Indeed, you can make money in the United States as an independent delivery driver hauling items and materials for individuals and businesses. One such material you can haul is frac sand, which is used in the oil and gas industry for hydraulic fracturing.
However, note that to get into this business and make good money, you will first want to establish connections with companies that are heavily invested in the oil and gas sector, acquire all requisite licenses and permits, and also acquire specialized equipment that is needed to handle or transport frac sand.
Steps to Successfully Get Contracts Hauling Frac Sand
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Understanding the Industry
You can’t just wake up one morning, decide to haul frac sand, and expect to start getting jobs or contracts immediately. You need to carry out extensive research while also familiarizing yourself with the industry.
Take your time to extensively understand the oil and gas industry, particularly the fracking process, its geographical distribution, as well as the level of demand for frac sand in various regions of the country.
You also need to find out all you can regarding federal and state regulations that cover or govern the hauling and transporting of frac sand. Don’t underestimate the importance of conforming with safety, environmental, and transportation regulations.
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Setting Up Your Business
The first thing you need to do is to establish a legal entity for your hauling business. Don’t forget to consider your options while also weighing the pros and cons of options like sole proprietorship, LLC, or corporation. Also, obtain the requisite insurance coverage and relevant permits for commercial hauling operations.
You will also need to acquire all the specialized equipment you need to haul and handle frac sand, including pneumatic trailers that make it easier to haul bulk quantities efficiently.
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Building Relationships and Networking
By now, you already know frac sand suppliers, oilfield service companies, as well as brokers within your region stemming from the research you carried out in the first step.
Also, make time to be at industry conferences or trade shows to network and let suppliers or potential clients get a glimpse of your services.
Also invest in building a positive rapport and credibility by buttressing your reliability, eagerness to stay in line with safety standards, as well as a commitment to on-time deliveries.
Don’t forget to leverage online marketplaces, industry-specific forums, or even freight broker platforms to further spread the word regarding your services and connect with potential clients.
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Bidding for Contracts
While this might seem like the most tasking of all the steps in the process, it is without doubt one of the most important and it is important you take it seriously.
To ensure you get contracts to haul frac sand, respond to RFPs from oil and gas companies or logistics providers who are looking for qualified and experienced delivery drivers to work with.
Don’t forget the importance of competitive yet profitable pricing. Ensure to take into consideration factors such as distance, volume, as well market rates when quoting your services.
Once it pulls through, diligently negotiate terms and conditions, payment schedules, as well as delivery expectations. It is important you get clarity especially when it comes to liability, insurance, and other additional services needed.
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Maintaining Operations and Growth
Getting contracts is one thing, maintaining relationships and getting more contracts is another thing. As such, you need to ensure that you maintain an encouraging level of operational efficiency, while also making sure you make timely pickups and deliveries.
You should also invest in offering first-class customer service and ensure you keep open communication with clients to deal with issues quickly.
In addition, as you grow in the industry and get more clients, don’t forget to invest in expanding your fleet or diversifying into related services even within the oil and gas industry.