Every business owner knows the challenge of keeping their doors open and maintaining their budget. Trucking companies can have a very difficult time keeping everything in order due to the sheer cost of their operations. In fact, the average trucking company spends most of their total revenue to afford their expenses. Although this number is frightening to look at, it doesn’t have to be this way. In this article, we’ll be giving owners of trucking companies ways to help you cut costs for your trucking business.
Assess Your Current Budget
When you become a business owner, before you can even consider cutting down costs, you need to go over your current budget. How much are you spending annually? How much do you spend on lodging for your drivers? What’s the cost of monthly maintenance? These are all expenses you need to carefully assess, so you can come up with effective solutions.
Reduce the Fuel Costs
If there’s one thing that many trucking companies don’t look forward to, it’s the cost of fuel. Since trucks are larger than your average vehicle, they use more gas to operate. In fact, one truck carries around 120 to 150 gallons of fuel. The price of fuel depends on where you’re company is operating, but on average, it costs somewhere between $3.00 to $6.00 per gallon. Multiply that by the amount of trucks you have and you’re looking at a hefty expense.
Fortunately, there are ways around this. You can use GPS tracking systems to check where each individual vehicle is at any point in time. One of the reasons why fuel is so expensive is because of how much is wasted by idling. GPS truck tracking capabilities can help prevent idling and ensure everyone arrives at their destination with fuel to spare. Another method involves switching to electric vehicles (EVs). EVs don’t use any kind of fossil fuel, which makes it an excellent way to drastically reduce your carbon footprint. Furthermore, it eliminates the need for fuel and is instead replaced by charging stations.
Keep an Eye on Your Insurance Premiums
Fleet insurance is a staple for every kind of business with a fleet. This is especially true when it comes to trucking companies. Despite being on a single policy, however, the premiums can be rather pricey at times. You’ll obviously need to have routine maintenance, so your fleet remains compliant and efficient. But if you’re constantly needing repairs, it can cause your premiums to rise. Other factors can include the age of your trucks, inflation, and even the type of cargo you’re delivering.
Plan Out Better Routes for Your Drivers
Another way your drivers can unintentionally waste fuel is by driving down longer routes. Whenever you plan out your driver’s routes, efficiency is the number one priority. The more efficient the route, the more money, gas, and mileage you’ll save in the long run. Work with your fleet manager to see the routes your drivers are currently taking and strategize the most effective paths they can take.
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