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What’s the cost to drive to a business meeting?

Posted: 13 November 2014

Please raise your hand if you’ve ever wondered what it actually costs to drive to a face to face business meeting?

TrafficI’ll tell you what we discovered. $24,000.00/year! That’s if you hold 5 meetings/week. When you drive for just 20 minutes to get to your destination, find (& pay for) a park, spend the next 10 minutes finding the floor you’re supposed to be on, wait in the lobby on 13th floor of an inner city office building, finally you’re face to face with your client after a 10 minute wait in reception. But hold on! Then you’ve got to get back to your office after you pay for that park, Blaaa Blaaa Blaaa you’ve just wasted an hour of your precious time whilst increasing your vehicle running costs. Now times that by 5 meetings a week!

Well, there’s good new! Wasting time getting to and from business meetings doesn’t have to be an expensive reality. With the right Video Meeting capability at your disposal, you can easily create an engaging, face to face customer meeting, with elegant dual control of on screen documents, all without blowing your vehicle expense budget, bottom line or hiding behind a telephone.

$24,000.00 seems quite high don’t you think? That’s in $NZ dollars mind you. But still even at today’s exchange rate (0.7756) US$18,614 off the bottom line, and that’s per staff member! Now if you were a just a small business running a team of 10 sales consultants that’s a cool US$186k back on your bottom line.

So where do these numbers really come from? Let’s look into it a little deeper, Ready?

Let’s dive in.

6 annual cost components to consider when driving to a client meeting.

There are 5 main components to consider, and I have calculated these based on a sales consultant earning $150k/year driving a medium sized 4 cylinder company car. At an average of 70km/hour, and attending 5 client meetings per week for a year.

  1. Fuel costs
  2. Servicing
  3. Tyres
  4. Parking
  5. Wages
  6. Increased Accident Risk

Vehicle Costs: $6783.68

A medium sized company car runs on 8litres/100k (or $17.76/100km). Running 70km/h for 30mins to a meeting = 35km to and 35km back that’s a total of 70km. 70×5 meetings/week x 48 weeks/year = 16,800km/year. At a cost of $5.00 each time you park your car in town lets say you only pay for parking 50% of the time = $3000.00/year

  • $2983.68 Fuel Costs:
  • $400.00 Service interval
  • $400.00 1/2 a set of Tyres
  • $3000.00 Parking

Add to this the increased risk of accidents due to time on the road. But we will leave this blank for now.

 

Staff Costs: $17,300.00

Then there’s the big one. You’re paying someone $150,000.00/year to sit in traffic for 30mins each way x 2 per meeting= 1hr x 5 meetings/week = 5hrs/week x 48 working weeks/year = 240hrs/year dead time sitting in traffic.

  • $17,300.00 Wages

Not only is this dead expense but this time could be spent preparing, prospecting or closing deals, so there is an opportunity cost here also.

Graph

So all up, you do your own numbers based on your own sales force, but from what I have calculated the costs for just one sales person is nearly $24,000.00/year.

Now multiply that by your sales force and tell me that’s not worth considering?

 

 

So what about the value of a real face to face meeting?

I can hear you justifying the expense of running a vehicle to meetings under your breath, “There’s no substitute for a face to face meeting …press the flesh”, etc. I hear you say. I don’t deny there is significant value in “pressing the flesh” however when the relationship has been developed, there is a modern alternative to racking up all that expense and wasted time, and no it’s not Skype because the quality is substandard and you lose that natural conversation style meeting.

If you want an elegant alternative to a flesh pressing business meeting take a look at www.suitebox.com boasting features like:

  • High quality video & Audio
  • Recordable for compliance, and 100% accurate recall.
  • Bring in and share documents into the meeting
  • Pinch, zoom documents & web pages
  • Hand control to your counterpart
  • Even gain a signature to seal the deal.
  • What you see your recipient sees.
  • Developed on an iPad but available on browser

 SB_url_google    SB Screen Shot 1

It’s like having someone perched on the corner of your desk whilst discussing a document. When it’s signed the email client opens an email to send the signed document to your participant. It really is like child’s play.

Do your own numbers on the costs of 5 business meetings a week and let me know what you come up with? You will need the following numbers from the finance department:

Annual average costs for:

  1. Sales Reps salary
  2. Fuel costs
  3. Servicing costs (incl tyres)
  4. Estimate parking costs
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