At Dawsongroup finance our slogan ‘Smarter Asset Strategy’ is always at the heart of our approach – but the difference it makes is specific to each industry and each customer.
Here we take a look at applying the Smarter Asset Strategy to the bus and coach industry.
The bus and coach sector was one of the hardest hit by Covid and has had the longest recovery of any of the supply chain sectors. It remains a challenging climate, and bus and coach businesses are constantly seeking strategies to optimise growth whilst managing risk.
They must keep their fleets up to date, replacing older, less-appealing vehicles which are costlier to run with newer, greener ones, as well as expanding their line-up where opportunity allows.
But purchasing a new bus comes with a hefty financial outlay, and the value of that vehicle will only depreciate over time, so rather than straining cash flow and tying up too much capital in your fleet, financing doubtless makes the best business sense.
This is where the Dawsongroup Smarter Asset Strategy comes in, with transformative potential for the way bus and coach companies approach their wheeled assets.
What is the Smarter Asset Strategy?
Dawsongroup Finance’s Smarter Asset Strategy is an intelligent approach to procuring and funding the assets a business needs to thrive, so that they deliver their full value and usage, but in a way that minimises their cost, helping to protect business capital, vital for flexibility and agility.
Rather than just spreading the cost, you only paid for what you need – financing an asset only for the period during which it is useful and working hard to earn money for your business, rather than the life of the vehicle.
Why it’s well suited to the sector
Being part of Dawsongroup, a specialist group of companies providing asset rental and leasing services, including commercial vehicles, trailers, buses, coaches, sweepers, and materials handling equipment, Dawsongroup finance has the industry knowledge and the network to offer the right deal.
It might be that a rental rather than financing the full asset suits a customer best, in which case Dawsongroup finance can connect them with colleagues at Dawsongroup bus and coach. Not being bound to any manufacturer or supplier, they aren’t required to push any particular product.
And they also have 80 years of experience as part of the hard-wheeled asset supply chain to draw on, so the onus isn’t on the client to shop around multiple lenders and try to figure out what the best solution is for them.
Matthew Bull, Commercial Manager at Dawsongroup finance explained, “Since the pandemic this market has been seen as difficult to fund into, and your typical banks and high street lenders have walked away because they just don’t understand it.
“We’re very much still in it. We have our bus and coach division within Dawsongroup, so it’s a market we know and understand well.”
What are the benefits?
When it comes to growth and business health, the management of assets within an organisation can be overlooked. Just like your workforce, assets have the potential to generate revenue for your business. However, idle assets can be a drain on your bottom line.
For bus and coach companies the benefits of adopting a Smarter Asset Strategy are plentiful:
- Access to the Latest Vehicles: By opting for asset finance, businesses can gain access to the latest vehicles without the upfront costs associated with ownership, allowing them to stay competitive and deliver a high-quality service.
- Preserved Capital: Businesses can preserve their capital and allocate it to other areas of their operations, including essential growth activities such as expanding their fleet, or improving services, whether by offering a broader range of destinations, improving passenger comfort, or incorporating advanced technology. These value-added features can increase customer satisfaction, resulting in higher demand and increased revenue for the business.
- Reduced Maintenance and Repair Costs: The option of fully serviced assets can alleviate the financial burden associated with maintaining and replacing vehicles, making for a reliable fleet and minimising potentially costly downtime. There is also flexibility to upgrade vehicles at the end of the lease term, enabling you to keep a modern and dependable fleet.
- Improved Cash Flow: Asset finance spreads the cost of equipment over time, reducing the strain on cash flow. This enables businesses to maintain consistent operations and plan for future growth effectively.
- Flexibility: Having the flexibility to scale their operations as market conditions and customer demands change is essential. Instead of being tied down to long-term ownership commitments, businesses can adapt their fleets to match fluctuating demand, and changing customer requirements.
The Rise of Usership Over Ownership
Dawsongroup finance’s Smarter Asset Strategy challenges the conventional notion of assets as expenses – instead, they can be seen as hard-working revenue generators; while you’re paying for them, they’re earning their keep.
In an era where flexibility and adaptability are paramount, the model of owning assets outright can be limiting. The paradigm shift from usership over ownership is the essence of the smarter asset strategy – but the key is seeking a tailored solution that actually suits how your business works, not just what deal looks cheapest on paper.
At Dawsongroup finance, we don’t just say “We do finance,” we ask: “How does your business work?” and provide a solution according to the customer’s requirements.
When assets are genuinely tailored to how your business works, and the way in which they will be used, any wasted cost is cut out. In this way, bus and coach companies can preserve capital, unlock cost savings, maximise asset potential, and position themselves for sustainable success in an evolving market.
To find out more about how our Smarter Asset Strategy could work for you, call our team on 01425 474070.