The most important consideration for any business is taking care of the bottom line, and in many cases every penny or pound saved can be vital.
For finance directors, fleet managers and business owners, being able to track where money is being allocated, spent and saved forms an integral part of their long-term planning, and having a clear idea of this enables time and money to be spent on other core parts of the business - thanks to the fleet provider. The approach is particularly important when it comes to van costs and vehicle management; an area that can often contain several grey areas due to the unpredictable nature of business, which can fluctuate significantly.
At Northgate, we understand that workflow, business needs and vehicle requirements can change, which is why our pricing model offers as much flexibility, transparency and understanding as possible.
In an ever-changing business environment, it is more important than ever to be able to adapt in line with sector fluctuations and changing customer requirements.
As such, we offer a costing model that includes complete flexibility for the customer and does not restrict how they use the vehicle.
Initial rates are set according to the vehicle type and the customer’s expected annual mileage, but this does not mean that they are then tied into paying a set amount for a fixed term and it certainly doesn’t mean penalties for excessive usage. If the projected annual mileage looks likely to be exceeded by more than 10% when the vehicle comes in for a service, we will talk to the customer to identify why it is greater than expected and if it is likely to remain so. We will then agree new rates accordingly based on the original agreement. Equally, if a customer is likely to travel less than what they anticipated, we will alter the rate to take into account the reduced mileage, so they are not paying over the odds for their vehicle rental.
We believe in being fully transparent about upfront and potential van costs, which is why it is made clear from the outset what customers are liable to pay for. For example, damage to tyres and windscreens will incur a cost, but we make it perfectly clear what this will be on our website, making it easier to understand, and also to account for potential expenditure.
We also strive to pass on the benefits of our buying power and network to customers. By taking a vehicle to a Northgate branch, customers could save a significant amount compared to having the vehicle repaired at one of our third party suppliers.
Our policy with fuel is full to full, which means all vehicles collected will have a full tank, and are expected to be returned with a full tank. This removes the uncertainty of picking up a vehicle with a half or quarter-tank and then having to return it with the same amount in. If a fleet extends to 15, 20, 30 or even more vehicles, confusion can soon mount up when attempting to gauge how much fuel will be required to quarter-fill every tank before its return, and costs can soon follow.
Our price is also based on the AA’s average cost for the UK, so we do not implement excess charges if the vehicle is brought back short – all of which is advertised in branch.
The cost benefits of Northgate flexible rental are indicative of our all-inclusive offering, which when compared against the whole life cost of a vehicle which is purchased, comes out cheaper in most cases. We position our service as having no contract, no commitment and no risk to the customer.
We understand that risk stems from unknown costs that cannot be anticipated – anything from vehicle repair, to fluctuations in custom that require more vehicles to be used and more miles to be travelled. Our customers always have an understanding of what they are liable for and what the cost will be, helping to ensure a flexible, transparent model with tangible business benefits.