Did you know that Americans are ordering more products for delivery? If you want to start a trucking company and learn how to make it profitable, we can help.
In this guide, we’ll go over how to improve your trucking business.
Want to learn more? Keep reading.
What Are Your Operating Costs?
As an owner, you’ll want to understand your operating costs. What are some of your fixed expenses?
These fixed costs won’t change no matter how much you drive. Insurance, permits, and truck payments are examples of fixed costs.
What are some of your variable costs? The costs will change depending on how many miles you drive. Fuel is a variable cost.
Figure out your cost per mile by using your variable and fixed costs. Subtract that amount from your rates, and you’ll get an understanding of the profit you make.
What’s Your Niche Market?
To find success with your company, you need to choose the right market to support.
What market you choose to support will affect what rates you charge. It will also determine the equipment you’ll need and the freight lanes your service.
Owner-operators should choose markets that the giant carriers tend to avoid. You could haul specialized loads instead.
If you want to make revenue with a dry van, you will face too much competition. Other owner-operators will also try and pull the more manageable loads.
Instead, look at hauling fresh meat or produce. You will have year-round work and less competition.
Choose a Decent Rate
An owner-operator will need to pick a rate to charge their clients. The rate should cover operation costs and give you a profit.
Determine your rate before you begin to call shippers. When contacting shippers, you also want to remain competitive offer.
Work with a trucking accountant to keep your business finances in order.
What’s Your Fuel-Buying Strategy?
As a trucking company owner, fuel will be one of your main expenses. Experienced and new owners will often make mistakes when buying fuel.
Some owners believe the lowest pump price will give them the best option. You could lose so much money if you choose this buying strategy.
Regular drivers will have to pay fuel taxes in the state where they buy the fuel.
Truckers will need to pay taxes based on the fuel they use when driving through states. It won’t matter where they bought the fuel.
Buy fuel at the lowest base price. Disregard the pump price.
Make a Decent Profit From Your Trucking Company
We hope this guide on a profitable trucking company was helpful.
Make sure you hire a reputable accountant to help you manage your finances. You’ll also want to determine your operating costs so you can figure out what you need to make for a profit.
Consider serving a niche market that has fewer competitors.
Are you looking for more business tips? Check out our resources on the blog.
