Business Strategies

Is there really a big difference between vehicle leasing and financing?
THESE TWO WAYS OF PURCHASING YOUR LIVERY VEHICLE MAY NOT
BE AS DIFFERENT AS THEY SEEM
by Wayne Blanchard
 

Of all the various aspects of the luxury chauffeured transportation industry, one remains the top source of confusion amongst operators — lease
or finance? Operators are heard asking
three questions:
•Which is better for my business?
•How do I know which one to choose?
•What is the difference between the two?
When looking into leasing vs.financing, many operators go online, where they generally only find information about consumer leasing and financing. While there are similarities, there are also subtle differences. The best way to learn about commercial loans is to ask the people who provide them.
To better assist operators in understanding the structure of this subject,

LCT asked two veterans of the world of professional and commercial vehicle leasing and financing to help explain. Michael Villani, VP of AutoLine Capital Corp. in Melville, N.Y., and George Lee, national sales manager of A-Z Resources LLC in Colton, Calif., have provided all the information you need to better understand commercial vehicle purchasing.
 

SO WHAT'S THE DIFFERENCE?

The answer to that question will probably surprise you — not much. Most commercial leasing and financing contracts are very similar. With only a few distinguishable differences, the best way to choose which to go with may be as close as your accountant.  What is probably the largest misconception is that a commercial lease such as ones for a limousine, is the same as a personal or consumer lease. These consumer leases are characterized by an individual putting money down, making monthly payments, and then turning the vehicle in at the end of the term. Generally speaking, these leases are for the consumer who wants a new car every year or two. In many cases, the vehicle maintenance is worked into the contract and there are usually mileage restrictions.

A commercial lease is structured more like a financing contract. When you lease a vehicle, the money comes from a leasing company. How that company generally obtains the money is it develops lines of credit with different banks. It borrows the money from the banks for X amount, mark it up, and provides it to the client for Y amount. The operator obtains the lease, and depending on that person's risk rating (generally from A to D, A being the best) can get better terms, interest, and down payment arrangements.  The commercial lease generally has no mileage restriction so a limousine operator doesn't have to worry about being charged an exorbitant amount in overage fees. There is also the advantage of the buyout at the end of the term. In many cases it can be as little as one dollar.

Now with financing, many of these same principles apply. The applicant's credit risk rating will determine the terms, interest rate, and length of the contract. One of the main differences is that the individual owns the vehicle. If you are leasing the vehicle, an operator has to seek permission to alter it. With a finance contract, the vehicle belongs to the operator and can be altered as that person sees fit. "If you want to cut the trunk off and add a hot tub, that is your right," says Villani. However, with the lease, you have to get permission from the leasing company, as they are the one who owns the vehicle." He adds that it's all about flexibility.  The other main difference with leasing is that the lessee is bound to a strict agreement. "The agreement can be for two, three, four, or even five years, and if you pay it off early, you are bound to the sum of the remaining payments, says Villani. "However with financing, if you decide to pay it off early, the bank will give you a net-to-close discount, which means you get back your unearned interest charges." But again, it's all about what you plan to do. If your accountant says it's in the best interest of your company to lease vehicles, and you're planning to turn over your assets every two to three years, then a lease is most likely what you will need.
 

How you get your best deal is not as much about negotiation as it is about how you look to the lenders. Lenders are just like most businesses. You try to create the best deal with whatever tools you have. In the bank's case, the tools are prerequisites. Generally, there are several factors that determine what type of rate and terms you're eligible for:
1 • CASH FLOW
How does your income-to-debt ratio look? If your money is going out as quickly as it's coming in, then you're not going to look as good to lenders. Since this industry is largely cash-based, many smaller and/or newer operators have a tendency to separate or not report some of the cash income. This is a bad idea, as it takes away from your company's financials. Another bad move is that many companies try to show losses at tax time. While this helps when paying income taxes, it hurts when a bank wants to see your tax statements. They want to see a positive cash flow and good profit margins.
2 • LENGTH OF TIME IN BUSINESS/STABILITY
The more stable your company is, the better you will look. According to the Small Business Administration, most small business failures occur within the first five years of business. Banks pay close attention to these statistics. The longer you have been in business, the more stable your company becomes.
3 • CREDIT SCORE OF THE COMPANY
The lenders want to be sure your company has been paying its bills. If a company isn't paying its other creditors, then why would the bank think it will pay them? It's the same idea with your clients — you don't want to do business with companies or people who aren't going to pay you for your service. You have invested money into the job — chauffeur, fuel, mileage, and such. The lenders are the same way.
4 • CREDIT SCORE OF THE PRINCIPALS
As with the company's credit score, the bank wants to be sure the owners/stockholders are equally responsible. Along those same lines, if you can't manage your own finances, how can anyone expect you to manage your company's?

"Many operators are worried about the value of various vehicles or other company assets," says Villani. "To me, the most important asset of any company is its principal, and that person's most important asset is his credit." He adds that without good credit, that person can't keep turning over the company's inventory at need and hence is unable to stay competitive.

Lee adds that an operator with bad credit can improve his or her standing with the lenders. "If you borrow from us and you are a high risk, you will start off with higher rates and shorter terms," he says. "However, during the, say, three years you have leased with us, if you have paid us, and all of your other creditors... well, that means a lot." He also says that this could help you earn a better rating with his company.
Lee's Suggestions:

• Keep an eye on your credit: Make sure the information is correct. Plus, if there are any items that are hurting your score, check to see if there are any ways to repair the situation and get things back on track. It is also good to have a working knowledge of your credit when speaking to lending institutions.
• Keep an eye on your checking account: Make sure you have good financial retention. You should know off-hand what kind of numbers your company is doing. What are your expenditures and what is you income?
• When you do purchase a vehicle, you should seek the shortest term contract you can afford. If it's a lease, then you are out of the contract quicker and have higher writeoffs for your taxes. If its financed you will create equity in the vehicle quicker and have some leverage during sale or trade-in.
• When you're shopping for a finance/lease deal, be sure to get both the payment AND the interest rate. There are some smaller lending companies on the Internet that will quote you a certain rate that will be lower than the others. When you actually get the payment book, you'll find the rate isn't the same as what they quoted. "Just shopping the rate isn't going to help you," says Lee. "If you have both rate and payment, then you have everything you need to comparison shop."
• When purchasing a new limousine or sedan, it's a good idea to go to a financing/leasing company that specializes in these types of vehicles. Many local banks and credit unions will only have a black book that covers standard passenger vehicles. "When they price your vehicle, they will most likely check the amount you are borrowing on a limousine against the book value of a standard Town Car," Lee says. "In these cases, the bank will only lend you the value of the original chassis and not the value of the altered vehicle."

