Beginning May 1st, if your miles per gallon averaged more than 5.5 during the previous calendar quarter, your
take-home pay (draw%) will increase. Draw percentages are scheduled to increase on May 1st for all LP operators
who qualify based on first quarter (Jan-March) 2012 miles-per-gallon and deadhead data.
Here’s how the program works. When your miles per gallon (MPG) average exceeds 5.5 or more during a
calendar quarter, your draw% for the next quarter will increase. The higher your average MPG, the bigger the increase.
To maximize your MPG incentive, your deadhead% for the quarter must be under 20%. If deadhead is under
20%, your final MPG incentive will be slightly higher; if it’s over 20%, your MPG incentive will be slightly lower.
Draw% increases remain in effect until the end of the current quarter, at which time draw percentages will be recalculated
based on the new quarter’s MPG and deadhead data.
EXAMPLE 1: Joe’s MPG for the first quarter of 2012 averaged 6.2. His deadhead% was 17.5%.
From the tables on the left, Joe’s MPG qualifies him for a draw percentage increase of 1.20%.
In addition, Joe’s low deadhead percentage qualifies him for an additional .20%. Joe’s draw
percentage will be increased 1.40% to 27.40% for the next quarter:
Current LP draw % 26.00%
MPG incentive (from table) 1.20%
Deadhead modifier (from table) .20%
Draw% for remainder of second quarter 27.40% - an increase of 5.4%!
EXAMPLE 2: Laura’s MPG for the first quarter of 2012 averaged 6.9. Her deadhead% was 30%.
From the tables on the left, Laura’s MPG qualifies her for a draw percentage increase of
1.90%. However, Laura’s high deadhead percentage means a reduction of -.25%. Laura’s
draw percentage will be increased a net total of 1.65% to 27.65% for the next quarter:
Current LP draw % 26.00%
MPG incentive (from table) 1.90%
Deadhead modifier (from table) -.25%
Draw% for remainder of second quarter 27.65% - an increase of 6.4%!
Every Sammons lease-purchase operator is eligible for this incentive if he/she:
Is regular lease purchase (i.e. not on fixed payment)
Has completed a full calendar quarter with the same truck
Had no claims or accidents within the past 12 months
Is current with all paperwork (logs, maintenance recaps) and quarterly DOT inspections as
We will create a short addendum to our current lease purchase contract for each lease
purchase operator to sign. Your lease purchase advisor will contact each LP operator soon
to assist with this paperwork. Thanks . . . and congratulations to each of our LP operators
who are successfully completing Sammons’ lease purchase program!
|MPG||+DRAW%||D/H %||+/-D/H MOD|