Fleet Service

[Southeast Tire Co.]

Is anyone servicing fleets using one of the fleet management companies (GE Capital, Kelley, etc)? I would be interested to hear experiences. I am considering looking into it but have heard some negative feedback on the process.

[xrac]

Is anyone servicing fleets using one of the fleet management companies (GE Capital, Kelley, etc)? I would be interested to hear experiences. I am considering looking into it but have heard some negative feedback on the process.

 

We do work for about 12 different fleet management companies. Most of these are negotiated through our franchisor. The paperwork can be a pain but if you stay on top of stuff there isn't a problem. We will take all the fleet management work we can get. An added advantage is that we have also cultivated some of the drivers into customers for their personal cars.

[Joe Marconi]

We do work for fleets. It's been just ok. The issues I have are calling for approvals on some jobs (it takes too long), the negotiations can be a bit tough and many fleet service companies take a percentage off the top. You need to factor that in your price. We can't afford to give them a 10-12% discount

[xrac]

We do work for fleets. It's been just ok. The issues I have are calling for approvals on some jobs (it takes too long), the negotiations can be a bit tough and many fleet service companies take a percentage off the top. You need to factor that in your price. We can't afford to give them a 10-12% discount

 

One does have to watch the discounts. You can get hurt unless you factor in what you are really getting paid. Most of our GE stuff has a 20% discount. This forces us to mark things up more than we normally would and to go off book labor for some things that we usually would not (i.e. battery swap or air filter). If your shop has small mark ups and a low labor rate you will get killed after the discount is taken.

[Joe Marconi]

I really hate that. I want to be honest. I have always run an honest business. They make me do something that goes against my character!

[Southeast Tire Co.]

Which companies are you guy's using? Which ones should I avoid? I have applications for GE, Map Inc, and LeasePlan. What are they using as their basis in these negotiations?

[xrac]

Which companies are you guy's using? Which ones should I avoid? I have applications for GE, Map Inc, and LeasePlan. What are they using as their basis in these negotiations?

 

Most of them get a discount of 10-20% on everything. My franchisor negotiates that out so I have no say in what it is. I just have to live with it. The deepest discount I have seen is 20% and the lowest is 5%. Ofcourse, my situation is different. I turn all invoices into Car-x and they collect the money but my paper work has to be correct. We do GE, MAP, Wheels, LeasePlan, ARI, Donlen, PHH, and some others. If you want this type of work you need to see who has got the most cars locally.

[Southeast Tire Co.]

Most of them get a discount of 10-20% on everything. My franchisor negotiates that out so I have no say in what it is. I just have to live with it. The deepest discount I have seen is 20% and the lowest is 5%. Ofcourse, my situation is different. I turn all invoices into Car-x and they collect the money but my paper work has to be correct. We do GE, MAP, Wheels, LeasePlan, ARI, Donlen, PHH, and some others. If you want this type of work you need to see who has got the most cars locally.

 

 

Well I've had a few inquiries and they have all been GE so far. One was a pretty large company that I would love to have, I just want to make sure it is going to be worth the effort.

[Joe Marconi]

It is worth the effort (most of the time). Just make sure you get paid what you are worth. You need to negotiate pricing that you can live with and watch for the discounts they may take off the top.

 

We do a lot of fleet service work. I don't look for it, it's just there.

[Southeast Tire Co.]

That's great. Thanks guys. I'll give it a try.