Ultimately, there are several factors that can determine whether to lease or finance. If you feel that you may want to alter the vehicle, then you
will want financing. If you don't want the hassles of titling and registering the vehicle, then maybe you should go with a lease. Both are sound options and each has advantages. However, the main decision-maker may be your taxes.  Besides the fact of vehicle ownership and payoff terms, the main difference between the two is your tax structure. Depending on how your tax structure is set up, one may be more advantageous than the other. Price, down payment, payment, and overall terms are not very different. The key is how you want to set up your company's taxes. This may also depend on whether you are operating under a DBA, LLC, LLP, and so on.  With a lease, you can write off all of your payments because they are considered to be rental payments. However, with a finance contract, you are given the opportunity to write off the interest of the note, as long as it meets a minimum amount requirement. You are also allowed to depreciate the vehicle and write off the loss each year. Each has its own distinct advantage, and the best way to determine the right choice for you is to check with your accountant, who will ultimately discern which is best.

 A POPULAR MISCONCEPTION is that lenders seem like they don't want to lend money. Like people in the limousine industry, people in the lending industry are in business to make money. When they lend money, they are making an investment toward uncertainty. This means that they can never be completely sure they will get paid back. That's why they have to be so strict with their credit policies. "People think lenders don't want to lend money to people," George Lee says. "That's ridiculous! Lending money is how we make our money. We just have to be sure we're going to get paid back." That means scrutiny in many cases.

They are also aware that bad things do happen to good people and there are many people and companies with bad credit that will pay them back. That's why they have different credit terms that are based on the factors detailed in this article. However, the fact remains that they want to lend money. "We always do whatever we can to help people get the vehicles they need," adds Lee. "In the end, it's all about building a relationship that's based on trust."

Lee also mentioned that in many cases, the relationships become so well established that operators will walk up to him at a show such as International LCT, point at a vehicle, and say "George, I want to buy that!" He says that it's just a matter of saying, "OK, just go and buy it, and we'll set up the paperwork later."   "That's the type of relationship every operator needs to set up with his banker," he says, "where the mutual trust is so strong that you both know the other is looking out for your best interest." He adds that no matter what company an operator goes with — A-Z, AutoLine, Brenner, or Titus — they are creating a relationship for the long haul.
 

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Innovation and Profit in Para-Transit

Most operators must find ways to become innovative and groundbreaking while aspiring to industry leadership. Sterling Access offers up an inside approach to luxury para-transit (limousine transport for the physically challenged) while serving your tried and true regular clientele. It could even become the key to finding new business in your backyard. Simply put, the approach asks operators and coachbuilders small and large to remove their blinders and look forward to a world that opens up around you. Be innovative and groundbreaking by becoming a visionary in your market.Economics will surely guide the true entrepreneur. Luxury para-transit can definitely increase your bottom line. It certainly does not mean that by simply buying a product to serve your clients, the flow of revenue will rush in. Marketing a new and unique product requires vision, tenacity, and discipline, and updates to sales materials and strategies. Chauffeur training also will require addendums to the manual and actual segregation of the staff by identifying those most capable to be allowed to perform the actual service.
 

Why Snub the Physically Challenged?

There have been some operators who were approached about this alternative market and remarked, "Oh, we don't get much call for that." How odd is that response? How can you possibly get a call for a new service and product that until now did not exist? This mindset must be offset by survival instincts and the desire to move forward while looking to the side.Using my experience as a guide, which includes participating at almost every major limousine show with this product, I am left remembering two similar comments from a multitude of our industry people that I deemed to he universal: This product for the physically challenged has been a long-time coming and is long overdue.
We certainly could have used this car a couple of weeks ago. Hearing these comments repeated by folks who certainly did not know one another left me to believe them true.

V. Guy Ninio is president of Silverado Coach Co., Inc., in Los Angeles. He is also the president and inventor of the Sterling Access luxury para-transit limousine.
LCT mag
 

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Destination Management Companies (DMC) and limousine service go hand-in-hand. DMCs have the responsibility of coordinating hundreds of people for a short period of time, and limousine operators have the means to get these hundreds of people from A to B. A DMC is a third-party firm hired by out-of-town com-
panies or associations to plan programs and events,as well as coordinate transportation for those who attend. DMCs are required to plan out every detail of a group's visit to town, everything from decorations and parties to which restaurants the attendees will eat at is arranged by a DMC. One of the major concerns of a DMC is choosing transportation for the group that has hired It. It makes sense that the solution is to turn to a local limousine service that has the fleet, skills, and knowledge to accommodate the clients. Any limousine business looking to takethe next leap into profitable markets should be inclined to actively sell itself to these DMCs.
 

Let's say you're an operator in Baltimore. A DMC will come to scout the city beforehand, viewing various venues, hotels, restaurants, as well as check out transportation services in town. A DMC is looking for a company with a solid reputation, keen knowledge of the city, and vehicles that can handle the size of the group. Jill DiMarco, director of accounts and partner of Signature Events LLC in New Orleans, says she travels often to various locations and is always out soliciting limousine companies for business. "Many times I'll be handling a group going to a city I know nothing about, so I want the limousine company to have a great deal of knowledge of the area," she says. "I want a company that knows a lot and can be the most helpful to me when I'm in town with the group."
 

