Save on Gas Costs and Maximize Profit Margins for Your New Trucking Business
New Drivers & New Businesses
In the world of trucking, where efficiency and cost-effectiveness are the keys to success, profit margins can be a delicate balancing act.
A myriad of factors, including supply chain disruptions and a nationwide trucker shortage, can threaten your bottom line. However, there are several steps you can take to increase your trucking business's profit margins. Higher profits mean more resources to expand and grow your business. In this article, we'll explore some essential tips for boosting your trucking profits.
Cut Fuel Costs Strategically
Fuel costs are among the most significant expenditures for trucking companies. Paying full price for gas can quickly eat into your profits. To reduce this financial strain, consider the following strategies:
Utilize Fuel Cards
Fuel cards, also known as fleet cards or business gas cards, can provide substantial savings. These cards often offer discounts and rewards for loyal customers, including cashback and fuel discounts. Lucky for you, LuckyTruck offers a fuel card that can potentially save you an estimated $7,000 per year, per truck.
For more information about this fuel card - CLICK HERE.
Minimize Idle Time
Excessive idle time is another culprit behind rising costs. When truck drivers leave their engines running for extended periods, they burn through fuel more quickly than they might realize. According to Business News Daily, idling uses about 8% of the truck’s fuel and can increase a company’s annual maintenance costs by approximately $2,000 per truck.
Turn Off the Engine
Contrary to popular belief, restarting the engine generally doesn't consume more fuel than idling. Idling the truck for 10 seconds uses more fuel than restarting the engine. Surprisingly, idling uses about 8% of the truck’s fuel. If you can’t break habits of idling, consider a warranty to protect your engine - CLICK HERE.
Invest in Comprehensive Insurance
Liabilities can often be overlooked as a source of expenses. Protect your business by investing in comprehensive truck insurance, which can safeguard against common dangers on the road and protect your cargo. Without proper insurance, a single incident could have devastating financial consequences. At LuckyTruck, we are insurance pros and can get you fully covered - GET A QUOTE TODAY.
Plan Efficient Routes
Global Positioning System (GPS) technology has revolutionized route planning, allowing companies to optimize their routes easily. To make the most of this technology:
Follow GPS Directions
Ensure that your drivers follow the directions provided by GPS devices or routing applications. Deviating from these routes can increase mileage and costs unnecessarily.
Invest in Fuel-Efficient Tires and Accessories
Tires and truck accessories play a more significant role in fuel efficiency than you might realize. Consider these options:
Choose Fuel-Efficient Tires
Certain tire types are designed to optimize fuel efficiency by minimizing rolling resistance, ultimately reducing energy consumption while driving. Here is a resource for fuel-efficient tire options - CLICK HERE.
Maintain Proper Tire Pressure
Regularly check and maintain tire pressure to ensure optimal fuel economy. Under-inflated tires can decrease fuel efficiency by up to 10%.
Adopt Fuel-Efficient Driving Habits
The way drivers operate their vehicles can significantly impact fuel economy. Utilize data collected by Electronic Logging Devices (ELDs) to improve driving habits:
According to the American Trucking Associations (ATA), operating at speeds above 75 miles per hour (mph) uses 27% more fuel than when you travel at 65 mph. Or, with every 1 mph increase in speed equals about a 0.14 mpg decrease in a semi-truck's fuel economy. Speeding can definitely have an immediate negative impact on fuel efficiency.
Use Cruise Control
When appropriate, using cruise control can help improve fuel efficiency.
Enhance Fleet Aerodynamics
Sometimes, making small changes to your fleet's aerodynamics can yield significant fuel savings. Research indicates that accessories that reduce drag can save hundreds of gallons of gas annually. Consider investing in performance-improving alterations such as underbody side skirts to boost your company's profit margin.
Improving profit margins in your trucking business requires a strategic approach that encompasses various aspects of operations, from fuel efficiency and route planning to driver habits and insurance coverage. By implementing these tips, you can not only safeguard your profitability but also create opportunities for growth and expansion in the highly competitive trucking industry.
At LuckyTruck, our expert brokers in insurance and our cutting-edge digital app can steer you to reliable insurance solution for all your insurance needs. - GET A QUOTE TODAY.