The Business Of Independent Service Provider Contracting

Paying Drivers Daily or Hourly? (Part 2)

Posted by Gary Wade on Jan 9, 2022 10:15:00 AM

This post is the second in a two-part series.

In my last blog post, I shared that people often ask me, “Should I pay my drivers by the day or by the hour?”  My answer is based on comparing both methods, and I'll tell you why I recommend paying drivers by the hour.

Paying by the day is still most common because it’s a holdover from when delivery volume was consistent and only 5-days per work week.

As a result of adding residential service and e-commerce, package volume swings now vary widely on a daily basis. Paying drivers by the day has made business owner profitability more challenging.

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Topics: Business Structure, Payroll, Ground, FedEx Ground, overtime, leadership, Money

The Question That Never Goes Away: Paying Drivers Daily or Hourly

Posted by Gary Wade on Dec 19, 2021 2:53:48 PM

This post is the first in a series on choosing to pay drivers by the hour, or by the day.

Almost every week, another new Contractor will ask me an old question.  Should I pay my drivers hourly, or by the day? There’s truly one right answer, but complex dynamics cause many new CSP’s to believe that the old ways of paying drivers are acceptable.

Many new Contractors do not bring transportation industry experience with them. Although it’s likely they achieved significant success in their previous ventures. That success can lead to a variety of ways they address driver compensation.

New Contractors typically choose to either keep the same practices as the previous owner, or they make drastic changes. If they choose the latter, it’s because they recognize the existing compensation method is not financially feasible.

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Topics: Business Structure, Payroll, Ground, FedEx Ground, overtime, leadership, Money

Lessons Learned & Adapting For The Future

Posted by Ben Weil on Apr 13, 2020 9:45:00 PM

The panic associated with the COVID-19 pandemic has forced you into ADAPTING how your business is run.

Only weeks ago, it was unthinkable that both our United States healthcare system and our economy would be under this kind of assault.

The good news is that this bizzare event has uncovered some things that will be useful to incorporate into your business strategies going forward.

Here are some tips & suggestions as you look ahead:

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Topics: Business Tools, Payroll, Business, Profit

Should Contractors Band Together To "Work It Out"?

Posted by Jeff Walczak on Nov 5, 2017 2:50:39 PM

Take a look around.

Do you see the number of contractors around you dwindling?

How many contractors do you see today, vs. how many there used to be 2, 5 and 10 years ago.

It's plain to see the number of contractors is shrinking, while the number of trucks grows

This results in fewer, but larger operations.

Think this is a coincidence?

It's not.

As you seek answers from FXG on how you will achieve scale, contiguous service areas and overlap, you are being told you need to "work it out" with those around you. Well that's great, but how are you supposed to do so if you have limited resources?

There is a way, but you'll need to ask yourself some questions first.

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Topics: Business Structure, Business Tools, Management, Payroll, FedEx Ground, Business, Investment, model, Merge, Purchase

Brilliant! Bookkeeping and Payroll To Make Life Easier and Smarter ISP Negotiation Possible

Posted by Jeff Walczak on Nov 22, 2015 10:31:23 AM

Finally, it has arrived!

By overwhelming demand, we are introducing a new set of services from the highly experienced folks here at eTruckBiz, that will without question, make your life and business easier to manage, while producing information you need to conduct a more meaningful ISP negotiation.

We can now take some of the most burdensome chores out of your busy hands, so your can MANAGE your business,  instead of spending hour after hour doing "busy-work". 

Our new services produce not only the usual information you need for accounting and taxes, but turn this data into contractor-specific information that you'll use to get new, powerful insight into your FXG business.

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Topics: Business Tools, FedEx, Bookeeping, Payroll

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