Something often overlooked when deciding to go with a new carrier are the costs to actually switch carriers. And when you look at gross revenue instead of pay per mile, your revenue will probably be the same as at your current carrier. Keep in mind recruiters get paid to bring in new drivers and they may try to make things look better with a different carrier than they actually are. What they may be telling you is a best-case scenario for an established driver. It’s important you are not only looking at the pay per mile at each carrier; there’s much more to the equation.
You might already have a list of things to ask a carrier before you get hired. But are you asking all the right questions? There are so many aspects of the pay equation, as well as benefits, vacation, and how you will fit in, so make sure to get the right information before you settle on a carrier. Here is a list of some important questions to ask potential carriers:
- How many miles a week do your owner-operators average? Make sure you’ll be getting mileage that will work for you. You don’t want to end up in a situation where the pay is good, but the miles aren’t. Nor do you want to end up getting more miles than you can reasonably handle.
- What are your freight cycles? Are miles consistent throughout the year? Some carriers have significantly less freight during certain times of the year. Less freight for them will mean fewer miles and smaller settlement checks for you.
- How much deadhead can I expect? You will probably get paid less, or not at all for these miles so have a good idea of what percentage of your total miles they will be.
- What is your stop pay, detention pay, or other assessorial pay? These will add to your total gross revenue.
- What is your average length of haul? A good average haul is 500-600 miles per day. This spreads your fixed cost over more miles and will lower your cost per mile.
- What is your fuel surcharge, how is it figured, and is it updated regularly? Find out whether it will compensate for the rising cost of diesel. If the carrier pays only on collection, ask for the average amount passed on the drivers.
- Do you have a fuel network and how big is it? This could end up saving you money and adding to your gross revenue, so it’s important to find out. Some carriers charge for every time you use the card, so run the numbers to make sure you’ll actually be saving.
- What is the ratio between company drivers and owner-operators? This will be a good indication of whether they are used to catering to your driver type.
- Do you have dedicated runs? Some people prefer the consistency, others find it boring. You’ll want to know if this carrier’s runs will work for you.
- Do you have a purchase program for tires and parts? Find out what the mark-up is and how quickly it needs to be repaid. Do the math to find out if it will really save you money.
- How often will I get home? It’s a good idea to set your expectations so you know what you are getting into. Knowing beforehand how much time home you can expect will save you and your family stress.
- Will I be required to load and unload? How often? Some drivers do not want this to be a part of their job description. If you are not willing to load and unload, you will want to find a carrier with a drop-and-hook operation. If loading and unloading is required, find out if there is compensation for this. It will cut into your driving time, so you don’t want to be losing money by taking time to load if not adequately reimbursed for it.
- Is your operation drop and hook? This needs to be taken into consideration when deciding which carrier to drive for. Truckers often find drop and hook to have a better payoff, since loading and unloading will cut into your driving time.
- What is the carrier tractor to trailer ratio? The higher the ratio, the more the carrier is committed to the operator’s success, and greater chance of more miles.
- Do you ever force-dispatch owner-operators? You’ll want to know ahead of time what you’re getting into. Will you have the option to refuse a load you don’t want to carry? If not, are you prepared to make the commitment to take it anyway?
- What is your turnover rate? If they have a high turnover rate, there is a good chance they’re doing something wrong. When a carrier has a low turnover rate, it’s more likely they work to keep their drivers happy.
The most important thing is to know what your costs are. Once you have an understanding of what each carrier will cost, you’ll have a better idea of how much revenue you’ll be bringing in. It’s important to look at more than pay per mile because it’s only a small part of the equation. What other questions do you ask potential carriers?