What Is A Good,bad Or Great Pay If You Are Getting Paid Percentage Pay Instead Of Mileage?

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Sean H.'s Comment
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So Im about to leave my current company and try somewhere new, one of which offers percentage pay which I understand how it works, however I am not sure whats considered average, below average or above average when talking about percentage pay. Can someone let me know what percentages would be considered for each please?

PackRat's Comment
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That's going to vary with the markets, as far as how much you see.

Rates high = More $$$.

I think mileage pay is the way to go because my pay per mile is not affected by freight rates. I've never had any company cut driver pay if the market dropped, long or short term. I also never have to worry about being paid less than what the company actually sees for the load. I trust me more than anybody else I've ever met.

Old School's Comment
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Sean, the whole idea behind percentage pay is to help the company. Drivers seem to think they are going to be making more money off of percentage pay. It's a gimmick, but it works on some. The problems arise when you have a lengthy dead head. 28% of a load that doesn't pay still equals zero. Then there is the issue of the rates going up and down. You might make some decent money while the rates are up, and you are going to feel cheated when the rates are down. Rates have been fairly volatile the last few years. There is also the issue of trust. Do you actually know what the real rate is?

Most drivers would rather know they are getting paid with each load and they can count on some sort of consistency in their pay. A driver on percentage pay gets paid a different rate on each load. Some freight pays better than others. Some lanes pay better than others. Percentage pay just has a lot of quirks to it. The whole reason it is quirky is that it is set up to keep the company making the same percent on each load. When a driver is getting mileage pay the company absorbs the difference in the rates on each load. In a percentage pay situation, they keep getting the same percentage simply because the driver is getting the same percentage.

There's no way for us to tell you what a good percent is for what you are doing. I wouldn't want anything less than 28% though.

Sean H.'s Comment
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I get what both of you are saying but I was just wanting to know what good percentages are or bad percentages. One of the companies I am talking to offers a lease program where they pay 77% plus there's no trailer rental or trailer maintenance fee. And they also pay for the liability insurance. And says I was only thinking of possibly doing a two-year lease one that was short I was just trying to find out if that deal was reasonable. I understand the paycheck will vary but unless I know if it's at least a decent percentage for getting paid percentages I don't know if it's something to even look into.

PackRat's Comment
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Never, ever, ever, ever go into ANY lease.

You take all the risks, spend all the money, and make the least. The owner of the truck is getting you to haul their freight and make their truck payment in exchange for pennies on the dollar.

Truckin Along With Kearse's Comment
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I get what both of you are saying but I was just wanting to know what good percentages are or bad percentages. One of the companies I am talking to offers a lease program where they pay 77% plus there's no trailer rental or trailer maintenance fee. And they also pay for the liability insurance. And says I was only thinking of possibly doing a two-year lease one that was short I was just trying to find out if that deal was reasonable. I understand the paycheck will vary but unless I know if it's at least a decent percentage for getting paid percentages I don't know if it's something to even look into.

Here's an example.... Prime pays lease ops 72% of the load. Other companies that run Prime freight claim to pay 80% of the load. The catch???? They are getting 80% of what Prime gives them...not the actual entire load. So a lease Op running directly for Prime would make more money for 72% of 100% than at another company who is offering 80% of THEIR 72%. I asked 2 companies specifically about this...and neither gave me an answer.

But it could differ by division also. However we strongly discourage leasing.

Good luck

Old School's Comment
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Sean, you are not talking about getting percentage pay. You are talking about leasing a truck. That's a totally different thing. I honestly don't know anybody who has done any good leasing a truck. I never recommend leasing a truck.

Sean H.'s Comment
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Well my original question was just trying to find out what percentages are considered good bad or great but no one was answering that they only kept telling me the same thing that I already understood. Which has been paid off of percentages the pay will vary. So I decided to ask it differently with including the least part I get all the risks and understand but I really just want to know what percentages of pay is considered good bad or great?

Old School's Comment
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Here's a funny thing about truck driving. People tend to think they can come up with some special secret way to make lots of money while driving a truck. There's just no secret sauce anywhere. You can lease a truck, you can own a truck, you can be the owner of a trucking company. There's only so much money to go around. Do you have any idea of what kind of profit margins the largest trucking companies in the country are making? They are extremely fortunate to make more than 7%. Most of them make in the 3 to 5% range. That means that no matter what angle you take at this, you might be able to make 5% more money.

There are plenty of good solid company drivers now days making six figure incomes. They are very low six figures, and the ones doing that are doing a great job at this. That is why they make that kind of money. The only way I have ever found to increase my trucking income is to be more productive. It doesn't have anything to do with the method that you get paid. It has nothing to do with the name on the tucks doors. It doesn't matter if you own or lease the truck. There is a finite amount of money out there available. The most productive drivers get their share of it. There is not a large pile of cash out there waiting to be claimed by some really smart guys who have found the secret to this mystery. Don't fool yourself. If leasing trucks could make you a ton of more money, everyone of us would be leasing a truck. It's a fool's game. I don't recommend trying it.

Turtle's Comment
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but no one was answering that

That's because no one can answer that with a solid answer. 77% of a high paying load could be considered a great percentage, where 77% of a crappy low-paying load will be considered a low percentage.

The answer will be completely subjective to whatever load the company gives you.

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