Stop Pay

Discussion in 'Ask An Owner Operator' started by jfar28139, Jun 20, 2013.

  1. jfar28139

    jfar28139 Light Load Member

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    I have a small company (5 trucks, 6 drivers) with our own authority. I am bidding for some dedicated freight. Part of the year, the runs will be single drop runs and during the other part of the year, they will be multiple drop runs. The drops will be to retail shopping center-style locations. The freight requires driver assistance and 4-5 pallets will be dropped per stop. Stops will take at most 30 minutes at the receiver. Other than multiple drops, these are long-haul (1,000 mile+) runs. FWIW, drivers are paid on percentage of all pay, including accessorials.

    What do you recommend as a charge for stop pay? This rate would be to the carrier, not "to the truck" or "to the driver". I am thinking $100 but need to bounce that off someone. I am sure there will be people who will say they wouldn't stop for less than $200. That really isn't the point. This is good paying hazmat freight and I want to pick a reasonable rate for which neither I or the shipper would care if there are 1 or 5 drops on the load.
     
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  3. ShortBusKid

    ShortBusKid Heavy Load Member

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    Just a suggestion. Do a tiered drop rate - $50 first extra, $75 second, $100 third, $150 for all others. Some customers don't like that system so I'd go with $75 to $100 per extra drop.
     
  4. Saddletramp1200

    Saddletramp1200 Road Train Member

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    The driver does all the work. I would guess flat rate to shipper, Flat per drop for the driver. HAZMAT tells me other numbers.
     
  5. jfar28139

    jfar28139 Light Load Member

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    A small portion of the freight is hazmat. Paint, mainly...
     
  6. Flightline

    Flightline Road Train Member

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    You have 5 trucks and you are now asking how much to charge for drop pay?
    Seriously you have how many trucks? And how long have you been a fleet owner?
     
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  7. dannythetrucker

    dannythetrucker Road Train Member

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    an extra stop is going to add 15 miles or so on average, depending on what side of town it is on. You burn a few extra gallons of diesel hitting stop lights and getting pulled around behind those stores. You say it is going to be 30 minute stops, but I will bet time from when you get off the interstate til you get back on will often be an hour or more, even at a good stop. You're drivers prolly aren't going to be too thrilled about doing them unless they get $50, you could pay them less but they aren't going to be happy about it. I think $50 for additional wear and tear on the truck and additional fuel + $50 additional time + $50 to the driver = $150. and I don't think $200 would be out of line either.
     
    jfar28139 Thanks this.
  8. jfar28139

    jfar28139 Light Load Member

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    May 28, 2012
    Rutherfordton, NC
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    Thanks. Your analysis is helpful. I agree that each stop will essentially kill an hour of productivity. So it really gets down to what do I want the truck to earn per hour (and that hour likely has a bit lower operating costs than highway driving).

    I think it would be different if this were a bunch of short runs with a lot of stops. I don't the drivers will mind as much for 3-4 stops at the end of a 1,000 mile run (at least that is the initial feedback I am getting).
     
    dannythetrucker Thanks this.
  9. ‘Olhand

    ‘Olhand Cantankerous Crusty

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    Done long haul ltl my entire life--$100 minimum--along w/good mileage rate--u can always adjust one or the other--while u neg.......i would also assess some type of flat rate handling fee for the assist--ur drivers deserve it--& if nothin' else helps defer their road expenses nice perk to keep good help
    Tiered can work well also depends on customer--although I have always been partial to a strait per pallet zone billing--but tough w/single shipper usually only works w/multi shippers on load--good luck
    Just my .02
     
  10. dannythetrucker

    dannythetrucker Road Train Member

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    I disagree on the operating cost. True, your truck may be sitting for 30 minutes of that hour. But driving through taffic, stop lights, etc.. is harder on the truck and burns more fuel than cruising down the interstate for an hour. More risk, more wear and tear on the truck. More challenging for the driver, more planning ahead...

    This is kind of a hot topic on my mind because I try to add partial shipments when possible and constantly butt heads with brokers who have the mindset they should only pay me half of full rate, they don't want to account for the additional stops. I told one guy, "you bring your load over to where I'm picking up and then come get it where I'm delivering and I'll do it for half rate. If you want me to come get it, and stop off where you want it delivered, that's extra."
     
    G/MAN and cetanediesel Thank this.
  11. rollin coal

    rollin coal Road Train Member

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    Is it normal that most companies take a percentage off the top of accessorial pay from their leased owner operators?
     
    losttrucker Thanks this.
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