Removing Service is not the Answer
Part of the attractiveness of my business is pick-up and delivery. With the cost of gas escalating, I might be forced to discontinue this service in order to maintain a profit margin. It could really hurt my business, and I’m looking for alternative solutions. Any suggestions? Discontinuing a service that has been part of the fabric of your business is not usually the answer. Efficiency based on pre-planning will work in most cases. The following are general recommendations with application to most businesses which rely on pick-up and delivery. 1. Create a grid of your service area. Set a schedule within that grid that continues the service - but at specific times or days. 2. Consider the vehicles used in your business. Could you purchase practical vehicles that would get better gas mileage? Calculate the savings in gas against the purchase price to confirm that there would be substantial savings. 3. Are you servicing your vehicles regularly? You might be surprised at the difference in gas mileage by simply keeping your oil changes up to date. 4. Inform your customers of pick-up and delivery changes in a positive tone. a. If your service is valuable to them, they will organize their schedules accordingly. Let them know that the change allows you to continue the service they have come to depend upon. 5. If you are food delivery, assign the drivers to a specific area like they do in the larger metropolitan areas. It may even be practical to hire an additional driver which would save money and increase customer satisfaction over time. Test this method for a quarter and carefully measure the results. But don’t stop there with a look at business efficiency. Take a look at other areas - in-house - where costs can be cut without damaging quality. There is waste in every business that lurks beneath the surface – everything from office supplies to electricity. This is a great time for businesses as well as families to evaluate where thoughtless waste can be turned into savings. Advanced planning will save a business and a family hundreds - if not thousands - of dollars over the course of a year. I hope this helps.