The war in Ukraine, the pandemic, and the difficulty finding workers have impacted so many families and businesses. As a trucking company owner, you’re having a hard time with rising costs impacting how well you can grow your trucking company. You have to have money to pay salaries, repair trucks, and cover rent, utilities, gas bills, and truck loans.
There’s plenty of work, and you want to grow your businesses, but you’re not sure how best to do it when the costs keep rising. When increasing prices impact your business, it’s time to look at ways to cut costs while still growing your company.
Look for Discounts on Fuel, Food, and More
A year ago, gas prices in the U.S. were $1.937 cheaper than they are as of June 13, 2022. Diesel prices were $2.432 cheaper a year ago. A rise in crude oil prices makes up part of the cost (59% for gas/47% for diesel) and refining costs make up about a quarter of the current cost. It’s expensive and everyone is feeling pain at the pump.
If you’re not using a fuel card to save money on every fill-up. You need to. Look into a gas card to ensure you’re getting a discounted price when your drivers fuel up.
Another way to cut expenses is to look into a business credit card where you get rewards points that you can trade in for restaurant gift cards. If you pay your bills using that card and get rewards points, you’re going to save money on meals when you or your drivers are on the road.
You can also save money on groceries and restaurant purchases through the company’s app. Many chain restaurants reward their members with free drinks, meals, and cash discounts. Grocery stores do the same thing. Use the cash rewards and coupons to save money on the foods and drinks your drivers need when they’re on the road.
What other discounts are worth looking into? Whether you own or rent your business office, check for energy-efficiency discounts on upgrades you plan to make. If you must upgrade your HVAC system soon, it’s worth looking into tax breaks or rebates from dealers and government agencies. Not only will you save money on your new system, but an energy star HVAC system also slashes your cooling and heating bills, so you save money in the long run.
Embrace GPS Tracking
Use GPS tracking to follow your driver’s progress in real-time. This can help save a lot of money as you can check the route ahead for traffic accidents and construction. If you see a major accident 20 miles from where your driver is currently located, your driver can hop off the interstate before getting stuck in traffic. You don’t want to have them idling in miles of traffic and wasting fuel without making any progress on the route.
Another benefit to GPS tracking is that you can proactively let clients know if your drivers are stuck in traffic and running late. It’s good customer service to keep them informed on your driver’s ETA.
Optimize Your Routes
Use GPS and Track Loads software to also optimize routes. You can research the best routes, by seeing what sections of interstate or roads have construction projects in the works. You can see where the weather has caused problems with erosion or flooding and come up with the fastest, hassle-free routes for your drivers.
Be careful when relying on GPS. Pay attention to roads that are seasonal or have height or weight restrictions. Smugglers Notch in Vermont is a quicker route for drivers going to Waterbury or Stowe, but it’s also narrow and winding. Many drivers attempt it and get stuck and require removal from a professional service. The fines are costly. To get around situations like this, have a backup option for your drivers to take if they find the preferred route is closed or too narrow for the width or length of their rig.
Arrange Loads to Maximize Revenues
Another way to save money and grow your business is by arranging loads to maximize revenues. You have a client who needs you to haul half a trailer full of wire from El Paso to Chicago. You can use a Find Load app to find a load that’s going from Chicago to El Paso to ensure you’re not traveling with an empty trailer. Use the app to find a second load going from El Paso to the Chicago area and double the money you’re making.
The more you’re able to plan your routes and loads, the more you make. Sometimes, you’ll have to find stops along the way to find the right load sizes. This is where having GPS and route planning software can really help out.
Saint John Capital’s Find Loads software allows you to search by price. You’re able to take loads that match your preferred rate range. You might find jobs that pay far more than you’d expect. And don’t worry about taking work from a new client, you can use free business credit checks to research them first. Plus, factoring your invoices takes the risk from your shoulders. It’s the freight factoring company’s responsibility to track down late payments. You’ve been paid.
Factor Some of Your Invoices
Finally, embrace freight invoice factoring services. You need money if you’re going to grow, but it’s hard to have money when your clients take weeks or months to pay. Instead of waiting, partner with Saint John Capital. We pay you the same day if your bill of lading is submitted in time and you have an SJC Visa. Even if you don’t, you’ll have your money in no longer than a few days.
How does it work? When your driver picks up or drops off a load, they upload the bill of lading using the app. That bill of lading is processed for immediate payment. You pay a small invoice factoring fee (up to 1.95%) and get paid now. Saint John Capital chases down payment from your broker or shipper for you. You can get the full payment upfront or a partial payment and get the balance when your client pays us. We do not come after you for reimbursement if your client doesn’t pay. That’s why we offer the free business credit check service.
Invoice factoring ensures you have the money you need for truck repairs, new staff, and new equipment. You’re able to grow your business, and enjoy added perks like having invoices generated automatically. You no longer waste time invoicing clients. It’s done for you, and you can upload them to your bookkeeping software when you want.
Saint John Capital does so much more than factor invoices. Get started by opening a free account. Once you’ve taken that step, look into our business credit card, fuel discount card, Find Load/Track Load app option, and Click & Pay API. If you’re looking for a business line of credit to grow your trucking business in stages, we also offer a line of credit with low interest rates, instant approval, and weekly payment structures. Join now.