Every load generates a fee to the customer or - 100% of the load. This money earned is split up to cover wages and expenses (unit overhead - fuel, repairs, maintenance and insurances). Just like if you go into a store and buy something, they add to the cost.
35% goes to you and this is your wage, 16% also goes to you and this will cover the fuel for the load. 19% will be put into an escrow account for future repairs and maintenance to the unit. An additional 5% will also go into another escrow account for the units insurances and
25% will go to the fleet owner (to cover the units payment and some profit),
this all adds up to 100% / 100% of the load is all accounted for - for everyone and the overhead expenses.
We will not give you fuel money up front for the fuel. You will have to pay for that and get reimbursed (the 16%) either daily or on paydays (every other Friday). So, you will coordinate the fuel purchase but your not paying for the fuel (remember, your getting reimbursed)...
Daily fuel advances: You can get daily fuel advances if your pocket book is on the lean side or get this money back on paydays and simply purchase the fuel and get reimbursed on paydays. We do not give cash fuel money, credit cards, debit cards or comdata cards to drivers anymore. Too much abuse has transpired / unauthorized purchases and we have stopped that program permanently. Now the program is set up for reimbursement only.
In this method, everyone is compensated. 1.The driver gets 35%. 2. The fleet owner gets 25%. 3. The cargo unit gets a portion as well to pay for the overhead (fuel, repairs, maintenance and insurances).
As you can see we allocated 5% of the overhead for insurances. If you
have a "gray" MVR (points, tickets etc.) and the insurance premium would increase, you would have to pay the difference. The fleet owner will not absorb any increases due to your MVR's poor condition. The recruiter can explain this to you if you call or email. You should know if you have these issues.
If there is a premium increase, you will have to cover that through a wage deduction. Insurance rates are
based on age, single or married, MVR condition, your zip code, your
credit bureau rating and other factors. Mainly your driving record will
influence things as "normal" or "abnormal". If you have a "gray" MVR,
the fleet owner should not have to pay a higher premium because of
your driving habits. This enables us to still hire drivers with poor MVR's. Granted if it has major issues, your recruiter will advise you that your not eligible.
Wages: Your paid 35% of the load. This is your wage to keep and
spend as you wish.
Wages: Your paid 35% of the load. This is your wage to keep and
spend as you wish.
The units wages: The unit will earn 16% for fuel and 19% for overhead
(oil changes, flat tires, etc.). It will also get 5% for it's insurances.
You will be an independent contractor and get a 1099 at the end of
the year for your wages.
We will not give a perfect stranger, fuel money (cash or credit
card) to run the truck. This has had issues in the past so we do not
do that any longer. You will need fuel money to run the unit but we
will reimburse you the fuel money. This prevents our need to give
you cash or credit card.
After each load, we will transfer money into your checking or savings account (or a debit card) of the 16%. This will be enough for the fuel for the load. Your 35% wage will be paid on regular paydays which is every other week.
Here is a summary of what you have read on this topic:
35% of the load is paid to you every other week, direct deposit.
16% is paid to you daily after each run.
19% is set aside for the units ongoing maintenance and repair fund.
5% will cover the units insurance costs.
So far 75%...
The remaining 25% goes to the fleet owner to cover the payment and
hopefully have some profit left over after each run for their motivation.
Another reason why we prefer this method above is because if the fleet owner is paying for the fuel (up front with you) and you need to use the vehicle for personal travel, your actually spending their gas money. Again, if you are not paying attention on your delivery, and you over shoot the load by 10 or 20 or whatever miles, the fleet owner will be paying for your mistake in terms of gas. If you decide to drive home one night and we'll say it's 50 miles or whatever and the fleet owner is covering the fuel, you'll be spending their money (from their 25%) for YOUR personal travel. Another example: Say your far from home one day and you decide to drive around and sight see, sure why not (if it's the fleet owners fuel)!
So, as you can see there are many reasons why the fuel must be
supplied by you. This way also enables you to drive freely around to
do whatever in between runs, at YOUR expense no one else's.
Now, if you feel this is unfair, go out and BUY your own unit and
this is how it would be anyhow, it would be exactly the same with
the same recommended percentages.
No matter who's name is on the title of the unit, the percentages
above (35%, 16%, 19% 5% and 25%) should be the same any how, even if it's your own unit. Here's why: It is going to take so much money for fuel, maintenance, insurance and a decent wage no matter what. There
must be a budget so all these percentage sections can be paid so the
unit and the business runs smoothly. You can't for example, jack your 35% up because where will it come from? There's 100% to work with no matter what. The budget covers all costs to operate the unit. What's left over is wt's left over. This would be no different if this was a restaurant. A meal would cost XYZ. The costs associated with the meal are: The cost of the food, the overhead (grills, building, employees, napkins etc.) and the profit.
Everything is accounted for and paid for.
Just like the above break down for the cargo unit, it's essentially the same here.
35% of the load is paid to you every other week, direct deposit. (this would be the cashier and staffs wages)
16% is paid to you daily after each run. (this would be the fuel or the "food" in this example except the money would go to the restaurant)
19% is set aside for the units ongoing maintenance and repair fund. (this would be the costs to cover broken machinery, grills etc., in the restaurant and building repairs and maintenance)
5% will cover the units insurance costs. (this would be the same for
the restaurants insurances)
So far 75%...
The remaining 25% goes to the fleet owner to cover the payment and
hopefully have some profit left over after each run for their
motivation.
In this example, this 25% would go to the corporation that owns the
restaurant, to keep them motivated to have the operation.
So, as you can see, these numbers though may need individual
adjustments, all bases are covered. You can't be paid more than your
35% unless you own the unit, then you could add any left over
profits from THAT CATEGORY, to your own wages. |