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Association Involvement

Sure it's helpful and important for limousine companies
to participate in our own industry associations, but have you considered joining the Meeting Planners International (MPI),the Association of Destination Management Executives (ADME), or the National Business Travelers Association (NBTA)? These are net-works of thousands, putting you In direct connection with executives,CEOs, and other vendors that supply the DMC market. Joining these associations might give your company the edge it needs to land the next convention coming to town. DMCs will also look at a limousine company's local involvement. To narrow down choices,DMCs will first ask for referrals. DiMarco says she will talk to limousine companies in her native New Orleans to see if they know of any company that can provide the highest quality of service. She will also look at the convention and visitors bureau (CVB) in that select city to see what companies are committed to the community. For instance, a quick search on the Sacramento CVB website brings up a list of transportation partners, among which Chris Quinn's company Corporate Transportation Solutions (CTS) is listed. Quinn says Sacramento is becoming a destination location for many groups since the city got behind some major remodeling. California's capital city now brings in over $2 billion from the convention and tourism industry. "Being involved with these associations in my area gives my company the advantage of hearing about a certain event sometimes six months to a year in advance," says Quinn. "We can get in on the ground floor of the planning stages. If the DMC comes to check out the city, we would like to establish a relationship then, hope-fully having the chance to drive them around."
 

Updated Website and Clear Rates

If your company's website is not updated on a regular basis then a DMC is not likely to consider your service to fulfill its needs. DiMarco says she will look at a limousine company's website to view vehicles and find out
more about its capabilities. "If you want to attract corporate work, you need to present your front door properly," says Quinn. "A photo of a limousine with fireworks is good for catering to the leisure segment, and operators may want to consider dedicating a portion of their website to corporate or group work. This will help instill confidence in the DMC."
Promoting your DMC work in marketing materials can't hurt either. Bill Faeth, president of Silver Oak Limousine in Nashville, Tenn., outlines a brief
summary of what his company can do for DMCs in his brochure."We advertised it before we really even got into that kind of market," says Faeth, whose company has only been doing corporate work since July 2007. "Your marketing materials project the image of your company. If you don't go with high-quality paper and professional-looking designs, then it reflects on your company."
Aside from knowing you can handle this work, DMCs want to know what you charge. This is when people in DiMarco's position want you to be the most upfront. "I want a limousine company to provide me with some sort of better pricing than I can find on the Internet," says DiMarco. "We as DMCs know a lot more about the transportation industry than the typical corporate traveler, and we want the limousine companies to recognize us as an industry. Don't just give us the retail rates." DiMarco says mistakes some operators have made are quoting her transfer rates and yard-to-yard pricing. "How far is a yard? I want to know these things. Don't quote me the transfer rate if I know we're using the same vehicle for 10 hours; I want the hourly rate," she says.
 

When your company gets an account from a DMC, there are many things you should be able to handle when the group comes to town, all of which would have been discussed prior to getting the business. Once the group is in town, the airport is the first hurdle. DiMarco says she requires a 24-hour number and one main contact person for the duration of the event. For large movements, like at the airport, DMCs like to have a supervisor on the premises with them so things run smoothly. Faeth says he assigns a specific person on his staff to deal with each group account, and the logistics are examined before the event. "One of the most important things for the DMCs is that its VIPs are taken care of," says Faeth. "We have learned that setting up and navigating transportation for 500 to 1,000 people is the easy part. Our company also always considers having the right amount of sedans or limousines available exclusively for the VIPs." Quinn uses his background in emergency services to successfully execute day-of
tasks. "We have a command center for communication. We also have Plan B, C, and D in place so in case something happens, there will be a backup," says Quinn. "We divide the labor so no one person is overloaded. At the airport we'll have a greeter and another person at baggage claim, helping the clients collect luggage, then usher them out to the awaiting transportation. Communication is key." DiMarco says it is important for the transportation serv-
ice to keep track of its vehicles as well. "If a vehicle is late, just be honest with the DMC representative and tell him or her when it will arrive. This enables the DMC to do damage control."
 

Benefits of DMC Work

There are obvious profits to be made from DMC work. A group comes into town for five days and your company pulling everything off successfully means revenue for your business, but more than that it means you have built a relationship with potential for repeat business. DMCs handle work for hundreds of groups, not just the one group that just left town. A few months or a year down the road, when that DMC is looking at your town once again, transportation is not something that needs to be researched. "If someone provides us with a good product then we will go back to them again," says DiMarco. "DMCs are very loyal in that way." Quinn says limousine companies can earn the respect of DMCs after an event. "You worked with them once, and the dialogue is going to be open. If they come back to town, it can be big blocks of business worth thousands of dollars for your company. If you're not tapping into this line of revenue, then you've got to rethink what you're doing in business," says Quinn.

The possibilities are endless. If operators take the chance at this type of work, the rewards will be remarkable. An abundance of information is available on the Internet, including websites of DMCs in your area and those national/local associations mentioned. Make sure to visit the following sites when you're ready to take the leap...
 

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• Repeat or update training
• Think about checks, safeguards, and spot checks
• Take advantage of mystery riders to reveal the good and the bad of your customer service
• Use comment cards and listen to advice objectively
• Spotters can point out issues with car cleanliness
• Always reward for exceptional service

Chauffeurs
The gold standard for client care has essentially stayed the same since the horse and luxury carriage starting rolling — provide a superb, trouble-free experience for clients. As far as training goes, think military and teach the following components:

• Defensive driving — Smith System or equivalent
• The pickup and drop-off game — airport service, stadium and convention center pickups, and all other venues
• The art of service and service plus
• Company policies and procedures
• How to maximize your career as a professional chauffeur (and the distinction between just a mere “driver” versus a “chauffeur”)

Operations
Setting a Positive Office Tone Your staff, especially full-time employees, will spend the majority of their waking hours working for you. Seeing the chauffeurs as human beings is not something many services are good at. Endeavor to create an atmosphere of growth and potential. In their eyes, your firm must be a positive place to work!

Operations Management
Do you need to sharpen your skills as an operations manager? We all could use a refresher course because operational skill levels determine how far a service will advance. The egos of numerous owners often prevent them from finding personnel that can perform quality operations and consequently these companies never rise far enough to be “ranked.”

Niche Markets
Definition is the path to success in the luxury transportation world. Instead of being Joe’s General Service, bidding on any job that floats by on the phone — profitable or not — choose a niche that utilizes your firm’s collective talents. A plumb niche market will change your company culture and the way you practice business. By working at being good at something specific instead of striving for the one-size-fits-all model, your service will grow.

Marketing
Diversify Your Reach
Do your marketing efforts subsist mainly of a Yellow Pages ad or a mediocre website? It’s time to connect with the wealth of resources out there at your disposal. The following have worked well for me, and it doesn’t have to cost a lot of time or money.

