Starting a trucking company is an excellent endeavor as it allows you to experience countless benefits. Being an owner-operator in your trucking company allows you to make your schedule and enjoy a work-life balance. Since goods are always moving, you’ll never find a hard time looking for individuals and companies in need of your services.
But just like any other business, you need to create and implement strategies to help increase your profit margins. This task is important as it reveals the longevity and general health of your business. The more profit margins you earn, the longer your trucking company can operate.
Here are effective ways to improve your trucking company’s profit margin:
- Use A Load Board
The advent of technology is revolutionizing many business industries, and this includes trucking. Today, you can invest in different tools that help cut manual labor and minimize the use of other resources, allowing you to earn more margin profits.
If you want to improve your trucking company’s margin profits, start looking for load board options. A load board is an online tool that works as a matching system or marketplace.
Shippers can benefit from this tool as they could easily find a carrier to move their goods. Trucking companies can also benefit from a load board as they can easily find a freight load that needs to be moved. This will reduce the instance of driving with an empty truck.
Most load boards are free and low-cost, which means that you don’t have to shell out a huge amount of money to use the tool. As long as you find one that suits the nature of your trucking company, this tool can be your key to earning more income in the long run.
2. Perform Regular Preventive Maintenance
Repairing truck problems, such as radiator malfunction, oil leakage, faulty brakes, and tire blowouts can be very expensive. Aside from spending money on the repairs, your operations will be affected as fewer trucks might mean earning fewer revenues for the day.
Thus, a good way to increase the profit margin of your trucking company is to prioritize performing regular preventive maintenance. Even if your trucks are running properly, you should never skip on performing preventive maintenance, as this allows you to early identify problems. Early detection often means cheaper and faster repair.
Generally, your preventive maintenance checklist should include changing the engine oil and filter. Also, check its auxiliary system, seat belts, horn, filling transmission fluid, the performance of the drive shaft, belts, and hoses are in good condition. You must ensure that your truck’s windshield wipers are working properly. Lastly, inspect its engine and transmission mounts, fuel and cooling system, as well as the braking components and electrical system.
3. Stop Paying Full Price For Fuel
Fuel is one of the most important resources every trucking company needs. On average, trucking companies spend 24% of their financial resources on fuel every year. This can be a lot of money, especially for companies that are still new in the industry.
Another way to increase your trucking company’s profit margin is to stop paying full price for fuel by using fuel cards. Many companies offer fuel cards to give discounts and other benefits to trucking companies worldwide.
With the number of companies offering fuel cards, take the time to compare your options. Ideally, you should assess the benefits, coverage, and savings of at least three different fuel card programs to determine which one suits your trucking company.
4. Reduce Driver Turnover
Drivers play an important role in the long-term success of your trucking company. Without them, your trucking company can’t haul in clients and earn profits. In short, the performance of your drivers can make or break your company’s ability to earn long-term.
If you want to increase the profit margin of your trucking company, reduce driver turnover. There are countless ways of doing this. For one, instead of making your drivers feel like they’re merely employees of your company, spend time and effort to create healthy relationships with them. If possible, treat them as friends or family.
Aside from creating professional relationships with your drivers, providing them with adequate pay also helps in reducing turnover rates. When you drivers are happy with what they’re earning from your trucking company, they won’t quit and look for other employers.
5. Market Your Company Better
Perhaps one of the reasons your trucking company isn’t earning enough is because only a very few people knew that it existed. Not having a marketing strategy can result in low customer volume, budget problems, and the possible closure of your trucking business.
Market your trucking company more to increase its profit margins. You can try several low-budget marketing ideas such as posting on social media, developing an email marketing plan, and publishing high-quality content online. Posting informative videos about your trucking business and what benefits you can offer to customers is also a great marketing tool.
Earning Profits Requires A Long-term Commitment
There are numerous ways to improve your trucking company’s profit margin but don’t expect that implementing these will bring results overnight. Earning profits in any business requires time, so make sure to remain patient and consistent with your efforts.