Start 2017 on the right track by doing a better job of tracking your trucking operating costs this year. With smart cost savings, you can increase your profits this year. Here are a few areas to help reduce your expenses in 2017.
- Fuel costs and usage: Diesel fuel is a big part of your budget. At $3.50 a gallon, you’re paying between $500 and $1,000 every fill-up, depending on your tank size. You can take a few steps to improve your fuel efficiency.
- Slow down. Every 7 mph increase in speed costs an average decrease of about 1 mpg on your mileage. If your vehicle gets 6 mpg, your fuel economy would drop to 5 mpg. This means that if you drive 2500 miles a week, you’re consuming almost 85 more gallons of fuel a week and spending some $300 more a week for the 7 mph increase in speed.
- Watch your tire pressure. Pressures that are too high or too low decrease your fuel economy. Repair or replace tires that lose air on your trips.
- Avoid leaving your truck idling when you’re stopped for a while.
- Use discount fuel cards that offer at least 10 cents off a gallon. On one $1000 fill-up, you’ll save $100.
- Truck Repair and maintenance costs: Your profit margins suffer when your trucks are off the road so don’t neglect preventative maintenance check-ups. Seek out opportunities to enroll in discount programs for oil changes, tires, parts and supplies.
- Plan your routes: Some distances may be shorter, but they may not be the most efficient routes to get where you’re going if traffic, weather, and construction are not in your favor. Use GPS navigation apps each day to plan the best roads.
- Shop for a factoring company that specializes in freight factoring. Long-established trucking factoring companies can offer many value-added benefits to their clients, including fuel savings and other types of discounts, along with back office tasks such as collections and credit checks. Outsourcing your collections and invoice preparation to a factoring company can save you money on staff.
- Use a free load board. Motor carriers can find load and post their available trucks and brokers can post loads and search for motor carriers, without paying costly subscription fees.