5 WAYS TRUCKERS GET 'THE SHAFT' ON PERCENTAGE PAY (YOU'VE BEEN WARNED!)

[@SmartTrucking]

Hey there Big Strapper. Thanks for dropping by to check out today's upload. What's your take on % pay? Ever tried it? What have YOUR experiences been? Love to hear your thoughts.

[@gavincheyne999]

Made decent money from percentage pay. Was with a small company (less the 50 trucks) and for solo's the company paid for fuel. Great videos, keep it up love the content

[@Skusty]

I work in Sweden, but I have a regular salary and a % bonus on what I earn the company, so working hard kicks back to you together with your regular salary and hours.

[@StevenPolasek]

You are completely right. My carrier loves Tyson and they will dispatch a truck to them even if that truck will sit there 2 days. It doesn't matter if it is % of pay or CPM the truck driver loses. I lease my truck for $1,300 a week and get a % of the load. Sitting one day has a very negative impact on what I bring home, because I am paying for a truck to sit. There was one week where I only brought home $300. I was out all week, but I sat a total of 36 hours at two different shippers. Does the carrier care? Nope, they made their money.

[@JaxMerrick]

This list is just Prime's checklist (from my experience). Three years working as a lease operator, and I've seen all of this happen. There's a reason I drive locally in a 9-5 now.

[@martinandelizabethgarninge1150]

Recently left a percentage paying company for an hourly wage that pays o/t and pays reset as well bargained for a dollar a hour based upon experience $33.00 per hour it's good to be olde

[@gabe204]

The choice to haul to a dead area, or to run empty is on the Owner/driver. If the carrier dispatches me to move empty, they will pay me. If I know they won't, I refuse the load. I only haul to places I can get a backhaul, or that pays good enough to go back empty.

[@KoruptDawg]

I work for a company hauling wood chips from the local/regional sawmills to the local (just down the road from the yard) pulp mill. Trucks run practically nonstop, 24/7, and are operated by two drivers cross-shifting (not teams). Currently, we get payed by the load. How much depends on the distance, and are prorated for a certain number of hours (according to my dispatch). Two of the mills we service are close enough that we can get three loads in a day. A bunch of guys are wanting to get payed hourly, and some want percentage. Personally, I'm actually leaning toward percentage. Reason being: We already know that we're essentially being payed pennies for what these loads are actually worth. So a percentage would be considerably higher. Also, with an hourly pay, there would be a number of drivers who would purposefully max their hours, screwing their cross-shifts hours in the process. What do you think, Dave? Would percentage actually be the better course in our situation?

[@roaddog9849]

Love my pay system. I get 250 a day 0-596 Miles and .42 cents after that based day to day not on a weekly average. If I deliver Friday and the can't get a load till Monday I still get the 250 a day. Love it.

[@roaddog9849]

Important note I'm a company driver

[@GreenHornTrucker]

I flatbed for a company that runs percentage plus hourly wage. So even empty you are getting paid. We also get layover pay for dead heading if it's more than a few hundred miles. I have, however, never had to put in for that layover. I know I'm fortunate. They also have called me and explained what the plan was and why and discuss it with me. I honestly have never dead headed more than 4 hours. And I get a break down if the freight cost and percentage.

[@kizerbread]

I was % pay as a company driver. Made decent money but yea, some loads you got shafted on that way and it's true, you don't really know if your actually getting what you should be. I was hauling food grade tanker. Any time I'd mention pump pay, they'd say it's included in the rate. I'm sure it was. The portion they got paid.

[@godsok1]

Solve the problem stay away from force dispatch! I love % and do very well.

[@nighttrain3926]

i agree do what i want percentage is the only way to make good money in the chemical tanker biz anyway

[@divisiondrive7599]

Me too I've been doing percentage I've been doing percentage basically since I started driving trucks. And I drive a whole lot less miles that means I don't have to take as many restarts I don't think I could ever go back to Cent per mile. The only way I see sent from mile being better is if economy takes it deep dive.

