Now, as a business owner or a fleet manager, I am sure you know the numbers being spent on fuel from those fuel cards. But there's a difference between what is being spent on fuel and fueling’s actual cost to your business.
Once we break down these numbers for you, we hope you'll see the true cost of fuel for your business.
Fueling has a more significant impact on our business's time, money, plus the wear and tear on fleet vehicles than we realize. Geotab had scientists collecting vehicle data for six months to gain insight on fueling for businesses. Over those six months, they looked at the data from approximately 14 million trips made by 150,000 fleet vehicles.
The results they found were interesting and surprising! You can read more about their results here.
- The average fueling time spent - 20 min
- Additional 200 to 250 miles added to a vehicle annually
- Average of 7 trips to the gas station per month
- 85% of vehicles being fueled still have approximately half a tank
So when we stop and analyze how this affects our business, the numbers can add up quickly!
An average of 7 trips a month for refueling at an average of 20 minutes comes out to 2.3 hours a month, which comes out to 27.6 hours on average is spent yearly by your employee's refueling. Let's say your employees are making between $15 and $20 an hour (just to throw some numbers out there). You're looking at between $400 and $550 spent annually for your employee to fuel up your vehicle. If you have 10 to 20 employees, that is costing you between $4,000 and $11,000 a year.
Now factor in the additional wear and tear to your fleet vehicles, taking the numbers we've been given 200-250 annually. If you have a fleet of 10-20 vehicles, you're looking at 2,000 to 5,000 additional miles a year to your fleet. That's a lot of extra miles adding up to more frequent maintenance.
The crazy part is there are so many other factors that this study didn't cover, like the actual cost of the fuel and the fluctuation we see just between gas stations. Most employees aren't considering the cost difference between one gas station to the other when they aren't footing the bill. Or the employees needed to process all of the fuel transactions, monitor the fuel cards for proper usage, etc.
All of these factors add up to the real cost of fuel for your business.
Now the numbers we ran with were for smaller fleets, but what if your fleet is even more significant than we mentioned here? What if you pay your employees more? What kind of effect are these numbers going to have on your business?
Probably a pretty big one, but thankfully we have come up with a solution!
We can cut out the employee's responsibility to make sure their vehicle is fueled, saving your business both time and money! Imagine the extra work that can get done during the month with those additional hours? Imagine the wear and tear you can save your vehicles over time. Not only making your employees more productive but also eliminating so many other expenses that occur in the trickle-down effect from fleet fuel.
Want to learn more about how this works and how we can save your business time and money? (And maybe even help the environment a bit)
Give us a call today, and we will show you how.