Big Vs Small Company Pay Difference?

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Pennywise's Comment
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I have heard for the most part smaller companies pay higher CPM than mega carriers. Yes I am sure you can find an exception or an example to contradict this, but for the most part is this true? If so what percent more? As a base line we will say a Solo, dry van with 5+ years experience. What % or how many CPM are we talking here as an average? Is it a 2-3 CPM differance or more like 5-7 CPM? Just curious, weighing my options on whether to go big or small company.

Do you find that money wise mega carriers make up the difference in other ways like better and cheaper health benefits and high 401k match, bonuses and other things? Or do you find smaller companies have the edge money wise all around. I know there are tons of other differences between big and small but just speaking about the money aspect here.

Dry Van:

A trailer or truck that that requires no special attention, such as refrigeration, that hauls regular palletted, boxed, or floor-loaded freight. The most common type of trailer in trucking.

CPM:

Cents Per Mile

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

Old School's Comment
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I have heard for the most part smaller companies pay higher CPM than mega carriers.

Pennywise, going by "I have heard" is absolutely going to hurt you in this business. You can "hear" all kinds of nonsense about this business, just as you already have. Here you are "weighing your options," and you have nothing to offer an employer but a warm body who doesn't have a clue about what they're doing. That's not meant to be critical, but maybe just to wake you up.

Rookie drivers are abundant. When you hear about a driver shortage, it's referring to professionals who choose to stay in this career - drivers who are actually assets rather than liabilities. When I was at Western Express they averaged hiring around150 new rookie drivers every week. That's only one company, and they had that many clueless rookies coming on board every week. Guess what? There were that many quitting each week also.

Check out this information on Large Trucking Companies Vs. Small Companies.

Wherever you are wasting your time gathering information is definitely going to set your career back, or have you completely derailed. I feel for you because there's just so much bad information on the internet. Your problem is that you have no way to discern the difference between total hogwash and what's helpful. Of course, that's the whole reason Brett started this website.

Your whole idea of putting importance on your CPM rate of pay shows you completely misunderstand how you make money at this game. Please, take the time to read these two articles. I'm hoping they will help you out.

The Right Strategy For Earning More Miles And Money

Show Me The Money!

My personal opinion is that rookie drivers need to be starting their careers at the larger companies, you know, the ones you've probably heard referred to as "Starter Companies." These guys have the resources to help you get the hang of this career, and brother we all neeed some major assistance as greenhorn rookies. We are all lousy at this when we first jump in, and these companies are equipped to help us make the transition. Remarkably, there's a group of people in this industry who look down on these companies for that. What's even more remarkable is that they can get a bunch of newbies like yourself to start thinking that the small companies are superior places to work. It's all bogus.

Take some time to listen to this podcast...

Are The Major Carriers More Than Just "Starter Companies?"

Hopefully some of this will help you, because right now you are chasing rabbits and getting nowhere with all your research. It's a common dilemma we call "paralysis by analysis." Fortunately we are experts in setting people free from this modern day plague. I hope we can help you disentangle yourself from it's grip.

CPM:

Cents Per Mile

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

OOS:

When a violation by either a driver or company is confirmed, an out-of-service order removes either the driver or the vehicle from the roadway until the violation is corrected.

Pennywise's Comment
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Old School, great response, thanks! Yes I am not even driving yet just trying to get a better idea of the buisness, I know I'm not at that level yet. BTW I believe all of what I see and 95% of what I hear, And 100% of what I see and hear on YouTube trucking channels. smile.gif

Old School's Comment
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rofl-1.gifrofl-2.gif

Okay, I'm feeling a little better about ya now!

Rainy D.'s Comment
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Or do you find smaller companies have the edge money wise all around. I know there are tons of other differences between big and small but just speaking about the money aspect here.

From a money aspect, my mega carrier has the freight and the money to keep my truck safely maintained. we have terminals throught the country that make repairs easy.

One friend of.mine works for a smaller company and every other week his truck breaks down. he gets break down pay, but then they give him less hours the following week. he is paid by the hour. He drives a 2010, i have a 2017. who do you think makes more money? him sitting in a broken down truck or me who is rolling.

Another friend of mine owns 10 trucks and i hear him picking and chosing what repairs to make. its not preventative repairs, it reactive repairs.

he would rather wait until a tire is dead to replace it and get every last mile on it than put the money out and take care it when the driver has down time.

in both of these scenarios, the driver is sitting for hours not making money. then there are the posts we have had on this forum where getting paid was the issue with some smaller companies. if the company doesnt pay you, what will you do? cashflow problems in smaller companiee are more likely.

i may be biased, but i drive a well maintained new truck and even if the radio breaks it gets fixed at my convenience, no questions asked. Safety issues are fixed immediately.

you are also assuming smaller companies even have benefits. Larger companies have cheaper policies due to the number of employees. the more employees on a health plan the cheaper it is. that is in every industry.

stop listening to morons.

not all smaller companies are bad, but not all are great either.

as with anything...do gour resear h with GOOD info.

