“You cannot beat a roulette table unless you steal money from it.” – Albert Einstein
I have spent a lot of time in casinos. The casino floor was my office, and I spent the first decade of my career working in the industry. My duties ranged from doing taxes, to wooing VIP’s, and all sorts of shenanigans in between. Now say what you want about the people that roam your favorite casino’s tables and slot machines, but at least they are all aware of the cardinal rule of gambling: the game is rigged.
“But Jake, everybody knows that.” The game has always been set up to ensure that the house always wins over the long run. Since the house ALWAYS wins, they give you a little taste every now and then to keep you coming back for more. A complimentary hotel room here, tickets to a show there, and free drinks while you are feeding your paycheck into the one-armed bandit. You might ask yourself, “How does this relate to material handling equipment?” Well, gambling isn’t the only rigged game in town, but at least it has the decency to be upfront about it.
Let’s talk about all-you-can-eat-buffets, another staple attraction in most casinos. Pay one price and eat all you want. What a bargain! And how charitable of them to offer an all-inclusive eating option; no longer am I vexed over which entrée to choose or am limited to just the food I ordered. I can rest assured that my hunger will be satiated no matter my craving or thirst. The buffet has taken all the risks off of me and allowed me to gorge to my heart’s content without worry.
But the buffet is also rigged. They always make money, no matter the offering, from the rolls on the table, to the endless carb smorgasbord, to only being allowed to get one piece of Prime Rib per trip. They are very sneaky; they offer you an “easy button” for dining. They want to seem like they are taking on the risk in this relationship, but they know you will never eat enough Prime Rib to make it a losing proposition in the long run.
Still, wondering what any of this has to do with material handling equipment? Let’s talk about contract maintenance. Or as I like to call it, the buffet of the MHE world. Just pay a monthly fee, and all your repair and maintenance problems will be covered. What a bargain! And they offer all-inclusive maintenance options! Now I am no longer forced to manage and oversee all my repair and maintenance (R&M) spend, and I can now rest assured that my R&M needs will be met no matter how many invoices I submit. Contract maintenance has taken the risk of increased R&M spending off me and instead allowed me to go about my day without worrying about tomorrow.
Contract Maintenance programs are rigged, just like the casinos and buffets. Servicing vendors are not in the business of losing money, no matter the offering. Damage is not traditionally included in a Contract Maintenance program, so servicing vendors will do whatever they can to classify as many issues under the “Damage” category as possible.
No matter what you do, you can’t outrun the vigorish. Vigorish is the house edge built into any casino game. You can shoot craps all you want, but eventually, it turns up seven. You can enjoy the buffet, but you won’t ever eat enough to make it a true bargain. Likewise, you can participate in a Contract Maintenance program, but you will never incur enough R&M expenses to see an ROI on your investment. You work hard for your money; you can spend it how you see fit. But speaking for myself, I am looking for value.
How do we keep ourselves from being undone by the haunted vigorish? First, we have to stop playing games that are rigged. You need to get out of the casino and stop going to the buffet. Order à la carte so you only pay for what you need and eliminate the “house edge” from your R&M spend. That’s where a Managed Maintenance program can be beneficial.
A Managed Maintenance program allows for an R&M budget to be established; this budget is fluid and can be modified to match the true expenses of your fleet, such as all repairs, services, damages, tires, and modifications. Fleet Team knows this information about your fleet because all repairs are noted, and all expenses are tracked, allowing for a transparent view of your total asset ownership cost.
Here is the kicker: if the established budget is too high and there are funds left over, these funds are rebated back to you. You read that right! As your partner, Fleet Team would oversee the entire process to make sure that the servicing vendor is held accountable for their actions, and then we return any funds that weren’t used. With Managed Maintenance, you get the buffet’s ease and inclusivity, with the savings and efficiency that come from ordering a la carte. Bon appetite!
Read our comprehensive case study comparing Managed Maintenance vs. Contract Maintenance
“If you gamble long enough, you’ll always lose; the gambler is always ruined.” – Michael Crichton
You can’t beat the vigorish. Any attempt to prove otherwise will result in a downward spiral. The casino only offers you games they will win, and your servicing vendor is no different. With a rigged game, all they need is time, and eventually, all your money ends up in their pocket. So, get up from the table and get out of the casino. Stop betting and start saving TODAY. Best of luck on your journey and stay away from those parlays and penny slots.
Interested in comparing your contract maintenance and your managed maintenance? Contact us today to find out if you are playing a rigged game.