So first and most important, you need to understand the business cost and the trucking expenses. Then you need to try cutting corners and tying loose ends where you can! Understanding owner operator trucking expenses will help you run your business while reducing and decreasing those costs will help you run it successfully!
Cost-reduction is important! Some might even say it’s crucial when you run a small fleet or you are an independent owner operator. The experienced truck drivers and owner operators know that already, and are constantly streamlining costs. But on the other side, the rookies can always use some heads up and few tips and bits from the experienced drivers when they enter this profession field.
By rundown of what the most common expenses are, you will know or at least have the idea and estimate the most common trucking expenses, and then be able to work on their reduction.
Trucking Expenses and the Real Profit
Various business costs can greatly impact your bottom line and what is left over for you to take home as a profit!
The average independent owner operator works at only a 5% profit margin. That means that for every $20 in gross revenue you make, your profit is only 1$, while the other 95% of that revenue is going towards your trucking expenses.
These include things like truck payments, maintenance, fuel, insurance, food, permits, and etc. So, on the end of the day when you deduct all those trucking expenses, it’s not that much that you take home for your hard work.
