Since the 2020 pandemic, entrepreneurs and independent owners have faced numerous challenges. Perhaps the most substantial one is related to keeping transportation expenses as low as possible to offset the effects of inflation. Of course, there’s no magic wand solution to the dilemma, but owners are creative by nature and are willing to try anything that has a chance of delivering positive results.
That’s the thinking behind strategies like purchasing fuel in bulk, adding electric cars to commercial fleets, and buying supplies from local manufacturers. Other hacks for minimizing transport-related expenses include vehicle sharing within the company, maintaining home-based headquarters, operating virtual firms, and more. Companies of all sizes in multiple industries rely on vehicles to accomplish their operational goals. The trick for beating inflation through cost cutting is figuring out how to use cars wisely, keep fuel costs low, and avoid the need to drive long distances. The following five methods have already helped large numbers of businesses win the transportation cost battle.
Bulk Fuel Buying
Entrepreneurs have been saving money on bulk buying arrangements for decades. Recently, amid rapidly rising gasoline prices, some management teams have leveraged the technique for storing large quantities of gasoline and diesel fuels on their property in special storage tanks. For those who don’t have the space or find it impractical to store combustible substances on their property, leased underground tank space is the answer. In most situations, bulk purchases can save buyers as much as 15% compared to retail prices.
Electric Cars For Fleets
No matter the size of a company’s fleet, managers can leverage the power of EVs (electric vehicles) to build long term financial stability through steady, reasonable fuel costs. Not only do EVs require less maintenance than combustion driven cars, but they also represent a core component of the sustainable transportation process. Of course, fleet supervisors who choose EVs get the immediate fuel savings advantage, but there are other pluses for companies that need a cost-effective strategy for minimizing operational expenses across the board.
Most transport firms phase in new models every few years, and that’s the way today’s savvy fleet managers are adding EVs to their collection of work-horse assets. It’s important for owners to understand that it can take a while to see the results of adding one or two EVs to a fleet. But as the numbers grow and the use of combustion vehicles declines, businesses begin to see the benefits of cars that run on clean, efficient, inexpensive electricity.
Local Supply Sourcing
Manufacturing firms rely on a ready supply of raw materials and semi-finished goods to keep production lines rolling. Local sourcing is the go-to solution for most ownership groups to keep shipping and transport-related charges as low as possible. In the 2020s, local supply sourcing is becoming the default strategy for cost cutting enthusiasts in companies of all sizes.
Home-Based Headquarters & Virtual Firms
If one positive thing came out of the COVID pandemic, it was the newfound desire of small business owners to work from home and operate virtual firms. At first, the arrangement was necessary during the long lockdowns and social movement restrictions. However, now that the immediate danger has passed, millions of independent entrepreneurs and other kinds of companies have attempted to make money like a bank and keep transport-related expenditures low by running home-based enterprises and meeting clients and coworkers via online connections. Technology has contributed to the success of virtual commerce, but the ease with which managers and owners can work from home has made virtual companies commonplace. Besides eliminating commutes to and from a remote office, home-based operations encourage people to stay put unless there’s a real need for driving from one place to another.
Sharing One Company Car
Sometimes it’s the little things that make a big difference. Such is the case when small businesses use just one or two commercial vehicles for work-related errands and infrequent deliveries. Entrepreneurs who run tax consulting firms, salons, investment advisory services, and indie IT organizations can reduce their fuel expenditures by sharing vehicles that are owned by the business. In most cases, owners can deduct not only the fuel costs but also upkeep and the purchase price of cars that are used exclusively for business. Always check with your accountant or tax lawyer before deducting specific amounts on annual or quarterly tax returns.