There are roughly 1.2 million trucking companies in the USA. This number will most likely grow soon now that the economy is bouncing back from the adverse effects of the pandemic. As an owner of a trucking company, this should worry you a little.
As the trucking industry grows, so does the competition. You’ll have to find innovative ways to increase your trucking company’s revenue if you are to survive in this environment. Besides, finding better ways to run your operation will grow your trucking company.
So how do you begin growing your trucking business? Read on for tips on how to increase your trucking company’s performance.
1. Understand Your Cost Per Mile
Knowing your cost per mile is necessary if you wish to increase your revenues. You can calculate the cost per mile by summing up the fixed and variable costs of the trucking company. Divide the total costs by total miles driven to get the cost per mile.
Once you know your cost per mile, you’ll be in a better position to determine accurately the per-mile rate that the company should charge shippers. This rate will yield better returns to your business.
2. Expand the Client Base for the Trucking Company
Relying on the existing clients alone won’t increase your revenue at the rate you expect. You need to find new ways of reaching and convincing prospective clients to sign up for your services. Technological advancements have made that easier.
For instance, you could deploy the digital freight brokerage app to access more clients. This app enables your business to connect directly with clients looking for shipping services.
Clients can also approach your business directly through this app. Visit hwyhaul.com for more information.
3. Streamline the Back Office Processes
The office is rarely conspicuous in the trucking business. No wonder it’s easy to ignore its importance to the success of your operations. However, monitoring tasks such as routing and fuel, dispatching truck drivers, and planning requires an efficient back office.
It’s only at the back office that you can identify areas of your operations that need optimization. In the long run, a proper back office will help you cut costs thus improving your revenue margin.
4. Pay Attention to How You Buy Fuel
Truck drivers deal with the International Tax Fund so they pay their fuel tax differently from other motorists. It’s prudent to buy fuel based on the cheapest base price rather than the lowest pump price. This will help lower the fuel tax that your business incurs.
5. Carry Out Pro-Active Maintenance
You’ll lose clients to your rivals if the trucks keep on developing mechanical troubles while they are on duty. That’s why it’s better to inspect your vehicles regularly for any potential issues before they catch you off guard.
Engaging in pro-active maintenance boosts the continuity of operations which is vital for revenue growth.
Better Your Performance for Better Revenues
You can take your trucking company to the next level by tweaking some of your operational aspects for better outcomes. When your performance improves, the company solidifies its position as a reliable service provider in the industry.
Start by actualizing the above if you’ve been wondering about how to grow a trucking company. Discover more informative articles by browsing through the website.