Actually, the best way for trucking companies to reduce their variable costs is through:
- Increasing the fuel mileage by improving the driving habits of your truck drivers/ tire rolling resistance/ more aerodynamic parts;
- Decreasing maintenance costs- better preventative maintenance/ better quality parts/ better purchasing decisions;
- Knowing the best strategies for fuel-buying on long trips by using a fuel optimization tool;
- By planning out lodging and dining locations;
Total Cost Per Mile
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:
- Gather the receipts for the month and divide them into three piles:
- Fixed expenses;
- Variable expenses;
- Driver salary;
- Total each category then add each sum together to get the total expenses for the month;
- Divide the final total by the number of miles driven during that month;
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.