• Official Airline Guide (OAG) The OAG is widely utilized by travel agents and corporate travel managers who book travel and ground programs. The OAG is a lucrative and wonderful source of business for a large number of operators. Their staff will assist you in developing an effective presentation, whether it’s a line listing or an ad. The connections you will make will be impressive and long-lasting, as long as you provide a premium level of service. Visit them at www.oag.com.

• Destination Management Companies (DMCs) If Destination Management Companies operate in your area, you will want to be connected with them. DMCs plan travel and ground transportation in countless cities around the world. They are very powerful in the amount of business that they can refer. The best DMCs like the top transportation networks handle the finest clientele and biggest corporations in the world. If you have provided a seasoned, well-trained professional chauffeur who has an overwhelming commitment to the art of service you will do well in the DMC arena.

• Travel & Tour Associations Meeting Planners International (www.mpiweb.org) and the National Business Travel Association (www.nbta.org), among others, can be an over-the-top source of long-term revenue for your firm. Try attending a few meetings and do some networking — believe me, the possibilities are endless for the intelligent business owner!

The annual “sanity check” of your business goals and business plan should be a positive exercise for any operator. It’s a great way to spot problems before they knock you off your path to success, or to remind you that some of the things you do are worth the extra effort. It’s also a time to reward yourself for all that you’ve accomplished over the past year and all that you still can strive for. Good luck! LD
 

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20 Tips for a Thriving Business
by Neil Weiss

Finding success in the chauffeured transportation industry starts by building a strong foundation and requires constant vigilance. Operators must keep their finances in order, promote their services, anticipate trends, properly train their employees and make sure clients are kept happy and feel appreciated.

Successful business owners not only love what they do, they keep learning and refining their procedures. Operating a small business involves long hours and many responsibilities, but the rewards are abundant if you plan ahead for the perks and problems alike.

The following tips, broken out into eight key areas, are designed to help operators build and maintain a strong and prosperous business -- and enjoy themselves in the process.

Customer Satisfaction

1. Provide exceptional service. This may sound like a no-brainer, but here’s an opportunity to be memorable. You already know to exceed your customers’ expectations and never promise anything you can’t deliver. What can you add that’s a pleasant surprise for your clients, something they didn’t expect?

2. Personalize your offerings. Customize programs or special services for specific clients. Try to anticipate when they will need your service again, remember their particular preferences and develop an offering that is based on their requirements. For example, make sure clients have their favorite newspaper, magazine or cup of coffee waiting for them.

3. Pay attention to your customers. Keeping customers can be even more difficult than finding them. Focus on customer service and communication. Don’t pester them, but keep in touch to make sure you are meeting their needs. A follow-up call after a job is a good way to keep tabs on the relationship. Remind your clients throughout the year that you’re ready to meet their needs by sending them a card or useful gift -- a pen, a pad of sticky notes, even a business card organizer — a few times a year.

"I send out gifts during the holidays that have our company name and phone number on them. I also send a driver over to my best clients once a year with a special thank-you note," says Gary Day, president of American Limousines in Baltimore. "Little things like that can often go a long way, even if a customer-service issue arises."

4. Identify and reward your most valuable clients. If it’s true that 20% of your customers often make up about 80% of your profits, it makes sense to give these customers the best service. Assign a senior account manager to check in regularly with the key accounts to make sure there are no service issues you should know about. Consider offering a frequent usage discount: Clients receive either a discount or a free service once they have reached a specified target, and you receive repeat business.

5. Develop and maintain a solid database. It’s never too late to start something this essential. All contact information for customers, prospects, associates, vendors and others should be maintained in your database for quick access and updating. Try to get birthdays and anniversaries so you can send out correspondence and special offers. A database can also flag customers who have not interacted with you for a certain time period. If you have a computer expert available, put in some kind of alert mechanism to ensure that you make contact with clients who have not called. Another way to remind yourself to comb the database is to put it on the to-do list in your computer’s calendar function. Because a database simplifies recordkeeping enormously, it is worth every penny to educate yourself in its use.

6. Handle complaints effectively. Given the exceptionally high expectation for customer service in this industry, complaints are unavoidable. They are also an ideal opportunity to shine. If complaints are handled effectively, customers are much more likely to do business with you again. They prove you are committed to helping them. Follow these steps: apologize, listen, establish the facts, agree on how to proceed or what form the compensation should take, and then follow through on your promise. Developing a written strategy for handling complaints will give you confidence in the face of potential disaster. This is another area where it pays to educate yourself by taking classes and reading books.

"Operators should welcome complaints," says John Critchett, president of Palm Beach Tours and Transportation in West Palm Beach, Fla. “Most people don’t complain -- they simply take their business elsewhere. Also, properly resolving a customer’s problem builds loyalty. We all make mistakes, and customers can be forgiving if you handle it properly.”

On-Target Marketing
7. Market professionally and consistently. If you don’t have the time or the skills to market your product effectively, find someone who can devote a significant amount of time to it. First, look within your company for someone with the skills to get the job done. If that doesn’t work out, hire someone with marketing experience or find a firm that knows the industry. Regularly update your Web site with fresh information. Change your ads regularly so they don’t get stale. Every month provides abundant opportunities to promote your business to both new and existing clients.

"When we installed our new online reservation system, we promoted it heavily, and doubled the amount of business we were doing with certain clients," says Tim Rose, president of Flyte Tyme Worldwide in Mahwah, N.J.

Follow the Money
8. Watch your finances. Financial statements offer insight into the health of your business. Project your cash flow ahead by several months, based on reasonable expectations for sales and income, demand for your services, payments due (including loans and rent) and other factors. By comparing actual cash flow to projections, you can spot changes that will help improve your company’s performance. This is another area where it pays to invest in a computer program and classes. If you’re new to owning a business, you’ll find that you’ll be managing money in a different way than in the past. Don’t hesitate to ask questions and seek the knowledge you need.

9. Stay conservative at your first taste of success. It is important to enjoy the fruits of your labor during periods of rapid growth and increasing profits. However, sometimes business owners will make expensive purchases and lose their focus. Expensive hobbies and other business ventures suddenly become distracting. By all means, enjoy your fun money -- just budget for it, as you would for anything else.

