Many truckers struggle to remain profitable despite the sector registering a considerable upswing. To avoid such a predicament, you should take proactive measures.
Gleaning from CDL driver staffing companies such as Centerline Drivers, the demand for goods and services in the country spells a good fortune for the trucking sector. It means that there’s enough cargo to keep the truckers busy throughout the year. However, in a market dominated by large trucking companies, smaller firms face an uphill battle. Thankfully, this doesn’t mean that you have to settle for scraps to get by. With a little effort, you can grow your business as well as your bottom line.
Target the Right Niche
Not all sectors in the trucking sector are equal, so you need to pick one that promises the best returns. Ideally, you are better off choosing a market overlooked by larger carriers. It means that you won’t be up against stiff competition from the bigger player. Meat and fresh produce are some of the markets with low competition. They will also provide you with year-round work. Having a regular source of income will keep your accounts in the green. It also means that you have an opportunity to grow.
Do the Math
If you’re continually scrabbling for customers, you can’t afford to put your feet down during pricing negotiations. It means that you’re likely to bend over backward to land some work. Doing so can have you charging some of the lowest rates on the market. Therefore, you need to set your standards from an informed perspective.
Your rates should be high enough to cover all your operational costs and give you a tidy profit. A sound understanding of your expenses lets you set the rates and go after clients who can afford them. It helps you narrow your focus when looking for clients and concentrate on those who can afford your prices.
While trucking is a highly lucrative business, the competition is stiff and cutthroat. Therefore, you need to make every effort to gain an edge over your rivals.