3 Ways Route Optimization Software Can Help You Increase Your Profit Margin

3 Ways Route Optimization Software Can Help You Increase Your Profit Margin
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It’s a basic business principle: by reducing your expenses, you can increase your profit margin. Route optimization software allows you to cut down on your employee and fuel costs, which means you make more money.

How does route optimization software do that for you, exactly?

By tracking the profits of every planned route.

The little things add up. If you can find out how to tweak one route to save you some money, and then you keep working on ways to save money on your other routes, eventually you’ll have made your operation much more efficient and therefore much more profitable.

To know how you’re going to make more money from your routes, you need to figure out how much those routes are making you now in the first place.

It’s all but impossible to see what the profit for each route is going to be when you try to do so with pen and paper. There are so many variables involved, like the cost of idling in traffic, the difference in fuel expenses between transporting a heavy load and transporting a light one, etc. It’s just too much for you to sort out yourself.

Software can help. Route4Me makes it easy to keep track of the profits you make for any given route, which will help you increase those profits. Here’s how:

#1 Route4Me Takes The Guesswork Out Of Bidding

When you plan routes with pen and paper, there’s always going to be some guesswork involved.

That guesswork may lead you to believe that a route will cost a lot less than it actually does. So you might make a competitive, relatively low bid on a route in an effort to beat out your competitors, thinking you can still turn a profit even with the low rate. You win the route, only to realize that you made a mistake with your manual route planning, and the fuel and man hour costs of servicing the route ends up being more than what the client is paying you. Taking on a new client isn’t supposed to lose you money. This is not a situation you want to be in.

Thankfully, Route4Me makes it easy to avoid such situations. Our route planner considers every factor involved in the route planning process (you can plug in variables like the hourly wages of your drivers and the local cost of gas) in order to provide you with accurate cost and profit projections. With this tool, your bids will make much more business sense.

#2 Optimized Routes Make For Profitable Routes

Again, the little things add up. One of your drivers taking five minutes longer than necessary to drive to a destination doesn’t make much of a difference for that one trip, but if you’re wasting five minutes in every route, at the end of the day that’s hours of unnecessary work  and many gallons of unnecessary gas you’re paying for.

No more wasted minutes: that’s our motto (well, it’s not really our official motto, but it could be).

With Route4Me, all you need to do is plug in the addresses you want to visit, and in 30 seconds or less our software will produce the most efficient route for visiting all those addresses.

Routing, Mapping, Navigation: What It Really Takes To Optimize Your Routes

#3 Route Optimization Software Helps You Grow Without Risk

Growing your business can be a risky affair. It takes a lot of capital to expand into a new area, and if there turns out to be less demand in this new area than you expected, you’ll have wasted a lot of money.

Route4Me doesn’t just show you how much profit your current routes make – you can use it to project how much profit a hypothetical route will make you, too. It’s as simple as entering the addresses you’re considering servicing into our software and then taking a look at how much money that move will make you. With this information, it’ll be easy to see whether expanding into an area is worth it or not.

How do you track your profits? Let us know in the comments section below.

Featured image credit : Rawpixel.com/Shutterstock.com

Want To See For Yourself How Route4Me Can Boost Your Profits?

Whether you want to slash the time it takes you to plan routes for your drivers, increase the number of stops they can make, or keep your customers satisfied knowing that your drivers show up on time… Route4Me helps you achieve that!

Click Here To Test Drive It! [FREE TRIAL]

About author: Rahul Dasgupta

Rahul Dasgupta is a content writer with over 20 years of work experience. He holds a master’s degree in computer science and has written thousands of blog posts on route planning and scheduling, making it easy for readers to learn about these complex topics. Rahul enjoys playing tennis in his spare time and loves cuddling with his pet labrador Shinu. Rahul is a big fan of Roger Federer, Messi, and Bill Gates - he admires their drive to be the best at what they do and their philanthropic efforts.


About Route4Me

Route4Me has over 40,000 customers globally. Route4Me's Android and iPhone mobile apps have been downloaded over 2 million times since 2009. Extremely easy-to-use, Route4Me's apps create optimized routes, synchronize routes to mobile devices, enable communication with drivers and customers, offer turn-by-turn directions, delivery confirmation, and more. Behind the scenes, Route4Me's operational optimization platform combines high-performance algorithms with data science, machine learning, and big data to plan, optimize, and analyze routes of almost any size in real-time.