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.
