KEEP EGO OUT OF YOUR PURCHASE, BUY THE EQUIPMENT THAT WILL MAKE YOU THE MOST MONEY
Pick the right equipment.
Trucking is a tight profit margin business, and you need every competitive advantage you can find. Buying the right equipment can create an advantage for your company. Making the right choice in your equipment could prove to be one of the best decisions you can make.
Important questions to ask yourself when picking the right equipment:
1. Will I be running through the Rocky Mountains or mostly in the plains states?
2. Will I run local or long distance?
3. How much horsepower will I need to get through these routes?
4. Do I really need a sleeper the size of Nebraska?
5. Do I want to be shifting gears or just put it in automatic and go?
6. What about tire size, aluminum or steel wheels for weight?
7. What are the long term EPA regulations that might make this truck obsolete in the future?
At CFF, we have seen too many clients buy the wrong equipment for the products they are hauling. Their choice gets the job done, but it increases the costs, aggravation, maintenance, etc.
Here is an example:
You have a contract to haul sand and dirt for a highway construction project. Do you really 550 horsepower and 72 in. raised roof sleeper? Maybe you can use a truck with 400 horsepower and no sleeper. This can cut down on weight of the truck, fuel consumption and ease of getting in and out of the job site.
Here is another example:
Let us consider the impact of fuel economy on your business. If your truck gets 4.5 miles to the gallon and you have 300 gallon capacity that means you can run 1,350 miles on a full tank at a cost of $1,200. If you could get 6.5 miles per gallon, you could run that same 1,350 miles on 92 gallons less. At $4 per gallon for diesel, you would save $360 per fill up. If you filled up only once per week, you just saved $1,440 per month and $17,280 per year, and
$86,400 over 5 years!
Make sure to take a look at the fuel mileage guide at the end of this blog series. The impact on your business may really surprise you. Put your ego aside and challenge your usual thinking. Learn about new technology, ask lots of questions, and work with a dealer that has your best interest in mind.
Take the time to spec out your equipment and give yourself every advantage you can.
Join me next week for tip number four that every independent trucker needs to know NOW.
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Matt Manero combines his business brilliance with more than 20 years of hands-on experience in transportation equipment finance. Today, he is a CEO leading four companies that generate over $100,000,000 per year in business with a base of more than 10,000 clients.
Matt launched his first business, Commercial Fleet Financing, Inc., in 1995 with a phone, a folding table and the unyielding confidence of a single client, a trucker. Fast forward 20 years: Commercial Fleet Financing, Inc. made Inc. magazine’s Top 500/5000 list of fastest growing companies in America in 2014. Matt is the creator and personality behind CFFnation.com, the first and only online video network featuring original programming for and by innovators, operators, movers and shakers of the transportation industry.
His companies have been recognized in trade publications such as Overdrive, Transport Topics, Commercial Carrier Journal, and Dealer Solutions Magazine. Matt hosts his own weekly Radio Show aptly named, “The Grit” which airs on lifestyletalkradio.com and also on CFFnation.com. In addition to “The Grit,” Matt has authored a series of quick read books entitled “Tower, Mover and Construction Co. Need to Know NOW”, and also a forthcoming book, “I NEED MORE MONEY,” which reflects his battle to build his business and guides readers in creating their own future and financial success.