Iv'e been lurking on CAD for about 8 months now, doing some research.
There is a lot of good info here but I am still trying to decide if I want
to get back into trucking. Iv'e looked at many different company's and
since I haven't been on the road for twenty years I have to start as a
Newb.
I'm 48 yrs. old and I have a chance to retire from my present job, and
the only other job I ever had was hauling cars back in the mid 80's. I
only drove for a short while, I was laid off from my present job at the
time.
But the reason I'm posting on this Forum is I have a chance to drive
for an Owner Operator, whom happens to be my Brother inlaw. His
offer is to pay me 50% of what the truck nets. He pulls for a small
Refer co. and owns his own Trailer. He gets paid by percentage which
77%.
I was wondering if some of you guys might give me your opinion on
his offer?
The truck and trailer are both paid for. It,s a 2002 Freigtliner Classic
XL with 1 Million miles on it. It has a Cat C15 engine. I only mention
this because if there are any mechanical problems it will surely reduce
the net income for the week. He did say if the engine went out he
would just replace it.
He says he grossed $250,000 last year. I would also appreciate your
opinion on that number, does it sound realistic to you?
Thanks in advance, Bill

 

Why not! But that number alone, didn't mean sh$t!
It would help, if he could provide you with the actual miles he has run.
I'd also ask him to show 1099, or any other proof on that figure.

Yeah, i know, he is your brother in law, but from my experience, business didn't mix well, with the friends and the family! :sad:

Anyway, I've heard about 50/50 split after the fuel, but for all expenses for over million miles truck, his revenue, should be pretty high, to make it worthwhile for you!:roll:

Welcome to the forum! 8)

 

cha-ching!

The key to this deal is what expenses he will be deducting to arrive at a net income. For example, with current fuel prices, I consider my cost per mile to be $1.24 + driver and calculate my "net" for each trip as follows:

Net Income = revenue - (all miles X 1.24 + driver)

so, if we take a round trip like one that I was trying to put together this morning.... $5,000 for 1375 miles Syracuse to Pickle Lake ON, then DH 625 miles for a Minneapolis to Toronto paying a ghastly $1300 on 1000 miles, it would go something like this.

His Cut = ($1300 + $5000) x .77 = $4851

Net To Truck = $4851 - ((1375 + 625 + 1000) x $1.24) = $1131.

Your Cut = $1131 x 50% = $565 for 3000 miles

Not very good. Ask him what "net" is.

Yep. Seems reasonable.

 

I'd take a hard look at those numbers, even pull out some paperwork on some recent trips and start doing the math to see where you'd be money wise. Then I would compare that number to 25 to 30 % of gross, which is what most company driver percentage pay is just to see what the difference is.

Is he putting you on payroll? or 1099?

I also agree with Solo, be careful doing business with family.

 

The key to this deal is what expenses he will be deducting to arrive at a net income. For example, with current fuel prices, I consider my cost per mile to be $1.24 + driver and calculate my "net" for each trip as follows:

Net Income = revenue - (all miles X 1.24 + driver)

so, if we take a round trip like one that I was trying to put together this morning.... $5,000 for 1375 miles Syracuse to Pickle Lake ON, then DH 625 miles for a Minneapolis to Toronto paying a ghastly $1300 on 1000 miles, it would go something like this.

His Cut = ($1300 + $5000) x .77 = $4851

Net To Truck = $4851 - ((1375 + 625 + 1000) x $1.24) = $1131.

Your Cut = $1131 x 50% = $565 for 3000 miles

Not very good. Ask him what "net" is.

rank I am confused on your math.
should the formula look like this
Net To Truck = $4851 - ((1375 + 625 + 1000) x $1.24) = $1131
Net to truck = 4851- cost per mile of 1131= $3720
your cut = 3720 x %50= $1860

could explain 1.24+ driver is that adding a drivers pay to that 1.24???? :?

 

Thanks for your opinions, they are much appreciated. It sounds like I
might be better off getting paid by the mile. He had offered to pay me
.40 cpm and I thought that was a good offer, then he said he was
thinking about it a little more and he thought 50% of the net would
come out about the same.
I'll have to ask him what his net is and decide then.
One more note. he runs mostly North East and goes South East once
in a while. He goes into NYC about two or three times a month. It's
been a long time since I drove a truck in NYC, is it still as fun as it
used to be?
LOL, Thanks Again :wink:

 

Running mostly NE, I can't imagine he was turning big miles. If he's grossing $250,000 a year that's a serious average per mile for reefer freight...who's the company and are they doing LTL?

 

no_worries, yes they do LTL, it's a small company only about thirty
trucks. He does two rounds a week from SE MI. and back. He's off
most weekends for a day and a half.
He showed me the paper work for the load he is taking to New
Jersey tomorrow morning. He will make $2.18 per mile for the trip
without fuel sur charge. He did say this will be one of the better
paying runs he's had in a while. He says he averages around $1.80
with fuel sur charge.
The name of the Company is TM Morley.

 

I think they forgot to finish their website.

 

It's sure is all that, and some more!
But i bet, that's where money come from!
8)