PVS Group launches 'pay on results' fleet management product
09 October 2020
Author: Sean Keywood
PVS Group has launched a new fleet management product, which it says has been designed to overcome customer reluctance to recognise the positive impact of management services on costs.
The new service, called Consort, is based on the principle that PVS will agree targets for savings in key areas with new clients, and will only be paid if and when they are achieved.
Managing director Marcus Puddy explained that the biggest sales hurdle with fleet management was convincing people that it could achieve the predicted results.
He said: "We know that we can save an average of something like £1,200 per vehicle every year for a typical client if a range of managerial strategies are adopted.
"Our forecasts have a very high level of accuracy. It's just a question of overcoming that initial resistance.
"What PVS Consort is designed to achieve is to remove that scepticism by placing our credibility on the line. We only get paid if the ideas we suggest are successful. We believe that this is potentially a very convincing approach."
PVS says the savings available will mainly be based on recommendations covering areas such as fuel expenditure, servicing and maintenance, and risk management, but could also extend to vehicle funding and choice lists.
Puddy said: "The greater the degree of change that the customer is willing to contemplate, the greater the potential savings.
"What we are expecting is to be asked to implement a few, simple measures initially and, once these have proven successful, to be allowed to do more."
According to Puddy, PVS is deliberately leaving the product's structure flexible but, in most cases, expects to charge on the basis of taking a percentage of the savings made or being paid a set fee once a pre-agreed target is reached.
He said: "We're deliberately leaving this quite open. Obviously, we have a good idea of what we believe we should be earning from such an arrangement but how that payment is structured in terms of the targets we are set is open to negotiation."