Do you wish to grow your profits in the hotshot trucking business? If yes, you’re not alone in this. Almost every owner-operator wants to take their profits to the next level.
After all, the idea of starting any business is to earn profit. And the trucking business is one industry that can help you become a millionaire over time.
Once you have gone through the BOC 3 requirements, you need to focus on other aspects too. Below, we will mention the different ways to maximize your profits in this business:
1. Buy A Tire Gauge
As a rule of thumb, it’s best to begin with checking every tire. And don’t forget to keep them all inflated. This will help in keeping them healthy. Plus, you can also make them last longer.
Thus, helping you earn more money over time. Ensure to go through the owner’s manual to know the ideal operating pressure. Usually, it falls between 100 to 101.
This will allow for maximum payload capacity. Plus, keep the resistance to the minimum. We also recommend you check the tire pressure every time you stop the truck for fuel.
2. Own Your Own Truck
The charges will be significantly high if you have rented or leased equipment. Thus, taking a big toll on the overall profits of your business. But you will be exempted from paying the rental costs when you have your own truck.
If you want to make serious money in this industry, you need your trucks. Done lease from one of the mega-companies out there.
The way they’re a strong part of the setup, they will make it nearly impossible for you to pay off. You can’t run a successful hotshot trucking company if you’re hardly doing breakeven.
3. Do The Simple Repairs Yourself
You can do various things yourself. After all, sending off your truck for cleaning and minor repairs will be very costly. You can pay the company drivers for cleaning the truck.
There are places that will easily charge somewhere between $800 to $900 for maintenance. But if you wish to cut down on this expense, you must purchase cleaning equipment for the truck yourself.
But if you need a mechanic on the road, you can look for the one who charges less and has good quality services. Sometimes, you will only have to pay between $270 to $300. You can even save money by doing the cleaning yourself.
4. Drive At A Steady Pace
As they say, slow and steady wins the race. This goes exactly for any trucking company. You don’t have to Overspeed. This will increase the chances of a traffic accident.
And if your truck isn’t insured, you won’t be provided any financial compensation. Worse, if one of the drivers loses their life, their family might sue your company.
It is good to train your drivers about the importance of driving at a certain pace. It’s better to arrive late than never.
5. Never Settle For Cheap Freight
Unless you have a strong and very old relationship with a certain customer, you should never choose cheap freight. These days, fuel prices have skyrocketed, which lessens the profit percentage.
A typical truck carrier might settle for $2 mile, but this way beyond the line. Sometimes, you need to have a voice of your own.
It is important that you focus on taking good-paying orders. Especially if your company has managed to garner a positive reputation, it will be beneficial for you. You can use these reviews to woo high-paying clients.
6. Fuel Strategically
This requires careful planning. For instance, if you have 200-gallon tanks, a $3.35 gallon will cost around $370. But if you choose a location where the price is low, you can easily spend less.
Thus, you can make a huge difference to the fuel costs. For this to happen, you must shortlist all places with low fuel prices. And if you have a discount card, don’t hesitate to use it.
Even if your trucking company has a strong name in the industry, the drivers shouldn’t shy away from availing discounts. Now is the best time to set a plan, so you can save money on fuel.