Trucking might seem like an easy way to make money to the layman. However, owners and drivers know that long hours and a constant hunt for freight or drivers (or both!) are not part of the job. Owners need to maximize equipment utilization and control their costs to drive as many loaded miles as possible to make a steady income.
The trucking industry is challenging, and even the most knowledgeable driver will find it difficult to succeed without a disciplined approach. The numerous challenges that frustrate company owners’ abilities to reap consistently good profits include rising costs, fluctuating markets, harsh regulations, and stiff competition.
Despite economic crises, global pandemics, changing technology, and environmental regulations, trucking will remain an essential service for decades to come. Those willing to work hard, smart, and dedicated to operating at high efficiency can expect a rewarding career in the trucking industry.
To boost your profits as a trucking business owner, take these top-notch tips:
It is essential to know how much it costs to run your business to set a rate-per-mile charge to deliver freight to customers while still turning a profit. In order to calculate this number, you must consider both variable costs (running costs) and fixed costs (overhead). Accurate bookkeeping and financial reporting are critical. Record every dollar spent on large ticket items, over-the-road expenses, and even small office supply purchases. Every dollar amount, large or small adds to the overall picture.
Many trucking companies have trouble maintaining accurate business records; they do not understand key business metrics and do not regularly analyze accounting data. It is well recommended for all trucking companies to keep detailed financial records and to analyze these reports regularly in order to maintain financial control. By doing so, it is easy to determine the cost-per-mile of a particular load; using an online cost-per-mile calculator helps get the job done.
The key to success in the trucking business is making sure you attract customers by offering a competitive rate per mile while still turning a profit. It’s a delicate balance between what you pay to operate your fleet and what you earn. Use these strategies to maintain competitive rates:
You wouldn’t think more miles would equal more money, but, surprisingly, they do. Along with the job of a trucker, trucking company owners and dispatchers have to focus on obtaining enough freight to keep their trucks moving and maximize their load utilization. There is often stiff competition between fleets for loads. The best way to get loads is to be resourceful, relentless, and use every tactic available.
The creator & host of Truck N’ Hustle, is a renowned personality in the trucking & logistics industry who hosts podcasts with the reputed & successful trucking entrepreneurs to share the knowledge required to start & sustain the logistics business!