Effective Goal Achievement
10. Develop goals and a plan to execute them. Sometimes we get so caught up in the day-to-day running of a business that we lose sight of the larger picture. It can be exciting to step back and look at how far you’ve come and how you would like to grow. The steps for achieving goals are simple: Define your goals, develop an action plan, anticipate risks and track your progress.

Goals should be precise and realistic: Don’t just say that you want to increase sales, decide on specific numbers. If you decide that you want to increase business by 20% in the coming year, bolster your sales and marketing budget to get the job done.

Try to keep the list short -- no more than three goals at a time -- to keep your focus sharp. Create action plans with step-by-step tasks and multiple strategies for achieving each step by a certain deadline. Also consider what could get in the way of achieving the goal and make sure your plan takes any risks into account. Consult your goal list at least a couple times each week to make sure you are doing what needs to be done.

11. Revisit your business plan. Your business plan should not go up on the shelf to gather dust just because the start-up phase of your company is over. Refer to it often. Note where estimates accurately reflected realities and where they didn’t. Even subtle changes in the marketplace may require you to take new directions and develop new ways of accomplishing goals.

Managing Employees
12. Look for the right qualities when hiring employees. Attitude is often more important than experience in a new hire. You can always train a novice, but it’s hard to break bad habits. Just make sure you are specific about what you expect of employees and monitor their progress. They will be happier if they are confident in their ability to perform their job properly, and happy employees make good workers.

"I have found that when you hire someone who is coming from another company, they often bring bad habits with them,” notes Anthony Viscusi, president of Dav El Philadelphia. "It’s easier to train someone than to retrain them."

13. Conduct background checks. The benefits are significant and corporate clients will often demand it. You never can be too careful these days. Not sure who to use? Search the Web, ask your insurance provider, or talk to your local police for recommendations. In each instance, you will need to explain to the applicant that a third party will be conducting a background check as a condition of employment, and make sure you get their signature.

14. Create a detailed, formal chauffeur-training program. Veteran chauffeurs can make great teachers, but you need a curriculum and a written course outline to ensure all pertinent areas are covered. Spell out the specifics of what you expect from your chauffeurs. Many misunderstandings and frustrations occur simply because a new hire didn’t understand the expectations of the boss. If training chauffeurs is more than you want to handle, make use of an established program that you trust and that you feel is worth the investment.

15. Praise in public, correct in private. Publicly recognizing an employee’s good efforts builds morale and inspires others to work hard. Public criticism has the opposite effect. It also makes people hesitant to offer opinions and insights that could be very valuable. Ask your employees what rewards would motivate them to do their best.

16. Create a disciplinary and review process. Develop a plan to tackle issues ranging from poor performance to chronic absenteeism. Delve into each area and determine what is acceptable, unacceptable and grounds for dismissal. For instance, how many absences are acceptable in a given time period? How should you deal with customer complaints about a particular employee? It is essential to provide training for everyone who deals with the general public so that boundaries, expectations and responsibilities are fully understood.

17. Encourage employee loyalty. Happy employees help encourage repeat business and better represent your company. When a client requests a specific driver, you know you have a winner. When salespeople reach established benchmarks or chauffeurs drive a certain number of jobs without a complaint, give them cash incentives.

Time Management
18. Learn to delegate. As your company begins to grow, you will need to seek out and identify employees you can trust to take on some of your responsibilities. If you try to do everything yourself, you not only will risk losing your mind, but you will never reach your full potential. Delegating allows business owners to focus on the road ahead. Effective delegating is a balancing act. You must allow people to make mistakes, but all delegated tasks should come with some level of responsibility and accountability.

19. Budget your time...literally. Examine your schedule and assign values to each task --including time spent booking a client, interviewing chauffeurs, or developing a marketing program. When all the items on your agenda have a dollar amount associated with them, you will quickly realize what your priorities are. This will also help you choose what to delegate and where your business needs to streamline.

20. Work on time management. Try to focus on things that are important rather than what’s urgent. Timely planning is the key to balancing job tasks with community and extra-curricular activities. Set aside time each day for planning, focus on tasks and activities that are important.

 

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Business Plan
(published on LCTMag website, see links tab for address link)

Believe it or not. Success in business does not depend on chance, circumstance, or whom you know. It doesn’t matter whether you’re a chauffeured transportation operator or owner of the New York Yankees – no business will succeed without two things: money and good planning.

However, most businesses seem to overlook the importance of having a good business plan. Without one, your business becomes vulnerable to poor decisions that could hinder growth or ultimately result in bankruptcy. A business plan is also crucial if you want your business to be taken seriously by financial institutions and investors that may be interested in lending you money.

In fact, a good business plan can be instrumental in a number of areas, including the following:

• Convincing banks to lend you money. • Convincing suppliers to extend credit to your business. • Attracting partners to invest in your company. • Attracting key employees to your company. • Creating a blueprint by setting goals for the future. • Helping you monitor the progress of your business and make adjustments when needed. • Communicating your plans to employees to ensure that everyone is working toward the same goal. • Keeping pace with your competitors, who may already have a good business plan.

Putting a business plan together is not easy, nor should it be. Before you get started, do your research – educate yourself and ask questions. Think long and hard about where you want your business now and in the future. Then, use the following outline to organize and construct your plan.

Cover Letter: • Name of business • Address • Phone number • Principals’ names • Contact information If you plan to obtain funding, this is where you ask permission to present your business plan. A cover letter should include the items mentioned left.

Title Page

Table of Contents:
Offer your readers a brief, organized outline of your plan. Include page numbers of major sections. Executive Summary:
• Purpose of plan • Company overview • Significant service features and benefits • Market potential • Status of competition • Management qualifications of principals • Financial projections • Amount of financial investment required • Earnings projections and potential returns to investors

This one- to two-page summary may be the most important part of your plan and should be written last (after you’ve compiled all of your information). Often, it is the only section that gets read. A well-written summary should arouse the reader’s interest in your business. Condense each major section into one or two sentences that convey the overall meaning.

Company Direction:
Explain to the reader where your business is now and where it is headed.

Present Situation:
• Management team in place • Services offered • Market status • Prices and profits • Customers (who they are and what they want) • Financial status

Vision:
A unique and abstract inspirational statement about your company’s direction.