[@rickgregoire9041]

As an owner-op with about 20 years in, I worked for three outfits under the percentage game. The first was a company that I started as a company driver and then bought a truck and switched. The percentage was generous and as there were only three of us amongst dozens of company drivers. We were treated fairly and the dispatcher was fair and even handed. He sometimes asked you for a favour ,which meant not a great rate, but he always more than made up for it on the next. Under these parameters, percentage works fine but unless your into specialized loads not dry freight, I'd be very careful.

[@smartin23964]

Unfortunately, this industry has few "mentors" to teach want-to-be business owners how to run a successful business. Mega-carriers take advantage of this fact, and those with dreams of ownership. Another problem is that newly minted owner (lease) operators jump into the deep end with faulty expectations. Many see being an owner as having the ability to work less, stay home more, run fast, and buy lots of chrome. While this is doable, eventually (with a lot of sacrifice and luck), it doesn't happen on day 1. Much of your info helps, Dave, but most need more in-depth knowledge of what it takes to own a successful business. I've paid my share of "stupid tax," educating myself over the last 20 years. I wish there were more RELIABLE resources out there for drivers. This used to be a fun job. This used to be a job that paid well. In my opinion, mega carriers and government have all but destroyed this industry.

[@scots9628]

The last OTR company I drove for was the best we worked in the oil field and I moved a lot of bulk cement when I was loaded I got 32% of what the truck made, when I was empty witch wasn't very often I got $20 an hour.

[@jocamp4837]

My take one percentage pay is it really only works at a owner operator only company were everyone is on percentage and you have full control over the loads you haul not dispatched. Just the other day I had a guy telling me how great his company is, they just gave their owner ops pulling turnpikes a raise. When I pointed out that he was doing the work of 2 trucks for LESS then the rate for 1 truck his argument was "well the company doesn't take deductions for plates and insurance". So I gave some of my numbers on %, after I pay the the stuff he gets for " free" I avg 27cents more on all miles pulling only one trailer that I own. Anyone that thinks they are working straight miles and not paying for plates, insurance and all other expenses need a reality check. You're paying them you're just not seeing them on your settlement and I would be willing to bet you're over paying.

[@User4622Vp]

You're awesome Dave!

[@вечная_мерзлота]

drivers are loosers. brokers are winners. they don't risk their life on the road, no equipment purchase, no dealing with weight stations, inspections, regulations, toll roads, insurance, registration, monthly installments, not staying away from home. while driver gets paid for 1 load, broker gets paid for 10 a day.

[@tanman7879]

I get 25% been hauling produce out of California. It's the most money I've made trucking in 7 years. Hopefully it stays good. I know the produce won't last but there's other reefer stuff.Thanks Dave. Oh yeah I like the bear trap and money that's hilarious.

[@flounder5946]

Well I've been running for my carrier for over 6 months. I'm percentage but I book the loads and negotiate rate. I'm pretty dang happy with it to. But I'm pretty much independent, well close as it gets without fully. But I understand what your talking about and that has to do with dispatched freight. I'm power only to so I'm not tied to a big carrier. Can't complain long as you know how the trucking industry goes. And I'm not a new guy. Been doing it for awhile. Keep up the videos Dave.

[@im6underw401]

I work percentage, i track all pay and compare to history. We dont haul cheap freight, priced to reflect out loaded and dead home. Still very good money with deadhead accounted for and often i can snag a backhaul.

[@robmcdade1608]

I have driven for % and it was ok. However I see the pitfalls of both pay scales. With % they can give you cheap freight and with CPM they can limit your miles. In the end do your homework on the company you're hauling for and if they are on the up and up they will be open about it. I worked for % pulling flatbed for a local company and all I had to do was ask to see the load agreement from the broker. It had all the info on it.

[@HJ-lz4dt]

I used to haul a 10 car high rail stinger for 25% of what the truck earned. I felt that there was too much "free" labor in that so I went to local LTL Linehaul. Much better in my opinion.

