Truck Delivery Contracts: Everything You Need to Know
Truck delivery contracts are vital if you intend to establish a start-up trucking business, in which you can ship goods via small truck or cargo van.3 min read
Truck delivery contracts are vital if you intend to establish a start-up trucking business. If you do not mind heavy lifting or driving, you can establish a business by shipping goods via small truck or cargo van. The trucking business is a lucrative niche to get into. Trucking in the United States gathers over $726 billion in yearly revenue, which is five percent of GDP. In fact, the trucking industry will expand 21 percent between 2013 and 2023.
Further, getting started in this industry is a simple process, and all you need is a cargo van or truck. You can purchase a cargo van anywhere from $25,000 to $40,000 and a straight truck goes from $30,000 to $60,000 or greater based on your size and feature preference.
You can start in the business through the following means:
- Purchasing a cargo van or track
Straight trucks are also known as box trucks. They have cargo areas ranging from 13 to 23 feet with a single attached frame instead of a tractor-trailer. On the other hand, cargo vans carry products and goods instead of individuals, and they work well for small loads that need to be delivered in a time-sensitive manner. You can obtain these trucks or vans at the following places:
You can also lease or buy the vehicles in used or new condition from commercial truck dealers.
When it comes to rental trucks, you can establish a shipping contract and rent a truck on the day of a schedule delivery or pickup.
- Note: Certain rental companies may also offer extended rental options for months or weeks at a time
A good area to get started in this industry is helping people move to another town, state, or country. In addition, you can find manufacturers who need to ship goods to another location. You can also contact small businesses to see if an owner needs same-day or next-deliveries in your local area. When moving, a mover can charge by the hour, but most businesses in this field charge by weight and mileage.
Leasing a vehicle may cost more in the long-run, and you may have to make leasing commitments for up to 60 months. With that, leasing long-term may still be a better option than purchasing a truck or renting it on a short-term basis. Usually, you may lease nearly 100 percent of your vehicle, and buying it may require a down payment of 25 percent or greater.
Keep in mind that you do not want to spend too much of your cash reserves to establish your business. Further, transportation of goods on a consistent schedule will save in money in the long-run if you choose a long-term lease instead of a short-term rental agreement.
- Note: Leasing also provides certain tax advantages over purchasing a van or truck
Marketing your Business
An important part of small business success is the targeting of particular market and advertising your business at a suitable cost. Targeted marketing will cost you less because you would not have to spend an advertising budget on people who will not need your services. You can find business by going to trade shows or visiting small manufacturers or businesses that do not have a truck fleet. Make note of newer businesses that are start-ups and may need help shipping products.
You can also grow with small manufacturers and businesses that are looking to grow expand as well.
You can start advertising through the following channels:
- Print Advertising
- Internet Marketing
- Direct Email
- Targeted Publications
You must first know who would need your services and target all ads to your intended audience. At first, you may need to offer discount rates to get started, but you can increase your rates as you establish your business.
Start-up Road Blocks
One of the biggest barriers for newer operators is finding loads to transport. Such a duty can be daunting, and it is one of the reasons why many smaller trucking businesses fail. To start looking for work, go to load boards like thousands of others truckers do. With that, load boards are not the best way to make a quick profit, especially free load boards.
This is because you would fish on load boards each day, and they do not always yield the highest payouts.
If you need to learn more about truck delivery contracts, submit your legal inquiry to our UpCounsel marketplace. UpCounsel’s lawyers have graduated from some of the most prestigious law schools in the nation and will be there to help you draft a truck delivery contract that’s legal and will attract more clients. In addition, an attorney can be a valuable asset as you build your brand while helping you enforce the terms of any agreement you sign with other parties.