Success in trucking is measured in revenue. In other words, truck drivers who want to grow their operation successfully need to know how to optimize their revenue. A key part to achieving this kind of success is understanding what your potential customers want, and then providing that service exactly when they need it.
In this article, we’ve put together some proven methods for increasing your revenue so you can grow your trucking business. We’ll provide some tips, and show you how you can boost your sales to become an outstanding performer in the trucking industry.
What is Revenue?
To make sure we’re all on the same page, we’ll go over the definition of revenue as it is used in this guide.
Revenue is all income received from the sale of a good or service and made effective through a monetary charge. In trucking, revenue is the sum of all payments received for truckloads for a given period of time. For example, your annual revenue would be the total of payments received for all the loads you’ve transported over a twelve-month period.
Revenue vs. Profit
Revenue is the gross income received from your customer contracts. Profit is the net amount remaining after expenses have been deducted/subtracted from your total revenue. Profitability is another metric used to determine the return you are earning on the investments, i.e., costs, you’ve paid toward your trucking business.
5 Essential Tips to Make More Money as a Truck Driver
Adapt to the needs of the market
As an independent truck driver, you’re probably well aware that the market can greatly influence the pay-performance of your truck loads.
Because the market is in a constant state of flux, it is vitally important to stay as up-to-date as possible on the needs and trends of the trucking industry. Doing so will enable you to make rapid adjustments to your services to take advantage of the trends. And when you do that, your company becomes more competitive, and you’ll boost your bottom line.
Keep an eye on other truck drivers and companies in your area and think of more competitive ways to beat them. And stay on the lookout for weaknesses in your business so that you can react quickly to strengthen those areas.
Be careful not to overlook the advantages of attending as many business and trade events as you can. They are a great way to put your name out there and discover the latest developments in both the trucking industry and the industries of your customers.
Establish a network of contacts
Selling more is also directly related to your networking abilities. If you are not yet part of a trucking network, this is something you should seriously consider.
Becoming a member of one of these groups is one of the most effective ways to search for new markets and make alliances that can increase your sales.
Try to join a forum or sign up for a private trucking business group to get to know other fellow truckers and share your experience with them, as well as learn from their expertise.
Increase your truck loads
If you want to boost your revenue, you definitely need to increase your sales. We have 3 specific tips that will help you get more truck loads:
- Find the right loads: Finding the right loads requires some finesse, as every step in the delivery process needs to be timed with precision. Developing a working knowledge of freight lanes for the type of cargo you transport will go a long way in helping you to find loads that minimize your empty miles.
- Plan your loads ahead of time: Loads need to be planned to efficiently fit into your operating schedule. Pay attention to areas prone to congestion and extreme weather as these can create delays that may force a change in the availability of pickups and interrupt the next shipment on your schedule. Every load needs to move as planned, without significant route deviations, added miles, or delays.
- Choose the right brokers: Working with a trusted broker from the beginning keeps the money flowing and takes you and your driver to the road. Finding a freight broker is as easy as looking through a trade journal or searching for one on Google. However, finding a good freight broker with the best rates and the ability to keep you rolling requires some additional research. We have a whole article with more tips on how to find truck loads that takes a deeper dive into load acquisition.
Aim for the highest rates
Stay abreast of the most current rates by following the pricing trends in the industry. That way, you can negotiate your contracts at a fair rate to offset your expenses and generate a profit.
A solid understanding of spot market rates allows you to back up negotiations with up-to-date data so that you can demand higher rates when brokers are trying to set lower rates.
Higher rates equal higher profits and more money in your pocket. So when it comes to rates, remember, always aim high.
Choose the highest-paying freight types
With the right equipment, right endorsements, and right experience, you can capitalize on specialized cargos that offer the highest-paying rates.
For example, ice road truckers can make as much as $250,000 in just 4-5 months of work. They operate in environmental extremes where a high degree of skill and experience is well rewarded.
Other specialty freight options include coal mine trucking, oversize loads, hazardous materials, and oil field operations.
Many of these routes involve exposure to additional risks, but for those willing and able to take the risks, the rewards are substantial. Oftentimes, to acquire one of these high-paying positions you must be willing to operate on a dedicated basis and have a clean, safe driving record for at least five years.
Make More Money with CloudTrucks
Drivers who partner with CloudTrucks are able to quickly realize their revenue goals thanks to our use of cutting-edge technology. We are at the forefront of trucking in the twenty-first century with advanced route planning options, business intelligence, and rapid pay. We work hard to deliver the best rates in the industry on every load. But don’t take just our word for it.
Here’s what our drivers are saying about us:
And here is Jason’s story in his own words about his journey with CloudTrucks: