Official website by authors Bill Lisowski and John Mengelson. Positioning Success Release date: Nov. 13, 2007. Earning Success now available (officially released Sept. 30, 2008). Retaining Success now available (officially released Nov. 11, 2008). To participate in the Blogs or Forums, simply click on "join!" There is no cost. What is the Impact You Face from Rising Fleet Costs? - Bill Lisowski's Blog
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Book 1, Positioning Success, was officially released November 13, 2007! Book 2, Earning Success, is now available through this website and will be officially released Sept 30, 2008. Book 3, Retaining Success, is also available through this website and will be officially released Nov. 30, 2008!

Bill Lisowski's Blog

Bill Lisowski shares updated information and questions related to the subject matter in the three books he co-wrote: Positioning Success, Earning Success, and Retaining Success. Look for facts and commentary on issues related to business management, leadership, people development and mentoring, process improvement, and current business news.

What is the Impact You Face from Rising Fleet Costs?

If you run a fleet of automobiles for your sales team and managers, or a fleet for service operations, today's spiraling gasoline costs are no doubt pummeling your bottom line.  And it is also adversely affecting your employees--both in their pocketbook and in their attitude.

AAA has just released car operating costs, and it is no surprise to see annual costs jump from 8% to 16% based on class of automobile driven.  When was the last time you examined the impact of these rising costs on your P&L?  When was the last time you examined the cost impact to the portion of expenses your team must bear?

Here are the numbers for some of the various classes of vehicles (Chicago Tribune, April 13, 2008):

  • Small Cars (Cobalt, Focus, Civic, Sentra, Corolla): Up 9%, 55.1 cents per mile to operate,
  • Mid Size Cars (Impala, Fusion, Accord, Altima, Camry): Up 16%, 71.9 cents per mile to operate,
  • Full Size Cars (Lucerne, 300, Maxima, Avalon): Up 16%, 85.8 cents per mile to operate,
  • Minivans (Uplander, Grand Caravan, Sedona, Odyssey, Sienna): Up 8%, 74.9 cents per mile to operate,
  • Mid Size SUVs (Trailblazer, Explorer, Gand Cherokee, Pathfinder): Up 12%, 91 cents per mile to operate.

Costs include gas, oil, tires, maintenance, insurance, financing, depreciation, licensing, registration and taxes.

Comments

 

carlsabo said:

Bill,

What was the milage asuumed in calculating the cost per mile?  We're evaluating this particular issue in my Techonomics class.

Carl

April 13, 2008 10:17 PM
 

Bill Lisowski said:

Carl:

Costs were based on annua driving of 10,000 miles per year.  Hope this helps.

Bill

April 14, 2008 8:34 AM

About Bill Lisowski

Bill Lisowski is co-author of the three book "Success Series," "Positioning Success," "Earning Success," and "Retaining Success." He has owned three small businesses, spent 6 years as an editor, journalist and photographer, handled increasing responsibilities during his 15 years working with 3 major Fortune 500 retailers, and has helped several small and medium sized service-oriented businesses as a consultant with his partner, mentor friend, and co-author, John Mengelson. Currently he is Senior Vice President for Vendor Management with IPT.
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