What is Downtime Costing Your Business?
What is downtime costing your businesses? Calculate your total downtime costs and use it to save on repairs.
What is Downtime?
Downtime is the time your vehicle is out of use. When that vehicle is down it adds to the cost of repairs. This doesn’t have to be an exact number because you’re trying to ballpark your cost to make the best decision. Look at the weekly revenue and divide it by business days for example. That’ll get you the daily amount that truck makes you.
https://www.merriam-webster.com/dictionary/downtime
Types of businesses that need regular work on their fleet
We work with multiple industries to reduce downtime and repair costs. There are several businesses we work with to offer priority auto repair. These are companies that operate multiple vehicles for services.
Businesses include:
- Electric Companies
- HVAC Companies
- Dealerships
- Plumbers
- Roofing Companies
- Transportation Companies
- Cleaning Services
Downtime is Expensive for Businesses
Often businesses are more concerned with the cost of repairs than the total cost of downtime. Downtime is the cost of the vehicle being non-operational. For businesses, each vehicle has an average daily revenue they bring in from work.
When choosing an automotive repair shop don’t forget to factor in Downtime
The cost of repairs might be $500 higher at one shop, but they do it in half the time. If you know your downtime you can figure out what the best choice is. We’ll explain below.
Don’t Save $500 to lose $16,000
For example, you might choose the repair shop that saved you $500 on repairs. However, they took 10 extra business days. If you make $1,600 a day with that truck this extra repair time cost you $16,000 in downtime. Now you’re -$15,500 than if you went with the other repair shop.
TIME: One Accident Can Take Multiple Service Shops to Fix it
When your business depends on your car operating you can’t wait for weeks to get it serviced. Most small fleets we work with don’t realize that with one collision you could be looking at sending it to 3-5 different specialists. This can take weeks to months to repair. Often businesses will partner up to tackle all the damages.
Your downtime with each shop in a Broken Truck Scenario:
For example, your truck has major damage to the body, mechanical, windshield, and tires. Now you’re looking at:
- 1-3 weeks with an auto body shop
- 1-4 weeks with the mechanic
- 1 Day with the tire shop
- 1 Day with the windshield replacement shop
On top of the repair time you have to factor in delays for parts and paint. Since the pandemic parts and shipping delays have impacted repair time.
How much does downtime cost?
With a little math, we can figure out what downtime costs your business.
The downtime is the work days the vehicle is out of commission. Take what your vehicle made you daily or weekly. Now multiply that by your downtime. That’s your loss. Hopefully, your insurance covers the cost of repairs but if not add that in.
Downtime cost with insurance
If your insurance company is covering the cost of repairs.
(What your vehicle made you x Downtime) = Your Downtime Cost
(What your vehicle made you x Downtime) + (Insurance Deductible) = Your Downtime Cost
Downtime cost without insurance
If your insurance company is not covering the cost of repairs.
(What your vehicle made you x Downtime) + (The Cost of Repairs) = Your Downtime Cost
Let’s calculate the downtime from the above broken truck scenario
- 2 weeks with an auto body shop
- 2 weeks with the mechanic
- 1 Day with the tire shop
- 1 Day with the windshield replacement shop
——————————————————————————-
Total Downtime is 22 Business Days
Let’s Calculate the Downtime Cost of 22 Business Days
(What your vehicle made you x Downtime) + (The Cost of Repairs) = Your Downtime Cost
The Cost of Repairs = $12,000
What your vehicle made you = $1,600/day
Downtime = 22 days
Daily Loss = $1,600
($1,600 x 22) + ($12,000) = Your Downtime Cost
$35,200 + 12,000 = Your Downtime Cost
Your Downtime Total Cost = $47,200
That’s assuming everything went perfectly.
How much does downtime cost for 22 business days?
The Total Downtime Cost is now $47,200.
How much does downtime cost for 11 business days?
The Total Downtime Cost is now $29,600. What happens if that car was done in half the time? You save $17,600.
That’s what sets Truman’s Apart, We save you time.
- Fleet Reservations
- Full In-House Auto Services
- Experienced Mechanics
- Reduced Downtime for Fleets
- Safety with ADAS Calibrations to prevent future accidents
- Insurance Coordination Services
Full In-House Auto Services
While other auto shops are sending your car back and forth we’re doing it all in-house.
Rather than sending you to several companies, we’re able to handle your services in-house. This is a huge time saver.
Do you have openings for fleets now?
Yes. We keep reservations open for your business.
That’s why we have a spot reserved for Fleet Repairs. We book a percentage of our time with walk-ins and keep a second spot open for Business Vehicles.
What can cause wait times? How are you better?
Like all companies, we run into parts shipping delays. This is more of an issue if your vehicle has a special part that’s less common.
We take the extra step. In that instance, we’ve called around the country to track down parts providers that other companies might not have dedicated the time to. Unlike other companies that only order from limited providers. We’re concerned about getting you the best service.
Truman’s Also has ADAS!
We are a full-service business with multiple companies specializing in vehicle repair. Unlike other Des Moines Auto Repair Shops, At Truman’s you’ll also get advanced ADAS Repair. Keeping your sensors updated is the best way to prevent your employees from getting into accidents in the first place.
With Truman’s, you’re making more by saving Downtime. Ask our team about setting up repairs for your fleet.