How I Maintained 30%+ Profit Margins in My NEMT Business
By Rachel Scholler
Profit margins in the NEMT world are often razor thin—but they don’t have to be. At my
previous company, I maintained 30–35% margins for years, even as we grew. Here’s how I did it:
- Disciplined Dispatching We didn’t have fancy routing software. We had solid systems.
Our dispatchers were trained to cluster rides, avoid deadhead miles, and use vehicle
capacity efficiently. That alone saved thousands every month. - Fixed vs. Variable Expense Control I knew exactly what my fixed costs were and
scrutinized every variable expense. Fuel, maintenance, overtime—they were all tracked
closely. When margins dipped, we knew where to look first. - Hiring for Culture, Training for Skill A good driver shows up. A great driver stays. I
hired based on reliability and empathy, then trained them on the rest. This reduced
turnover, which directly impacted our bottom line. We were a team with the same goal
– serve at a high level. - Saying No to Bad Contracts Not all contracts are worth having. If the
reimbursement rates didn’t align with our operating costs, we passed. Growth for
growth’s sake can bankrupt a business. - Building a Purpose-Driven Brand Clients knew we cared. Drivers knew their work
mattered. That culture translated into fewer complaints, better retention, and a steady
flow of word-of-mouth referrals.
Healthy margins aren’t about cutting corners. They’re about operating with clarity,
discipline, and heart.
If you’re looking to tighten up your margins or take a closer look at your operations, it’s something I help clients with every day.
Email me at nemt.growth@gmail.com