Every day we talk to customers about the financial impact of tyre blowouts on not just them, but also on all those around them. The immediate impact is felt by the driver who not only faces the cost of repair to the vehicle but also potential medical costs associated with injuries and recovery, leading to unpredicted and lengthy downtime. The direct costs can quickly mount up and result in a concerning financial impact.
The largest cost of a puncture in any situation – Downtime!
But have you thought about the ripple effect beyond the driver and vehicle?
Disruptions: Delays in day-to-day operational management can have devastating financial consequences on a business. Pre-planned fleet operations suffer when a vehicle is in repair, resulting in delays, missed deliveries and increased labour costs whilst the remaining fleet shoulders the workload.
Downtime: Unpredicted downtime can be crippling for a business, especially if replacement tyres or repairs take longer than expected. Each working day a vehicle is out of commission the impact is felt on delivery schedules or appointments, and could result in potential contract penalties, unhappy customers and negative reviews. Ultimately, downtime will result in a loss of business opportunities and revenue.
Negative Reviews: As businesses, we all strive to maintain excellent customer service reviews and feedback as part of our brand vision and mission. Tyre blowouts can have a direct impact on the customer, causing inconvenience and in some cases frustrations for all when delivery promises are missed.
Higher Maintenance Overheads: Often a blowout is a result of an underlying issue with the tyres or vehicle systems, such as low inflation from punctures or poor tyre maintenance. Unexpected and unbudgeted maintenance costs, coupled with the financial impact of downtime, can have a far-reaching impact on businesses.
Rise in Insurance Costs: An increase in insurance premiums can, in some cases, be applicable as a result of tyre blowouts. If an insurance company considers the incident to be potentially high risk the knock-on effect of investigations, filing claims and disputes (to name just a few) can be costly, time-consuming and highly stressful.
Whichever way it’s looked at, tyre blowouts have the potential to have long-term implications on a business. Whether that be poor customer reviews, rising maintenance costs or operational delays and disruptions, the impact on income and profits could slow growth and financial stability. Persistent tyre blowouts to operational vehicles will, inevitably, question the viability of the business.
Give Air-Seal Products a call today on +44 (0) 1823 674411 for a discussion on how our premier tyre sealants can assist your fleet. Air-Seal Products – The perfect solution for your tyre management.