How Flexible Billing Delivers Fleet Savings

Industries are constantly evolving to offer more customization for customers, including ensuring billing and data plans are optimized and a perfect fit for customers. The commercial trucking industry is no different, and today’s fleets should be looking not only at their TSP’s tech side for efficiencies, but also at administrative differentiators as well. For example, choosing a vendor who offers flexible billing – with charges only for active trucks and tablets – fleets can save a significant amount on their operating costs.

The Drawbacks of Traditional Billing

Billing in telematics has long been a challenge for fleet operators. Too often, fleets end up paying for trucks and tablets that aren't on the road generating revenue (and recent estimates suggest up to 20% of current trailers sit idle at any given time). This leads to unnecessary costs for inactive assets or time-consuming audits to reduce expenses. 

The concept of flexible – or usage-based – billing involves vendors offering more accurate charges according to actual usage, based on the number of trucks and tablets being used during the billing cycle. This approach avoids unnecessary fees associated with idle trucks and backup equipment. 

Usage-based billing has proven to be a game-changer for many fleets with customers often seeing an average of 10-15% fewer billable trucks per month. Instead of paying for every truck in the fleet, managers only pay for the trucks that are actively contributing to operations. This results in significant cost savings that can be reinvested into other areas of your business.

How Flexible Billing Works

Usage-based billing offers several benefits to fleet to improve operational efficiency and support the bottom line, including:

Improved Accuracy 

One of the biggest challenges for fleet managers is keeping track of vehicle activity to ensure accurate billing. Manual tracking is time-consuming, prone to errors, and can lead to overpayment or underpayment. Automated fleet management tools can help track in real-time vehicle usage and deliver accurate totals at the end of the billing period. Fleets then receive a bill based on actual usage without requiring manual intervention, supporting increased accuracy.

No Double Charges During Transitions 

If you’ve ever transitioned to a new platform, you may have experienced the dreaded double charge, where you receive a bill from both your old provider and your new provider for the same timeframe. When switching vendors, usage-based billing automatically ensures that you are only billed for the equipment currently in use. This smooth transition process eliminates the risk of inflated costs and allows the fleet to move forward without worrying about extra charges. 

Cost-Free Inventory for Backup Equipment

Fleets often need to keep spare equipment or devices on hand for replacements or repairs. However, being billed for this equipment that isn’t actively in use can quickly inflate costs. With a usage-based billing model, you’re not charged for software services for your backup devices sitting in inventory. This allows fleets to maintain the necessary backup equipment without worrying about additional expenses, keeping the fleet prepared for any situation without impacting your bottom line. 

Supported Scalability

The usage-based billing model is designed with flexibility and scalability in mind. Whether you’re managing a midsize fleet or operating a large, enterprise-level fleet, flexible billing adapts to your needs. Fleets that experience fluctuations in activity levels — such as seasonal spikes or dips — can benefit from only paying for the vehicles that are in use during those times.

This risk-free approach allows fleets to scale their operations up or down without being locked into fixed costs for vehicles that aren’t in use. The billing model ensures that you’re always paying in proportion to the size and activity of your fleet, helping you manage costs more effectively.

Getting Started with Better Billing

If your fleet is looking for a smarter, more cost-effective way to manage its technology costs, it’s time to explore Platform Science’s usage-based billing model. Evaluate your current billing structure and see how our innovative system can help you save money by only paying for what you use.

To learn more or to schedule a demo, contact Platform Science today. Discover how our platform’s risk-free billing model can transform your fleet operations and improve your bottom line.