What Is A Box Truck Business?
A box truck business is a small business where the owner of a truck becomes the business owner or independent contractor and uses the truck for different applications, such as:
- Hauling junk
- Local moving services
- Advertising with the truck
- Catering food delivery
- Partner with logistics companies
- Local store delivery
- On-demand courier service
- Package delivery services
- Storage services
- Mobile hair salon
- Rent box truck out
- Food truck.
You can literally find a dozen more ideas and applications when it comes to starting a business with the box truck as a tool.
With proper care and maintenance, a box truck should be able to last around 155,000 miles. Without proper maintenance, the mileage lifespan will drop by at least 12,000 miles.
How Profitable Is A Box Truck Business?
A box truck owner operator can earn anywhere from $45,000-$114,000/year, depending on location and jobs. More populated areas and big cities are more competitive with regard to finding creative niche business ideas or competing in a market; however, densely populated areas also offer many potential customers with a high earning potential.
Below are the state-specific stats on earnings, as listed on ZipRecruiter:
|State||Annual Salary||Monthly Pay||Weekly Pay||Hourly Wage|
There is no set number of box trucks that would make the business more profitable; however, one should crunch numbers (truck purchase, insurance, gas, overhead, repairs etc.) even with one box truck to make sure that there is a profit before committing to purchasing several box trucks.
There are some box trucks on the market that one can find used with around 200,000 miles for $5,000-$10,000. However, be prepared to have some repair costs coming up with a high-mileage truck.
Is Owning A Box Truck Business Company Profitable For Small Owners?
A small owner is the owner of the entire business and operation while a big owner is one that oversees the business operations, but is not as involved in the daily minutia (or tasks of the business); this would be someone like a franchise owner of an Enterprise rental location, for example.
The small owner doesn’t have to account for large payroll expenses and gets to keep most of the profit whereas the big owner might have a scaled-up business with a fleet of box trucks, but has to pay payroll, benefits etc.
3 Ways Of Making Money With Box Trucks
There are so many different ways to make money with box trucks, but the key industries that benefit from box truck services are logistics/moving, food/retail and rental or delivery services.
Starting A Box Truck Business
In order to start a box truck business, you will first need a box truck. Decide if you want to rent, lease or purchase a box truck. A new box truck can cost anywhere from $25,000-$90,000, while a (very) used one can be found around $7,000-$10,000. You will also have to purchase general liability insurance as well as insurance on your box truck. If you need additional tools, such as dollies, business accounting software etc., these costs vary greatly based on one’s business plan and choices.
Step 1: make sure you set up a business plan. Decide on your niche: what do you want to do with your box truck?
Step 2: do the math to figure out how much it will cost to operate the business. Include a market analysis of your area.
Step 3: If possible, get an interest list or potential client list. Purchase general liability insurance. Decide on your business structure (sole proprietorship, Inc., or LLC.) and figure out your costs, overhead, taxes etc.
Step 4: If needed, get business cards, advertising/marketing campaign in your area, or search online for opportunities.
The earnings of a box truck owner operator vary greatly by industry, location and one’s ability to market and secure jobs; the range is anywhere between $20-50/hr. Some box truck owners-operators make up to $9,000/month with one box truck.
Become An Independent Contractor
An independent owner-operator contractor is someone who has a freelance or contractor contract with a company they do deliveries for. This means they own the vehicle and their schedule and negotiate the terms of the contract with the company.
To become an independent contractor, you search to secure a contract with companies who are looking for someone to deliver goods or services for them. The company does not provide any perks or employee benefits, but merely pays for the driving service you provide. You are responsible for your vehicle, your health and liability insurance etc. Usually, an independent contractor ends up having a set delivery route. Many medical services or food services are set up in this manner.
The average earnings of an independent contractor for home moving, hauling, towing and advertising services differ based on location, experience (incl. age of business) and service offered, but the average range is anywhere from $20-$50/hr.
Working For Someone Or A Company
There are many different Websites where one can find business opportunities, such as ZipRecruiter.com, Indeed.com, SimplyHired.com, GoLoadUp.com or owneroperatorland.com .
A driver can make anywhere from $15-30/hr, depending on job, experience, time on the job, timeline etc. The average is about $15/hr in most metro areas in the US.
Truckers that look for side hustles can also look into affiliate marketing, Amazon FBA, Ebay, Etsy, AirBnB, social media marketing or even writing an eBook (Source: hustlelife.net).
Top Cities That Have High Demand For Box Truck Services
According to ZipRecruiter, there are “six states where the typical salary for a BOX Truck Owner Operator job is above the national average. Topping the list is New Jersey, with Tennessee and Massachusetts close behind in second and third. Massachusetts beats the national average by 2.5%, and New Jersey furthers that trend with another $7,434 (7.0%) above the $106,319.” (Source: www.ziprecruiter.com)
The best industries are moving, food and rental services and the top three demand cities are Nashville, TN, Louisville, KY and Dallas, TX due to their fast growth and population’s migration from the West Coast to the East Coast area.
Is a Box Truck Business Profitable Long-term?
Yes, this business will be still very much profitable, since the world is more connected yet many people are ordering things online, on demand and moving more than in the past. In Canada alone, the business grew 53% in the last two years. The biggest challenges one faces today and in the future with regard to the box truck business is 1. serious workforce shortages and 2. Expensive fuel/switchover of fuel-based to electric zero emissions vehicles.
What insurance is needed for a box truck business?
At a minimum, you need commercial general liability insurance to protect your business and those who do business with you.
How much do box truck drivers make?
This depends largely on your location, but the US average is about $20/hr or $38,000/year. Experienced truck drivers can make up to $52,000/year.
What is a no-touch freight box truck?
This means you are simply the driver and you do not load or unload the cargo. You only pick it up and deliver it to its destination.
What are the average box truck freight rates?
These are the current rates (as of 2022): “Overall average van rates vary from $2.30 – 2.86 per mile. Reefer rates are averaging $3.19 per mile, with the lowest rates being the Northeast at $2.47 per mile. Average flatbed rates average at $3.14 per mile.” Source: www.method.me)
Do you need a CDL to drive a box truck?
You need a CDL if you are going to operate any vehicle over 26,001 GVWR.