Profit vs. revenue in heavy-duty shop operations

Profit vs. revenue in heavy-duty shop operations

Both revenue and profit contribute to a shop's overall outcome, but there is still a difference.

There are two distinct drivers impacting your shop’s overall financial outcome: one being a revenue driver and the other being a profit driver. Both contribute to the overall outcome, but there is still a difference.

Revenue drivers are the services and product solutions we provide to our market and also include how efficiently we maintain fuel, vehicle and driver management. 

This means profit drivers are the factors of service and operations that we consider to help us boost profit. Things like repair management, remote diagnostics to support preventative maintenance, optimizing warranties and technologies that lower the total cost of ownership, like EVs or ADAS, and integrated telematics solutions all directly impact your shop’s bottom line through a rapid ROI. 

So overall, revenue is income generated through our services and profit describes income after deducting operational expenses.

Having access to this comprehensive information can be transformative for fleet management. It allows fleet operators to make informed decisions, implement cost-effective measures, and optimize their operations for improved financial performance. By leveraging the knowledge of revenue and profit drivers, fleets can enhance their financial standing, increase profitability, and pave the way for long-term success in a competitive market.

Which one contributes more to a fleet’s financial standing and what could having access to this information do to improve that number? Noregon’s got the answer in the latest Data Center video.

Fleet Equipment’s Data Center is sponsored by Noregon. Subscribe to our newsletter to catch every episode as we’ll be diving into use cases, talking with the data pros and making data usage approachable.

You May Also Like

Go inside the Kenworth SuperTruck 2

We detail the specs and technology of the Bullet Train-inspired truck and talk through the equipment that could make it to production.

Kenworth-Super-Truck-2-ACT-1400B

Taking center stage inside the Kenworth booth at this year's ACT Expo was one of the most unique trucks at the show, but there was more than meets the eye to the Kenworth SuperTruck 2. Its sleek shape that reduces air resistance to improve aerodynamics 48% over a typical Kenworth T680 only hinted at the powertrain technology within.

Over-the-air updates: Should you activate them in the shop, or have drivers do it?

Are some OTA updates better handled by drivers, and some better to be done in the shop? How do you know which are which?

datacenter-Over-the-Air-1400
If you’re not using VMRS, here’s what you’re missing out on

Here are a few VMRS tips that we’ve sourced from across the fleet maintenance industry.

What role could A.I. play in trucking?

There’s a lot of hyperbole out there about A.I. So let’s talk facts, and get to what role it can play in truck service shops.

AI-trucking-1400
The importance of ongoing technician training

Plenty of time is spent talking about the importance of training new technicians, but ongoing training is just as important.

Data Center Technician Training
Other Posts
NACFE: small depots are ready to scale electrification

Dipping your toes into electrification is one thing, leaping into running 15+ BEVs is another. Though NACFE says for many, the time is right.

NACFE-DEPOT-Scaling-Report-Cover-Run-On-Less-BEV-Electrification-fleet-trucks
Beyond a one-size-fits-all trucking decarbonization strategy

Much of the responsibility now falls on the fleet, but that should be a welcome change.

2024-ACT-After-the-Show-Floor-1400
How fleets are using technology to face unique challenges

Video coaching, dash cam evidence, or a fully removable system – users of Samsara technology share how they use it.

Beyond connectivity: Samsara makes three introductions in ’24 keynote

AI isn’t the only innovation this year. The biggest launch comes in the form of a small piece of tech, designed to track any asset.

Samsara-Beyond-Asset-Tag-1