Mileage Rate or Percentage %? (What's YOUR Poison?)
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- Опубликовано: 16 июл 2020
- Mileage Rate or Percentage? (Which is the LESSER of the Evils?) There are 3 main methods of pay for truckers in the trucking industry: Mileage, Percentage and Hourly Pay. In this video, we'll look at the 2 more common methods of pay Mileage vs Percentage Pay for truckers, and our recommendation as to which is the 'lesser of the evils'.
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Good Day Big Strapper. Thanks for taking the time to watch today's video. How about you? What's your take on pay? Mileage or percentage? What have your experiences been? Love to hear from you, as always.
What's your opinion on per diem or guaranteed pay for company?
Personally im paid percentage. I used to be by tge mile. Percentage pay has been a real blessing
Truly there's advantages and disadvantages to both systems. Depends on what the company offers.
Another driver and I did $200/day salary for a dedicated account. He would "run out of hours" every single day and I would work up to 19 hours a day.
The account hired me directly after a few weeks; hourly, might I add ;)
I've figured this much out.
Most truckers get screwed over.
Look at the total hours you are away from home at work.
Then go time and a half after 40 hours.
Math it out.
Most make very little.
Yes, you have a great paycheck.
But you have no life.
Hourly is the only way to go now a days. I've worked both percentage and mileage and now that I'm hourly I'll never go back.
Feesl better not having to worry about being stuck in traffic, held up at shipper or customer etc.. since you get paid regardless.
I'm even MORE encouraged to help my customers because I'm hourly, which makes my customers happy with my company, and keeps them coming back :)
I never got the hours
I drive in the UK, and hourly is the way. It's time out of my day for the company, doesn't matter if I'm turning a wheel, I'm on duty. Shop assistants don't stop being paid when there's no customer to serve.
Hourly Local operator is nicer than i thought then . Staying put
I was on mileage pay for five years with a big carrier. But they, like most of the big names, use point to point miles, not actual route miles. So I was on average driving 5-10% more miles than I was paid.
Now that I drive for a small business, I get a percentage of the load. I like this much better, as it puts my dispatcher on the same goal as myself; to get the best paying loads. And I earn much more green this way.
I’ve been burned by being paid percentage. I was told my pay was 26% of gross truck revenue. 12 years ago, a year into my employment, I found a billing invoice at a customer that was left out in the open on a counter top. I look and found my company was charging a higher rate than what my pay sheet said I was making. My pay sheet said I was getting 26% of a lower rate. With a percentage you don’t know what the company is really charging. I get paid a flat rate per load now and I like it. Everything is upfront and you know what you will get paid. I also get paid hourly for demurrage and wait tine for breakdowns on top of the load pay so it’s a good arrangement.
Milage is good for long runs if milage pay is at least 45cpm and up
Percentage is good for short if the rates are up
hourly Is good if the hourly rate is at least 25 bucks plus
Sounds right
I think if you figure in all the unpaid time/work of a percentage pay or milage job you would be making more at $20 an hour than $.45 a mile, especially if you start earning time and a half after 40 hours.
You must be a fleet driver. Owner operators don't make a penny if the rate is under $1.75/mile.
Couldn’t have said it any better. Percentage is my favorite, but like you said. When they rates are low you are screwed no matter how many loads you pull. But when the loads are paying good. Makes for a real easy week of running.
if it aint atleast .50 as a company its not good enough
I'm an independent and last year I averaged $2.34 per mile for all miles, most of it power only. The important part is to know your costs and worry about NET income rather than gross. When I was a company driver years ago, I was talking about pay with another driver and he was running 4000 miles a week at 20 cpm (large car fast truck) and I was running 2000 miles a week at 62 cpm ( oversize). That's $800 per week against $1200 per week. Making money in trucking is not about working harder, it's about working smarter.
I work on percentage. I like turning less than 1500 miles a week and grossing 1000 plus.
The answer...HOURLY!
this is why im glad im home daily making 70k salary
good jobs are out there but the first 1 or 2 do suck
Just want to compare my rate to other people
I’m at 55k a year salary Monday through Friday
Typically 7am to 3-4pm
Usually no more than 43 or so hours
2 weeks paid vacation. Plus all major holidays paid off plus some other smaller holidays.
