Think of the loaner car business as the sea. Those who learn to swim with the currents will succeed, and those caught in the currents will fail. The currents in the loaner car business are mainly price and demand fluctuations. Being able to adapt your loaner car business how to use these fluctuations to your advantage by capitalizing on the opportunities, it creates while other businesses flounder is how you can dominate the market.
Data is your friend
Generate a utilization report, analyse how much of your fleet you are using, cross-reference it with demand per week/month, etc. This helps you see what models are working well. This also helps you make informed choices when purchasing new vehicles for your fleet. Navotar’s vehicle utilization report outlines offer the users a lot of data such as the state of each vehicle and the revenue generated from it, along with a filter option where the information can be pulled according to the user’s conditions. Navotar is the only software that offers a daily planner where each vehicle’s daily bookings and contracts can be monitored.
Identify potential gold mines using your data.
Now that you have all the data on each vehicle and know how much each vehicle brings in, it’s time to hone this data. Does it seem like you can’t have enough of a certain model all year round? Order a few more of them. Are some vehicles only rented out during specific months but make much more profit than some other vehicles do in a year? Maybe you should invest in a few more of those – do a cost/benefit analysis to decide. Now that you have all the utilization data, it’s time to maximise the insight it provides. The best fish observe the ocean and ride the currents.
Keep an eye on competitors.
Now that you’ve plugged every profit losing hole in your operation, it’s time to branch out and fill the holes your rivals create. If they are not offering certain vital services, you should definitely offer them and even expand these services. Offering what your competitors don’t, you can win and retain clients. Now that you have new loyal clients be sure to sweeten the deal with competitive prices that really make them happy. Combine great customer service with unbeatable deals and features, and you will be unstoppable.
Profiting from every situation is easy if you have the right data and you use it correctly. Knowing exactly what you are doing helps you figure out how to do it better. You can also compare how you are doing as opposed to your competitors and ensure that you offer better services than they do. Observe the ocean and its currents and adjust your stroke according to the currents. That is how you can become the biggest fish in the sea.
Why wait? Book a free consultation with rental operations management experts at Navotar now and learn how you can adapt your loaner car business to maximise profits!