As rookie owner-operators flock to the market to fill the demand gap, many have been caught off-guard. How do you protect your small business?
Because of a slight dip in consumer demand, capacity is loosening up. Less freight means fewer opportunities for carriers, shifting the pricing power to shippers. Naturally, contract rates rise as carriers seek security.
But, for the scrappy owner-operators with shimmering rigs and small reputations, high contract rates make establishing business an uphill battle. Without the margin to stay afloat, these dreamers catch a rude awakening.
So what can a newbie do?
The good news is that there are tools for new carriers to rise above the market. Here are just a few ways you can protect your small business:
1. Load boards, load boards, load boards.
With capacity freeing up, shippers have the liberty to be selective about who drives their loads. To find the best service for the best price, these shippers are turning to large carrier databases to maximize their options.
Enter load boards.
Fortunately, two can play this game. Load boards are online platforms that link carriers to shippers. By enrolling in quality load boards like Atlas Now, you can place yourself at the front of the market.
2. Relationships are everything.
When the size of your truck doesn’t carry the weight it used to (literally), you need to consider how to differentiate yourself.
As painfully intuitive as it sounds, providing consistent, considerate, and courteous service is your number one asset in a shipper’s market.
By being the crowd favorite, you can facilitate loyalty with your shippers to guarantee future business, become a market commodity, and protect your small business.
For customer service tips, check out this article.
3. Carrier service suites are king.
If discounts on essential expenses aren’t already a part of your expansion strategy, you’re missing a critical tool.
Many third-party logistics companies offer carrier service packages. When looking for a carrier service provider, be certain that discounts on fuel, tires, and maintenance are available. These expenses are reoccurring, so every fill-up, check-up, and pick-me-up is money saved.
(Bonus: When shopping for carrier services, ask if factoring products are available. These services can make a giant difference in your cash flow, supercharging your ability to grow).
It may be a shipper’s market, but new carriers have access to powerful tools to level the playing field. With load boards, quality service, carrier services, and good old-fashioned trucker intuition, you can protect your small business.
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The England Carrier Services (ECS) division offers various services for carriers ranging from maintenance to support. As ECS members, carriers have access to nationwide discounts on fuel and tires from dedicated team members committed to finding the best price. ECS also provides factoring services with benefits such as same-day funding to a bank account or fuel card. These options allow carriers the freedom to focus on growing their business while saving time and money.