How to find hidden profitability without selling more

How to find hidden profitability without selling more
Promoted by How to find hidden profitability without selling more

If you’re like many other business owners, you’ll want to grow your business. And the chances are you’ll be looking to do this by finding new customers, and by doing more business with existing customers. In short, you want to sell more stuff, and so you’ve given your sales and service teams challenging productivity targets.

Are you missing a trick that your competitors know all about?

This is all good and normal business practice, but what if there was a second way to grow your profitability. One that could potentially even dwarf the benefits of selling more stuff. It’s something that many other businesses already do, and if you don’t, then it gives them a proven competitive edge over you.

The answer lies in the way you manage the staff tasked with selling and delivering your stuff. If your business requires cars and vans to operate, for sales teams, service engineers and delivery drivers, then the chances are that some of those vehicles get damaged in the course of their duties. Maybe more often than you realise.

Are these costs destroying your profits?

According to IAM RoadSmart, 86% of fleets they surveyed had at least one vehicle involved in a collision in the previous 12 months and, according to AA Drivetech, a staggering 65% of all company vehicles will be involved in a collision in the next 12 months. Not all those collisions are serious, but even a damaged bumper could cost around £750 to repair.

As a director or manager in the business, you might notice this and be cross. However, many directors aren’t aware, as management systems that might highlight it aren’t in place, and much of the cost if often hidden.

The key thing you need to bear in mind here as that much of the cost is down to failings in the way the drivers are managed. And much of the cost is avoidable. Better management of those who drive for work can bring dividends you wouldn’t think possible.

Companies that do it well become Driving for Better Business Champions and share their stories for others to copy. Ultimately it makes the roads safer, reduces congestion, makes local economies stronger and improves the reputation of business – things we all benefit from.

Could you achieve these results?

  • Iron Mountain, the data management company, reduced its overall operating costs by £200,000 a year. Crashes came down, fleet insurance came down, and fuel economy went up.
  • Mobile social care provider HILS reduced the number of instances of speeding by 80% which reduced collisions and damage so much they got a 26% reduction on their fleet insurance at next renewal, with further discounts likely to follow.
  • Skanska, the construction and infrastructure services giant, reduced their fuel bill by around £1 million per year after fitting telematics to their vehicles to improve driver behaviour.

So where do you start?

Start with the basics because Driving for Better Business can give you all these tools for free.

Conduct a gap analysis of your current vehicle and driver management policies. Use the results to develop new ones. And then start to take a keen interest in measuring and monitoring what goes on.

Only once you can see the full picture, can you start to look at how investing in your vehicles and drivers could pay you back multiple times over. And you never know… this might actually be an easier way to improve your profitability than trying to meet those challenging new sales targets!

Driving for Better Business is a government-backed campaign to help employers understand and manage this risk. Our website has lots of advice and tools to help you do so – and all of it is FREE!

1.Visit the website, watch the video and join our network

2.Download the FREE risk management guide

3.Complete the FREE online risk self-assessment

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