Part Two: Ways Small Limo and Taxi Businesses Can Cut Costs

[optin-monster-shortcode id="fwtfyivcwevwt2rbcvq0"]With cost-cutting strategies across multiple avenues, there are ways your small business can cut bottom line costs. Continuing over from part one, we're breaking down the cost-cutting tips.5) Lower Overhead CostsOverhead costs can include administrative staff, buildings and facilities, computer systems, utilities, taxes, and other factors that are not directly attributed to a vehicle. Reducing usage of office supplies like printers, ink, toner, and paper can build savings quickly. Cloud services cut down the need for owning and operating expensive software, hardware, and IT infrastructure.6) Reduce Headcount by Automating Internal OperationsAutomating back-office tasks will increase efficiency and savings. The cost of modern dispatch software is dramatically less than the cost of one person for the year, and can automate the roles of many. Reservationists headcount can be reduced by providing digital booking tools customers love to use. Dispatcher headcount can be reduced by automating the driver selection and dispatch process. And the billing team can be reduced by automatically closing out, processing, or invoicing rides after they have been complete, and auto-generate the reports you need to run your business.7) Lower Maintenance Costs A common unnecessary maintenance costs is changing oil too often. In the past, it was customary to recommend an oil change every 3,000 miles, however, with increased use of synthetic oils and improved engines, oil change intervals can be extended to 5,000 – 7,500 miles depending on vehicle type and usage. Choosing the best tires for your vehicles and using a management system to monitor air pressure and tire rotation schedules reduce operating costs as well. Another way to lower maintenance cost is to perform basic repairs and maintenance in house like changing windshield wiper blades, replacing air filters, battery, and headlights. A diagnostic reader is inexpensive and will tell you what is wrong with your car when the check engine light comes on.It is well worth your time and investment to become knowledgeable about vehicle trends, modernizing your fleet, and utilizing cost-saving technologies. Having efficient ways to acquire, track, and manage your fleet can deliver substantial immediate and long-term savings for your business. For more information on how to reduce fleet costs, contact us at Dashride!