[@DannyHBHH]

Dave, I disagree on something you said… You talked about “dead zones”! If it’s a “dead zone” then it doesn’t matter how you’re being paid. Now to explain why I do percentage over mileage. 1: I like knowing what I’m going to make for the load! And 2: I feel it’s more profitable then mileage here’s why…. Say you do a load that pays $3,500, and you do that one load for the week. I don’t know maybe they went on vacation and then you have a mileage truck that made $3,500 as well. The percentage truck did that $3,500 load in 2 maybe 3 days. While the mileage truck had to run a full week just to make that $3,500. Because most (yes someday more) but most companies will pay the lease/owner $1.40 - $1.50 a mile. So the mileage truck has to run harder to make the same thing.

[@jamesclee1722]

It’s all about who you are leased to I’ve been doing percentage for about 6 years now and love it yes sometimes you do get into a bad area but it’s up to you to make sure that you are getting paid enough to go into that area to start with Also if your company will not give you a copy of the ratecon up front then you are at the wrong place

[@zhayloworld3102]

Smart Trucking I appreciate your wisdom

[@cledussnow3935]

I had done this in the past, had a boss that took fuel money off the top then paid 25% of the load.

[@GRINDNPRAYg2g78]

@Smart Trucking...Thank you so much for dropping this video knowledge you have of trucking industry is second to none. Been running percentage and noticed they skim off top all loads plus broker too smh. Sad that's why try book highest rates short haul loads pick drop next day under 300 to 500 miles. Appreciated it Big Strapper see on the back hauls buddy.😲👀👂🏽🤔🚛💵💰🌍🙏🏾💯✌🏾

[@aviatortrucker6198]

It really doesn’t matter what system you were on, as long as you do not understand the full operating costs of the truck and all of its expenses. I mean a lot of people that do not understand basic math and calculations when it comes to how to figure what your actual profit margin is. This is a business and it must be run like one. The best course of action is to take some business classes to understand profit margin and gain loss ratios. It may sound great that you’re getting $1000 for a load, but it’s not great if you’re going 1000 miles to deliver it. $1000 load would be great if you went to hundred miles with it.

[@johnbante5594]

Randy Knight just sold his Phoenix home for 15 million dollars. Trucking can pay good if your willing to screw over enough people.

[@deanpahl8591]

Had a company that had an office up stairs, then they would take a percentage, then pass it down stairs, all the good paying loads went to the company trucks.

[@kennethmalcom9884]

Glad where the company I started with paid same loaded empty bobtail. Paid by mile by hour on waiting for any reason bonuses just for doing a good job I got lucky started with my company as a new driver in July 1991 still there now the horror stories I've heard over the years of drivers being pushed to drive beyond reasonable limits is scary, now back when you could run hard I did but was never pushed when I said I can't

[@corylangford5658]

Thanks Dave always excellent advice!

[@ohmygoditsyomamma]

I run percentage but do dry bulk for the same customer. Only 2 hours from mill to mill

[@LuisMartinez-fd1mc]

100% correct Dave

[@mattyp3860]

HowDee there big strappa My truck their trailers. I get 70% of the load. Most time works out well. Fuel price hikes, can lose out sometimes

[@jocamp4837]

Those guy you told the story about would have gone broke regardless if they were percentage or straight miles. They clearly had no business sense.

[@tiburonrojo1975]

What's the percentage rate for company driver?

[@SoCal780]

I’m so glad that I get mileage plus fuel surcharge pay. Loaded AND empty. I can’t believe your friend didn’t factor in his empty miles coming back out of that $2.00 a mile, plus it sounded like he was more than happy to do it. 🤪 No wonder he went broke!

[@sergiot2292]

Question if getting paid by percentage are company supposed to show how much they are getting paid so you can calculate how much I should be getting paid

[@mnmfreak502]

My company pays percentage but they have a guaranteed weekly minimum.

[@roberthoovan4130]

How many years of experience do you need to deliver fuel

[@corneliusestep9409]

Thank you for the truth.

[@TruckingDominator]

Hey serious question.... what if I with a carrier of 4 trucks n they focus on good paying loads?

