How long has it been since you’ve taken a good look at your business? Is it everything you want it to be? Do you have clear goals? Are you working toward those goals, or have you lost your focus in the day-to-day grind?
Ask yourself questions like these, and stay involved in every aspect of your business. Be obsessed with the numbers. Stay focused on what you want your business to be, yet be flexible. Know how well your employees are performing. How well you do these things is directly proportionate to how much money you’ll make. That was the message from Neil Abrams, president of Abrams Consulting Group Inc. in Purchase, N.Y., during his seminar at the 2002 Car Rental Show, “Can Anyone Make Real Money in the Car Rental Business? Yes, You Can, Here’s How…”
“There are great challenges and great opportunities in this industry,” said Abrams. “I’m here to tell you that you can make money in this business even in this economy.”
Abrams offered several moneymaking ideas to a packed room at the Las Vegas Convention Center in October, including:
1. Challenge your business model. Take the time to look at your vehicles, customers, market, rates, technology, the people operating your business, and think about all the possibilities.
“You must evolve with the changing landscape of the marketplace,” said Abrams.
Ask yourself some questions: Does my business model work today? Has it become stagnant? Has my market position eroded? Do I want to build the asset value of the company, then get out? Have a plan and constantly challenge it.
“I know you all work hard and you think you challenge your business. But are you challenging it enough?” asked Abrams.
2. Be obsessed with numbers. “Those companies that are obsessed with numbers have the best shot at success,” said Abrams. Take the time to look at every possible benchmark, including, but certainly not limited to, revenue per user, utilization, average length of rental, reservation build and earnings. Scrutinize your P & Ls. Know what you did this time last month, this time last year, this time three years ago.
3. Know your fleet and your customers. Don’t let the deals drive your decision. Instead, let your customers dictate your fleet. Will your customers be happy with a used car that’s in good shape and has 30,000 to 40,000 miles? Try it out.
What will customers pay? Test a rate class and see. “I’ve got a client that rents PT Cruisers for $70, $80 and $90 a day. The customer perception is that this is an expensive car, a fun car,” said Abrams.
Keep your fleet costs in check or the business will fail. It’s your greatest opportunity to make money and your greatest risk.
Also, have a 12-month fleet plan that is constantly moving out 12 months. Change it to meet the demands of the constantly evolving rental market, travel industry, economic climate and the aftermarket.