The most-asked question by Owner/Operators and the owners of small trucking companies today is: “How do I find good paying freight?”
 
It’s not rocket science to know when you depend on the “shotgun method” of finding your loads you are giving up a fair amount of revenue.  By definition, the “shotgun method” of load searching is constantly looking for the highest-paying loads without regard to what loads are available for the return load.  It also means not planning ahead and trying to cover too large an area. The operative words you need in your load finding arsenal are 'freight lane, ' and 'consistent.'  With the low volume of available freight and the overabundance of trucks and trucking companies needing freight, the world of trucking has changed.
 
Are you still doing things the same way you were a year or two ago?
This is a whole new ball game. You need to approach the way you find loads differently. But first, three things need to happen:
1.      You need to cut costs.
2.      You need to look at ways to increase revenue without increasing cost to your customer,
3.      And (you knew I'd get to this) you've got to include your salary or draw along with the salaries of all key personnel in your Break-Even Point (BEP).
 
Next you need to change how you view your revenue.
Are you looking at cost and revenue based on time, not miles? Many truckers and small motor carriers I talk with seem to be under the impression there is a single per-mile figure a truck requires to create the revenue it needs. There is nothing further from the truth. If the per mile BEP at 3000 miles per week is $1.25, then if you only get 2500 miles that week there will be a shortage  of close to 20 cents per mile. This is because your BEP would increase to $1.45 per mile, and at 2,000 miles, it goes to $1.65. Remember, your fixed costs remain a constant. So even though you're spending less on fuel and maintenance, your revenue per mile needs increases. Looking at your revenue needs by the day, week, month and quarter is a better method of determining whether you are meeting the trucks revenue requirements.
 
In the next blog installment we are going to look at the idea of doing what I call a reverse  Freight lane development plan. This might just be the solution
 
Timothy D. Brady is
•     A 20 + year trucking veteran
•     The Trucking Business Expert on Sirius/XM Road Dog Trucking Radio
•     Heard in podcasts on http://AmericanRigRadio.com 
•           Author of best-selling trucking business books and columnist for top trucking industry publications.