We entered into the owner driver world a while ago on a bulk tipper. My husband however hates working away all week and as I also run an agency and have 2 young children I could do with the help! So we decided to look into traction only work, day shift and night shift and went to see a well-known firm yesterday for traction only work on a fridge.
Well we were very shocked at the ppm we were offered. I sat at home last night trying to figure out if other subbies are getting that rate of pay how can they make it pay? £1 per mile we were offered. The round trip is around 540-570 miles depending on where you load from. The work is only 5 days so be £2700-2850 per week. 2 lots of drivers wages = £800 with Employers NI at the bare minimum. Fuel would be around 7-8mpg depending on what the load is and whether coming back loaded or empty. We said about 350 litres give or take at current price = £385 x 5 days = £1925 obviosuly as we know fuel could be up or down by next week. So before we’ve even considered anything else we’d be running at a loss. Never mind insurance,tyres, oh and a wagon to pay for!
Is this a total p take or just us missing something? They did mention there could be a fuel regulator added on but didn’t go into any depth about this does anyone know what this normally entails?
the fuel regulator works both ways. if fuel goes up by say 4%, then you’ll get an extra 2%.
if it goes down 4%, then you’ll get about 2% less.
and at £1.00 per mile, it isn’t going to make much difference. but at that rate i’m surprised you didn’t hand up before it got that far.
why not look at european work, much less wear and tear, and a much higher return on fuel consumption.
This could be a “Name and Shame” post or alternatively a “Guess the Operator” post
Traction Only is the easy way in, but along with less expenditure, comes lower rates!
Would it really work on double manning or even with two drivers? Things can go wrong and a night driver who is sat waiting for the phone to ring will be rightly miffed if it doesn’t ring, or it does ring and he is told there is nothing for you tonight as the lorry is stuck in Birmingham until tomorrow morning
Trust me we did walk out laughing at them. Do you think they could have given us that rate to fob us off but then why would they go to the trouble of getting us set up etc and asking us down to a meeting to then fob us off? We had continuly asked what the rate was but we were always told it depended on what the rates matrix is set at for our area. I’m rather disappointed that such a big company would make us lose a full day to go and see them for information that could’ve been given over the phone over 2 months ago and then we’d have told them where to stick it lol. We’ve since spoke to 2 different subbies who pull for a subbie and they were getting £1.10 per mile plus fuel regulator so how can they get more going through a subbie than we can going direct? makes no sense to us?
It would require 2 drivers on it as the journey down the way although the drive is only 6 hours the getting tipped and waiting for your load normally takes about 5-6hours so is a 12 hour shift. Which would obviously hinder you for doing the deliveries up into Scotland the next day. The first driver normally starts around 12pm-2pm down tip and load back up for about 1am and then the next driver goes and deliveries up into scotland and maybe loads on the way back.
The company was Culina at stafford. My husband doesn’t really want european work etc as this still means him being away from home. Don’t get me wrong I don’t mind lol but he misses the kids. I think we’ll just have to leave it on the tipper at the minute as during these tough times were still making money and it’s looking after itself. I did know that traction only work would pay less but I’d assumed you should still be able to at least cover your costs!
The ppm rate sounds very poor but depends on the fuel regulator. Some container firms state a ppm rate plus a percentage for fuel that is reset weekly depending on fuel price.
Don’t think i would have gone to meeting without figures up front.
If there’s od’s sat there with a truck not working and £1/mile is more than they’d spend on diesel so they think better than sitting twiddling their thumbs.
All they need is enough od’s in that situation and they get the loads moved and if they weren’t getting the loads moved they’d be forced to offer more.
Plenty of businesses like franchises work the same. The company offering the franchise know there’s not a cat in hells chance of making money with it but it doesn’t matter because there’s always a good supply of people with redundancy cheques that think they can.
Iv seen cullina fridges being pulled by subbies in france I would like to hope there getting alot more ppm than that.
If it makes you feel better I gave one of there fridges a proper belt with my trailer in Stafford
It’s supply & demand, they have enough people on it to cover the work at say £1.30 per mile but if some mug comes along and is willing to do it for a £1 per mile then they won’t say no but have no need of any more subbies at £1.30 per mile.
The main difference as well is if a chap has a truck that’s paid for compared to one who is shelling out £250-400 per week in repayments then £1.30 per mile is probably decent on the right routes.
