What makes it possible for a carrier to contract to haul a shipper’s commodities? The person who holds the steering wheel. Truckers are the troops in the trenches, the foot soldiers of American commerce. Without you, the trucker, the world stands still.

That’s a lot of weight to be carrying on one set of shoulders. Why is it a trucker bears this burden of long hours on the road; days, even weeks away from home, in what has been listed as one of the most dangerous jobs in America? All of this with a constant feel of hands from all directions seemingly rummaging through his pockets to grab what little money is there.

The responsibility of keeping others out of the trucker’s wallet—belongs to the trucker himself.

“Now wait a minute—someone is taking money out of my pocket and it’s my fault?” It’s as if you’re permitting them access to your money, if you aren’t watchful.

Here are nine ways to keep more of your money in your pocket, and keep those hands which have no business there, out.

1. Know your Costs. What’s your daily Break-Even Point? This is the total of your annual ‘fixed’ expenses divided by 365 days. Your variable costs? Your cost per mile is your ‘operating’ expenses divided by the total odometer miles traveled in the most recent month. Your load specific costs? Costs incurred that are directly related to a specific load or trip. This includes fuel, tolls, labor and special permits.
2. Know the number of days and the actual miles required for each trip.
3. Make sure what you are being paid is in line with ALL of your costs including a decent salary for the driver—you—and there’s a profit left over after you’ve written yourself that paycheck.
4. Remember the carrier is not a charity—make sure you are paid for unreasonable delays in loading, unloading, re-palletizing or other extra services. Be willing to say “No” to a load that is unwilling to pay for the ‘extras’.
5. Don’t accept rate reductions. It is not the trucker’s responsibility to take it in the pocket to resolve the carrier’s mistakes.
6. Keep a paper trail on every incident. Track your delay times for loading and unloading. Have the documentation, records, and facts to back up your financial needs. “I gotta have more money on this load,” won’t cut it. Have the information to prove it in the form of a Profit Loss Statement, or Cost Analysis.
   (See Number 1—Know your Costs).
7. Communicate. This means listening and asking questions. Don’t leave any stone unturned. Make sure you know all the details of each load: what is expected of you the driver; you the owner of the truck, you the contractor, and you the customer service representative. Understanding the details is the secret to an uneventful load.
8. Develop a relationship of honesty and forthrightness with the carrier. Be factual, be respectful, be polite, be direct, and be assertive. Tell the truth with facts and figures to back it up.
9. Don’t ever ask the Question: “How much does this load pay?” If you own the truck—your company—you have paid for the right to set the rates.

   When was the last time you were in a truck stop to get a PM Service? Did the service manager ever ask you how much you wanted to pay for that PM? No, he told you the truck stop’s rate for the service. The owners of the truck stop figured out how much it costs to perform the PM Service: the cost of the building, the insurance for the building, the supplies needed to perform the job, the salaries of the people involved in the job. Then they determined the profit the truck stop needs on that service. From all this, they figured the price they quote you.

   Now reverse this: If the service manger did ask you the question, “How much do you want to pay us to do your PM?” what would you answer? Are you going to pay the truck stop more than their normal rate? Not on your life; you’re going to toss back the lowest price you believe won’t get you thrown out. That’s human nature—so let me ask: what happens when a trucker asks, “How much does the load pay?” Human nature dictates the carrier’s dispatcher will give you the lowest amount he think you’ll accept. Who makes the truck payments, who pays the insurance and maintenance? Who should set the rates charged for that truck? The person who owns and operates the truck!

   Again you’ve got to go back to Number 1—Know your Costs. If you don’t know them, nobody knows them. This leaves you at the mercy of every carrier, broker, or shipper to set your rate—and they’re going to set it at the lowest rate they believe you’ll accept.

   Now who let whose hand in your pocket?

   Remember, it’s your company, your truck.

   Timothy D. Brady is a 20 + year trucking veteran, AMSA’s 2002 Super Van Operator HHG, co-author of “Driven 4 Profits,” developer of Load Profit Analysis Software, and the principle consultant for The Trucker’s Consultant Phone Service (866-890-8996).

   Catch him as the “Trucker’s Business Advisor” on Sirius Road Dog Network “Open Road Café’s” Wednesday’s 8 am to 9 am CT.

   Keep an eye peeled for his Truckers’ Phone Seminars Call 731-749-8567 for more information

   He is also available for speaking engagements. His trucking business books and software can be found at www.truckersbookstore.com You may contact him at tbrady@writeuptheroad.com or (731) 749-8567.

   For those who entered our contest last month: Thank you for the tremendous response. We had several correct answers, the earliest correct answer arrived by E-mail from Oshkosh, WI on March 2, 2006 at 18:19 hours. Thanks everyone for participating.

   Here are the correct answers to March’s questions:

   1. What percentage of his annual gross revenue can an owner/operator expect to send home as his paycheck?
      1/3 (one third)

   2. What are some of the provisions of the Fair Labor Act of 1937 from which truckers are exempt?
      Minimum wage and overtime.

   Contest: The first person to answer the questions below correctly, by email, the questions listed below using this article to info@truckersbookstore.com will receive a copy of Gearing Up 4 Profit$ An Owner/Operator’s Guide to Determining Load Profitability

   1. Who should decide the hauling rates that are charged to a shipper?

   2. Why is #1 on the list above so very important?

   Please Participate in our Mini Survey:

   1. How would you like to be paid?
      (A) By the Mile (B) Percentage of Gross (C) By the Day (D) By the Hour (E) Flat Rate
   2. What is a fair annual net profit for an OTR Truckload Dry Van Owner/Operator?
   3. What is a fair annual wage for an OTR Truckload Dry Van Company Driver?
   
   
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