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Scenario: Rental revenue is up substantially but the P&L is suffering from escalating equipment transport costs. Quantity of rents and number of hauls likely went up last year at a similar pace. Inefficient transport and poor sub-hauler management are pushing the profit pendulum into the red. Counter personnel and management view equipment transport as one of the most important bargaining chips in the salesperson’s arsenal. “Give transport away if you have to,” is the daily battle cry.
The company should expect a loss in this category, right? Wrong. A company mind shift toward breakeven transportation will tilt your P&L in the right direction.