Cost structure in truck business simply means what percentage of cash flow from a truck should go to fuel, driver, the truck itself, maintenance, Insurance/tax/other fees and Yourself. The lack of proper understanding and application of a cost structure is the beginning of the failure in truck business. In my previous article (kindly read), i said the nature of trucks and lack of proper (real-time) business plan is the fundamental error that makes profit making in truck business very difficult in Nigeria. However, it does not mean u cannot make profit with the nature of trucks we use in Nigeria(or by extension Africa), the only way to do so and still be in business is through the application of the cost structure.
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