Diversifying The Portfolio of Trucks And Its Implications
Commercial vehicle rental business is getting very competitive nowadays. In an attempt to deal with the problem, some vehicle rental companies are finding ways to diversify the kind of services and vehicles they provide. Companies that provided light commercial vehicles are making the effort to include other big vehicles to their portfolio of trucks and vice versa.
Some in addition to refrigerated trucks, crane trucks, flatbed trucks etc., have included light vehicles such as panel vans, 1 ton LDV, motor car, single cab, double cab and so on. The purpose of this new investment from the companies is to improve on sales revenue overtime.
This is a huge capital investment for many of these companies. Most of them rely on the services of financial institutions to help them achieve this objective. Without the support of financial organizations, many of them will struggle to get the trucks on their own.
Adding more to your portfolio of trucks will help boost sales but will also present a number of challenges to your business. This is something you must be prepared for.
Some of the challenges to cater for will include things like administration, maintenance, security concerns, and personnel training and so on. From the point of view of administration, it is important to ensure that all vehicles are adequately documented. Ensure that all information about the truck, hiring prices per kg, capacity etc. are determined and such records are well maintained for future use.
Maintaining vehicles is very key to your success. Because the trucks are your most important asset, it is important to monitor its condition and ensure that they always in tip top shape for the next transaction. This cost money in terms of training personnel or bringing in new ones. The personnel may include most drivers and mechanical engineers.
An alternative will be to hire the services of a third party organization that specializes in maintaining vehicles of such type, instead of maintaining an in-house staff. Whichever way you choose to go, it is important to understand that there will be challenges to deal with in order take full advantage of your new investment.
In terms of security, insurance will definitely play a crucial role just in case anything happens to the trucks. It is also vital to include physical security measures such as providing safe parking spaces and using personnel from third party companies.