Fleet costs and prices

Temptations to economize are hard to resist—but wise spending can keep costs down. Every aspect of life is affected by economic inflation. With no end in sight, companies are forced to adjust to rising costs. There are many ways fleets can try to save money, but it’s essential to know the difference between price and cost.

When focusing solely on price, the most important factor is the amount paid for the goods or services. The lowest price might have a minimal impact on profits in some cases, while in others, short-term savings can result in unexpected losses in the future. In times like these, the temptation to economize in certain areas grows harder to resist with each passing bank statement. Uncertainty in the economy may lead to poor buying decisions if price is the primary consideration.

Fleets are constantly pressured to keep freight moving at the lowest possible cost. Every component on the wheel end falls under the price vs. cost model. When the focus is only on price, operators are tempted to leave worn components in service rather than replace them. When replacing parts cannot be avoided, opting for the least expensive parts will result in higher costs if the decision results in a loose wheel or wheel-off. Spending a few more dollars on higher-quality wheel hardware before it fails can help prevent situations where vehicles and lives are at risk.

A high-quality wheel will maintain its finish and durability over hundreds of thousands of miles. The same can be said when selecting a service provider. A tire company that is a one-man operation with a pickup truck. Truck tire repair is another area where price can negatively impact cost. Many fleets balk at the cost of a simple section repair and discard perfectly good casings.

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