Monday, October 30, 2006

Truck Washes and Independent Trucker Customers; A Viable Business?

Independent Truck Drivers and small trucking companies have always been known to be part of Americana, yet in the past decade and a half we see fewer and fewer truck drivers on the roads these days. Why? Well because of high costs, BS over regulation and competition from Corporate Giant Trucking Companies with huge economies of scale to work from.

Even more in 2006 we are about ready to see another round of consolidation as the CFO of UPS has announced a major acquisition, which could either be another large trucking company or even a railroad? A railroad would allow UPS to move more truck trailers by rail cheaper “piggy back” style between terminals and help them shave costs due to high oil prices and fuel bills.

With the number of independent truck drivers dwindling and their demand for a quality truck wash including drying the cab, polished aluminum and chrome, without using Hydrofluoric Acid on the truck can a small truck wash survive on this type of customer? And can a small truck wash pay the additional labor required for that level of service with fewer and fewer independent truck drivers who are looking for better and better prices these days? One potential future truck wash owner asks;

“Do you think if our market is mostly independents, that it would still be a poor time to start the business?”

Not necessarily, as a lot depends on reputation you see. But there are higher labor costs and therefore you need to charge more money for the quality wash they are looking for. So a completely automatic type truck wash will not work for this type of customer and it would be foolish to have anything but a hand wash type truck wash, with perhaps a trailer mechanized wash assist. So, consider all this in 2006.


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