Mission Statement: Example: Corporate Limousine’s mission is to be the number one transportation provider to corporate clients in the Los Angeles area. As the industry leader, our employees are committed to achieving the high levels of customer service and professionalism that our customers expect. We use cutting-edge technology and the highest-quality products available to serve our clients safely and effectively.

Can be as short as one or two sentences or as long as a paragraph or two. Should include your company’s philosophy and aspirations as a transportation provider, as well as its attitudes toward customers and employees.

Goals and Objectives:
• Corporate goals • Service goals • Market goals • Sales goals • Operations goals • Financial goals • Objectives:

Include specific objectives and expected date/s of completion. Describe the goals necessary to achieve your vision. Goals should be set within reason

Company Overview:
Include the following:
• Company description and history: Explain how and why your business was started and record company milestones and achievements. • Legal business structure: Describe ownership and legal liability regarding taxes and creditors. • Stage of development: Indicate whether your business is a startup or an established company. • Management team • Board of Directors • Staff

Services:
• Current services provided • Major benefits of your service • Advantage over competitors • Future service expansion plans

Summarize the different services your company provides. Include major benefits of service, advantages your service has over competition, plans for future services, and technical aspects of products/services.

Market Analysis:
• Industry description: Provide a general overview of the chauffeured transportation industry. • Target market (size and composition): Identify and describe the market segments your business is tar- geting. Include estimated size of these markets and break down customer demographics by profession, age, gender, income, etc. • Competition: Compare products and services, effectiveness of the businesses, and track records. The key is to show potential investors why they should invest in your company and not your competitor’s. • Risk Assessment: Business and economic risks that could affect your company’s mission. These could include regional or global economic booms or recessions, competition and industry growth, and success of complementary industries (coachbuilders, auto manufacturers, travel industry, etc.).

Describe your targeted market and the customers that make up this market. You will also want to describe the limousine and transportation industry in which you work, as well as the makeup of your competition.

Market Plan:
• Overall strategy: Provide a short summary of your fundamental sales and marketing strategies. • Sales Strategy: - Positioning: Describe how the market perceives your company and its services based on how you have positioned your company. - Pricing: Explain how you set your prices. - Selling: Explain the specific sales techniques you use. • Advertising and Promotions: Describe how you plan to get people to use your limousine or transportation service. Provide information about the type of advertising, sales promotions, and media events used by your company. • Public Relations: Indicate your experience using publicity, press releases, media events, and company newsletters to promote your business’ growth.

Describe how you plan to market your service to your targeted market segment.

Financial Plan:
• Summary and analysis of financial statements • Income Statement or Profit-and-Loss Statement: Include a summary of earnings and expenses over the course of a month, quarter, or year. • Balance Sheet: Show your company’s assets, liabilities, and capital. • Cash-Flow Statement: Provide information about the cash coming into and going out of your business. • Break-Even Analysis: Identify the level at which your business must operate to break even. • Capital Requirements: Estimate the amount of capital you need to borrow. • Payback Methods: Describe how and when you plan to pay back investors.

Include financial projections for the next three years, as well as current financial statements and statements from the last two years.

If you meticulously follow these suggestions, your business plan will be an effective tool. At the same time, you’ll also have a better understanding of your own business and how to cultivate it. That will help you stay on the right path, even if you decide not to attract new capital and additional investors. Like any good map, your new business plan should help you determine where you are, where you’re going, and how you’re going to get there.
 

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People Movers: Big Kids on the Block
by Alisha Gomez

Kristina Bouweiri has seen her business grow considerably since Reston Limousine Service in Sterling, Va., won its first government shuttle contract in 1991. Winning that first contract put Reston on a list of companies that accept bids for shuttle services from U.S. government agencies.

Today, the company has 60 contracts with various agencies and corporations to provide shuttle service with its 25 vans and 49 minibuses, says Bouweiri, president and CEO. Much of Reston’s work are shuttle services that allow employees to get from one corporate site to another without driving or taking a cab.

“Especially in Washington, a lot of companies have expanded and there’s no space, so they get offices in Maryland and Virginia and they hire shuttle services like mine,” Bouweiri says.

She notes that most of her new business comes from people who see her vehicles on the road. Bouweiri runs her corporate and agency shuttle services weekdays during business hours, and then does moonlight tours of Washington, wedding shuttle service on Saturdays and shuttle service for churches on Sundays.

The company’s profits have increased because one vehicle is doing so many things. “We have found that out of the four types of vehicles we have, the buses work seven days a week,” she says.

Using people movers – vans, motorcoaches minibuses, limo vans and limo buses – for multiple jobs is key, says Brent Bell, president of Bell Trans in Las Vegas.

Bell Trans, which used to be more of a limo and taxicab business, added people movers to its fleet because it saw a demand to carry large groups of people in one vehicle at one time.

Bell started with a couple of minibuses and grew from there. The company now has 101 minibuses; seven deluxe minibuses with reclining, high-back seats TVs, VCRs and stereos; nine vans, and three limo buses.

His people movers are used for convention work, tours, bachelor and bachelorette parties, parking shuttle and charter service.

“Having these types of vehicles in a fleet means keeping clients,” says Tom Sturdivant, owner and CEO of Sedan on Demand in Nashville, Tenn. He notes that being able to move large groups of people with one vehicle makes an operator a one-stop shop. “You definitely don’t want to say no to a client or turn a customer away.”

Sturdivant added people movers to his fleet when he began receiving more inquiries from clients for moving large groups.

Sedan On Demand now has seven vans, one limo bus and two minibuses. His people movers do everything from tours, convention and corporate work to special-event service.

Operators tend to keep people movers anywhere from three to six years. Despite the low resale value – about 20% to 25% of original price – Bouweiri says the person she buys her vehicles from will try to find buyers for her old equipment. She’s even had a buyer ship her used vehicles overseas.
 

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Winning Upscale Clientele Business

Business is not like war - it is war. From the time you start to the time you become established and beyond, there will always be competitors plotting to take a bite out of your market share. Competition can be healthy, if it keeps you on top of your game. If your goal is to service upscale clientele, then you will need to be on top of your game as many of your foes fall short. For those who will keep up with you, how can you shake their tenacious pursuit? Be prepared for the battles that win the war. 