Starting 2022 I’ll have 3 weeks vacation
New equipment 2022 Kenworth T680
Available “overtime” if I make a run on Saturday.
I left a $23 per hour company where I usually only worked about 40 hours but some days I would use my 14 hours
Some I’d only work 8 hours.
We’d work 4 days a week. But we delivered to gas stations so it’s a whole lot of physical work.
Here I usually do short hauls. Some live loads. So far so good.
Getting paid by mile but the company almost always screws us on the miles. They pay helicopter miles. I had a load that was 710 miles and they gave me 640 miles. They pull a lot of scumbag moves with mile pay. I think hourly is the way to go, key to key.
Im a small carrier compared to others but I pay $120 a day if the truck is moving or not.
Its simple and I don't have to hear complaints cause everyone knows what they made.
It works for us.
We have our own customers and we broker ourselves as much as possible so we do better then most.
I use to work for a company that did it this way and I liked the fact that I got paid for down time, 34s and brake downs so I figured it was a good model.
I take 10% off the top of every 1/4 for myself and keep the rest in the company.
I want happy drivers cause a happy driver is a good driver.
120 on top of other pay?
@@bigeric8334
We run a lot of local routs and most of my drivers are home every night but if they do go over a certain number of miles based on .45 a mile then they get paid mileage.
And around here thats pretty good money for the work.
120 per day? I wouldn't get out of bed for that kind of pay. Thats 15 an hour if you work only 8 hrs. You can make that kind of money flippen burgers where I live. Driving a semi you should be making a minimum 20 an hour after all you put your life at risk every time you get behind the wheel.
Thanks for another very informative video Dave
Thank you for all of your work , efforts and everything that y'all do
I always worked on mileage, and you're the first to recommend mileage pay but you make sense.
I've discovered that mileage pay is good if you run over 1000 miles but if you run less than that hour pay is better but percentages dont match hours on short haul. But can be great on long haul. But like you say you are at the mercy of the broker, especially if it is a multi stop load. Great video Dave....
I can't complain I get hourly but I dont drive as much. Glad to see another good informative video as always. Keep the rubberside down an I'll see you on the backhaul.
Thank you for this very informative video. To add to your commentary: There are companies that pay mileage under "Zip code to Zip code". You know some of them, I am sure. The problem with this system of zipped mileage is that the companies always skim; they always pay from beginning of Zip zone to beginning of Zip zone and nothing after that. I worked for one of those companies for a month to discover that I was being shorted at least 40 miles per trip, to the tune of over 200 miles per week - so there is also another manner of chicanery that dishonest companies employ. Be well, stay healthy, and watch your six at all times (hell, watch your six, twelve, nine and three).
I remember my dad talking about the old HMG pay rates that some companies used. They were basically post office to post office mileage but even that varied from detours, restricted routes etc. I've always run on percentage (85% of the gross minus 5% trailer rental fee so 80% net) and I'm still very happy with it. I also get paid a mileage rate (.95/mile) for deadhead over 100 miles, hourly ($50/hr) for trailer moves and hourly ($80/hr) after 2hrs detention time. I started as a part time fleet driver for this company in 1993 and bought my first tractor through payroll deductions from them in 1999. I'm happy with my situation.
I also know of one steel hauling company that still pays by "hundred weight". I'm not sure exactly how that works but I know it's been around for a long time.
Funny thing is that certain companies put the milage on the paperwork that you can double check against your paid mileage
Dave, I just want to comment on the milage rate thing. When you say that the drivers trust companies to give them an honest mileage rate without checking their odometer is inaccurate and also ineffective because when you talk to the company about it and let them know "hey I'm not getting paid for the miles that I'm actually driving" they always have some excuse whether its "we pay zipcode to zipcode" or "practical mile" and some only pay loaded miles but not empty miles. USA Truck was one of the best companies I've driven for as far as pay because when they had my miles wrong I didn't even have to call them my driver manager CALLED ME and said "I noticed your miles were off no worries it will be on your next deposit" AND IT WAS.
Fixing the big problem: No otr trucks allowed in large cities. Outside cities have warehouses for deliveries and p/u. Smaller trucks only allowed in cities. Otr drivers paid 30 to 40% of load delivery cost. Things must change in the trucking industry!
