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An alternative solution?
Page 48
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A new 'pay-as-you-go' breakdown recovery service has recently been launched. But is the facility a genuine alternative to traditional subscription services? Julian Milnes weighs up the options.
Even discussing the subject of breakdown recovery can send shivers down some operators' spines and cast a jinx on their vehicles, And for most, it's only brought up in one circumstance: when the vehicle refuses to move. If you're running a fleet then chances are that during the year you will suffer at least one mechanical failure.Thc usual procedure would be to contact your paid-for service for a call-out. But what if you rarely use it? Is it worth the annual fees?
The recent launch of Delta Rescue's pay-asyou-go service emphasises the alternative approach to breakdown recovery. Ian McKenzie, head of Delta Rescue,says:"We've researched the market carefully and know there are many fleet operators who, because of the size and nature of their business, don't want the commitment and cost of a yearly subscription."
Assistance costs
Delta customers can register at any time and are charged an initial £300 for a call-out, which is deducted from their credit card as a deposit to cover any recovery and assistance costs. Once the job is completed, any balance is immediately credited back to the card.
"The customer is kept fully informed of progress and the charges involved. If we learn that a job is estimated to cost more than £300, we will contact the cardholder to ask if they want to proceed," McKenzie explains.
The idea of only paying when you use a recovery service is not a new one.The RAC has been running a similar scheme for more than five years.The company's Commercial Vehicle Assistance provides breakdown support in western Europe as well as the UK. It can even arrange load continuation, or a replacement vehicle, where available, and can also arrange accommodation for your drivers and passengers. Unlike Delta. the scheme does not require an initial payment before call-out.
Basic service
Deciding whether to opt for a pay-as-you-go service comes down to the nature of your business.Trevor Parry, AA national sales manager, says:"When deciding which service to use, you have to ask yourself,'Does this fit my needs?' Will a situation arise where I need more than a basic breakdown service and will the costs work out the same over time?"
He adds that because there is no prior written agreement with a pay-as-you-go service, in some circumstances, the standard of work may fluctuate from job to job. By having a written contract, the customer has an element of protection and can point to their subscription fees if a situation arises.
Some pay-as-you-go services may only offer a basic recovery option, and the rate may not be negotiable. A subscription service may offer preferential rates to certain fleet types, and provide additional services such as an accident management programme. It has to be remembered that, although pay-as-you-go services may seem a better financial option compared with an annual subscription. the cost has to be absorbed by the company somehow.That may result in higher call-out charges.
It is dear, then, that both pay-as-you-go and subscription methods have their benefits. Working out which one better suits your needs has clear advantages. •