Managing a Fleet: How and when do businesses decide on purchasing a new vehicle?
Allison Smith; Customer Success Manager II
In the competitive world of small business, managing a fleet of vehicles is a significant undertaking. For Siglar Pest Control, a local business with 11 vehicles, the balancing act between loyalty and cost-effectiveness is a key consideration, as revealed in a recent interview with owner, Mark (last name withheld).
Mark's stance on switching Original Equipment Manufacturers (OEMs) is clear: "Not likely. I have good luck with the brand I use; we know how they operate, and how employees drive them, so they're all the same." This underscores the value of consistency and familiarity in his operations. With employees accustomed to a specific brand, maintaining uniformity across the fleet simplifies maintenance and training.
However, when it comes to pricing, loyalty has its limits. Mark emphasizes his strong relationship with his current supplier, stating, "I have a good relationship with my guy. I asked him to give me the best price because I am loyal to him." Yet, he also acknowledges the importance of competitive pricing, adding, "But if I find it significantly cheaper anywhere else, we will have problems." This highlights the delicate balance between personal relationships and the need to manage expenses effectively.
Siglar Pest Control’s fleet consists of 11 vehicles, some of which are nearing the end of their lifespan, with a few being 20 years old. Replacement decisions are driven by two primary factors: the vehicle's condition and the company's growth. "When have they run their course, or do we need to add another to the fleet for expansion?" Mark explained. This pragmatic approach ensures that the fleet remains efficient and adaptable to the business's needs.
For businesses like Siglar Pest Control, fleet management is a constant negotiation between reliability, cost, and growth. As they look to replace aging vehicles and potentially expand their fleet, the decisions made will have a significant impact on their bottom line. It will be interesting to see if Mark's loyalty to his current dealer will hold true, or if a significant price difference will cause him to change vendors.