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Percent of what?

It isn't easy to understand the percentages contractors receive?

Just recently a truck owner was surfing around the trucking company websites. They are trying to understand why there's so much differance between the percentages trucking companies pay the Independant contractors.

I was asked "why would anyone go to work for a company paying the lower percentages?"

You'll see lots of offers claiming to payout 88-95% even a few higher. Yet there's no indication

of what is this going to pay your business on settlement day.

Also, What are you buying with the percent you're paying?

I suggest that owner consider thinking differently.

Differently in what way?

When you sign a contract to operate under a companies authority. You are not an employee as the the owner of your business! You are hiring these companies to work for you.

What are you buying with the percentage you pay?

Does the company your-partnering up with provide.

• Direct cusomer access?

• Back-office support such as compliance, liability coverage, billing, sales, vendor discounts for fuel, tires, equipment etc?

• Financal support in case of an emergency?

• Continuous education?

• Open access to available customer accounts and current prices being paid for loads?

• Does the carrier offer significant discounts for goods and services?

Does the company have any direct customer contracts, or just access to a brokerage network with spot freight?

Or the alternative?

Is the high percentage company simply an authority number where you pay.

• Factoring cost

• Addionally for use of trailers or equipment rent?

• Are you responsible for damages or repaires to the companies equipment?

• Will you pay addionally for the liability and cargo insurance?

• I even see driver owners paying for being dispatched or administrative fees.

All legitimate questions a truck owner should ask and ask to see the evidence.

Are you really an independant contractor?

This may seem to some to be an unfounded question to ask? I suggest this is an important question and the answers you receive do effect your future.

The bottom line is basically you need to be certain what you are agreeing to! Before you leap.

It's very expensive to change companies. And if you kept track if the lost opportunities when moving your empoyment or independant contract. It is very likely you will experace a loss of 2-4 weeks of gross income.

And the fixed personal and business expenses potentially may increase an owners operating cost by $4,000-$12,000.

That would equate to as much as $250 per week in addional cost for a year.

Look at this in relation to the pay / profit a truck owner has gif the year?

On average this could equal 20% of potent profits.

(These are only estimates)


Gary, helping owners improve one small step at a time

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