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Consider these common fleet management oversights:
"Once it (equipment) is fully depreciated, it doesn't cost anything!"
The Catch! If they only knew the truth. Below is a graph of the ownership and operating costs of a unit over its life. Notice that the older a unit gets, the worse the cost-per-hour ratio. We call it the "hockey-stick curve" for obvious reasons. By the way, for the first 12,000 hours of life of a 5,000 lb propane gas fork truck, the cost of ownership PLUS maintenance is in the range of $3.50 - $4.00 per hour. Beyond 15,000 hours, we've seen the cost of maintenance ALONE rise above $20 to $30 per hour.
We have helped our clients avoid millions of dollars of excessive maintenance cost!
Do you know how much per hour your equipment costs to own and operate?
"My local equipment dealer is giving me a screaming deal!"
The Catch! Equipment vendors know that most equipment acquisition deals are won or lost based on price. It turns out that manufacturers make only about 5% profit on the purchase price and an amazing 40% on parts and service!
We have handled clients' RFQ's saving them tens of thousands in purchase price!
When you put equipment out for bid, do you have the individual elements (base unit, attachments, and maintenance) quoted separately?
© 2005 LD Bailey & Associates, Rev. 6-20-06
Our Fleet Services:
Fleet
Audit
|
We will: |
Fleet
Strategy Development
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We will: |
Equipment
Advisory
|
We
will: |
Services Pricing:
"Fee-for-Service" - We typically bill on a time-and-materials basis. Our hourly rates are modest and vary based on the type of activity involved - analysis, data entry, administrative, etc. No matter the activity, we stand behind our money back guarantee below.
"Gain-Sharing" - Sharing in the savings creates a long-term, collaborative relationship with our clients. We will establish clear definitions of savings and benchmark your current position to make the most accurate savings calculation possible. We are willing to share the risk.
"Free Fleet Survey" - We would be happy to provide a free fleet survey in which you provide a complete list of equipment, financing details (lease copies and/or internal purchase guidelines), utilization information (hour meter or mileage readings within a time period), operating environment description, and maintenance cost data. Then we will produce a summary and preliminary review giving you an idea of the cost savings opportunities available.
Our Money
Back Guarantee:
"We
guarantee that we will locate savings opportunities in excess of our fees
or
THERE IS NO CHARGE."
(On
average,
we find 8 - 12 times our fees in savings. We are confident of finding
savings!)
© 2005 LD Bailey & Associates, Rev. 6-17-05