Fleet Sizes: Who Cares?

Martin Romjue
Posted on February 4, 2009

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. 

Related Topics: Fleet Vehicles

Martin Romjue Editor
Comments ( 5 )
  • See all comments
  • Buy viagra in canada.

     | about 10 years ago

    Buy viagra online.

More Stories
An ROI (return-on-investment) on a moving vehicle is easy to understand, but difficult to keep consistent. (LCT image)
Article

A Walk Through Coach Profits

NOV. LCT: These simple return-on-investment formulas will help you truly see if your buses of all sizes are making enough money.

Onboard intelligent tracking systems can document data for a wide range of motorcoach functions, such as engine status and maintenance, vehicle and driver performance, and driver hours, all while communicating pre-set and customized alerts and notifications in real-time.
Article

Driving More Dollar$ With Data

NOV. LCT: Product review - two leading systems provide a constant stream of information that can help operators wring out efficiencies.