Rising fuel costs have made it difficult for contractors to increase profits. Your bottom line has suffered from these rising costs, so it’s time to start looking for ways to reduce the impact of the cost of fuel. Depending on the nature of your operation, strategies can range from renovating your fleet to charging customers for the fuel used during work.
How to Reduce the Impact of Rising Fuel Costs
Insulating your business from these increased expenses may require a bit of trial and error. Finding the right way to increase profits while the cost of fuel rises may be difficult, but it’s worth it to continue to earn the revenue your team deserves. Here are five strategies for you to reduce your operation’s fuel costs.
1. Implement Fleet Management Software
Before you can work on a plan to reduce costs, it’s important to quantify exactly how the price of fuel impacts your business. Working with fleet management software allows you to easily track the fuel usage, mileage, service history, and maintenance schedules of every vehicle you own. This software lets you see the full picture, giving you insight into where the biggest areas of waste are in your operation.
2. Invest in Hybrid and Electric Vehicles
Mitigating fuel costs through optimization can be an effective short-term solution, but the price of gas is unlikely to go down over time. If you want to truly future-proof your business, it might be time to start investing in hybrid and electric equipment.
There’s a clear trend toward electrification in the automotive industry, and as electric cars become more powerful and efficient, construction equipment also benefits from these technological advancements. If you’re looking to replace some of your business’s essential vehicles and equipment, consider new hybrid or electric models.
3. Adhere to Regular Maintenance Schedules
When your machines aren’t operating at peak efficiency, they use more fuel. Following manufacturer-recommended maintenance schedules not only prevents breakdowns during operation, but increases the fuel efficiency and power of your equipment.
If you’ve begun to notice a sudden increase in the amount of fuel your team uses during a job, it may be the result of faulty equipment. Performing regularly scheduled inspections and maintenance keeps your arsenal in fighting shape while saving you money on costly repairs.
4. Consider Renting Fuel-Efficient Equipment
If you need to add equipment to get a job done but don’t want to break the bank, renting is an affordable option. Renting equipment not only allows you to get the work done on time, but gives you the option to pick from a variety of new, fuel-efficient models. When renting equipment, select the latest hybrid, electric, and fuel-efficient machines to complete the project without overspending on gas.
5. Add a Fuel Surcharge to Your Contract
One of the simplest ways to reduce the impact of rising fuel costs is to add a fuel surcharge to your contract. These surcharges give you the opportunity to pass rising costs on to the client. While this is an effective way of maximizing your own profits, it can make it more difficult to find work.
Many clients don’t want to be responsible for the fuel your team uses, so this option may not always be viable. To truly prepare your business for the impact of rising costs, we recommend that you seek out long-term solutions like buying fuel-efficient equipment.
Work with the Experts at Leppo Rents
Interested in learning about other ways you can reduce costs? Leppo Rents can help. Our team is ready to hear about your unique situation and help. Not only do we provide the highest-quality equipment at amazing prices, but we also work with you to find solutions for your business’s biggest problems. Call us today to learn about how we can help.
