Truck uses are as diverse as the industries using them. They are used to haul materials for construction, collect mine waste, transport medical equipment, deliver goods, move homes, even transfer people from one point to another.
The dump truck market alone is estimated to reach $48.7 billion by the end of 2020 and exhibit a CAGR of 8.6% by 2025. With the consistent demand for trucks, it’s a good idea to start a buy-and-sell truck business.
This much is true when the prices of brand-new vehicles are shooting up—you can cater to individuals and start-up businesses. A good number of buyers are constantly searching on the internet, “used but in good condition dump trucks for sale near me.”
Having the knowledge and right tools can set you up for success in the business venture and there’s just a lot of things to know. Consider these tips to help you get started.
Establish a Business Plan
Every business starts with a plan—that includes the time you first thought of starting that business one day. A business plan is a formal, written document that can take many forms. In a nutshell, it should highlight the brief history of your business, the demands you plan to cater to, the industry competition, and an overview of your products/services. It should also summarize your business goals, both in the short- and long-term as well as how you plan to make a steady profit.
Understand the Law, Licensing Bond, & Insurance
This is the nitty-gritty part of starting almost any business. You’ll have to register your buy-and-sell truck business and apply for a license that will allow you to operate legally and make sure that you are meeting consumer rights and safety laws. Depending on your location, the regulations in the buying and selling of cars will significantly vary.
Additionally, insurance coverage is almost always a requirement. This should cover general liability, which includes inventory loss and property damage, to name a few.
Choose the Brands and Vehicles to Focus On
Unless you have a particular niche like a particular brand, you should consider truck units that the average buyer trusts and can actually afford. Here, you will have to research their specs as well as value, so you can price them accordingly and competitively.
Study the pricing of your competitors, their policies, and practices included. You can use them as a reference and adjust your model to better accommodate the needs of your target market—the group of consumers that you hope will purchase your product.
Don’t Forget the Budget
Trucks sell anywhere from $15,000 to $160,000 on average. But, aside from the cost to purchase a truck, there are many other expenses involved to operate your business. These include the garage where you will park your cars, salaries, and management expenses like energy bills, office supplies, etc.
Additionally, you should also consider setting aside a budget for advertising. As most consumers today are already online, your marketing efforts should include establishing a presence on social media to reach out to your audience and create a network of clients.
Hire a Reliable Mechanic
Much like how you would take a mechanic with you to inspect a used car for personal use, we also advise that you hire a professional to conduct an inspection of the truck’s current condition and determine whether it’s a good investment.
Beyond that, having an in-house mechanic also means you have someone to do all the major repairs and inspections of your vehicles before selling. While having quite a bit of knowledge about trucks can help, it’s better for your business to have someone who can give professional and reliable opinions.
Starting a new business can be overwhelming, considering all the associated risks, but it can be rewarding, too. It doesn’t matter if you prefer to get right into the buy-and-sell business or take your time and start slow, these tips should set you right up to better navigate the trade.
It may also be helpful to connect with other experienced sellers—their insights may prove to be invaluable in the business you’re entering. With all that said, may this article help you get a better understanding of what lies ahead.
If you have any other tips to add to this list, leave a comment below!
Joie is the passionate writer and blogger of UsedVending.com. She enjoys writing and works at an amazing pace. Blessed with two adorable boys, she dreams of creating a successful career online. She also loves to write about parenting, home and family life, technology and gaming, as well as beauty and health.