Running a profitable trucking business isn’t easy these days. There’s lots of competition, fuel prices are rising and customers can be inconsistent with their orders and payment schedules. Nevertheless, there are certain strategies that can help you boost your profits and grow your company. Here are 10 of the best ways to make your trucking company more profitable.
How to Make Your Trucking Business More Profitable
1. Save Money on Fuel
You can’t control the price of fuel but you can do something about how much you pay for it. One of the best fuel-savings tactics is to get a fuel card. Riviera Finance offers a TCS fuel card that lets you save an average of 40 cents per gallon. This fuel card is universally accepted at most major chains nationwide.
2. Improve Your Routing
Routing your journey with greater accuracy saves you both time and fuel. If you’re not using the most accurate GPS routing software, you should consider doing so. Investing in this type of software will quickly pay for itself as you plan more efficient routes.
3. Reduce Idling Time
Idling wastes a surprising amount of fuel, especially when it’s a habit. According to the U.S. Department of Energy, idling uses up about 0.8 gallons of fuel per hour. This means for every 10 hours of idling, you can waste around $20 at current rates. If you idle to keep your power sources going, there are more economical alternatives, such as Auxiliary Power Units or APUs.
4. Pay Attention to Your Tires
The quality and condition of your truck tires have a strong impact on both safety and fuel efficiency. Make sure your tires are always inflated to the manufacturer’s recommendations. You can save even more fuel by switching to Low-Rolling-Resistance (LRR) tires.
5. Keep Your Trucks in Optimal Condition
Performing regular preventative maintenance on your trucks will help them to perform better and last longer. Don’t wait for problems to arise. Keep the vehicles in your fleet well-serviced, replacing essential fluids and parts as needed and checking all systems.
6. Optimize Your Driving
The way you drive can have a great influence on fuel economy. Habits such as excessive speed and idling waste fuel. Gentle braking and accelerating, meanwhile, improve fuel efficiency. Over time, changing your driving habits makes a big difference.
7. Know Your Exact Costs
Knowing your cost-per-mile or CPM is essential if you want to boost revenue. To increase profits, you first have to know how much your expenses are. You need to calculate both fixed and variable costs, which include fuel, insurance, maintenance, meals & lodging, permits, property leases and any additional expenses you may have.
8. Use Load Boards and Brokers
Both load boards and brokers are useful for finding customers. These are especially helpful for newer companies that are trying to build up their network of customers. You can browse listings and post your own truck availability.
9. Negotiate Better Rates With Shippers
When you negotiate directly with shippers, you may be able to get better rates. Although brokers and load boards are useful for finding customers, they can be costly. Develop your own network of direct shippers with whom you can negotiate for more favorable rates.
10. Use Non-recourse Invoice Factoring
Invoice factoring, also known as freight bill factoring or transportation factoring is a good way to improve your cash flow for your trucking business. With invoice factoring, you generate immediate cash flow without having to wait for customers to pay your invoices. With non-recourse invoice factoring, you get the additional benefit of credit protection on your customers and can protect your business against loss from unpaid invoices due to customer insolvency. Additional cost-saving benefits include the factoring company handling your customer billing and collections.
Non-recourse transportation factoring is one of the quickest ways to help you improve your finances. Riviera Finance has been helping truck drivers with invoice factoring needs for more than 50 years. To find out more, contact Riviera Finance today.