No matter what industry you are in, rising costs have always been the biggest challenge for any business. Limo business is no different – but, there are some strategies that could minimize unnecessary expenses and improve your bottom-line results. Read on to know the three effective tips to cut your operational costs.
It is not about how big your fleet is, but how well you utilize your vehicles in addressing the demand. In most cases, fleet managers tend to expand their fleet every time the demand increases. However, there may be instances where some of your vehicles may be underutilized and end up increasing your cost.
So, start by analyzing fleet performance to identify underutilized and overutilized vehicles. Based on this insight, you can determine your ideal fleet size and increase overall productivity.
With fuel costs accounting for about 30%-40% of your fleet’s total operating costs, reducing fuel consumption simply makes good business sense.
Educate your drivers about the importance of saving fuel and how driving behavior could make a big difference. Some of the best practices to minimize fuel wastage are: avoiding harsh braking and sudden acceleration, maintaining lower AC levels, switching off the ignition and AC when the customers are not in the vehicle, etc.
Fuel wastage may involve so many factors, but finding the loose-end and adapting to a strategy that best suits your business could help you save big on your fuel expenses.
Like fuel efficiency, periodic maintenance plays a major role in maintaining cost efficiency. Regular maintenance involves oil changes, belt replacements, cleaning or replacement of oil and air filters, checking battery levels, etc. Providing regular service and maintenance for the vehicle lowers the risk of breakdowns or unfortunate events during the trip.
Hence, regularly servicing your vehicle at the scheduled intervals results in both bigger cost savings for your business and hassle-free rides for the customers.
Even small efforts can have a huge impact on your limo business. Adopt these techniques to increase your revenue. For more industry-related insights, talk to our experts today.