My friend with 10 trucks wouldnt hire me until i had a year in due to insurance costs. Then he begged me. No thanks. Im staying at my snobby mega carrier lol

Terminal:

A facility where trucking companies operate out of, or their "home base" if you will. A lot of major companies have multiple terminals around the country which usually consist of the main office building, a drop lot for trailers, and sometimes a repair shop and wash facilities.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.

OWI:

Operating While Intoxicated

RealDiehl's Comment
member avatar
Pennywise, going by "I have heard" is absolutely going to hurt you in this business.

I had a driver approach me the other day at a Walmart DC I deliver to. First thing he said was, "man, you're lucky. You drive a Walmart dedicated account. Do you think U.S. Xpress would give me a dedicated route if I got in touch with them?"

He then went on to tell me about all the great benefits I get: personal days, paid holidays, etc.

I don't get any of that stuff. He asked how much I got paid and he seemed surprised when I told him. I think I actually saw pity in his eyes. LOL!

He "must have heard" some things that turned out not to be true.

Dedicated Route:

A driver or carrier who transports cargo between regular, prescribed routes. Normally it means a driver will be dedicated to working for one particular customer like Walmart or Home Depot and they will only haul freight for that customer. You'll often hear drivers say something like, "I'm on the Walmart dedicated account."

andhe78's Comment
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There are several small flatbed outfits near me that I’ve looked at (not that I plan on leaving Maverick.) I make more as a rookie for a mega than their senior drivers. Was talking to a driver from a local steel hauler last home load who was bragging up his company. Didn’t have the heart to tell him I make more, get more miles, have better benefits, and run new equipment at my horrible mega. The ONLY thing he had better than me was being home more often. To some people that is the most important thing.

Have yet to talk to a local company that would treat me better than my mega.

Rainy D.'s Comment
member avatar

rofl-3.gif

I usually get the opposite... "My condolences that you drive for Prime"...then i tell them how great it is and how awesome i am treated and they come clean about low miles and crappy pay. Then i give them a business card and recruit them.

one guy tried to recruit me.... "Does your company give you FREE sirius radio? NO???"

"Do they give you a free refrigerator?? NO??? thats two no's. my company will"

So i said "Does your company have a salon and spa in the terminal where i can get a massage and facial? NO??? Does your company give rewards points to spend on anything in the shop, salon or store? NO??? your company doesnt even have a store? What about my cat..can i bring my cat?? NOooo???? Forget it dude. Your company is in the stone ages and doesnt care about driver happiness and amendities. we even have dog runs and pet baths at our terminal. i make enough money so ill pay for my own $5 per month if i want Sirius radio."

im a witch

Terminal:

A facility where trucking companies operate out of, or their "home base" if you will. A lot of major companies have multiple terminals around the country which usually consist of the main office building, a drop lot for trailers, and sometimes a repair shop and wash facilities.

Pennywise's Comment
member avatar

Anyone one of you "Trucking Truthers" have a Youtube channel?? Hey Rainy, have you seen that guy Junior Honduras who drives for Prime? He has a great channel that I have been learning a lot watching. Where is your channel Rainy? I wonder if he makes a lot with referral bonuses with that channel.

Dave (formerly known as K's Comment
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I'm training with a smaller company, 750 to 800ish trucks. The really cool part, I have access to all of Prime's facilities! Plus, when I have the chance to stop at my "home" terminal in Missoula they know me by name. My pay is the same as a Prime TnT. So in my book, WIN WIN and another WIN!

TL;DR I'm blessed with a small company and the benefits of a mega.

Terminal:

A facility where trucking companies operate out of, or their "home base" if you will. A lot of major companies have multiple terminals around the country which usually consist of the main office building, a drop lot for trailers, and sometimes a repair shop and wash facilities.

TNT:

Trainer-N-Trainee

Prime Inc has their own CDL training program and it's divided into two phases - PSD and TNT.

The PSD (Prime Student Driver) phase is where you'll get your permit and then go on the road for 10,000 miles with a trainer. When you come back you'll get your CDL license and enter the TNT phase.

The TNT phase is the second phase of training where you'll go on the road with an experienced driver for 30,000 miles of team driving. You'll receive 14¢ per mile ($700 per week guaranteed) during this phase. Once you're finished with TNT training you will be assigned a truck to run solo.

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