I'm betting on global warming.

 

I never stated that labor has no costs. If you are compensated by performance then there is no out of pocket labor costs until something is sold. In other words, you have no actual out of pocket expenses until you pay your salesman. If you are the salesman then you only receive compensation when you sell a load of freight.

 

Most "salesmen" receive a base salary for compensation in addition to the commission they receive for each sale they make, unlike some OTR drivers who receive nothing for sitting waiting.

The driver is "on the job", responsible for company equipment, not at liberty to do as he or she wishes, yet receives no compensation for that time.

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That is how some convince themselves that they are making a profit. They only cost their time when they are loaded. If they sit 3-4 days,no performance so no cost.

 

Most of the higher paying sales positions are commission only. Some offer a draw against their commission. The draw is usually paid weekly and charged against the commissions on sales at the end of the month. If a draw is given is is typically around $250/week.

 

250.00 week draw is on pretty low end sales positions. We gave car salespeople that much of a draw in the 80's. Most straight commission sales are captive accounts.(or true independent sales)

 

The idea of a draw is not to be enough to earn a living but to help the salesman get along until his commissions begin to come in. Some people have the mistaken believe that a draw is a salary. It isn't. It is only used to bridge the gap between starting a new position and getting your commissions coming in. There are some who continue giving a draw no matter how long the salesman is with the company. Car sales, media and advertising sales are a few who regularly pay a weekly draw against commission. There are other types of sales jobs where a based salary is paid and a smaller commission or bonus is paid on sales. This is the way pharmaceutical sales used to be set up. I am not sure if that is still the case or not. I think more sales positions have moved toward commission only or a draw against commission in recent years.

 

A driver who works by the mile is paid on performance for the miles he drives. He isn't nor should he be paid extra for being responsible for his equipment. It is part of his job. There is no one else who should or could be responsible for his equipment. His equipment makes it possible for him to earn a living. If he fails to take care of his equipment then he is out of a job. I suppose that I am a bit out of the loop with the way some people think these days. So many people don't want to take responsibility for themselves or their assigned equipment. When I was growing up and in my early days of adulthood most people accepted responsibility for themselves and their families. We didn't mind being responsible for our equipment. It never occured to us that we should be paid extra for that. We considered it part of the job. Perhaps that is why so many carriers opt for these fleece purchase programs, to make drivers more responsible for their equipment.

 

I employ both captive and independent salespeople in this and other businesses. Have for many years. Don't know where you get your information from but it certainly is not the typical structure of pay.

 

I see nothing wrong with that. Remember though that when we the"carrier"can't provide the ability(loads) and require the driver to wait for us he needs to be compensated for that.