These elivery and service companies say personal relationships and painless transactions win out over price haggling.
Fleet management is a critical aspect of running a service-based business. From leasing versus purchasing decisions to vehicle maintenance strategies, every choice can impact a company's bottom line and brand image.
In this article, several business owners share their approaches to managing their fleets, including the challenges they face and the solutions they've found.
Bug Doctor: Streamlining Fleet Acquisition through Leasing
Location: Paramus, N.J.
Fleet: 25 Ford Rangers with caps
Stuart Aust, President and founder of Bug Doctor, grew disillusioned with traditional dealership experiences, which often pushed him towards options he didn’t need. Aust prefers new trucks every three years, so leasing has proven to be the most effective option for him. His fleet operates on a three-year/100,000-mile lease through a small leasing company. Aust now leads his industry association’s committee for vehicle leasing and collaborates with leasing companies to secure advantageous packages for the association.
Aust implemented a GPS system to monitor drivers, leading to better routing and reduced unauthorized use, which ultimately decreased mileage. This allowed him to save money with a lower mileage cap on his leases. Aust believes that maintaining a fleet of new vehicles not only makes business sense but also instills pride in his workforce. His leasing agent ensures a hassle-free experience by handling vehicle acquisitions, delivering trucks to his door, and even adding a personal touch with a tin of cookies.
Easy Turf: Fleet Purchasing with Incentives
Location: Escondido, Calif.
Fleet: 9 3/4- & 1-ton Silverados, 11 enclosed, open, and dump trailers
Dave Hartman, owner of Easy Turf, a field turf installation company, leverages his past experience in the car business to negotiate fleet deals. Located across from a Chevy dealership, Hartman is able to take advantage of fleet incentives and retail rebates, depending on which offers the better deal. Easy Turf’s trucks accumulate fewer miles, so purchasing instead of leasing works best for them.
Hartman is a member of GM’s Business Central, a program that offers small businesses additional incentives. He typically purchases trucks $100 over invoice minus incentives, making sure to optimize cost savings while growing his fleet.
Weed Man: Leveraging Competitive Assistance Programs
Location: Winnipeg, Manitoba
Fleet: 18 3/4-ton Ford and Chevy pickups
Weed Man, a Canadian lawn care franchise, takes advantage of GM Canada’s competitive assistance program, which offers a $4,500 incentive. Dave Hinton, franchise owner, prefers purchasing over leasing due to the short lawn care season, which results in lower mileage on the vehicles. Hinton factory orders his trucks annually, ensuring they arrive ready for the busy season. Although he explores dealer pricing and financing options, Hinton’s planning helps him maintain an optimized fleet without the hassle of frequent vehicle turnover.
Swish Maintenance: Analyzing Acquisition Options
Location: Peterborough, Ontario
Fleet: 10 Cube vans, 12 service vans, 15 passenger vehicles, 15 tractor-trailers
Swish Maintenance, a cleaning product company, regularly leases its varied fleet but closely analyzes every acquisition option. Mark Wilson, operations manager, negotiated a fixed finance lease deal with GE Capital, though he occasionally purchases vehicles when manufacturer incentives, such as GM’s employee pricing program, present a better deal. For large trucks, Swish Maintenance relies on companies like Idealease or Ryder to manage their leasing needs, ensuring they get the best value.
Wilson’s careful management of his fleet includes outsourcing maintenance to the leasing company, allowing the business to operate smoothly without dealing with frequent repairs.
Sumter County Opportunity Inc.: Navigating the Bidding Process
Location: Livingston, Ala.
Fleet: 15 vehicles, including GM, Ford, and Chrysler vans, sedans, pickups, and school buses
Sumter County Opportunity, a federally funded Head Start program, follows a stringent bidding process when acquiring fleet vehicles. Program directors submit specifications to multiple dealers and select the best offer based on compliance and cost. The program keeps vehicles in service for 150,000 to 200,000 miles or up to 10 years, maintaining them with a mix of in-house mechanics and dealership services.
AAA Service Plumbing: Prioritizing Speed and Trust in Fleet Management
Location: Denver, Colo.
Fleet: 12 trucks, GMC C3500 chassis with Spartan service bodies
For Michael Enright, owner of AAA Service Plumbing, time is money. Although he occasionally compares dealer prices, Enright prioritizes relationships with trustworthy dealers who can deliver quickly. His Chevy dealer once found two trucks in Texas and had them delivered in just two weeks. Enright typically takes a four-year loan on his trucks and operates them for about five years before trading them in, keeping maintenance issues and downtime to a minimum.
Newer vehicles also help maintain AAA Service’s image, a critical factor in the competitive plumbing industry.
Valley Green Lawn Care: Balancing Fleet Incentives and Seasonal Needs
Location: St. Cloud, Minn.
Fleet: 11 Chevy’s, including three 1-ton flatbed trucks and six 3/4-ton pickups
Mike Hornung of Valley Green Lawn Care values a balanced approach when it comes to fleet management. He trusts his local dealer but will occasionally check prices with other dealers to ensure he’s getting the best deal. Hornung carefully weighs fleet incentives, rebates, and financing options to maximize savings. He also ensures that all trucks can be used year-round, whether for lawn care in the warmer months or holiday decoration installations during the winter.