As a new trucker on the road, you might be trying to establish a name for yourself. Some of the key qualities to highlight when bidding on truck loads available in your area are dependability, affordability, and reliability. If you want to secure the winning bid with potential customers, there are several things to keep in mind.
1. Charge the right rate. Just because you are a newbie doesn’t mean you should undercut the other haulers to gain more business. This is a two-edged sword in the business world. A price too low can look desperate and too eager for work. It might create skepticism in the quality of your services. More importantly, you won’t be able to turn a long-term profit, as customers who take advantage of your low rates will expect them to stay that way. It is generally smarter to quote your rate per mile, than as an entire job. Using a fixed and variable cost model enables you to choose the most accurate all-in cost per mile rate.
2. Know the overhead costs. You already know that you need to pay for fuel, but there are other costs of transport services. A comprehensive insurance plan can take from your profits but it is more costly to attempt to operate without it. You also have operational utilities like mobile phone service, lodging, meals, and other investments into safety accessories.
3. Maximize your fuel costs. The cheapest price at the pump isn’t always the best price. Quality gas can improve your mileage, potentially saving you thousands of dollars a year. The issues arise with the way truckers pay taxes. Therefore, the lowest base price, rather than the pump price, is what will help you save the most money.
Operating a trucking company has a lot more to it than simply picking up a load and driving across town. Carefully consider the importance of a management strategy to help maximize your profits.