Another New Era of Commercial Vans

Another New Era of Commercial Vans

Some people tell us they want to save money, other people tell us they want to make more money, some people say they want to help save the environment, we tell people we want to them to do all the above.

Choosing a commercial van today, tomorrow and in the future has become and is going to become more and more difficult as you contemplate what is the right fit for your company as there are sooooo many choices. However the good news is with so many choices and if chosen wisely coupled with the right upfit it will allow you to save money, make more money and help save the environment. It definitely can't be a case of "because we've always done it that way" anymore.

Cost of vehicle operation, total cost of ownership are popular KPI metrics which many fleet managers measure, along with durability, availability, and many more. In the near future those KPI metric's will be changing greatly and become more laterally integrated across your business, because in many cases it will be a major source of revenue for your business, it will be as or more important as your current product or service in your shop, it will be the value added offered to your customer. Making the incorrect choices could cost you more than a few dollars it could cost you your entire business. Why? Because your competition is already working on new measurables to reduce their deliverable cost, increase their revenue streams and add value for their customer for less than you do.

With increased cost seeming like it's coming from everywhere and the consumer wanting more mobile services, business efficiency of every aspect contributing to the value add you deliver to your customer will be paramount. Currently and in the past many businesses have not improved their businesses and have been short focused, when competition is tight and they simply cut cost by reducing head count, limiting overtime, purchasing less expensive vehicles and other capital items. That's not going to work going forward as your competitors are looking forward and investing in their future.

I can tell you I am no genius, I still don't really now which came first, the chicken or the egg and I have no desire contemplate it, to be truthful I'm not really concerned about it either way, as I have both in my fridge and I like to eat them both. I prefer to spend my effort on things that can help create positive change.

What I can tell you is that we are passionate about helping leaders grow their businesses. Having spent most of my career in the OEM automotive field across North America, I am very well versed with all areas of business Quality, Engineering, Production, HR, Financials, Safety, Sales and Marketing as all these departments reported to me for multiple operations. Today we use that experience to help our customers with much more than a physical product, we offer a service that not many other design upfit company can give all in one stop. Not many companies take the time or have sales people that can understand your entire business.

Pro Cargo is not a product peddler, yes we offer many products that have been extensively researched world wide that have given us a large range of tools in our toolbox to work with, but not until after we understand what will be the best solution for you do we recommend or try and sell you a solution.

Some food for thought while considering the right van

In the past many businesses have chosen their vans based on old measurables, I see it very often in many cases the "cheapest price tag" also in many cases they always considered the vans and operators a cost center. Today markets are creating new opportunities and with all the demand for mobile services those considerations will change as there is profit to be made. Yes the CEO's vehicle and the managers vehicles down the line will still be cost centers but the van and operator delivering services and value to your customers needs to considered its own profit center. It is very important for those vans and operators to show and represent well to your customers as they are representing your company and can make or break future deals with your customers. As we all know someone would like the opportunities you don't seize.

Our process to help you chose the right van for you.

Our preferred method to maximize the customers goals is much different than most designers. We design the van interiors based around the the needs and goals of the customer. That's pretty typical right? However with us learning and understanding the company goals and whether they are considering, conventional fuel, hybrid, natural gas, electric or hydrogen vans, the interior design is created before the van has been purchased so the customer knows exactly what size and weight capacity of van they will need to purchase and can couple that with the other company goals to choose the right van.

In most of cases we not only maximize the space in the van

  • you are purchasing smaller vans then you are currently using, saving 10% to 30% in capital cost
  • substantially lowering the operating and maintenance cost
  • increasing operator efficiency over and above what they are working from currently and in most cases the interiors will pay for itself with 6 months to a 18 months just on the improved efficiency without the vehicle price and fuel savings.
  • the designed interiors are built with extreme quality products to last and be reusable in future vans if desired, saving even more.

Here is an example

A company in Toronto Ontario was using a GMC Savana van and now using a NV200 van. Their purchase price was $13000 or 31.8% less than their current van, that's $3250 a year based on 4 year ownership, their fuel savings are 36% less then the full size van, that's about $1722 a year at 25000km annually. Savings in 4 years just on buying the right size van was $19888.00.

I get told often that your products must be expensive, but as you can see with the right design, they've already paid for a couple interiors before they even used the van or saved on the inventory control, inventory damage and the increased efficiency.

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Did I mention we create a place for everything, quick and easy to get too, because its organized? In this case you don't need to get in and out of the van anymore making it even safer especially in a the winter. On top of all that we find that the operators look after their van much better because they now enjoy their job much better, they are happier, which in turn keeps your customers calling back .

In this case the savings and earnings and environmental impact with this customer was a lot, as they spent 2 hours running to the wholesaler alone if something was not in the van, now they order it in so they have it when they need it. They would spend 5 to 10 minutes to get something from their van every time they needed something. Now on average they can do at least one extra call each day, that's $44000 a year in revenue at $125/hr, plus the fuel cost savings not running to the wholesaler and using the same amount of labor cost to get the extra work done.

So after someone tells me that they assume our products and services are probably more expensive based on what it looks like, I always smile as I love my job and showing them how we can help them with their goals. If your interested in learning more on how we can help you achieve your goals please feel free to contact us. [email protected]

Make it a great day! Pro Cargo Van and Truck


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