You know… for as long as I care to remember… haulage is the only industry that I can think of where the customer set’s the rate for the job to be done.
Something wrong here isn’t there?
I mean if you need a plumber, electrician, gardener … any tradesman, or even some professional services…they tell the customer how much it is going to cost to have the job done.
Why is this■■?
Why has it been allowed to evolve into this situation?
Look at it this way. If you don’t agree to pay the tradesman/professional his “Going rate”…you don’t get the job done…and please don’t give the tired “Supply and demand” or “Someone else will do it” excuse…it doesn’t wash.
Solly:
You know… for as long as I care to remember… haulage is the only industry that I can think of where the customer set’s the rate for the job to be done.
Something wrong here isn’t there?
I mean if you need a plumber, electrician, gardener … any tradesman, or even some professional services…they tell the customer how much it is going to cost to have the job done.
Why is this■■?
Why has it been allowed to evolve into this situation?
Look at it this way. If you don’t agree to pay the tradesman/professional his “Going rate”…you don’t get the job done…and please don’t give the tired “Supply and demand” or “Someone else will do it” excuse…it doesn’t wash.
I am not an od but the above is surley a very valid point !
Solly:
You know… for as long as I care to remember… haulage is the only industry that I can think of where the customer set’s the rate for the job to be done.
Something wrong here isn’t there?
I mean if you need a plumber, electrician, gardener … any tradesman, or even some professional services…they tell the customer how much it is going to cost to have the job done.
Why is this■■?
Why has it been allowed to evolve into this situation?
Look at it this way. If you don’t agree to pay the tradesman/professional his “Going rate”…you don’t get the job done…and please don’t give the tired “Supply and demand” or “Someone else will do it” excuse…it doesn’t wash.
100% spot on, the thing is a “tradesman” has a skill, an o/d has a truck and unless he is in a niche market the chances are he has finance on the tools to do is job , in some cases he even has finance on the insurance and road tax, this puts him/her in a weak position right from the start when it comes to setting rates!
the bottom line is to many o/d’s or small hauliers are willing to work hard/long hours for small reward
Solly:
You know… for as long as I care to remember… haulage is the only industry that I can think of where the customer set’s the rate for the job to be done.
Something wrong here isn’t there?
I mean if you need a plumber, electrician, gardener … any tradesman, or even some professional services…they tell the customer how much it is going to cost to have the job done.
Why is this■■?
Why has it been allowed to evolve into this situation?
Look at it this way. If you don’t agree to pay the tradesman/professional his “Going rate”…you don’t get the job done…and please don’t give the tired “Supply and demand” or “Someone else will do it” excuse…it doesn’t wash.
I think the answer to this is that many operators do not know what it costs to run a vehicle or how to work out standing costs. They accept a rate and make it work, either by paying minimal wages or scrimping on maintenance, the ones who can do it themselves are working for even less, if they counted their time.
The large container companies know exactly what it costs per mile, per hour, per year and set their rates accordingly.
I have constantly wondered how anyone made a run to Milan or Pratojohn pay. 700 miles Calais to Milan on a peage, a tunnel fee fuel and a drivers wage. It just didn’t add up!
Solly:
You know… for as long as I care to remember… haulage is the only industry that I can think of where the customer set’s the rate for the job to be done.
Something wrong here isn’t there?
Farming is another one, everything a farmer produces is sold at whatever the market rate is, on a “take it or leave it” basis, just like haulage.
Solly:
You know… for as long as I care to remember… haulage is the only industry that I can think of where the customer set’s the rate for the job to be done.
Something wrong here isn’t there?
Farming is another one, everything a farmer produces is sold at whatever the market rate is, on a “take it or leave it” basis, just like haulage.
Paul
quite right about farmers, but in most cases a farmers largest asset is going up in value whilst they are working it,ie land
and also with the single farm payment they are being paid for owning / farming it
we have some land and get a cheque every year just for owning it!!
by contrast my truck/trailer is going down in value all the time i own it !
Been doing quite a lot of driving for montgomery refridgerated whilst waiting for my o licence to be granted and was told that they looking for subbies for traction so rang the auction to enqire about rates etc. they are paying £1.04 a mile because majority of subbies are eire based is it any wonder we struggle in the north west to get decent rates when eire based hauliers get cheap diesel and make these rates pay!!
simon
