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5 Ways to Increase Profit Margins
It takes more than being a great trucker to run a profitable trucking business. We don’t want a lack of cash flow to hold you back. That’s why we put together five easy ways to help increase your profit margins, so your business can thrive and grow.
1. Save $9,000 per year with fuel cards
Utilize fuel cards! There are several companies that offer fuel cards to give you discounts and other benefits at truck stops nationwide. When comparing the different fuel card programs, you want to consider the coverage, savings, and benefits for your small or medium-sized trucking company. Stop paying full price for fuel. For example, eCapital’s fuel card can save you over $9,000 per year per truck and covers more than 16,000 locations from the top fuel providers in the country.
2. Use better tires and save on fuel costs
Outfitting your rigs with Low-Rolling-Resistance tires (LRR) can save on fuel costs and extend tire life. According to the U.S. Environmental Protection Agency, LRR tires can reduce costs and emissions for a long-haul class 8 tractor-trailer by 3% or more. If you drive 100,000 miles a year, a 3% drop in fuel costs could bring savings of $1,383.
3. Know what to charge your shippers
Knowing your CPM is essential to increasing your revenue. Here’s how you can calculate your CPM: Fixed Costs + Variable Costs / Total Miles.
The information above is provided as a simple example. Use the formula above to estimate your cost per mile to determine the best per-mile rate to charge your shippers.
4. Stay busy by using brokers and load boards
Utilize load boards and brokers to find loads. As you do, you’ll build relationships with new customers. eCapital offers an exclusive broker network to our clients to help them find high-paying loads nationwide.
5. Get funded faster with invoice factoring
Invoice Factoring is an affordable, quick, and easy cash flow solution. There are many benefits, including:
- Get paid for delivered loads within 24 hours.
- Quick and easy approval
- No debt is created — factoring is not a loan.
- Free credit checks on your customers
- Billing and collection services
- Free fuel card
Putting the above tips into practice consistently over time can have a dramatic effect on your bottom line. It can be the difference between barely getting by and thriving.
eCapital understands the cash flow demands you face and gets you the immediate funds you need for your transportation business. It’s simple, fast and free to get started. Why not get a free, no-obligation quote?
Contact eCapital to see all the ways we can help accelerate funding and increase your profit margins today!
Call 954.686.7320 or fill out the form.