10 Items You Should Track in Your Fleet Management Budget

team budgeting
team budgeting

Just like your own household budget, it’s important that you know where your fleet management budget dollars are being spent. Do you give your kids your checkbook to buy anything their hearts desire? Likely not! The same financial responsibilities apply to a fleet organization.

There are many items in the fleet management organization that should be tracked in the budget. Are you sure that you’re currently tracking everything necessary for accurate reporting?

Items You Should Track
  • Internal Repair- Labor
    Know how much you are spending on labor, including technicians and “overhead” staff so you can calculate your hourly labor rates.
  • Internal Repair- Parts
    Understand what the organization is spending on parts to compare vendor pricing and negotiate better pricing through your buying power.
  • Commercial/Outside Vendor Charges
    Are there opportunities to perform more outside work in-house or to send work out so the shop can focus on the tasks they perform best?
  • Fuel Costs
    Are some assets using more fuel than others?
  • Long-Term Fleet Rentals
    Charge your customers a monthly fee for the use of the equipment.
  • Motor Pool Rentals
    Have you considered renting your equipment, as the large fleet organizations do?
  • Special Fees (car washes, tolls, etc.)
    Don’t forget fees that aren’t necessarily shop-related.
  • Monthly Recurring Costs (insurance, replacement, etc.)
    Make sure to include any additional monthly costs so they can be tracked.
  • Depreciation
    Tracking depreciation costs is vital, for these costs can offset revenue.
  • Markups to Recover Overhead Charges (staff, building costs, and shop consumables)
    Running a fleet doesn’t just include all of the above items. Markups may also be needed to recover those expenses.
Harness the power of software to improve your fleet management budget.
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