Costs are rising and being responsible in identifying and preventing potential problems is the first step in keeping rising costs at a minimum. Smart decision making and product education help to expand the profit margins. Examples are: selling vehicles directly or using them as a trade in commodity and whether to outsource maintenance to another business or to keep it in house.
- Fixed costs generally boil down to decisions regarding the acquisition and disposal of vehicles
- Vehicle leases have become popular, both as a short-term remedy to handle capacity spikes and as a long-term cost control measure.
- Fleets tend to have greater problems controlling operating costs than fixed costs.
“A fleet that has stable, practiced cost-control measures in place will be stronger and better able to withstand down markets, rising fuel costs, labor shortages, or any of the myriad challenges fleet managers face today.”