I run containers out of Milwaukee Chicago area and I get both mileage and hourly. I get mileage when im going down the road and when I'm sitting at a shipper or the rail yard I'm getting paid by the hour. Our hourly rate is good but our mileage rate is a little on the low side but its really the fairest way to pay because everyone is getting a fair shake. Hourly is the best way to pay but some drivers take advantage of being paid by the hour so many companies choose to pay by the mileage to keep drivers from taking advantage of the company. The only time I see that mileage pay sucks is in the winter months when the snow starts flying and then your actually loosing money and are actually working in more dangerous conditions which isnt really fair .
I've run both mileage and percentage. Percentage can be great, but if your carrier doesn't update their rate on a regular basis, pay stagnates, and what was good pay, turns into struggling to make ends meet.
I have worked mileage, percentage, hourly, by the weight, flat rate, and salary. It depends on the lanes and what type of trucking your'e going to do.I made a living, no matter what i did. If I were to OTR today i would want to be paid mileage. If your'e local you want hourly.
Please make a video explaining the 2 class act suits that Prime just lost and exactly what it means for the industry. I read the article but don’t feel like I fully understand it. I just know it favors us as truckers
When I was at Swift we were paid milage using ZIP codes so it was basically from post office to post office not actually distance between endpoints. Not a big deal if you are going from Chicago to Dallas but from one suburb to another it could cut a lot of miles from the drivers. Currently I'm driving day cab working on a "per lane" it's supposed to be based on the miles and time.
The most money I ever made was as a local company driver was making percentage pay hauling used newspapers from local recycling plants to a local 100% recycle paper mill. Other than that, the most I made as a highway driver was hauling B trains into Michigan with re load out of Gary Indiana. But the most money I made period, was as a broker hauling cars inside of Ontario. My zone ran from Toronto up to Algonquin park, all the way east to the crappy, ooohps, I meant the quebec line.
As a driver I've been paid all the above. Except for the one outfit who's check bounced. I've not done bad. Had a company paid with "bonuses". Tank Hazmat ect. Then stiff you on those "bonuses"
I'm local hourly/overtime now.
Truck is old but money good.
ACTUALLY...Since ELD's are MANDATORY now shouldn't the mileage be based on the ACTUAL MILES on the ELD? 🤔🤔🤔
Whatever way truckers get paid, considering its 2020, We're NOT GETTING PAID NEARLY ENOUGH.
when are we gonna stand up TOGETHER?
Some companies pay by the lane too
I work short miles mostly 250 max, so I make out better on % pay. I will agree though, long distance running with the right carrier is better
I work percentage pay, but the truck is billed hourly 90% of the time. So its basically hourly. The rate haul(per tonne) isn't too bad either. I also get a fuel efficiency bonus. I'm not in freight so I never spend hours waiting around unpaid.
Love your videos brother
I appreciate that! Thank you!
@@SmartTrucking whats considered good cpm though? And for it to make any sense, you're gonna have to do a shit ton of driving right? I've only done % and I've been driving about 7 months
I long haul by the hour , 33 an hour.... And I'm thinking about bumping it up....
I make between 400 and 500 A-day long hauling....
The photo for this video is priceless🤣😆
First. Also, what do you think about the old Chevy C90 trucks? Just in terms of the way they look.
I write my mileage on the running order for that pay period and don't get screwed. I use the peoplenet software which tells me my mileage so there is no disputing the figure. 12400 miles in 3 weeks.
Only ever driven getting paid by the hour and it pays the same if I am 14' wide, sitting on a fork lift in the yard stacking loads together or swinging a hammer helping the builders.
The brokers make more than the drivers that’s a bunch of BS
If I got mileage I would want practical miles not post office miles I’m glad I’m hourly
I'm a owner operator I base all my runs by the hr n i figure in traffic n were I'm going to pick up from n what I'm picking up.. i haul car n haul for mostly the same ppl all the time but it works out for the better.. I appreciate all the time u put in ur videos I learn something from every one of them tks
If you drive intermodel you'll need Excell. They pay mile, hourly and drop-stop-hook...
