It does not matter whether you are starting a brand-new business or trying to squeeze more profits out of an existing one – reducing costs is a sure way to boost your profits. Every dollar you save on transportation costs is one more dollar you have to reinvest in your business, and that is good news for your bottom line and the future growth of your firm.
Reducing transportation costs does not have to be difficult; in fact, it is easier than you might think. Like everything else in the world of business, there is no one approach that will work for everyone. Instead, you need to tailor your money-saving strategies toward the specific needs of your business. Once you get that right, you can lower your transportation costs this year and keep the savings coming year after year.
Invest in Fuel-Efficient Vehicles
You cannot save money on transportation unless you have the most fuel-efficient vehicles in your fleet. When it comes time to replace your aging vehicles, do your homework and choose the most fuel-efficient models you can find.
You might spend a bit more up front to buy those fuel-sipping vehicles, but over the long run, the money you spend will serve as an investment, one that will pay dividends far into the future.
Take Advantage of Tax Credits
According to a coalition of Ford dealerships, Uncle Sam may be able to help lower your transpiration costs even more, so research tax credits for which your business may be eligible. If your fleet of vehicles includes alternative fuel and flex-fuel vehicles, you may be eligible for federal tax credits and other tax breaks, besides the write-off you get on the maintenance cost and interest on your auto loans.
The government has a vested interest in reducing the use of fossil fuels and reducing air pollution, and they are willing to help businesses make the switch. Ask your tax preparer or accountant about these money-saving tax credits, and how you can use them to reduce your transportation costs even further.
Use Fleet Cards to Control Your Fuel Costs and Keep Your Employees Accountable
If your business has a large fleet of delivery vehicles, giving drivers their own fuel credit cards makes a lot of sense. You can control your fuel costs and keep those drivers accountable by setting up an account at the local filling station.
Once that account is set up, you can log on and see at a glance how much fuel you are using, which workers are buying it and the time and date of each transaction. You can cross-reference that information against your other data to calculate average fuel economy, identify money-saving opportunities and make sure drivers are not taking advantage of the program.
No matter what business you are running, it is important to keep your costs under control. Fuel costs can take a big bite out of your bottom line, and finding ways to save can enhance the profitability of your business and help you move forward more effectively.
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