INDUSTRY vs STRAIGHT LINE DELIVERY
This example shows how you make money as an hourly worker for a trucking company.
The broker will always make his percentage, the employee will make a set amount of money and those costs are concrete. This model lets the trucking company operate during lean times because they're living off the fat of the more profitable times.
A company can make a lot of money having someone in the truck that works by the hour. Trucks generally, when running down the highway make $100 an hour or more. Subtract driver pay and fuel costs. The rest is company profit.
In this example we can see that the Broker and company are both taking a percentage. We have shown in this example that the company is making 30%. Any agreement can change based on demand for a product or the locations.
If a customer is desperate for delivery or is in the middle of nowhere you can charge them more. The company will always pay you the same amount and keep the profit on the higher paying loads. The extra money will never go into your pocket. Your operating costs and Insurance stay about the same. If every job is different why are you payed the same? If a person owns a bulldozer, he charges customers by the job. Some jobs work the equipment harder than others. Some are farther to get to than others and those jobs pay more. Why shouldn't Trucking be the same?
This example shows the employee making 20% of the total money paid to move this freight. That number can actually be drastically less.
You’re getting $0.45 a mile to drive a truck. The company is able to charge the customer twice what it normally does and puts all the burden of getting it there on the driver. The company doesn't pay the driver more. The company reaps all of the benefits and sometimes the employee can make 10% or less of the actual money paid for the truck.
Some trucking companies also give employees sign on bonuses or bonuses throughout the year. What happens to that money when it’s not going into your pocket? It has to go somewhere. That is how big companies with employee drivers make so much profit. As a driver in someone else's truck you are confined to the truck and the same paycheck.
This example shows how SLDLLC works. There's no broker shown in this figure because there are no hidden costs. We show you the rate sheet, so you can see exactly what the freight pays.
The percentages in the pie chart will never change. There will never be more profit going to the company, because the company always gets the same amount. Regardless of how well the load pays the company gets 20%.
The PROFIT goes where it belongs, to the driver. Some short loads can pay as much as $50 a mile. If you are in an agreement that pays you a set amount per mile the company is going to keep all of that profit.
What is profit?
It’s the money that sends your kids to college, upgrades your truck and allows you to retire. If the program you are in does not allow you to have a profit, you are on the wrong program.