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How Your Business Is Losing Money Without You Even Knowing It, And How To Stop It

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When times get tough, you find ways to save money in your personal life. Instead of going to a fancy restaurant, you pick up some McDonald’s. Instead of going to the movies, you stay at home and watch TV.

But in business, you can’t wait for a financial crisis before you start saving. To succeed, you must identify waste and eliminate it as soon as possible. Otherwise, you’ll give your competitors an unnecessary advantage.

If your business regularly sends employees out into the field, then you have a lot of expenses. You might have some expenses that you’re not even aware of.

Let’s go over how to control some of these costs:

Incorrect Invoices

Imagine that your employee shows up for a 30-minute service and the client asks for a 1-hour service. Since your employee is free for the rest of the day, they accept.

But then your employee fails to call you about the update, and the client receives a bill for a 30-minute service rather than the 1-hour service that was actually rendered. You’ve given away part of your service for free!

One way to address this problem is to use delivery optimization software with GPS tracking. The GPS tracker will record when your employee arrived at your client’s address and when they left. The exact amount of time they worked for the client is recorded in the software.

The best route planners also have an eSignature feature, which allows your employees to collect confirmation signatures with their mobile device. The timestamp of the electronic signature would indicate the exact time your employee left the client’s address.

With GPS tracking and eSignature software, it’s easy to keep track of exactly how much you need to charge your customers.

Wasting Gas

You need to spend money on gas, of course, but you might be spending more money on gas than necessary. Inefficient driving behavior, such as speeding, idling, or running personal errands on company time, is a huge waste of fuel.

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That’s another reason why you need GPS trackers. When you have delivery optimization software with GPS tracking, you can see where your field employees are and how fast they’re going at all times. You can ensure that they’re driving in the most efficient way possible.

Delivery optimization software with GPS tracking can be set up so that when one of your field employees starts to speed or idle, you’re automatically sent an alert. You’ll never miss a thing.

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!

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Not Keeping Up With Vehicle Maintenance

There are several downsides to not keeping your vehicles well-maintained. First, poorly-maintained vehicles are less fuel-efficient than well-maintained ones.

Second, when you postpone vehicle maintenance, you increase the odds of your vehicles breaking down and being involved in an accident. That can lead to expensive repair bills, and it could harm your employees as well.

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Yet another advantage to using delivery optimization software with GPS trackers is that it gives you a better idea of when your vehicles need maintenance. You’ll be able to see which vehicles are used more than others. That way, you can avoid the consequences of a breakdown without the expense of bringing your vehicles into the shop unnecessarily.

Turning Down Last-Minute Customer Requests

When you plan your routes manually and send your field employees out for the day, it’s just about impossible to accommodate last-minute requests.

For example, a customer might call and ask for you to make a delivery that was scheduled that morning in the afternoon instead. In that case, planning routes takes hours, so there isn’t enough time to change the sequence of stops and make a new route. Also, even if you could make a new route quickly, you’d have no way to communicate these changes to the employee in the field. You’d have no choice but to disappoint the customer by denying their request.

But with route optimization software, you can create your routes in 30 seconds or less. You could move one stop from the morning to the afternoon and re-optimize the route in less than half a minute. And with cloud-based software, the changes would be automatically shared with your field employee. You’ll be able to accommodate any last-minute request, which means you can keep your customers happy and convince them to stick with you instead of using a competitor.

Biting Off More Than You Can Chew

Expanding your business is risky. To serve more customers, you need to invest in more resources (work hours, fuel, etc.). If you’re not careful, you’ll end up spending more money than you’re bringing in.

You can use delivery optimization software to create mock routes that show you exactly how much it would cost to visit a hypothetical set of stops. You’ll know if it’s worth it to expand into a certain area or not.

So, do you know of any other ways to control your expenses? Do you have any questions about this article? Feel free to let us know in the comments section below.

Finally, answering these three questions correctly will confirm that you understand how businesses lose money without knowing it:

  1. How can delivery optimization software ensure that you don’t send out incorrect invoices?
  2. Why is it better in the long-run to keep your vehicles well-maintained?
  3. How can you guarantee that taking on new customers will result in profit?

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!

Start Free 7 Day Trial

About Route4Me

Route4Me has over 32,000 customers on almost every continent. Route4Me's mobile Android and iPhone apps have been downloaded over 2 million times since 2009. Extremely easy-to-use, the apps synchronize routes, enable two-way communication with drivers, 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.

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