Car Hauler Industry Tips, Carrier

5 Ways Car Haulers Lose Money Everyday

by Jay W.

The harsh reality is that all businesses experience high costs, with business owners struggling with sudden out-of-pocket expenses from time to time. So it should be no surprise that auto transport drivers lose money, often stuck with additional costs on a regular basis.

Since this problem is universal, all business owners try their best to identify and account for a certain margin of probable loss of revenue, as seeking solutions to minimize that loss is part of being fiscally responsible. In today’s post, we’ll be going over the five biggest reasons most car haulers lose money.

…when a $700 vehicle suddenly becomes a zero, that’s a huge problem for everyone.

1) Bad Loads

Cited as the number one biggest reason auto transport drivers lose money, bad loads include surprise INOPs that cannot be loaded, cars that are not ready for pick up, loads that suddenly cancel, vehicles that will not fit on the trailer, and cars that were already transported a week ago.

Whatever the reason, when a $700 vehicle suddenly becomes a zero, that’s a huge problem for everyone. When a car hauler load board spits out a giant lemon, it’s a major and immediate loss and usually has a snowball effect. Bad loads create incredible amounts of stress within companies and can prevent a once profitable relationship from moving forward.

2) Miscommunication

Between the customer, the pickup contact, the broker, the dispatcher, the driver, and the owner, there are plenty of opportunities for someone to drop the ball in the form of miscommunication.

The fact of the matter is when a driver is ready to pick up a car, that car needs to be there and ready for pick up and the location needs to be expecting the driver. There are a hundred ways for this situation to go sideways and everyone plays a part in making it work out smoothly.

The good news is – dispatch software can help. Advanced TMS solutions can provide carriers with valuable information including advanced GPS tracking,  the distance between cities, exact vehicle dimensions, and quickly and efficiently importing and sending data. By implementing a transportation management system (TMS), miscommunications can be minimized and avoid future headaches.

3) Damage Claims

It only takes one accidental scratch from a loose chain or a driver overlooking a dent during an inspection to cause the potential revenue of a load to be reduced to pennies on the dollar. Damage claims can be costly, time-consuming, and damage the reputation of your business.

Creating the perfect BOL might sound unrealistic, but if you are experiencing regular damage claims, it’s time to do things differently. Life isn’t perfect, to err is human, but creating the perfect BOL is your best chance at reducing damage claims.

4) Equipment Failure

All physical equipment suffers from decay, stress, and strain over time, and is prone to failure if not maintained and serviced regularly.

When a sensor repeatedly malfunctions, ramps bend, engines use up fluids too quickly, or tires frequently blow out, that could be the symptom of an abnormal issue. Avoiding a bad load can help minimize excessive wear and tear, which includes reducing off-route mileage and driving in punishing terrain.

5) DOT Violations

Owners worry about excessive government regulations in any industry. But when a driver hits the scales or a DOT officer conducts their inspection, there’s always a good chance a DOT violation will result in a fine.

Although this additional expense ranked the lowest on the list, it is the carriers that work the hardest to follow all the rules and protocols that stay off the regulatory radar. Consulting with a knowledgeable compliance advisor can also be an excellent investment.

These are the five biggest ways that auto transport drivers regularly lose money, however, they can all easily be avoided if taken the proper steps. Super Dispatch’s Carrier TMS solution can help you with finding reliable loads, properly communicating, filing BOLs, and much more. If you think that Super Dispatch may be a good fit for your auto transport business, then consider trying it out for free. Sign up for a free trial today!

Published on September 7, 2016

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