Hotshot Freight

Making More Money by Cutting Your Cost 

In this business like all businesses, you have fixed expenses and discretionary expenses. Your fixed expenses such as insurance, truck payments, trailer payments, and permits, are going to be the same amount every month. Discretionary expenses are those expenses that you have more control over. These would include food, lodging, fuel, and preventative maintenance.

Lodging

lodging can be a huge expense. However, there are several ways to cut these cost. Depending on the type of truck you have and, of course, the weather, you can obviously sleep in your truck. It is not the most comfortable way to get sleep, and you don’t get a good night’s rest and this can affect your productivity and your driving. Since time is money in this business not getting a good nights rest can be counterproductive. It can also wear you down. So there are a few different ways to handle this. Some hotel chains, such as choice hotels offer rewards. Usually, they will offer a promotion staying two nights and get one night free. And a lot of their hotels come with a free breakfast.

On average, it will cost you between $60-$100 per night. A lot of people frown when I say Motel 6, but I have to tell you that 90% of the ones that I have stayed in are very clean and well kept. They do not have a rewards program, but they are very economical, with a price range of $45-$80 per night based on location.  If you are in this business and over 50 years old, I strongly urge you to become a member of AARP and AAA these will often earn you additional discounts at hotel chains. Obviously the cheaper hotel chains do not offer a free breakfast. So when you do the math, staying at one of the choice hotels and getting a free hot breakfast is somewhat of a no-brainer.

Another option for lodging,  depending on the truck you own is a sleeper for the truck, that is DOT certified. The initial investment for a sleeper will run anywhere from $5,000.00 to 9,500.00. One company that I talked to was Cowtown Sleepers, another source that I tracked down is Welden Manufacturing both of these companies offer a wide variety of options. If you were to purchase a sleeper that was in the middle price range and you averaged your hotel expenses at $50. A night the sleeper will pay for itself in six months or less. The advantage to the sleeper is that you can stop to rest pretty much anywhere you are. And you are able to discourage any vandals or thieves.

Food Cost

The price of eating out every day can be very high. This is especially so when you’re on the road trying to make a living. Nevertheless, you have to eat to stay healthy and be productive. There are several ways that you can control your food cost and still eat well. While I was on the road for about a year doing hotshot freight, a few years before this I spent three years driving a semi. During both of these jobs, I kept an ice chest on board with drinks, cereal, fruit, and supplies to make sandwiches. In the Hotshot freight business, you are not as limited on where you can park to dine as you are driving a semi. Either way If I had stayed at say Motel 6 I would have a bowl of cereal in the morning before leaving, later a snack chips an apple something to keep me going. When I got hungry, I would stop in a rest area to fix a couple of sandwiches. Then the last meal of the day would be a hot meal, usually fast food. Often I would get by with spending $10.00 or less on food each day, in part due to fuel incentives. At least once a week I would treat myself special to a more upscale dinner such as Outback, Red Lobster, Texas Road House, and a variety of others

Fuel

Diesel fuel is another big cost of operating a hotshot freight business. Truck stops are nice because they have a lot of roomsto maneuver. Most of the big truck stop establishments such as Pilot, Loves, Flying J, and the Travel Centers of America all have rewards programs and free showers based on fuel purchases. Although these are some great benefits, it does not mean that they have the best fuel prices. Most of us these days have an IPhone or Smart-Phone if you don't know you will want to obtain one. There are about six different Apps that I found for fuel locators and pricing. This will be very helpful in cutting your cost and increasing profits. When you take into account what the truck stops do offer it is indeed a wash in most cases.  Planning your fuel stops will save you a lot of money.

For example, you have two cars on your trailer, and you are leaving Portland Oregon. You are headed south to Weed California, to pick up another car. The car you pick up in Weed California is going all the way to Chula Vista California. Knowing that fuel in California is outrageous, you want to stop and fill up in Oregon before entering into California. If you fill up in Medford it is approximately eight hundred and twenty miles to Chula Vista California, from there you are going back up to San Diego to pick up another vehicle that you will drop in Phoenix along with one of the other cars on your trailer. Your truck gets about 11.5 miles a gallon loaded. You don't want to fill up in California. However, you will have to purchase some fuel to get you into Yuma Arizona where fuel will be cheaper. Your truck only holds seventy-two gallons yet to make it all the way to Yuma you are going to use almost ninety-two gallons of fuel. To be on the safe side, you will want to purchase about thirty gallons in California. Alternatively you can install another fuel tank on the truck and increase the range.

In any case, you are still going to have to plan your fuel stops to save money. Most truck stops charge the same for cash as they do for credit. That being said a lot of credit card companies offer cards with air miles or cash back, since you are going to be spending a lot of money on fuel and food those air miles or cash rewards will add up quickly allowing you to take a nice vacation at the end of the year.

Performing Preventative Maintenance.

If you are still maintaining a home base, or place of residence, where you come in off the road for a break. This is a good place and time to take the truck to the shop for preventative maintenance. You are more likely to get better deals on service and parts at home rather than out on the road. Especially things like tires and batteries and if they find something critical like a bearing, hubs, or brake issues. It is far more cost effective to work with that shop down the street than it is to fix it on the open road. Furthermore by taking good care of your truck you are less likely to find yourself broke down on the side of the road in the middle of nowhere.

Emergencies

Breaking down is not necessarily an emergency. However breaking down in the middle of the desert, the great plains, or in the mountains, can quickly turn into an emergency. As the weather in these areas can change without a lot of notice, depending on the time of year, you can find yourself in a deadly situation quickly. Whether traveling alone or with your spouse it is always a good idea to let someone close to you know where you are heading and the route you are taking. This is especially true when you are going into desolate areas of the country where cell service is sporadic.

With all the violence in our society today people are far more cautious about stopping to help someone who is broke down. And you have to wonder seriously about those that do stop. Carry two signs that you can store in the cab of the truck. The signs should read " I am broke down, please call the State police and tell them where I am" place one at each end of the vehicle so it can be seen by cars traveling in either direction. Odds are their cell phone has no service either. So it may take them a while before they can make a call on your behalf. If you have food on the truck, you should be alright for a couple of days. Make sure that you have a warm blanket and plenty of water on board as well.

 The DOT requires you to have a first aid kit in the vehicle, may I also suggest that you purchase a snakebite kit and something that you can use as a tourniquet. Because I have known drivers who just stopped to check a tire or just wanted to take a photo and wound up with a snakebite. You also will want to add some four by fours for larger scrapes and cuts. This is a very fun business to get into, but it can also be dangerous. You are dealing with machines that weigh several thousands of pounds. Accidents can and will happen, how severe they are and how badly you get hurt depends on you, how cautious you are, and you're aware of your surroundings