Guarantee Pay Or CPM?

Topic 14754 | Page 1

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Freebird's Comment
member avatar

So the company I plan on going with after school has the option of a guaranteed weekly pay. Ive added the pay up including the raise at 6 months for annual salary of a little over $40000 on the year. You get another raise at 1 year which would make the salary for year 2 of $47000. The pay comes to an avg of 2100 miles a week for year 1. Also like to note that if you do get more miles during the period you get quarterly bonus of those miles. Seems like a great odea to go that route while first stsrting out with the company. However, im afraid of running hard at first and get my hopes up of a quarterly bonus due to running more miles than the avg 2100 with the guaranteed pay, and then the company all of a sudden stops giving me miles when that quarter is almost up just so i dont get the bonus and i end up sitting a lot. Just looking for your guys thoughts and opinion of the guaranteed weekly pay or just go route of cpm when i start with the company? Tia

CPM:

Cents Per Mile

Drivers are often paid by the mile and it's given in cents per mile, or cpm.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.
Old School's Comment
member avatar

Freebird, I make approximately 1800 bucks in bonus money each quarter. The company loves those of us who make that type of bonus money because we are the ones making money for the company. They post our names in the quarterly newsletter because they are proud of us.

They aren't going to cut your miles to keep you from making more money. Every mile you run helps them - you can't believe the horror stories you've read on-line.

They want you to make the most you can, that's why they offer a bonus - it is an incentive for you to apply yourself.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.
C. S.'s Comment
member avatar

It doesn't behoove a company to stop giving you miles to prevent you from obtaining a bonus. They still have to pay for the truck and insurance when you're not running, not to mention if you're getting guaranteed weekly pay they're still paying you a salary. It doesn't make business sense. The guarantee pay sounds good, but does it mean you get less money overall if you consistently break that 2100 mile average? Or does the bonus compensate for all extra miles, at the same cpm rate that you would get without the weekly salary?

CPM:

Cents Per Mile

Drivers are often paid by the mile and it's given in cents per mile, or cpm.

Eckoh's Comment
member avatar

It depends on the company and how its setup IMO. I was looking at a company that had a min pay guarantee as long as you hit 2000 miles in the week. It sounds great 1100 bucks once you hit 2000 miles, however that CPM was 38 so once you hit 2000 you then worked for free for the rest of the week unless you did over 2900 miles.

With that setup it did not help your wallet to drive hard yet at the same time when you don't drive hard the company is not as excited about you.

Look at it from both angles and see if its a set pay regardless of miles or if you can earn more then the guaranteed pay and if so what does it take to do so.

CPM:

Cents Per Mile

Drivers are often paid by the mile and it's given in cents per mile, or cpm.

Freebird's Comment
member avatar

Its a guarantee no matter how many miles you get for that week. At tge end of the quarter you get a bonus if you drove more than the guarantee. I was asssuming it would be all miles but after C.S. brought it up i have sent an email to my re ruiter of that company to find out the full details of it. Thanks c.s. for bringing that up. Idk y that slipped my mind. Thats why i wanted to ask the forum. Ill get an answer tomorrow.

Look at it from both angles and see if its a set pay regardless of miles or if you can earn more then the guaranteed pay and if so what does it take to do so.

Justin D.'s Comment
member avatar

@ Freebird,

I know the company of which thou speaketh... They aren't going to deprive you of miles nearing the end of the quarter. It wouldn't make sense for them to. Sure they've already paid you out for (or factored in the cost of) the 2100 miles per week, but they will be paying you out at the same rate per mile for the bonus as they did the guaranteed 2100 miles. So it really isn't costing them any more per mile for your additional miles accumulated than the initial 2100 they guaranteed to pay you for.

G-Town's Comment
member avatar

When I started on the Walmart account they paid a daily, flat rate regardless of mileage or stops. At first seemed like a good idea. It wasn't until they changed to a CPM plus dispatch and stop pay that I realized I was leaving money on the table. That said, since this is a performance based business I want my compensation to align with that premise. This affords maximum income for maximum performance.

CPM:

Cents Per Mile

Drivers are often paid by the mile and it's given in cents per mile, or cpm.

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