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 

Making a Living Hauling Cars.

Equipment, Permits, and Insurance

Can you make money hauling cars, and other things on wheels? The answer is yes. however, it is a business and you have to treat it like a business. In this article, we are going to talk about what you need to make it work. Like any business and job, you need the correct tools. Having the correct tools will save you time, money, and make the job more enjoyable. I did this for a year and really enjoyed it. Not having the right truck will limit your income potential and cause you a lot of headaches and costly repairs. Some trucks just will not withstand the workload. So I am telling you this from personal experiences in hopes of helping anyone who is considering this business.

The first thing that you need is the right truck. Anything less will sabotage your efforts. The Dodge 5500 with a diesel engine dual alternators and the heavy-duty front suspension is a great vehicle. The Dodge 3500 one ton is another good choice. You have to be able to haul more than one car at a time to make a profit in this business. Either truck can tow between27, 000 to 30,000 pounds it has the torque and the power that you need when you need it. If you purchase the truck new, you will spend between $42,000.00 and $48,000.00 you can find these trucks in auctions around the country for $23,000.00 or less you just have to shop around, there are some good deals out there. Adding a brush guard to the front of the truck is a smart idea. As much driving as you will be doing, the chances of you hitting a deer or an elk is severely increased. Hitting a large animal can cause you a lot of down time having a brush guard can help minimize the damage. You will also need safety triangles, fire extinguisher, and a first Aid kit.

The next thing you need is a good trailer. You will definitely want a Fifth Wheel or a gooseneck. Personally, I like the fifth wheel I find that it is easier to hook up. There is a wide selection of designs and layouts if you purchase a car hauler that is all you are going to haul so you limit your income potential drastically. However, if you purchase a deck over then you can haul between two or three cars on the deck. A few of the trailer manufacturers will build a platform over the king pin. This allows you to haul three Motorcycles, or two ATV’s, or a couple of Golf Carts increasing income potential.

 Most deck over trailers have what they call a dovetail. This is about a three-foot section at the rear of the trailer bed that is tapered so that you have a lower ground clearance at the rear. This is great for hauling cars. However, it can cause some problems in hauling pallets of product. A few manufacturers offer what is called a pop-up dovetail, which rises once you are loaded so that the deck is flat. This option is well worth the investment

There are many small moms and pop businesses that cannot afford to purchase an entire truckload of product for their inventory, so they purchase a smaller quantity. Most trucking companies like to deal in full truckloads so they charge exorbitant rates for smaller loads. This has made it easier for the small transporter to make money on these deals.

A few pieces of equipment that you are going to want on your trailer, includes a generator, Air Compressor, Marine battery, and a power winch. Other equipment includes air hose an impact wrench, air nozzle for inflating tires. I have picked up cars from insurance salvage yards and they will usually load them for you. Nevertheless, when you get to the receiver and one of the vehicles has a flat tire it is a challenge to unload. Other equipment includes several short pieces of chain two feet long. I always used a threaded chain link to attach the chain to the rub rails of the trailer. I would then hook the end of the ratchet strap to the chain. Attach the other end of the to the ratchet strap to the frame of the car. If your trailer is equipped with floor mounted D rings, you can hook the ratchet strap to it, and avoid using the rub rail. A couple of long chains at least twenty-five feet with hooks on each end. You can never have too much chain or secure a vehicle too much. I always used ratchet straps to tie the vehicle down. Some drivers use chain binders either of these will get the job done. I have seen some drivers use a combination of both. There are many good trailer manufacturers out there that will custom build you a trailer when you tell them what you are using it for they will know what you need. Flat tires on your trailer or truck will happen. Depending on where you are, it could be hours for roadside assistance to reach you. With a generator and air compressor, you can have the tire changed and back on the road in thirty minutes or less. In this business, time is money.

Most of your auto shippers are going to be car enthusiasts who have purchased the car from other individuals and they are restoring them. Sometimes the car does not run. Alternatively, it will be in a place that is hard to get into. This is where the winch and the chain come in handy. Especially when you have to unload one vehicle, so you can load another car because of the delivery locations.

Along with the right equipment, you have to have the right insurance and permits, it is just good business and it is ethical. Insurance is going to be one of your biggest expenses. You want to have at least a million dollars in liability. Depending on the types of vehicles that you are, hauling it is suggested that you carry at least five hundred thousand dollars in cargo insurance. You can save some money here by choosing a higher deductible however you need to have the deductible amount in a separate bank account in the event of a loss.

