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In addition, trucking companies are considering fuel costs to be the biggest expense that they are facing with nowadays.
Did you know that if the fuel prices slightly increase throughout this year it will result in increased marginal fuel costs for trucking companies next year?
Repair and maintenance are not something uncommon for trucking companies. The costs that come from repair and maintenance can be impacted by several factors, such as are:
So, if you are a successful trucking company owner, I strongly believe that you have the answers to the following questions:
Tolls are yet one more significant cost that motor carriers are facing with. Actually, toll costs are highly dependent on the region of operation and the routes that the truck driver will be arranged to drive.
What trucking company owners should have in mind is the following: shippers rarely almost never reimburse carriers and drivers for toll-related expenses.
The average toll cost in the northeast is varying from 4.1 cents per mile or 1.5 cents per mile.
Unlike fixed costs, variable costs can be reduced in many ways.
Actually, the best way for trucking companies to reduce their variable costs is through:
Now we’ve come to the final step of calculating the revenue and profit per mile for your trucking company.
How can a trucking company determine the total monthly cost per mile?
Trucking company owners can determine the total monthly cost per mile by calculating the fixed, variable and salary costs all together.
Moreover, what you can also do in order to calculate the revenue and profit per mile for your trucking company is the following:
Tip: If you have a fleet of trucks, I would recommend you to consider calculating the cost per mile for each truck. After you perform this step you can add each cost per mile amount together and divide the total number of trucks in order to get the average cost per mile for trucking.
By calculating the revenue and profit per mile you will be in the situation to know what in reality is going on in your trucking company.
That will as well help you to see whether there are some problems with various spending patterns and areas.
In addition, if there are some problems in the spending patterns and areas you will be informed on time to cut back if needed.
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To put it another way, the determination of the revenue and profit per mile for your trucking company will help you as well in setting an appropriate per-mile rate for shippers, and a proper truck driver salary.
Trucking companies that are calculating the company’s operating expenses per mile on a regular basis are the ones that have the information that they need in order to increase their profitability.
In either case, a trucking company is as well able to calculate an annual average cost per mile by adding the per mile cost for each of the 12 months together- then by dividing it by 12.
It’s no secret that the trucking industry in the USA is moving more than 66% of all goods.
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