One of the most important things that a trucking company must know ahead of time is what their costs are going to be. Operating a trucking company and not knowing what these costs will be, is surely going to put you in a deep hole if you haven’t planned on all the added expenses that go with.
In order to help, it is important that you use a trucking cost per mile calculator that will show you in detail your expenses provided everything goes smooth. Calculating your costs can help you plan a long-term strategy on how to effectively grow your business. It’s like any other business, except with trucking you do have a lot of added expenses that other companies don’t have to worry about.
The trucking cost per mile calculator is there to help you determine what your overall expenses will be, this way you can give your shippers the best price on a per-mile rate. If you don’t have a calculator to tally your costs, how can expect to post a profit? Actually, any trucking company that does not track and control all of their operating expenses can pretty much expect to be out of business shortly.
You must know what your costs and anything else that might pop up unexpectedly along the way. This is usually done on a per mile basis, so you can break it down much easier to give the best price to your customers. If you aren’t breaking it down on a per mile basis, there is a good chance you will lose money.
When using a cost per mile calculator, certain information needs to be put in to ensure you get accurate results. How many miles do you estimate that you travel in a month? How much is your truck note each month? How much is your truck liability insurance each month? How much is your truck cargo insurance each month? How much do you estimate you spend on maintenance each month? How much is your license (IRP, apportioned) plate cost per year?
The questions above should produce an accurate estimate of what your trucking costs will be per mile. Once you figure that out, then you can go about setting your rates. The trucking market can be extremely competitive and difficult, which is why many companies go out of business very quickly.
If you can’t get your bookkeeping down pat, it will hurt your chances to survive as a trucking company. There are so many factors that can determine whether or not you are successful, but proper bookkeeping should be high on your list of priorities. Keep in mind you also have shippers who rely on your company to get their products to the destination on time. If you aren’t keeping track of your trucks, their expenses and everything else your company deals with on a daily basis, it can be difficult to survive in this business.
Using a trucking calculator to help you figure out your daily expenses is a great tool to use to help set your rates. This is what can make or break your company, so be sure to practice good bookkeeping skills, then set your rates accordingly.