Battle: A Professional Look

Every trade has a best practices guide. For livery it is the professional look that your service has and distinguishes you from the competition - whether you own one car or many. The look should follow through in every aspect of your company, from marketing materials and vehicles to your staff's dress and actions. Your service is always being watched by current and potential customers, so make the best impression everywhere possible. Your chauffeur may be performing a so-called "simple" airport drop, but know that many people, including the competition, are judging his or her actions critically. If the picture isn't pleasing, you have just turned off dozens of potential customers. Smoking or sleeping in the cars at the airport does not have a good impression, especially when the client has to knock on the vehicle window to awaken his driver!

Battle: The Best Chauffeurs

I've said it before and I'll say it again: put some extra time into hiring the best staff. Everyone wants chauffeurs who are better than the competition's, but much of this comes from within your company. The kind of person you are and the ethics you hold will determine the kind of individual you attract to your firm. Pay more than the competition, give more benefits, dole out the perks and extras with a generous hand, but most of all treat your chauffeurs with respect and lead by example. Make sure your training program is far more advanced than your competitors, and that it is one that rewards your chauffeurs for a job well done. Focus on what is best for your chauffeurs and what adds value to their careers, because a happy staff is more motivated to provide superior service to your customers. The energy that you put into your chauffeur workforce is the engine that will propel your rise to the top. Chauffeurs with verve, intelligence, and compassion are the only way to go, but it starts with the owner's attitude. Never forget that your chauffeurs are your frontline sales force, and you should respect their position accordingly.

Battle: "Expand" Your Fleet

A big part of servicing upscale clientele is having the ability to provide a vehicle whenever they wish. To accomplish this, you should know what is available at all times from your valued farm-out companies and even set a few cars aside in your own fleet knowing that they will book out. I always keep a few cars for my priority customers, even during citywide events because I want to be able to say "yes" on a moment's notice. Use your subcontractors fully and expand the list of qualified farm agencies each year. Don't forget to treat your farm-out companies well by paying correctly and on time - their relationships with you are invaluable if you're in a last minute jam. Special note: All farm companies should be listed as "additionals" on your insurance, and all need to meet your operating standards. Those companies are as much an extension of you service as well as your fleet. 

Battle: Anticipate Their Needs

Being able to field a team of meet/greet staff and coordinators on short notice is not something every firm can do. To service upscale clientele, you must be able to turn on a dime to provide these services if asked. Perhaps your number one destination management company had their best client beg them to take on an extra peice of work during an extremely busy time. Your only possible answer is YES and your must be perfect. This is where your connections with your farm-out companies and your outstanding staff will be most important. If you can pull off a job without a hitch, then your customers are likely to keep coming back to you. The key is to make it look effortless. You'll also earn brownie points with the destination management company.

These essential battles are not the magic bullets to scoring upscale clientele - they are the minimum that every livery company should strive for. However, in order to keep the pace with your competitiors who are looking to feed off of your pool, you should perfect these points and exceed even your own standards each and every time. A burning desire to succeed coupled with a great staff and a stellar work ethic will give you the benchmark to achieve new heights in servicing high-end clientele.... and beyond. LD
 

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Mastering the Fine Art of Preparing a Request for Proposal
by Pat Charla

DEFINITION:

An RFP (Request for Proposal) is a formal solicitation requesting that potential suppliers provide information and pricing for a specific project (group program, convention, conference, etc.), or for a contract to supply day - to - day service - locally, regionally, nationally, or globally - for a designated period of time.
When it comes to selling to corporate America, there's good news and bad news for small and midsize operators. The good news is that today's corporate buyers are less likely to select vendors based on prior relationships or reputation alone - meaning that more suitors are being "invited to the dance." The bad news is that the dance has become a lot more formal.

Where there's formality in corporate purchasing, the request for proposal can't be far behind. Today, more than ever, travel managers, procurement officers, strategic sourcing consultants, and other corporate "channel purchasers" are issuing RFPs.

As anyone who has responded to an RFP knows, the process can be exhausting, and a 33 percent success rate is considered excellent. There are three main challenges to any RFP response: getting invited to take part in the first place; gathering the data to answer the issuer's questions; and writing, packaging, and presenting the proposal itself. Expect to spend long hours debating, writing, and proofreading. It can get expensive. A response can take several weeks to complete (a typical RFP comes with a deadline of between four and eight weeks).

The only way to hear about corporate RFPs is to spend a lot of time networking with people who will tell you when they arise. Your most successful proposals will be for clients that you know well enough to discuss the contents of the RFP beforehand.

RFPs come in a variety of forms. There is no standard. In general, a corporate RFP will outline the specific service requirements, specifications, projected annual spend, and any specific licensing, insurance, training, and other standards and compliance issues. Some are excellent; others are poorly written. Some challenge that responding companies to design solutions with little to no direction. Others provide detailed and exacting specifications.

The actual document is not the only variable. An RFP can be a part of an informal process (wherein a few companies submit proposals, are interviewed by a limited number of decision makers, and a selection made from among them) to an extremely formal process (including formal presentations to company representatives). At times, an RFP can involve numerous presentations, with a large initial group of vendors gradually narrowed down in stages until a few select candidates are asked to give final presentations and conduct site inspections. If you have ever been involved in the formal RFP process, you know that there are specific issues that will affect - both positively and negatively - your chances for selection.

Give the Client What They Want 

Most proposals that people write today are not sales documents so much as catalogs listing every possible service and credential. While potential clients certainly want to know this information, they are only interested in how it is going to help them solve their immediate need. In other words, the focus of your response should be on the client's problem, what solution you recommend, and how you intend to make it work.

Obviously, not knowing what the client wants and giving them, instead, what you think they should have, will probably not result in a very competitive response. The problem is that knowing what a client is truly looking for requires insight above and beyond what is normally included in the RFP.

The only way to know what will provide the tight solution is to understand your client - what are his goals and what problems does he face? If you find yourself about to respond to an unsolicited RFP despite the odds, first ask for more information. Suggest that you will be able to allocate more resources toward his RFP if he can help you justify the expenditure. Request a meeting with the person who will be impacted most by this change (someone with profit and loss responsibility) to discuss what business challenge the RFP is targeting, how much he hopes to gain as a result, and what areas of risk he anticipates.

