Large carriers operate under the volume theory of hauling: “Make a minimal profit on each load, but haul a tremendous number of loads to grow the bottom line.” 

Any small carriers who try to compete with the large carriers on a large-volume, low hauling rate will find they are limited by time (seventy hours in eight days), space (4000 cubic feet in a 53-foot trailer), and too few trucks and drivers for the volume formula to work.

Being a smaller motor carrier means you’re more nimble, making your company react to market changes more quickly than larger, more bureaucratic carriers. As a small trucking company, you can provide levels of service a larger carrier would have a difficult time achieving. Both you and your drivers can add those personal touches to your customer service, which the big boys are unable to accomplish. But in order to do this, you must find shippers who will appreciate and require this level of service. This means looking for shippers who aren’t happy with the current level of service they’re getting from their freight-hauling provider or are looking for services their current carrier either won’t or is unable to provide.

Here are lists of services which you could provide:

1. Uncrating and set-up service
2. Small shipment consolidation
3. Pad-wrap  services
4. Disassemble/Reassemble service
5. ‘Tip and tell’ or ‘shock watch’ service for sensitive items
6. Hauling odd-shaped loads which most conventional carriers don’t want to handle.
7. Think of other services that the majority of trucking companies don’t or won’t provide.

Become unique and specialized. By providing services a traditional trucking company isn’t interested in doing, you’ll acquire both market security and much greater control over your hauling rates. Be sure you think through the service or services you want to provide. Remember, to be a success you need to be an expert in your niche and you must possess the skills to do the requirements of the job. Know what you’re getting into.  

1. Find a commodity or service you can provide which encompasses the smallest geographic area possible. This reduces your fuel costs by placing you closer to your origin and destination points and reducing the distance if any deadheading is required.
2. Locating loads that require out of the ordinary care will reap higher revenues for your operation.
3. Look for loads which require disassembly and reassembly of equipment, crating and uncrating, etc. These services can add to your revenue without the high cost of fuel.
4. The more you believe in what you’re hauling, the more care you will provide your customer. Haul your passion. 
5. Think personal service, something a large carrier can’t provide in the same way you can. Use this to provide you with a greater competitive edge.

In the next blog post I will discuss the nine rules of the ‘Beating the Large Carriers’ game. Keep in mind the top secrets are how to do the services required better than any of your competitors, and knowing what your customers need and want–and being sure you are providing both to them.

Good loads and safe roads, everyone.

Timothy Brady
©2009