The average annual pay for a box Truck Owner Operator in the United States is $110,275 a year. To have an idea of the amount a box truck business is expected to make daily, weekly, monthly, or yearly, you should clearly define the service offerings of a box truck business.
A box truck which is also known as a straight truck, box van, or cube van is a truck that is designed to navigate urban centers without difficulty, making it the ideal option for local freight-hauling jobs. Statistics available show that, on average, box trucks may charge $50 – $200 to move a furniture item, depending upon the size and miles traveled.
Individuals dedicating 10 or 20 hours a week can easily earn an extra $700 – $1000 per month when starting a box truck company. As of Mar 5, 2022, the average annual pay for a box Truck Owner Operator in the United States is $110,275 a year.
It is important to point out that there is no one mold-fits-all when it comes to how much a box truck company is expected to make. There are some factors that we are going to look into before giving an estimate of how much an average box truck business makes yearly.
Factors That Determine How Much An Average Box Truck Business Makes Yearly/
Table of Content
- The Capacity of the Box Truck Business
- The Location the Box Truck Company is Covering
- The Management Style of the Box Truck Company
- The Business Approach of the Box Truck Company
- The Advertising and Marketing Strategies Adopted by the Box Truck Company
- The State of the Trucks
- The Number of Years the Box Truck Company is in Business
The Capacity of the Box Truck Business
One cannot conveniently state the amount a box truck company is expected to make yearly if you do not know the capacity of the business. You cannot compare a box truck company that is just starting in business with a well–established box truck company that offers local and long-distance transportation of household and office goods, warehousing and storage services et al.
The Location the Box Truck Company is Covering
We must not rule out the fact that the location the box truck company is covering is a major factor that will determine the amount the business is expected to earn monthly. The truth is that you will struggle to make good money as a box truck company if you locate the business in an area filled with people who aren’t prone to moving goods or properties like retirees et al.
A recent report released by IBISWorld shows that box truck companies are generally located in regions with relatively high population and booming real estate industry, notably the Southeast and West regions. The report further stated that the moving and storage industry is a needs-based industry and companies typically locate where there is the highest concentration of movement.
The Management Style of the Box Truck Company
Another key factor that will determine the amount a box truck company is expected to make is the management style of the company. Trust me, the results you will get when you are a good manager with eyes for top-notch customer service will be far different from a box truck company with a poor business manager will make.
A good box truck company manager will not just retain their old customers, but will also keep getting new customers and contracts, and that no doubt will greatly influence the amount the business is expected to make annually.
The Business Approach of the Box Truck Company
There are different business approaches that a box truck company can choose from and no doubt it will greatly influence the amount they are expected to make. Of course, we know that box truck companies can decide to work alone, but they can also decide to partner with other businesses that will recommend clients to them. Box truck businesses can decide to partner with;
- Merchants and Warehouse Operators
- Retailers who would want to move their goods from one location to another
- Households who would want to move from one apartment to another
- Corporate organizations who would want to move from one office to another
- Government agencies who have cause to move goods and materials from one location to other locations
- Non-profits organizations
The Advertising and Marketing Strategies Adopted by the Box Truck Company
Another key factor that will determine the amount a box truck company can make yearly is the advertising and marketing strategies adopted by the company. Trust me, several advertising and marketing strategies can help a business increase its earnings, but you may be expected to spend more.
But the results you will make will far outweigh the amount you spent on advertising and marketing. Of course, you don’t expect a box truck company that is engaging in aggressive advertising and marketing to make the same amount yearly as a box truck company that is passive with its advertising.
The State of the Trucks
If you make use of a brand-new box truck for your box truck business, you are expected to spend less on fueling and routine maintenance when compared to making use of fairly used box trucks. A box truck is used to transport goods and properties from one location to another hence it must be in shape at all times and regular maintenance must be carried out as at when due.
The truth is that you don’t need to be a mechanic to know the parts of your box truck to know when they are due for maintenance. It is well-known fact that when you perform preventive maintenance on your box truck, you can increase its lifespan. It can also play an important role in sustaining a box truck’s value if you want to sell it after a while.
The Number of Years the Box Truck Company is in Business
Lastly, another key factor that will determine the amount a box truck company is expected to make is the number of years the box truck company is in business. This is because over the years, you would have been able to gain the trust of your customers and it will be easier for you to always have them coming back and also recommending clients to you.
For example, in your first fiscal year (FY1) you might make one hundred and twenty thousand dollars (120,000), in your second fiscal year (FY2) you might make one hundred and fifty thousand dollars ($150,000) and in your third fiscal year (FY3) you might make two hundred and fifty thousand dollars ($250,000).
In conclusion, some of the major factors that count positively in this line of business are trust, honesty, good relationship management, and of course timely and safe delivery. Once a box truck company has gained credibility, it is easier for them to go for brand new box trucks on a long-term leasing contract as against making use of second-hand box trucks or vans which are usually expensive to maintain due to constant wear and tear.