How to Obtain a Trucking Company Contract Proposal
Every person with a product is in need to move that product. Some turn to ships and others use trains to move goods from Point A to Point B. Yet, also that product should be moved once more. So, at one time or yet another every piece of freight is on a truck. As an owner/operator of your own big rigs, you can cash in on this requirement. However there are so many competitors in the transportation sector that you need to have the ability to outbid the competition in order to get work. Winning a trucking contract means understanding your expenses and out smarting your competition!
Let’s start by determining the mpg of our semi-truck if we do not know already. Start by filling our gas tank, then head out and drive 100 miles. After completion fill up once more. Document the number of gallons required to fill our truck the second time. For instance, we fill up our rig with 50 gallons of gas the initial time. After the 100 mile trip, we conclude that the tank handles 10 gallons of gas. The second amount is the one to bear in mind.
Divide 100 by the number of gallons of fuel we documented earlier in step one. We traveled 100 miles, so, this will inform we of how many miles/gallon our truck averages regularly. Again make note of this figure in our records. Now use this formula to proceed with our example. Divide 100 by the 10 gallons of fuel we added on the second stop which equals 10. That implies our truck is getting 10 miles per gallon.
Check out the contract specs prior to bidding. See just how many miles each journey will take. Multiply the number of miles per direction by the number of trips required by the contract. This number will provide we insight on how many miles the contract requires before we put time into bidding. Considering the hypothetical contract of this instance we discover that each direction is 25 miles, and we will definitely need to make 10 trips to finish this particular bid. Multiply these two numbers with each other and we see that the entire process needs us to take a round trip of 250 miles.
Divide the total miles required by the miles per gallon our truck is averaging. This number will definitely show us how many gallons of fuel we will should acquire to finish the contract. Apply this to our example. Divide the 250 miles needed by our hypothetical bid by the 10 miles per gallon we determined our truck averaged in the course of our sample run. This tells us that we will need 25 gallons of gas to finish the contract.
Multiply the number of gallons of gas needed for the contract by the current cost of a gallon of fuel. This will advise us our gas price for the contract. Tape-record this amount. To continue our with our example we will certainly visit our regional or favorite fuel stop. Examine the indication in front of the terminal and we see that fuel for our truck is $5.00/gallon. So, we increase $5.00 by the 25 gallons we will certainly require to finish the hypothetical contract. In this circumstance the gas price for our contract is $125.00 in total.
Divide the absolute number of miles in the contract by the average number of miles we may be driving in a single day. This will tell us how many consecutive days it will definitely take us to finish the contract in it’s entirety. For this example imagine we could travel 440 miles in a day. That’s 55 miles every hour for 8 hrs. Divide the 250 miles of the contract by 440 to get 0.57. That suggests we can easily complete the contract in a day or less of driving.
Multiply the variety of days it will take to complete the contract by the quantity of pay we desire to receive each day. Keep in mind the fact that we should never undersell our services. This charge pays our wage as well as gives us some money for future business expenses. In our example, pretend we desire to make $500.00 each day. Bear in mind that this amount deals with the taxes, charges and maintenance. Multiply the $500.00 by the one day it will take to complete the contract and we arrive at $500.00 for labor.
Incorporate the price we expect to pay for fuel with the cost we wish to charge for our labor. This is our proposal price for the trucking bid. Provide this cost to the business for review immediately. Write a bid pitch illustrating our security record and also over-the-road encounter along with a declaration of dedication to raise our chances of winning the bid. Finalize our example by adding the $125.00 we require for fuel with the $500.00 we desire to charge for our labor. This implies that our hypothetical contract is worth $625.00 total.
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