Super Dispatch

5 Ways Car Haulers Lose Money Everyday

by Jay W.

Do You Know The 5 Biggest Reasons Car Hauler Businesses Lose Money Down The Drain?

Every business owner struggles with sudden out-of-pocket expenses and most of us have heard someone say, “That’s the cost of doing business.” So it should be no surprise that car haulers lose money and feel the pain of being dinged by additional costs on a regular basis. Since this problem is universal, all company owners try to identify and account for a certain margin of probable loss of revenue. Seeking solutions to minimize that loss is part of being fiscally responsible. So let’s rank in order from largest to smallest, the 5 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 car haulers 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 loss, it’s immediate, and it usually has a snowball effect. It creates incredible amounts of stress within the company and can further pollute a once profitable relationship from moving forward. It’s a major problem, and in many cases, the primary ingredient is most likely due to the second biggest problem.

Car Hauler BOL App

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2) Miscommunication

Between the customer, the pickup contact, the broker, the dispatcher, the driver and the owner, there are plenty of opportunities for somebody to drop the ball. Owners and drivers blame the brokers, brokers blame dispatchers, and dispatchers get completely frustrated because nobody answered the phone or took the time to call them back. Here’s the deal: 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! The scanner on a dispatch app does not record the wrong VIN and a GPS can help accurately ping a driver’s location. The internet can provide exact vehicle dimensions, the distance between cities, and quickly and efficiently import and move data. By implementing a transportation management system (TMS), miscommunications can be minimized thereby reducing the impact and frequency of an otherwise chronic problem.


Scratched Vehicle Damage

Owners and drivers blame the brokers, brokers blame dispatchers, and dispatchers get completely frustrated because nobody answered the phone or took the time to call them back.

3) Damage Claims

Unfortunately, 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; and that’s a big reason why we’ve created the car shipping app that helps people just like you.(CLICK HERE to learn more)

4) Equipment Failure

Car Haulers Lose Money to Equipment FailureAll physical equipment suffers from decay, stress and strain; it’s part of life. Most owners and drivers know the limitations of their truck and trailer. When a sensor repeatedly malfunctions, ramps bend, engines use up fluids too quickly, or tires frequently blowout, 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) The DOT

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 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 knowledgable compliance advisor can also be an excellent investment.

That wraps up the 5 Ways Car Haulers Lose Money Down The Drain. But if you think I missed a big one, if I have them out of order, if you just want to comment, or you’ve got something to say about a car delivery app, I invite you to speak your mind. Thank you for your time, and keep on trucking.

— Super Jay

#1 Car Hauler BOL App – Try It For Free. Download for Android HERE and for Apple HERE.

Ready To Test Drive Super Dispatch For Your Company? Book A Demo HERE Or Sign Up HERE.

Published on September 7, 2016


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