Top 3 Benefits of Percentage Pay
How would you prefer to be paid? Higher of course; but that question was rhetorical. For typical over-the-road drivers or owner/operators, the two most common methods are either mileage pay, or percentage pay. So what’s the difference? Consider this example:
A customer needs a commodity hauled 1,236 miles and will pay $2,900 for the load to be moved.
- Mileage Pay is simply what it implies. You are paid a certain dollar amount per mile that you drive. For example, if you are paid 56 cents per mile and you drive 1,236 miles, your pay would look like this:
.56 cents x 1236 miles = $692
- Percentage Pay is based off a percentage the shipper paid to haul their load. Using the example above, if your percentage is 28% and the shipper paid $2,900 dollars for the load, your pay would look like:
$2,900 x .28 = $812Now that you know the difference, let’s dive into the Top 3 Benefits of Percentage Pay.