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Shifting Spend

This takes a little explaining but it’s helpful if you’ve got a pretty tight budget and need to get approval from the bean counters to make some changes.  We see it a lot and you can use this conversation when you need to invest in pretty much anything that saves on the total cost of ownership.

We’ll use seat covers as an example today because, well, it’s just easier.

You ever run into a new product that you KNOW will save you money in the long run but you just don’t have the money in your CAPEX budget? It happens all the time with the fleets we work with.

It often takes some convincing to get the purse-string holders to realize that you’re not trying to just blow more money on vehicles that already cost way too much. 

That’s where the idea of Shifting your Spend comes in.

If you are already repairing seats, that means that you’ve got those repairs in their maintenance budget and the cost of repairing is probably higher than seat covers.  That’s where shifting spend comes into effect.

If you can shift your spending from maintenance to upfitting, you can often prevent a $500 problem for $300.  Seems like a good idea when you put it like that doesn’t, it?

It’s a little harder to quantify if you aren’t fixing seats but you’re still losing resale value or getting dinged with damage charges at the end of a lease.  Now, that’s a perfect example of throwing money away!

While you’re are right when you say you don’t have room in their upfit budget for new stuff, you can be the hero when you show the money people that they’re already spending (or losing) that money and more, just in different spots.

Are you ready to invest in preventing a problem rather than continuing spending cash to fix it?