[@buzzbrutusexcelsior2236]

Ya gotta put on yer big boy pants when 1st starting out. Always make your best choice. Stick with them for a year minimum. Keep l👀kin for better. After 3ish years and a CLEAN RECORD local will open and though it may not be great,it will best O.T.R. NO JOB STARTS AT THE TOP and trucking is many a rip off. Drive legal keep looking you will find something decent.

[@jajajaja2624]

Thanks did not know

[@millionmiler]

Love the video did you get the pics from superrigs I work for Smith Transport and I get 1800 a week gross guarantee we just raised milage pay as well home weekly on weekends 50cpm home weekly during week 55cpm out by weekly home weekends 60cpm out biweekly during the week 65cpm DHL dedicated 1250 guarantee flexfleet running the entire network 1800 a week gross and our Walmart dedicated 65cpm during the week 70cpm on weekends

[@SmartTrucking]

Yes I did Michael thank you! Awesome rides. I hope you enjoyed the show. We watched some of the Live Stream of the judging of the trucks.

[@millionmiler]

@@SmartTrucking OK good show was great just couldn't really go into trucks just peak in through open doors due to Covid-19 what you think of the new pete dash looks like a spaceship

[@avatar19822]

What does he mean at the end “keep the rubber side down and I’ll see you on the back haul”? The rubber side of what? (non-trucker here)

[@Tyler-xe1es]

Whats rubber on a truck ? THE TIRES 🤣 keep the tires down on the ground not up in the air (meaning an accident)

[@sstevocamaro]

By law the carrier has to show the O/O the original pay if they ask!!

[@PARMYGUY]

Same with 1099. Ways you get the shaft . If you deal with a 1099 Own Op. 1. Paying percentage after fuel. Guess what your helping pay for fuel. You not getting paided off gross you getting paid after all deductions.. 2 Own Op who use factoring, he anit got no money and if factoring don't go threw you don't get paid. You have a lot 9f Own Op using factoring why they don't got no money they broke. 3. Alot of them saying I hot you don't worry why they lining thier pockets like the big carriers than say thier are no good drivers out here, its a lie. Its how you treat those drivers fully. You trying to play big man on campus and don't have big man money. I got you mean they feed off of your down fall like vultures, do yourself a favor. Get your own authority, get your own truck and trailer. No one care about you in this business at all. This from what i have seen.. Everybody and i mean all sale you a bill of goods than do you. Save your money a lot. Thats from experience and still learning after 33 yrs.

[@chriswilley88]

What about percentage pay as a company driver example tmc flatbed

[@pointnIaugh]

I get 32% on local tanker loads.

[@johnnymexico4751]

TMC uses a performance based percentage pay system for linehaul drivers. I can send you my snapshot.

[@panamajack8246]

32% sounds pretty decent as a company driver but remember if you’re not getting paid deadhead/empty miles you still might end up on the losing end of the stick. I have been in the industry for over 15 years & the best method of pay as a Regional/OTR driver is Odometer Miles or Salary. Currently I get paid Odometer Miles as a company driver and love it! I work for a Private Fleet so it’s really hard to find this pay system in trucking anymore.

[@trucker4trumpamerica172]

Yes u are right.. they don't pay

[@erwinbrubacker7488]

What is % rate for co drvr ?

[@pointnIaugh]

I get 32% on local tanker work. It works out well.

[@dotytruckin8443]

*Cough* TMC

[@tobydulanski3000]

This will only stop when the truckers stop hauling. The last thing the industry wants to see in a Truckers Union. People are getting RIPPED OFF IN ALL INDUSTRIES, Because we have to work for a living.

[@WvlfDarkfire]

Well it's good if you're the carrier...sadly

[@briandarazs6620]

Dispatch favorites? That doesn't happen Dave Lol. [ Sigh ]

[@figgiefigueroa7372]

I never like this percentage system.

[@patl4416]

It’s a liberal idea when you feel that you are not getting your fair share. I started driving in 1991 at .18/mile no benefits Now, we are making over .60/mile with benefits. What is your fair share

[@TheJuan_N_0nly]

Trucking is a dirty business..! The sooner you accept this the better you will be..