So you want to learn how to make & save more money as a car hauler?
Imagine what would be like making additional $ on top – from 7 strategies we have discovered that works for the majority of auto transport professionals.
Here there are the strategies on how to make & save more money as a car hauler:
- Less Paperwork
- Efficient Invoicing
- Follow-up and Updates
- Trip Planning
- Minimize False Claim Damages
Let me guess you want to get to that X amount net profit monthly?
Use & Practice Organization
Top 1 is to have a functional system or create a system based on best practices that will give the opportunity to manage easily your top 4 business growing factors or revenue streams.
In the car hauler business the top 4 things that will bring you revenue are:
- Drivers – having great relationships with these people will represent a critical factor for your business to grow, also assign loads and dispatch it in the easiest ways possible for them, with detailed notifications and support on the trip
- Trucks – the core equipment that is key to the economy of every car haulage company needs to manage the maintenance, oil, suspension, service records, the inspection, insurance
- Trailers – hauling 10 cars with different weights and dimensions, VIN codes, models needs technical organization and also professional loading and unloading
- Load – if you own this part right here you will skyrocket the revenue you currently make on your loads you deliver, you can check out List of Top Load Boards for Car Haulers in our recent blog post
How can you make more money by minimizing paperwork?
The principle is extremely easy to grasp in every type of business “Time is Money’’.
If you manage to save only 1 hour a day by eliminated the huge amount of paperwork you do every day, you will literally save more than 300 hours per year, that’s 12 business days.
Sounds good to save 2+ weeks per year to produce some more money in that time and not do much of your boring paperwork! Extra 2 week Paid Vacation? Heck Yea!!!
In your car carrier business, timing will realize a lot of value. When you send that invoice as soon the load is delivered, you will have a greater chance of having all the necessary information about getting paid, as you have all the information you need right there and will not have to go back and look for that invoice in your paper files, or under the seat, glove box, your pet’s bedding, wherever else? Also making your terms and conditions as clear as possible to the customers is of much help, but at the same time include all of the pertinent details in the document necessary to that customer. Being able to invoice as you delivery can help you get paid 12 days faster on average, so maybe you can skip dropping 3-5% on that money factoring company just by implementing the right strategy using the best tools. Think what you can do with Free 5% a year BONUS? Many 1 trucks, 3 car haulers start saving $3000+ a year, just by solving this issue.
Follow-up and status update
One of the weak links in car haulage is following-up! Why? Because they don’t know what to say.
A lot of confusing questions appear such as ‘’ when I need to call?’’, ‘’ what to ask?’’, ‘’who do I need to call?’ Organize your call list, have a basic script for calls, commit to your follow-ups and be extremely timely and persistent with them. Updating and following up as soon as possible is one of the top practical advice to get the fastest results possible and set your company apart from a sea of “rookies” who lose repeat business by not following up.
If you don’t want to follow-up with customers you won’t stay connected and you will loose business.
Knowing your numbers – analytics
To make more money, you need to have a clear financial target. You always need to know where is your company in terms of expenses, revenue, net profit, revenue per mile, revenue per vehicle mile and other metrics to get you to the point you want to be. Also by knowing your numbers, you are identifying your top weak points and problems and your strongest links, that way you will consider which problems you need to solve in your day-to-day operation.
Reverse engineer on how many vehicles you need to ship on weekly basis to get to that monthly net profit.
Optimal route planning sometimes is neglected because of the variety of delivery destinations and time it takes, due to complexities and delivery windows.
Every car hauler needs a map system allowing them to view an address and locate that destination and route more easily, even with multiple intermediary stops.
Tools like navigation, map dragging, zooming, detailed and always up-to-date is fundamental to such a system. A good combination of the truck capacity planning and route optimization will reduce fuel and toll charges. Planning your Trips ahead considering best routes, stops, bridges, time windows, vehicle characteristics and more can literally mean if you will make it break it on the trip, or be able to make it home to your loved ones that Friday afternoon after being done with all your car deliveries on time.
Minimize false damage claims
The main thing to do is to take pictures of every dent or scratch on the body, interior, wheels and glass before you load the car on your trailer.
That way you will truly minimize the false damage claims, by presenting that you have inspected the car with the pictures from all angles.
Another way is selecting your customers, shippers, dealers based on professionalism and rating in their service and the relationships they have previously formed.
Focus on these things as your car shipping company grows and let us know how they changed your results.
Hoped it helped and thank you very much for reading CarShipIO blog.
Until next time!