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Is Your Business Getting Regularly Hosed at the Gas Pump?

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They go up and they go down. They impact businesses and consumers alike. They bring out anger and frustration in just about everyone that sets foot inside a vehicle.

Yes, gas prices are one thing that most people despite their political views can agree on. In most cases, people would conclude they are getting hosed by the oil industry.

For the small business owner that is just trying to get by, higher fuel prices can mean added debt, less opportunity to grow their business, and a whole lot of frustration at the end of the day.

So, how can the men and women running small businesses stay on top of their company fuel prices and not be in done in by big oil?

One answer is turning to GPS tracking software.

The bottom line is GPS can tell the employer how far their employee/s went when behind the wheel of company vehicles, if they are properly utilizing their time while on the clock, and whether or not they need to consolidate trips.

In the event your company gas bills are adding up quicker than the U.S. medal count at the Summer Olympics, there are a number of benefits to having GPS software on your company vehicles.

They include:

  • Decreased operating expenses – Watching out for employee activities such as speeding or excessive idling not only saves on fuel expenses, but  also decreases the damage done to company vehicles;
  • Decreased insurance rates by some 35 percent – A large number of insurance companies offer reduced premiums for companies that have vehicles with real-time GPS systems;
  • Eliminating paper logs – When putting in place a digital record, employers can monitor not only fuel costs and vehicle maintenance expenses, but also audits;
  • Discovering unnecessary side trips – Many employees get a little frisky while out there with the company vehicle, perhaps deciding to take a little side trip here and there. As their employer, it is your job to remind them that they are on company business with the vehicle and not out running personal errands. A GPS system can log the mileage and location of the vehicle, making it harder for the employee to explain why it took them three hours to make a customer visit;
  • Better customer response time – Lastly, a GPS system will show you whether or not your employees are meeting the needs of customers in a timely manner. You can also consolidate trips by having the employee meet with several customers in the same geographic area so that you are not making individual trips to each customer over several days, meaning more fuel costs.

With no sign in sight of consistently lower gas prices, it behooves the small business owner who currently does not employ GPS tracking in their company vehicles to consider it.

Remember, your profits are for the business you have been building, not for the oil companies.

Photo credit: customgpstracking.com

Dave Thomas has more than 20 years’ experience as a writer, covering news, sports marketing, SEO, press releases, social media and more. You’ll find Dave at: http://www.examiner.com/news-in-san-diego/dave-thomas

 

Is Your Business Pinched at the Pumps?

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It isn’t just the everyday consumer that still gets anxious when they pull up to the gas pump these days.

Since reaching $3.94 a gallon in early April, the national average for a gallon of regular unleaded gas has dropped to $3.75 as of early May, according to the AAA national motorists club. Despite prices heading in the right direction, many motorists are still bleeding at the pumps each time they fill up.

That issue also holds true for many small businesses that rely on one mode of transportation or another to remain in business. Whether it is transporting goods, going out on service calls, or having employees like salespeople meet in person with current and potential clients, a large number of companies are seeking ways to trim their gas expenses.

Businesses That Have to Deliver the Goods Feeling the Pain

Some small business owners most feeling the pinch are those such as florists, eateries, cleaning services and more that have to deliver products and services in order to remain profitable. While it might have cost $100 or so for weekly deliveries only a few months back, that expense has easily increased to double or triple that for many businesses across the country.

If high gas prices seem to be more common than rare, that is because both consumers and businesses have had to deal with them more often the last couple of decades.

It was just as recent as 2008, when the cost for a gallon of regular gas ballooned to a national average of $4.11. Even though the recent AAA report indicates prices have been dropping, the summer driving season is right around the corner, meaning they could just as easily rise as quickly as the summer heat.

If your small business has been feeling the pain of the prices at the pump, there are ways to bring the costs down and still meet the needs of your customers. Practices to think about for your business plans include:

  • Trimming delivery services for a period of time;
  • Requiring employees operating company vehicles to not take them home for the remainder of the day once their shift has ended. Installing GPS systems on the vehicles if they do not already have them is a great way to track how far the vehicle has been driven;
  • Making additional deliveries during a stretch of time in concentrated areas instead of several trips out;
  • Shopping around where your business is located for the best prices at the pump. A number of Web sites provide weekly and even daily information on which gas stations have the best deals available;
  • Taking some time to rethink how you do business. Do you really need to make all those deliveries and service calls or can more things be done online in order to cut fuel costs;
  • Consider providing your customers with deals in return for not having to make deliveries. If you run a floral shop as an example, instead of having to make a large amount of deliveries, provide customers willing to come to the shop to pick up flowers with coupons that they can redeem during an upcoming purchase.

As politicians and the oil companies blame one another for high oil prices, it is the consumer, including the business owner that gets caught in the middle.

Photo credit: app.com

Dave Thomas, who writes on subjects such as office equipment and supplies, writes extensively for San Diego-based Business.com.