7 Tips to Help You Thrive as a Trucking Owner-Operator

As a trucking owner-operator, you know that running a successful business means wearing many hats. You've got to think about everything from gas mileage to depreciation to cash flow.

No matter where you are in the year, it's always a good time to look ahead and think about what you can do to make your business more profitable. Here are seven tips that can help you thrive as an owner-operator.

1. Manage Your Fuel Costs

Regardless of what your truck is carrying, one of your biggest expenses is fuel. The mistake many owner-operators make is confusing the lowest pump price with the lowest fuel cost - they're not the same thing.

The reason is that you must pay state taxes on the fuel you use as you drive through a state. When you buy gas, the pump price includes the base price per gallon plus that state's taxes. To save money, look for the lowest base prices and plan your fuel purchases to take advantage of them.

2. Support Your Rates

Building a budget as an owner-operator means estimating both your fixed and variable costs. You may need to justify your rates to potential clients, so it's important to understand the trends in the trucking industry in general and in your niche in particular.

Getting a handle on fuel prices helps. The US Department of Energy publishes a fuel price tracker you can find here. You can also back up your prices by knowing the going rates for specific lanes and any other factors that influence your pricing. Many tools already provide this data - some give you 90-day load averages so you have a baseline when negotiating.

3. Focus on Fuel-Efficient Driving

There's a lot of debate among owner-operators about the most efficient way to run a business, and speed is a frequent topic. Is it better to drive fewer hours at a higher speed, or more steadily at a lower speed?

When it comes to fuel efficiency, you'll get more miles per gallon driving steadily at 60 mph than you would at 70 mph. For example, at $3.00 per gallon:

1. Driving 10,000 miles at 70 mph at 5 mpg costs about $6,000 in fuel.
2. Driving 10,000 miles at 60 mph at 5.5 mpg costs about $5,450 in fuel.

Small changes in driving speed add up to real money kept in your pocket over the course of a year.

4. Use the Right Strategy for Buying Trucks

Buying a truck requires understanding its performance, mileage, and other factors. You can buy new, but there are compelling reasons to consider a used truck instead.

Start with mileage. If you're talking to a salesperson, remember it's in their interest to paint a rosy picture of MPG. It's your job to keep a realistic view based on the load you're carrying, road conditions, and engine power.

Buy a truck based on efficiency, power, and reliability. Don't get distracted by bells and whistles that add to the price and take money out of your pocket. Keep in mind, too, that buying new means taking a big depreciation hit - when you buy used, the previous owner absorbs most of it. Many veteran operators recommend looking for a truck with around 200,000 miles and pulling the Electronic Control Module (ECM) report to see how it has performed.

Whether you buy used or new, do your research. Ask other owner-operators about the truck you're considering so you end up with one that's efficient, reliable, and profitable.

5. Take Advantage of Downtime to Service Your Truck

Trucks require routine maintenance, and one of the biggest mistakes owner-operators make is waiting until something breaks before heading to the shop. You'll inevitably have some downtime, and those quiet periods are the ideal time to have your truck checked out and take care of repairs and maintenance. Use downtime for other routine duties too: creating and mailing invoices, calling on past-due accounts, and tracking your financial progress.

6. Work Directly with Shippers When Possible

You probably have a list of brokers you work with, but if you're not working with shippers directly, you're missing a money-making opportunity. If you can land a few direct clients, you can charge a price similar to what a broker charges but keep the entire fee for yourself instead of paying a commission.

It takes some strategic marketing to connect with direct shipping clients, but it can make a big difference in your net profit - especially if you specialize in a particular niche or load type, where you'll face less competition.

7. Set Yourself Apart from Other Owner-Operators

Finally, find a way to differentiate yourself. For example, you might:

• Own a specialty trailer used for specific types of loads
• Have experience handling hazardous or niche loads
• Hold special permits that let you do work other owner-operators can't

If any of these apply to you, use them to seek jobs that others can't accept. If they don't, consider investing in new equipment, continuing education, or a specialty permit.

Make This Your Best Year Yet

These seven tips can help make this your most profitable and successful year to date as an owner-operator. At Doft, we help thousands of owner-operators with their trucking operations every single day.

If you're looking for a load board to support your business growth, start using the free Doft Load Board today.