January 2012, Fleet Financials - Feature
VasoHealthcare Chooses PartnerPlan Over Reimbursement
The diagnostic imaging equipment company found leasing provided numerous benefits over reimbursement, and shares its decision-making process.
By Staff
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Operating a fleet is inherently risky. Why expose your fleet to unnecessary risk if you don't have to? That's exactly what Brian Scott, director of financial services for VasoHealthcare Sales Professionals, was thinking when he decided to look into leasing through a fleet management program and abandon the company's existing reimbursement strategy.
He did so in the hopes that it would simplify things and provide the stability and structure the company desired.
Evaluating the Current Strategy
VasoHealthcare operates a fleet of 73 vehicles for its sales staff, who sell diagnostic imaging equipment.
"When the company was started in 2010, we knew that reimbursement was the wrong model for our company. Not only is reimbursement more expensive (and harder to audit), but it also lacks the employee benefits that a fleet program provides," Scott said.
However, VasoHealthcare didn't understand the drawbacks of reimbursement. The company looked to LeasePlan USA for the necessary information about the benefits of leasing - both in soft-cost savings and true cost cutting.
Benefits of Leasing
Through the education process, VasoHealthcare realized the advantages of leasing over reimbursement for its company were substantial. The biggest potential soft-cost benefits for VasoHealthcare were those involving corporate image and employee relations.
Company-provided vehicles offer greater control over how the company is perceived in the marketplace.
"We didn't want our employees' choice of vehicle and maintenance of that vehicle to reflect poorly on the company, especially since they visit our customers frequently," Scott said.
A company-provided vehicle could also give the company a "competitive edge" in hiring and retaining top-caliber employees, according to Charles Hughes, vice president of sales for VasoHealthcare.
In fact, industry surveys reveal that employees view a company vehicle as a benefit equivalent to healthcare coverage and pension benefits.
VasoHealthcare also understood that in this very competitive market, trying to hire prospective employees who already have a company vehicle by offering a reimbursement program could put it at a serious hiring disadvantage. While a reimbursement allowance may have the initial appeal of enabling employees to drive the vehicle of their choice, according to the company, frequently, employees ultimately realize it is not the best economic choice for them.