I work on percentage i make 80 percent of all revenue as a owner op and i make great money with my carrier
trucking schools hire new drivers very easily they don't pay the good paychecks but for most of these drivers who's been homeless and no responsibilities these pay checks actually working out more than enough
Thank you
I run miles but company run by cross bridge $35, drops and detention time no bad about 1600 a week gross
hi my friend great vedio
I get payed 45 cents a mile it’s alright but sometimes they give me short hauls and it kills my time and money. Trucking sucks some times
I am new to the channel and have some questions - looking to get into trucking as I am about to be furloughed from my current profession due to COVID.
-my main question is if i get my CDL, work for a year or so, then go back to my original profession, are there opportunities for a CDL driver to "pick up" shifts here and there on an as-needed basis. I figure if I go through the trouble of getting my CDL, when I am eventually back to work, can I still pick up shifts on my days off?
Can i be first to say with u in thumbnail kinda makes u look like colonel Sanders lol 🤣
Thank you my good man.. two bucks a mile become one Buck a mile.. LOL.. I'm a truck driver, but I'm still green.. at 60 years old I've decided to put the 53 footer down and start driving a box truck.. now this female owner has box trucks two at most she wants to pay me by a percentage.. not only that, if I'm driving a long distance at the end of the night I get to sleep in the hotel room or motel.. she tells me that the driver pays in on 1% of that.. if you're still out there give me your take on this Levon.. please respond.. thank you
Nowadays you get paid practical miles more or less how the crow flys you still get ripped off not what you drive thats what you have to look out for in a carrier if there saying a run to chicago to Detroit is say 300 miles and its actually 500 you you got ripped off usually there fairly close to actual miles but at the end of the week you compare miles driven to paid you got apples to oranges
I’m surprised there isn’t paperwork disclosed to show what the entire load pays and what deductions ,fees, expenses, commissions get taken out. When you buy a house it’s disclosed. Btw my company is Matheson trigas and they deliver medical gas and they docked my monthly bonus because I made a minor error on my log😡
You did not mention that these criminal enterprises are using the many different PC MIiler versions to scam drivers, 5-10% short on mileage is the norm.
Pd % & some loads r flat rate. Ld/unld 24/7. 250mi radius from home.200 mi trip is a long 1.
I support SMART-TRUCKING!
by Akina from japan.
What's your opinion on per diem or guaranteed pay for company?
No matter how your pay is calculated, what matters is that you are satisfied with what’s on your pay statement on Friday.
Probably depends on the type of freight and trailer you run
Hello, I am trying to update the pay for trucking at the job. I have a calculation for 8.00 per mile up to 40 mile minimum. Then everything over 40 miles is .14 cents per mile.
Where I am hitting the wall is for the under 40 mile mark.
I can not get the figures to come out right. Can you see if you can help explain this please? Let me add this, the figures are for log hauling at 25 Tons and 28%
iv made the most money on percentage, pullin chemical tanks, i mean not even close,more pay less miles ran, if i put in a week of 1800 miles anymore its a big week lol, that being said the driver has to be smart and ask a ton of questions instead of just grab n go, also u need a disbatcher that knows how percent works a milage disbatcher will make u go broke on percentage, anyways i like it less wear on truck less fuel i buy
I’ve been happy with hourly for 18 years now.
I work for a small flatbed company and getting 30%. Is that the norm these days?
I love your content. It just takes so long to get to the point of the topic your talking about
It all comes out in the wash, accept for the lazy on hourly rates, of course that's if you are total an honest number on percentage, the ladder is simple math on mileage
Should be minimum 25 hour first 40, then 37.50 for the remaining 30 hrs. So $1000 plus $1125. Weekly hourly pay $2125.00 gross. JUST LIKE EVERY OTHER JOB
I get paid hub miles but I drive for a private fleet
Before watching, as a company driver....hub miles lol
I got a Video idea for You id like you address the Way Truck Stops Have changed into Tourist attractions more and more each year , im getting sick of People giving me Dirty looks when i wash my face after a Long Drive , Im sick of waiting 30 minutes in Line just to pick up a weigh ticket because of some people that just want to say they're at a truck stop to look hip, im sick of ordering food and having to wait 1 hour because the 4 wheelers want to post selfies of them selves eating at a Truck stop, this Place use to be a Safe Haven for Us now we get dirty looks because we look zombied out by some Family like as if im in the Wrong spot.
Another thing they do is the ol fuel surcharge trick.
