What is the best way to reduce your breakeven?

Growing your fleet or increasing the days earned is the most effective way to reduce your breakeven point because it involves increasing your revenue-generating capacity. By adding more vehicles or extending the time your existing fleet is in use, you can enhance your income potential without proportionally increasing your fixed costs. This way, you improve your operating leverage; as you spread your fixed costs over more units of operation (in this case, additional fleet or usage days), your breakeven point decreases. This strategy can lead to greater profitability, as each additional unit contributes to covering your fixed costs more effectively.

In contrast, increasing daily expenses would raise the breakeven point since you would need to generate more revenue to cover the higher costs. Decreasing marketing efforts could lead to lower revenue, ultimately raising the breakeven point, as fewer customers would mean less ability to cover fixed expenses. Reducing staff hours may appear to decrease expenses, but it could also lead to reduced service levels and thus impact revenue negatively, potentially increasing the breakeven point as well. Therefore, growing the fleet or increasing utilization is a strategically sound approach to reducing the breakeven threshold.