Running a business is no easy feat. Small business owners are constantly feeling the pinch of rising prices. As the owner of a fleet, the costs of maintenance and repairs add up quick and often come at the most inopportune times. However, by implementing cost-cutting strategies across multiple areas of your business, savings will add up.
Improve the bottom line on your balance sheet with these cost-cutting tips.
1) Go Green
Green vehicles can save your business money on fuel, taxes, maintenance, and insurance. Lighter weight materials such as aluminum, magnesium, and titanium are cheaper and get more mpg than traditional materials such as cast iron and steel. The current Corporate Average Fuel Economy (CAFE) standards is 36.7 mpg for passenger vehicles and will increase to 51.3 mpg by 2025. Choose a manufacturer that offers vehicles with the most sustainable options offered at competitive prices. Eco-friendly vehicles may cost more upfront, but factoring in the whole-life costs, running and servicing a vehicle, will give you more accurate numbers of overall business costs. Some battery-electric cars and plug-in hybrids are still eligible for federal tax credits and a number of car insurance providers offer discounts for green vehicles.
2) Monitor Driver Behavior
Dispatch and administrative software management systems provide you with data to view detailed reports on driver behavior and track driver routes. According to the U.S. Environmental Protection Agency, a driver can impact fuel efficiency as much as 33% and add wear and tear on a vehicle by habits such as hard breaking and accelerating and driving at inconsistent speeds. Driver reports provide you with the data to coach drivers on safe and efficient driving practices which controls operational costs.
Automotive dispatching and driver aps reduce costs by automatically assigning rides to the nearest available driver and ensures drivers are taking the most direct route. Efficiency shaves off drive-time which cuts costs.
3) Lower Cost of Insurance
Monitoring driver behavior can also reduce car insurance rates. By analyzing driver behavior metrics, Dashride has leveraged their technology to secure partnerships with insurance brokers that provide fleet owners with massive savings in their insurance costs. Many insurance companies also offer good driver and multi-car discounts.
4) Lower Acquisition Costs
When purchasing new vehicles for your fleet, know the dealer’s net purchase price in comparison to the invoice price. Research and negotiate all fees and taxes added to the invoice price, such as, factory holdback, floor plan fees, advertising fees, and factory-paid delivery fees. National fleet purchase programs and retail incentives should also be negotiated. Discounts vary but starting negotiations early in the model year increases opportunity for savings.
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!