For example, you have a five thousand dollar deductible for cargo insurance. Loaded on the trailer; you have a 1969 Mustang, a 1976 VW Beatle, and a 1980 Corvette. Somehow or another the Corvette comes loose the back end of the Corvette hits the pavement before you can get stopped. You can see that there is some serious damage done to the undercarriage. The total value of the Corvette is valued at eighteen thousand dollars. You find out that you have seven thousand dollars in damages and you only have three thousand in your bank account. Your insurance company is only going to pay your customer two thousand dollars, you give the customer the three thousand that you have, and this still leaves you two thousand dollars short. This could be very devastating; you have to either to take out another loan, deplete your operating account, or risk a lawsuit by the customer. In addition to the bad word of mouth that you are getting. 

You can also save money on your comprehensive and uninsured motorist insurance by having the higher deductibles again you will want to have the money in the bank to cover the deductible. Otherwise, it could easily put you out of service if you were to hit an elk, a deer, or if someone hit your truck that was uninsured, the repairs could be costly. Check with your insurance carrier, sometimes it makes more sense to pay a little more for the insurance for a lower deductible until so you save up the money to set aside.

To operate a truck and trailer of this size, you will be required to have a commercial driver's license. Many people cringe at the idea of obtaining this. However, it is not that hard to do, and it is well worth it. It is the only way that you can haul enough freight at one time to make a good living. Should you choose to risk it as some drivers do. Keep in mind that a single violation from the department of transportation could put you out of business quickly. Not to mention the possibility of jail time, it just is not worth the risk. You will also need a DOT number and an MC number. I contacted a company by the name of Foley Carrier Services they will be happy to help you set everything up and they stand behind their work. If you do it yourself and make a mistake, it can be costly. One driver I knew was stopped in Indiana he filed his own paperwork and had the wrong GVWR on his permit he received a ticket for over three thousand dollars. It just is not worth it. Foley Carrier Services also offers a wide variety of others services that you will be interested in. You will also be required to keep a logbook, this really is not as hard as it seems and often drivers make a bigger issue than they need to. As I mentioned I did this for a year, I did not have the correct truck, which cost me a lot of money in repairs. I also had a trailer that would only haul one vehicle; on occasion, I would have a motorcycle in the bed of the truck. I could not afford the cargo Insurance. That being said there were a lot of tense moments and the stress was just unbearable. Fortunately, I never lost anybody's vehicle. I was below the weight rating so I never had to enter the DOT scales nor did I keep a log book. Be sure to visit my blog often as I will be posting additional articles about the hotshot freight business. 

Is Your Sales Career Taking a Dip?

I hear it all the time. "My sales are down and have been for the last three or four years.Of course with the economy the way it is, I can certainly understand it." Too many sales professionals buy this hook line and sinker. These are the same sales professionals who were mediocre at best when the economy was good. One of the many things that I learned from my father is that business is only bad between your ears. If you allow yourself to become discouraged by all of the negative news, and the economy reports; you sabotage yourself.

Now I am not suggesting that you isolate yourself from the world and become ignorant to what is happening around you.  Sales professionals should limit the amount of negative news that they take in. Furthermore, look at the glass as half full, rather than half empty. Use your talents to spin the negative into positives. We have all heard it, but few of us think about it in the midst of a pity party. "When life gives you lemons, make lemonade."

When you get a NO, from a customer; Get excited! Yes you read that correctly, get excited. As a rule of thumb you will get ten NO's to one YES. Every NO puts you one step closer to the customer who says YES.  However one of your goals should be to change that ratio, resulting in more customers saying yes.

 When your sales are not as they should be, use the time between customers effectively. You can do this by networking, prospecting, following up with potential customers, and cold calling. As a professional you are probably already practicing these techniques. At the same time these are things that we should be doing even when business is better. If not then get busy. It is during these times when customers are a little tighter with their finances. Therefore you have to make the most out of every opportunity you have.

When a customer says no, don't take it personally. Don't beat yourself up over it. Learn from it. There are just a small handful of reasons why customers say no. They either do not need your product or services; they cannot afford it, have no desire, or feel that the cost exceeds the value. This is the number one reason your customer will say no. Few people wonder around the store aimlessly looking at things they, cannot find a need for, or have no desire to own. More often than not, customers will say no because of the lack of information they have about the product or services you are providing. They do not see where the benefits of ownership meets, the amount of money, you are asking them to give you in return.

There is a bright side to all of this. Most of us already know this. So if what I am going to say shocks anyone. Let us just say that they have other issues. Your customer's car, boat, refrigerator, microwave, computer, or any other important machines or devices; your customer owns; are totally unaware of the economy and its current status. They have no idea that now is not a good time to breakdown, leaving their owner in an even bigger jam. Depending on the severity of the breakdown and the cost of the repair; a large majority of people will look for a way to afford replacing it rather than investing another nickel to fix it.  In their mind they will justify making a payment and not having to worry about breakdowns for a while.

If you want to pull your sales career out of the rut it is in. Then you need to surround yourself with the successful sales people in your company. Quit hanging out with the doom and gloom club. Keep positive, keep focused, set weekly and monthly goals. You are a winner, now act like one!