Just going over my company books and in just the last 4 months I have seen a 14% increase in operating costs across the board. Next month all Florida companies take another huge hit because voters decided to increase min wage by $1.30 per hr to $10.00. Every 12 mos per State law it will increase by $1.00 per hr every Sept 1.
This is a huge problem for small businesses--especially because 90% of my employees are paid min wage with performance bonuses. Two years ago what was defined as an approved salary management position was redefined so this is the perfect storm of inflation.
Diesel in the last 45 days went from $3.19 per gallon to $4.09 per gallon at truck stops and $3.45 at other stations. I have my own tanks so last fill up was $3.69. Ugh
I am cutting costs everywhere, Where I can I am raising my prices substantially. However, I have long term contracts and when signed inflation was flat or 1-2%.
Increasing maint intervals is a huge savings opportunity. Switching from 10w30 yn blend to dino 15w40 is another savings.
One thing I am considering is an experiment--monitored w oil reports during the OCI and at the change--is filling my trucks to the min line on the dipsticks--just a hair above the add mark. Before each shift oil level is checked so if it declined we would top immediately. That saves 2 quarts per truck per oil change. Since its safe to run the truck down to the add line I'm not sure the 2 quarts between add and full will make a difference in operations. If I proceed I will test this on one truck first.
Any thoughts?
I have also started cutting hand soap w 1/3 water, banned drivers from the employee bathrooms (go before they get the to the shop or stop after the leave the shop in the truck) Locked the AC thermostats and raised the AC temp from 72 to 75. I also have locked the bathrooms for the rest of the staff and customers--have to get a key to use. Been having a problem with a huge amount of toilet paper being stolen because inflation is hitting everyone.
Cutting everywhere possible. In over 30 years in biz I've never seen anything like this. Its going to get worse before it gets better. Having a hard time even getting parts and supplies.
Any thoughts about filling to just above the add mark?? Thanks
This is a huge problem for small businesses--especially because 90% of my employees are paid min wage with performance bonuses. Two years ago what was defined as an approved salary management position was redefined so this is the perfect storm of inflation.
Diesel in the last 45 days went from $3.19 per gallon to $4.09 per gallon at truck stops and $3.45 at other stations. I have my own tanks so last fill up was $3.69. Ugh
I am cutting costs everywhere, Where I can I am raising my prices substantially. However, I have long term contracts and when signed inflation was flat or 1-2%.
Increasing maint intervals is a huge savings opportunity. Switching from 10w30 yn blend to dino 15w40 is another savings.
One thing I am considering is an experiment--monitored w oil reports during the OCI and at the change--is filling my trucks to the min line on the dipsticks--just a hair above the add mark. Before each shift oil level is checked so if it declined we would top immediately. That saves 2 quarts per truck per oil change. Since its safe to run the truck down to the add line I'm not sure the 2 quarts between add and full will make a difference in operations. If I proceed I will test this on one truck first.
Any thoughts?
I have also started cutting hand soap w 1/3 water, banned drivers from the employee bathrooms (go before they get the to the shop or stop after the leave the shop in the truck) Locked the AC thermostats and raised the AC temp from 72 to 75. I also have locked the bathrooms for the rest of the staff and customers--have to get a key to use. Been having a problem with a huge amount of toilet paper being stolen because inflation is hitting everyone.
Cutting everywhere possible. In over 30 years in biz I've never seen anything like this. Its going to get worse before it gets better. Having a hard time even getting parts and supplies.
Any thoughts about filling to just above the add mark?? Thanks