Last year a company we had worked with for quite some time decided to trim the budget and cut expenses, much further than they had the year before. While some of the expenses that were cut didn’t seem to hurt too much, there was one expense that was cut that ultimately cost them dearly, virtually wiping out the savings that should have been realized in 2011.
The company has a number of commercial vehicles that are used on a daily basis for deliveries as well as client appointments. In 2010, there was only one minor incident in which the company had to use their roadside assistance coverage; therefore, they decided to take a risk, cutting the plan in 2011.
Unfortunately, they did not have the same luck that year. In February, one of their employees experienced a flat tire while out making an important delivery. Their client had an urgent need for that delivery, and without it, they couldn’t deliver on their own promise to a new and important customer.
Without the proper tools to change the flat quickly, the driver had to call for help and it took three hours for him to get back on the road. They lost the client and his business, which had been a steady $20,000 per year profit to the company over the past few years.
Just a month later, another one of their company vehicles had a breakdown on the highway on the way at a location over 100 miles from the office. Without commercial roadside assistance coverage, the expense of towing had to be paid out of pocket, turning the bad experience for the employee into something worse.
Several sales people for the company frequently travel for business, and instead of their roadside assistance plan taking care of trip planning, maps and directions, an administrative assistant had to do the research. Her time cost the company more than the annual cost of coverage. In addition, the travel discounts the employees would have received were no longer in affect.
It didn’t take long for the business owner to realize that cutting the expense of their commercial roadside assistance plan was not the best idea. After just six months without it, he came to the conclusion that many of us already have. Protecting your vehicles and the employees who drive them is imperative for the success of the company, and a commercial roadside assistance plan is an invaluable resource.