Why CPM Isn’t Everything for Truck Drivers
Description
Drivers have been trained to compare one number. Carriers know it, which is why cents per mile is often the only number they lead with.
Here's the problem, stated as arithmetic. Your take-home is CPM × miles + extras − deductions. If a company only gives you the CPM, they've handed you one variable out of four. The video runs the comparison plainly: 45 cents a mile at 2,000 miles a week pays less than 35 cents a mile at 3,000 miles a week. Both drivers are away from home the same amount of time. One just gets more miles.
So the questions that actually matter are about the other three terms. How consistently can they keep you moving? What accessorial pay exists for detention, layover, and breakdown — the time that isn't your fault? What gets deducted? At Doug Andrus a lot of the freight is drop and hook, which means less time sitting at docks, and the refrigerated fleet averages around 11,500 miles a month. Detention, layover, and breakdown are paid, per diem reduces your tax burden, and health insurance runs under fifty dollars a month.
Run your own numbers with the compensation calculator rather than taking anyone's word for it. Then compare against the full benefits breakdown, check the current pay structure, or see how Gary and Suzanne describe getting paid for downtime outside their control. Questions? Call (800) 336-1034.
Video Transcript
There are questions you need to ask yourself when deciding which company is right for you. First and foremost: how much will they pay you to drive the truck?
Lots of companies will focus on cents per mile, or CPM for short. Why? Because over the years drivers have been trained to focus on cents per mile and nothing else.
If the only thing a company will tell you is a cents-per-mile rate, you still don't know how much they're going to pay you. Think of it like a math equation: CPM times miles, plus extras, minus deductions — that equals your take-home pay. So again, if they'll only tell you the CPM part of the equation, they haven't really given you the full picture.
Let's break it down. You need to know how many miles a company can consistently get you. If a company says they're going to pay you 45 cents a mile but can only get you 2,000 miles a week, you'll make less than a company that will pay you 35 cents a mile but is getting you 3,000 miles a week.
Keep in mind that in both instances the driver is still on the road working and not at home with their families. But one driver makes more than the other simply by getting more miles in the same period of time.
If you want to run the miles, Doug Andrus can get you the miles. Most of the freight is drop and hook, which means less time at the docks and more time on the road racking up the miles. In fact, the monthly average for miles in the refrigerated fleet is 11,500 per month.
Frequently Asked Questions
What is CPM in trucking?
Cents per mile — the rate a carrier pays for each mile driven. It's the number most heavily advertised in recruiting, and on its own it doesn't tell you what you'll actually earn.
What's the full take-home pay equation?
CPM × miles + extras − deductions. A carrier quoting only CPM has given you one of four variables.
Can a lower CPM actually pay more?
Yes, and it frequently does. 35 cents a mile at 3,000 miles a week beats 45 cents at 2,000 miles a week, and both drivers spend the same time away from home.
How many miles does Doug Andrus run?
The refrigerated fleet averages about 11,500 miles a month. Much of the freight is drop and hook, which cuts dock time.
What extras should I ask about?
Detention, layover, and breakdown pay — compensation for time that isn't your fault. Also holiday pay, per diem, and what health insurance actually costs you per month.
What does drop and hook mean for my paycheck?
You drop a loaded trailer and hook an already-loaded one instead of waiting for it to be filled. Less waiting means more moving, and miles are what pay.