Running a trucking company is a costly endeavor and making sure you are profitable is vital if you want to keep running a trucking company. But there are a lot of costs to keep track of and a lot of surprise expenses that can rear up and take a bite out of the most carefully planned budget, so finding ways to cut costs is important to your bottom line.
Here are just a few suggestions on how to keep your trucking business profitable.
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For instance, few things are a more reliable expense in trucking than fuel. Filling up the tank on even one truck is a costly measure, let alone a fleet of them. Cutting down on fuel costs can help a lot, so consider using fuel cards or other discount programs from whichever company you contract with for fuel. Compare and contrast different offerings to find the best rate for your ongoing needs.
Another thing that can add more red to your financial register is the amount of time you allow trucks to idle. The U.S. The Department of Energy estimates a heavy truck can consume nearly a gallon of gas every hour while idling. They also estimate the average commercial long-haul truck idles about 1,800 hours each year, which adds up to nearly 1,500 gallons of diesel at the same time.
Cutting down on idling time can save a great deal in fuel, as well as prevent wear and tear on the engine, which can lead to more maintenance costs. Instead, drivers might use an Auxiliary Power Unit, a portable truck generator that can power the cab’s climate control and appliances while burning far less fuel per hour. Estimate savings of $3 a gallon can add up to $3,150 a year per truck.
Truck drivers are encouraged to plan routes ahead of time to find ways to get to destinations while burning less fuel to get there. Drivers can also work on their driving habits. Various electronic devices can log a driver’s practices, such as hard braking, speeding, and other fuel-burning actions, and let the driver know what they’re doing so they can adjust to save fuel and money on each trip.
Healthy speeds make for better costs, too. Speeding less burns less fuel, while using the truck’s cruise control can cut down on fuel-heavy acceleration. By using better tires, such as Low-Rolling-Resistance tires, trucks can extend tire life and save fuel, too.
Some savings are fairly obvious, such as regular maintenance to avoid costly repairs of surprise breakdowns in the future, but every bit helps.
Another way to help defray high costs is finding better rates on your trucking insurance. To help with that, you can visit CheapTruckInsurance.com, which lets you take bids from up to three insurance agents to find the best competitive rate on insurance rather than taking the first, likely high, offer you can get.
By saving on insurance, you can free up money to help with other needs. Addressing those needs can save more money down the road, which in turn gives you funds to improve the fleet to make it yet more cost-effective until you’re in a position to determine your business is in the black and can remain profitable for years to come.
Saving money and staying profitable are common goals for every business owner, including those who operate trucking businesses. Take a look at your business and determine what you need to do to stay profitable. It may just start with a new insurance policy via a visit to CheapTruckInsurance.com.
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