Trucking Companies Can Save Money By Implementing 3 Simple Strategies
Trucking Companies are the actual operators who own a trucking company fleet. They usually go by the name of ‘Brigadier,’ ‘Master,’ or ‘Lieutenant.’ Most trucking brokers operate their businesses solo, and at times they work for a third company as a full-time employee. Becoming an operator-broker is an exhilarating step toward your trucking future. You will get to save money, meet new people, travel the world, and enjoy life on the road in your very own trucking business.
Few industries have more opportunities for the person who loves to travel, loves to work hard, and loves to earn money than trucking. For years, trucking brokers have worked as independent contractors, reporting to the company that assigns them their job. In fact, most trucking companies hire people without even interviewing them, much less as potential employees. If you love to travel, love to work hard, and can handle tough jobs with a friendly smile, being a trucking company owner-operator may be the right business for you.
Many small trucking companies offer to factor. Factoring allows you to accept payments from customers who have yet to buy gasoline for their trucks. This is a quick and efficient way to get paid for the fuel you use, but the payment you receive is usually only a part of your actual invoice, and not your usual monthly bill.
Working for a trucking company is extremely diverse. Not only are there a variety of routes to drive on, but also a wide range of destinations to drive on. One way truck drivers make money is by earning a factoring fee from local gas stations that need to purchase truckers for their route. These fees are usually a percentage of each gallon that truck drivers fill.
The downside to becoming a trucking company owner-operative is getting started. Most of the paperwork is tedious and requires detailed reports that must be sent off to various companies, each of which must be paid a fee. Some trucking companies do allow drivers to get started as independent contractors, but most require the full purchase of a semi-tractor trailer and all associated permits, licenses, and insurance.
Another way trucking companies pay truck drivers is through credit cards or paychecks. However, fuel companies prefer to have truck drivers pay in cash, as it makes it easier to process their fuel purchases and minimize credit card charges for purchases made with a credit card. Credit cards also limit how much money a driver can spend, so if the driver purchases too much fuel that they can’t use right away, they will still incur some charges for using the credit card. Drivers who use a debit card or a combination of debit and credit cards to pay their fuel costs may find that they pay higher fuel expenses than trucking companies that use paper checks or electronic money.
A third way trucking companies save money is through encouraging good behavior from their drivers. Many trucking companies have incentive programs that give cash bonuses to good drivers, to prevent employees from wasting fuel and using company resources in ways that don’t help the company. Also, many trucking companies offer incentive plans that give drivers an extra pay raise if they increase their miles per gallon and increase the time they spend driving, as well as other employee incentives such as free meals, gifts, and vacation discounts. However, while these plans can save money for the company, some employees might take advantage of them to get extra pay or simply to save money for themselves. To ensure compliance with incentive programs, truck drivers should always keep detailed records of all fuel purchases.
Truckers also can save money by saving their time. Instead of relying on trucking brokers to find shippers, a driver can use the Internet to connect directly with shippers who want to purchase freight. The shippers can provide drivers with a list of shippers who want the trucker’s service and then a quote. Also, truckers can use the Internet to find trucks available for pickup, to find the best price, and to request extra information about the pickup. When a driver knows what items he needs to carry and how much each item will cost, he can spend his time researching freight costs and choosing the best truck. Using the Internet also makes it easier for the driver to locate any information he needs about the trucking company, shipper, or the truck itself.