Fleet Sizes: Who Cares?

Posted on February 4, 2009 by - Also by this author

INDUSTRY DEBATE: We at LCT have been getting an earful for years about fleet sizes, and how so-and-so exaggerates, how fleet sizes don't matter, why do we focus so much on the number of vehicles, etc. Well, the skeptics do have a point.

So LCT would like to put forth a more valid and worthy measuring stick: Profit per vehicle. The true indicator of success in the chauffeured transportation industry is not HOW MANY vehicles an operator runs, but HOW MUCH each vehicle generates in profit as an independent unit. An operator with, say, 4 vehicles that each generate a 25-35% profit margin is more successful than the operator with 20 vehicles who has some generating double digits, others single digits, some flat, others negative or just parked on the lot.

The question then becomes: Would 9,000 plus operators be willing to disclose profit margins on each of their vehicles via a certified audit,  and a "Top 100" list evolve out of that? Somehow, we think this is as likely as the federal government junking the IRS tax code in favor of a flat-tax postcard 1040.

So we're back to counting chauffeured cars. That's why LCT is left to focus on fleet sizes. -- M.R. 

View comments or post a comment on this story. (5 Comments)

More LCT Blog Blog Posts

March 8, 2017

Immigration Issues Can Hit Limo Operators

Illegal or not, immigrants in one California region spend hard-earned money on renting stretch limousines.

March 1, 2017

Did The Dent Fairy Come To Visit You?

Unlike the tooth fairy and baby teeth, the dent fairy never runs out of vehicles.

February 15, 2017

My Unofficial International LCT Show Agenda

The suite parties, charity fundraisers, and off-the-grid get togethers round out a complete global industry trade show.

February 14, 2017

How To Practice Common Sense Customer Service

It's one of the most important and difficult qualities to hire for, since it emerges in unexpected situations on the job.

February 1, 2017

3 Big Fouls From My First Uber Rides

Operators don't have much to worry about if TNC drivers keep acting like this.

See More

Facebook Comments ()

Comments (5)

Post a Comment

Submit

Blog

See More

LCT Store

LCT Magazine - March 2017 $12.95 INT'L LCT SHOW ISSUE COVER STORY: * Innovate or Die: Show To Be a Business "Disrupter" * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close