangerous dot is on drivers like flies on shitnpaper just isnt worth it i get 6 to 700 miles a day legally sometimes even thats too much lol i dont know how theses guys do it drive well over their hrs and not get burnt out i couldnt do it nor would i even want to
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[Cerberus]

To me its simple. If you like to get an about average of what you'll make each week, then Percentage pay may not be for you. It's much easier to figure out weekly money if your running on the mileage pay. Plus percentage pay is like salary in a way. You only make that amount no matter how far it is. There is good and bad in each. Just ask to be able to see the rates of each load if you do take percentage pay. You'd be suprised how low some of these loads pay and maybe doing it by the mile will be better. It all depends on you. Both ways work, jjust have to decide which is best for your situation. Personally i don't care for percentage pay. Just one more thing to think about while out there.