Breaking down your cost as a trucker

In this story we will  compare, Company Truck Driver vs Owner Operator

Have you seen the cost of goods skyrocket lately, we are talking tires, food, insurance, repairs?

Being A Company Truck Driver:  First of all, we all know the DOT 11hr/ 14hr rule then take 10 hours off but not work more than 70 hours in a week then do a 36-hour reset.

Here are some examples of poor earnings from any displayed trucking company that you have seen through Facebook advertisers or perhaps Instagram, google ads.

Hiring Drivers

will not state overtime over 40 hours per week.

1 day every 7 means one day at home.

Guaranteed 1,200.00 per week.

Drivers can earn 1500.00 – 1700.00 per week.

Health benefits

Here is what you do not see after talking to a recruiter.

Admin fees.

Eld fees.

Uniform fees.

Now let’s take the 70 hour- rule we mentioned in the beginning; say the trucking company offers you $1500.00 per week on average and you divide this number by 70 = $21.00 per hour less any expenses, meals out on the road, etc.  Today’s trucking companies do not pay. With your expenses you’re now down to an average 0f 15-17 per hour Now consider how many stops, loads and miles you drove for the trucking company.

Now let’s take another example of how trucking companies will sucker you in.

Hiring Drivers

We treat you like family.

We pay 0.65 per mile 3000 miles on average= 1950.00 per week gross

Now let’s remember in both scenarios your pay will be about 30 percent less to Uncle Sam.

Now let’s figure how many hours you worked driving 3000 miles the average speed will be 50 miles per hour, due to traffic, stops, breaks, etc. that equates to 60 hours at $32.50 per hour now deduct on average30 percent for taxes and related trucking cost now your down to 22.75 per hour.

On each example trucking companies will try anything to get you to drive their trucks and have terrible mind-sets of either treating their drivers better or offer more money, remember as a company driver, you will have no control over what lanes you want to run and  most of the time  get very little retention time if waiting in line to be unloaded or to show for a appointment, remember drivers sometimes you may be hauling several million dollars of goods in your trailer at any given time. If trucking companies are this cheap in paying their drivers, just imagine the risk they take with the public in safety and short cuts in keeping the equipment safe.

Now let’s talk Owner- Operators

Are you missing out on time and a half over 40 hours per week.

Know the cost per mile to operate your business.

The greatest freedom you have is being your own boss but there are disadvantages here as well.

Mostly all trucking, moving, freight companies will not provide you a copy of the billed freight bill to validate your income, the federal law specifically states you are to be provided a computer generated statement and or a completed billed freight bill {key word- after- must be one of the same} the reason why companies prefer and refuse to give you copies of the billed freight bill is because it is not one of the same.

Always stay away from a lease to purchase, most will have a clause at the end of your final payment that you now have to purchase it at fair market value.

Always stay away from shady broker loads.

Many trucking companies will want you to purchase their eld, insurance, workmen’s comp, etc. it is true you must have an electronic device to monitor your miles, speed per federal regulations 1999 or older and most companies will tell you if you do not purchase theirs, they will not hire you. Before you sign any contract working for any company be sure and take your contract to a lawyer to be sure they are following The Truth and Federal Leasing Laws Title 49 CFR 376.11 and 376.12

Understand your cost involved.

What does it cost you per mile? To operate your truck

Monthly insurance cost

Truck Payments

The Miles Per Gallon

Labor cost which will vary from month to month, did you know that day labors sometimes try and charge $300 per day per man to load or unload your truck.

If you are getting paid by the mile, know your cost, the average cost of running a freight truck will be 0.67 per mile or even higher so if you are getting say 2.00 per mile to haul a shipment at 1230 miles = 2460.00 and it cost you 0.67 per mile your earnings would be 1,635.90 before self-employment taxes.

Now let’s say the load pays 1.56 per mile your cost is still 824.10 based on 1230 miles and your net would now be $1094.70.

So, it is very important to know your cost per mile to operate.

Now say you are a mover, and you get a commission for the line-haul.

Your per mile cost will go up dramatically.

Other cost will be outrageous like labor cost to load and or unload your trailer from guys around the country charging 300.00 per day per man regardless of the weight we have heard of higher charges from other professional truck drivers in the business.

Either way whatever you decide we want to give you guidance in making the right decision, the trucking industry has changed with mandatory rules, lack of pay increase whether paid by the mile or commission.

In the household industry labor cost of fly by night laborers has gotten out of hand.

Moving companies give the moves away at high discounts, what that means is the less money you make, many companies tell you it is all about supply and demand, this is a total crock, look at the cost of goods in the store, the labor to service your truck, some dealers charging 250.00 per hour cost who is really making all the money? Not the driver, greedy trucking companies take more and more from your hard-earned paycheck. Just imagine if the driver charged 250.00 per hour to drive their trucks like the mechanics at the dealerships do, it takes all of us to shut this nation down and be treated with more respect in earnings, recognition, dignity, transparency.

One week without Company Trucks and Owner Operators you will earn respect.