How To Calculate Profit Margin

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Your Main Goal On Every Load Covered Is Generating A Minimum 15% Profit Margin

 Here’s How You Calculate It:

Our Price = Price We Charge Our Customer
Carrier Price = Price Charged From The Carrier
Profit = Customer Price – Carrier Price


Example:
Our Price  =  $2000.00
Carrier Price  =  $1700.00
________
Profit  =    $300.00

SO

 

Profit Margin = Profit Divided By Our Price OR $300.00
÷
$2000.00
= 0.15
OR
15%

 

 

 _____________________________________________________

Remember:

Your Profit Margin Goal Is To Average 15%+ Every 2 Weeks.

However, Always Cover Loads For A Minimum Of $100.00

Figuring your profit margins will assist you to work out what rates you’re charging and ensure that you keep above the 15% target.

Once you’ve made the initial sales call and prospects are asking for freight rates, you’ve got one foot in the door.  From there, keep selling and servicing.


One thought on “How To Calculate Profit Margin

  1. VERA COMO

    WHAT I GET FROM THIS IS THAT IF I CHARGE THE CUSTOMER $2000.00 DOLLARS AND POST LOAD FOR $1600.00 OR $ 1700.00 I LOOL FORWARD TO PROFIT 300 TO 400 DOLLARS. I HAVE QUSETION ABOUT THIS PROCESS. ONCE THIS IS SET UP WHO SENDS THIS CUSOTMER THE RATE FORM OR CONTRACT. ALSO DO I POST THIS LOAD ON TRUCK STOP SO CARRIERS CAN CONTACT ME ABOUT THIS LOAD OR DO I OFFER THIS TO AN OWNER OPERATOR. ALSO WHO WILL CHECK THIS COMPANY SAFETY SCORE IF THIS IS OFFERED TO A CARRIER TO PICK UP LOAD . I UNDERSTAND THE PROCESS JUST THE STEPS AFTERWARDS IM LOST.

    Reply

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