Safeway wants to pay me what sounds like load pay based on distance for local home daily... they claimed they changed it from hourly because drivers abused the hourly system. However somehow they are still teaamsters... what should I do ? Benefits aren't bad because of teamsters but pay well we all know it will be all over the place.. based on seniority
I disagree, mileage pay never came close to my pay when I was getting percentage. Percentage pay only broker was getting you and you could negotiate the price always. With mileage pay everyone is getting you. Broker and owner
I agree but believe he's referring CPM to make it easier on figuring numbers to come out ahead/consistency. I mean you wanna talk about a headache? Last carrier I ran for I leased the rig from an O/O. Carrier paid CPM and the O/O paid percentage. Don't miss ANY of it besides the scenery
I've always preferred mileage pay. And with the lawyers nowadays??? When mileage don't add up,take'em to court.
Just make sure the company thats cheating you doesn't pay off your lawyer to screw you.
Cant wait for your discussion about trump and the department of justice for the truckers. Hopefully we can make fair wages again for our crucial hard work and time away from home.
These carriers all use the household goods mileage . Seriously any kid with a phone can get more accurate mileage !
I need your help and advice what most things to whenever you buying a used truck I choose freightliner Cascade DD15 AUTO WITH 375.673
Might be okay, do you know the trucks' history Mohammed?
I’m on salary
The worst kind of pay hoss
NEITHER for me here..... I'm paid per HOUR no matter how long it takes to do a switch, traffic, waiting load and loading... best paid ever (24,00$) and soon to be up! As mileage is good for LONG runs BUT, waiting time OMG 30,00$ per 4 hour block = 6,66$ an hour? WTF who are you kidding here? that is less than minimum wage!! COME ONE at least 15,00$ an hour so the 4 hour block is 60$. Switch should be 17,00$.
guys dont calculate their downtime and the hours they spend away from home. I like hourly because im always being paid. once oilfield comes back im going back.
I work % now. So you explain me how would you pay me as o/o price of $4.50 per mile what is it now that one customer pays for their loads. So how much would you pay me as owner of the company??? I get presently 80% from loads. I would really like to see how much would you pay me per mile as O/O
You never mentioned how many empty unpaid miles you get, or how you know beyond a shadow of a doubt how much the original freight bill was before your cut.
@@SmartTrucking let me try again . This customer pays $2400 to NJ area loads between 1000kg-10000kg regular customer. Which is approx $4.5 per mile but I'm payed presently %80 20% to company their trailers. So calculation should be easy . So after I pay everything let's say I'm left with $2.25 per mile so I would really like to find out who pays that price per mile and I would go there right away. Thank You
@@SmartTrucking by the way not lot of empty I'm PU in NJ or on the way back to Ontario
I currently work percentage but only for this company if they are trustworthy work for them if not sack em
In all honesty this one is tuff. You are relying on truth transparency cause if your on % 1st load absolutely has to pay all the time plus your company isn't taking a unmarked cut then feeding what's left. Seen this happen a few times. Mileage is good in a sense but I've seen how the use absolutely shortest route that a truck could never take. Or they pay not bad but miles are longer and practical. Even hourly your at the company for absolutely honest about getting a decent per hour wage and them paying for your time properly. Its a tough decision really. But if its a very reputable company % is the way to go. I've done Mileage most of my trucking career I've done very well. Usually I break down how many hours to do the trip then how much per mile you make with all the extras in, like extra drops or wrap and peel or tarping or you know. With elogs its made it simple and on average it works out to 29 to 30 buck an hour. (I'm a company driver for this eg) So it fits but you work hard for it. You really need to be a good mathematically good to run numbers and break it down.
All true!
Wouldn’t do anything besides hourly.
🇺🇸👍🏽
Is 25 % good ?
Does GP Transco pay hourly?
Lots of scamming companies out there and they manage to stay in business and have a steady stream of new hires
I always rhought you were bald!! You look great without a hat!!!
company dont pay you empty miles and pay you zip to zip thas how they fuck you over
% I make alot more money this way.
I don't even recognize him without a hat...
You ain’t a trucker unless you have the hat.
They're still doing that bs
You look better now , I think you quit trucking and only make RUclips videos now
Gp trucking is a scam.sham on you for promoting those Russian company. They steal from driver earning weekly, cheat driver through various methods. Withholding driver pays, hold escrow, hold bougs security deposit. You helping them steal from driver and in their recruitment.