Is it Time to Invest In Rolling Billboards?

Is your service vehicle fleet getting old and worn out?  Does your fleet represent your company image well?  Are you paying your employees or contractors a monthly fee to drive their own vehicles? 2015 may be an excellent time to evaluate the true cost of your rolling fleet and compare it to the cost of replacing it with new vehicles.  Consider raising the professional image of your company?

If your service vans are 10 years old, there is a good chance gas mileage is between 10 and 15 mpg, maybe less than that!  If you were to update to new vehicles, you could improve your gas mileage at least 10 mpg.  Assuming your mileage per van is approximately 2200 miles per month that is a savings of $284/month.  Wouldn’t you rather put this savings to work for your company than blow it out the exhaust pipe?

I recently visited WisperISP and was impressed with their new service vehicle fleet.  As I thought about it, I decided to ask Nathan Stooke, the CEO to provide me with his financial justification for this fleet refresh.  Thank you Nathan and the entire WisperISP team. Isn't the 2015 Nissan service van below beautiful?

Have you considered wrapping your vans with your company logo and information?  A full body wrap is calculated in the cost breakdown below.  If you think of your fleet as rolling billboards for your company, you could legitimately shave $200 off of your marketing budget per van!  

Potential and current customers notice vehicles with attractive artwork.  Their eyes are drawn to it.  They also notice old junk vehicles sitting in their driveway.  Which would you rather have representing your company?  How do you think your new customers regard your company when a junk vehicle comes to install their new service?  How about an attractive vehicle?

Assuming your old fleet has some rather high repair bills throughout the year, we can estimate your annual maintenance costs at $2400/year; your experience may vary.  Replacing these vehicles gains an additional $200 in maintenance savings.

Below is WisperISPs evaluation of their 2015 Nissan NV200 Compact Cargo van purchase decision.  This evaluation does not include trade-in or resale value of their current fleet.

	Current Vehicles	New Vehicles
Base Price		$22,865 (Includes BlueTooth, Cruise and Remote Entry)
Sales Tax		$2015
Shelving Package		$2500
Ladder Rack		$975
Wrap		$2560
Total		$28,355
		Add: Vehicle supplies i.e. ladders, consumables, etc.
Monthly Expenses (Estimated)
Insurance	$50	$120
Fuel	$484 (10 mpg @ 2200 miles)	$200 (2200 miles per week)
Maintenance	$200	$50
Monthly Payments (60 months)	$0	$413
Total Monthly Expense	$734	$783
Total Additional Expense		$50 extra cost

(These assumptions based on compact minivan pricing, other vehicles will vary.)

Add to this 0% financing for 60 months and extended warranty programs and it just makes good business sense. 

Whether you decide to update your vehicles on a rolling schedule or all of them this year, you will be amazed at how much new business you can acquire marketing your business with your fleet of vehicles.  

Additionally, encourage employee pride! If they are driving “junk” today, they probably have a tendency to do “junk” work.  By investing in new vehicles, chances are it prompt them to do “quality” work on the job.  Install technicians are often the first face your customer interacts with in person; make sure the impression made is a good one.  Don't let vehicle breakdowns hamper your install schedule.  That is a first impression you cannot afford to make these days.