How to Save on Trucking Company Expenses
by Mario Tarradell | March 2, 2020
How to Save on Trucking Company Expenses
When you run any business, especially a trucking company, you spend money to make money. Running a trucking company and managing a fleet, whether it’s one truck or 100, comes with fixed and variable expenses. Planning and budgeting are key, but so is knowing when to save and when to spend.
A checklist always helps. Here’s what you need to know about saving money on fleet expenses.
Know What Your Trucking Company Expenses Are
You have fixed costs and variable costs when running a trucking company. Know what those are, track them, calculate them, and budget them.
- Fixed Costs – Think truck payments, insurance payments, and your payroll. Budgeting for these expenses is usually easy since they don’t change much from month to month. Also, don’t forget annual renewal fees.
- Variable Costs – Fuel, truck maintenance (including tires), truck repairs, and tolls are common variable expenses. Meals and lodging are variable, too. All these expenses can fluctuate from month to month, but after a while you should have a good estimate.
- Costs Per Mile – According to the American Transportation Research Institute (ATRI), the average marginal costs per mile for 2018 is $1.82. That factors in everything we just mentioned.
Know Where You Shouldn’t Penny Pinch
You know the cliché – you get what you pay for. Never cut corners on the most important aspects of your trucking business. Some things are worth the cost.
- People – Your employees and your drivers are the backbone of your trucking company. Treat them well by offering a great competitive wage and benefits. It’s just good business, because according to Work Hound the average cost of hiring new drivers exceeds $8,000 per hire. Focusing your money and efforts on retaining those you already have makes much more sense.
- Quality Services – Investing and budgeting for a routine maintenance schedule with a trusted service provider does wonders for your truck and your trucking business. Also, factoring your freight bills is a great way to improve your cash flow and get paid fast. But don’t cut costs on this one. You’ll want a company that provides world-class customer service along with full-service factoring that gives you tools to successfully grow your business.
- Technology – Technology is now an integral part of the trucking industry. Embrace it and carefully choose the best technological advancements that work to promote growth in your trucking company. We’re talking about a reputable Electronic Logging Device (ELD), a quality Transportation Management System (TMS), and a load board that offers you great features to find lucrative loads.
Know Where You Can Cut Costs
You have the power to comparison shop on a variety of necessities for your trucking company. Here is where you can keep an eye on those dollars and save on a few fleet expenses.
- Fuel – The best way to save on fuel is with a fuel card that offers built-in discounts at the pump. Fuel is a huge expense, about $70,000 a year, so any savings are welcomed. The Apex TCS Fuel Card provides clients with an average savings of 33 cents* a gallon at more than 1,500 in-network locations where you pay $0 transaction fees. Plus, get a fuel credit line starting at $2,500 when you factor with Apex.
- Fuel Efficiency – In addition to seeking out fuel discounts, monitor your idling, try to avoid deadheading, and be strategic about your routes. This is how you achieve maximum fuel efficiency.
- Service Discounts – Finding a reliable truck and maintenance service center that regularly offers you service discounts is even better. Apex clients get exclusive discounts at TA Truck Service® centers across the country.
Are you ready to save big at the pump with the Apex TCS Fuel Card discounts and get your cash flowing with world-class Apex factoring? We are ready for you. Visit our website or simply give us a call at 855-369-2739.
*Average savings of 33 cents per gallon is based on actual in-network TCS client transactions for all of 2019.