Trucking: pay per mile verses percentage, luck jim, gross revenue

Question
i am a owner operaror leased to a company that pays 71% of gross revenue.should i be paying a driver by the mile or percentage?

Answer
That's a difficult decision Jimmy.  If you are getting paid a percentage and you pay the driver a percentage you will always keep the same margin (difference) for you.  I have never been a fan of percentage of the load, particularly in the current market where shippers can demand and get below cost rates.  If the rates get so low that the driver percentage doesn't cover his costs you may have difficulty getting and keeping good drivers.  With mileage based pay they always know what they are going to make for the miles they drive and then it's up to you to find the loads that pay enough to cover the drivers pay and return a decent margin. Both systems can work but you will likely find a different set of drivers willing to work under each scenario.  Neither is right or wrong, just a decision on how you want to structure your business.

Good luck.
Jim.