If the potential client agrees to your request, your odds for a win dramatically increase. You're in a much better position to compete and accurately forecast the opportunity. In fact, with this extra information you will be in the position to actually rewrite the RFP to you advantage. If he does not respond, you can make a decision to withdraw your name unless he provides you with more information. This works best if you are one of the biggest players in your market. Or, you could choose to walk away and focus your time and resources on opportunities with better potential.

Differentiate Your Response

If you offer something no one else does, you will have a unique advantage. Differentiate your company by customizing solutions specifically for the client's needs. Don't just apply what has been done before - create customized solutions for clients.

The same holds true with the "first impression" your response provides. From the first impression, the proposal should sell. Comply with the client's instructions on format, packaging, and communication, and don't ever settle for a proposal that does not reflect excellence from its cover down to the last word, chart, and graphic. Achieve a favorable first impression and you can be confident of your proposal getting on the short list. Your proposal must be the result of thorough work.

Stay Focused on the Benefits

I realize you have heard this before, but I'll say it again: Your client buys what you're selling because he perceives it as having some benefit to him. While this statement may be obvious to many there is something that is not so obvious: You need to point out what the benefit is, even if you think it's apparent. Too often, people responding to RFPs thinking that they're screaming "benefits, benefits, benefits," when they're really citing the features of their offering.

Here's the difference. A feature is a characteristic of your approach; it's a part of what you are offering the client. A feature of your sedans may be a GPS navigation system, for example. This feature may be a benefit to some clients, but the technology be itself is not a benefit.

The benefit, however, is what the feature does for the client. The navigation system provides the chauffeur with easily accessible directions to make sure that passengers, no matter where they live, get where they are going as efficiently as possible.

You proposal should result in the client understanding how the solutions will maximize passenger satisfaction and therefore, improve program compliance. Improving compliance has many advantages, including increased value via contingency volume pricing and contingency cost reductions. That's the benefit of the feature. You have just made your features more attractive and understandable.
Many proposals I have come across lack a structured benefit argument and have little to no consistent structure. The proposal, like a ship without a rudder, drifts aimlessly along, with no real purpose and no clear direction. From the client's perspective, this kind of proposal is hopelessly confusing. The client is trying to find a solution to his problem, and since you are sending him a proposal, he suspects that you have a solution. He just can't find it. The most important message of all - how you are going to solve his problem - is lost. Your proposal is a sales tool. It's where you present the strongest, most compelling arguments for selecting you over your competitor. Your focus must always be in the form of clear and direct benefits to the clients.

Know Your Audience

Stay focused on who will be evaluating your proposal. What would an evaluator say when he first reads your proposal? If someone is looking for reasons to disqualify you, will they find them? Does your proposal contain ammunition for those on an evaluation committee who don't want to win?
My best advice for success? When you decide to tackle an RFP, approach it head on. Spend as much time as appropriate to design a proposal that will be creative, innovative, practical, and targeted directly to the company asking for the proposal. Avoid giving anyone a reason not to include you as a member of the short list. Take care to review your draft proposal before it goes out the door. Organize a team review, a small group of people to take on the task of reviewing the proposal from the perspective of the client, or engage a consultant to assist you in the process. Even if you are a one-person firm, ask a colleague to spend a few hours to play evaluator before sending it out the door. The results will be a dramatic improvement in the quality an clarity of your proposal.

Always remember that benefits are the heart and soul of a proposal; they're what will close the sale to the client. Citing clear and direct benefits is also an excellent way to elevate yourself above the competition. You want the client to feel that he will get more value from your solution than from anyone else's. In the end, the proposal that has the biggest benefits to the client will win. LD
 

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The Ethics of Lowering Fees

Most people simply don't know what to do when confronted with this statement. They try to handle the price objection by offering to lower the price. This approach sends three messages:

(1) The price you initially asked me to pay was inflated. Therefore, had I paid what you initially asked, you would have been overcharging me.

(2) Where is the bottom to this thing? Translation: You have lost your credibility. From now on, every time we do business, I will expect to get a better deal than you initially present

(3) You do not value yourself, your produduct/service, or your company the way that a professional should.

I recently encountered the "too expensive" problem while meeting with a prospective client to discuss a speaking opportunity. Following an initial discussion, I submitted a proposal for my services that included pricing.

About a week later, the prospective client and I met to discuss my offering. "Here's where we are," she began. "We would like to hire you for our program, but you are significantly higher than the speaker we had last year, and I have a strict budget I am working with. Can you do anything to help us out on your pricing?

My response was polite and to the point. "While I understand that you have budget issues," I said, "my policy on this issue is that it would be unethical for me to charge you a different fee for my services than I would my other clients. Therefore, I cannot lower my price. However, I will guarantee that the value you receive from my presentation will be worth the investment. If you do not feel after my presentation that the value justifies the price, you may pay me whatever you think appropriate."

Could you look your client in the eye and make that statement? I did, and as a result, I was paid my full fee for services, have been hired twice since then, and - best of all - the price issue has not come up again since.

What is the message here? Simply this: It is unethical for you to ask two different clients to pay two different prices for the same amount of value. This also means that you have to be willing to walk away from a sale rather than give away something for nothing.The next time this issue is presented to you, try the following:

(1) Empathize with you buyer. Say "I understand your concern: we are typically not the low-end option." (This implies that you value is not of the lower-end variety, either, but you should be certain that your service delivers as promised.)

(2) Separate the issue of price and value. Ask, "price issue aside, is the recommendation I've made the right fit for your needs?" If the answer is no, you have nothing to negotiate.)

(3) Isolate the price objection. Ask, "Is the price the only concern that you have at this point?" (Price always has to be the last issue on the table.)

(4) Ask for commitment. Ask, "If we can get agreement on the price issue, are you ready to move forward?" (This is not being pushy,it is simply an appropriate question. Ask it!)

Finally, remember that a corresponding decrease in services rendered is the ONLY way to reduce price while maintaining your value position. If you can't do that, be willing to walk away. After all, what is your integrity worth? LD
 

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TRENDS: PROMS and WEDDINGS
by Alisha Gomez (published on LCTMag web-site, see links tab for address link)

Yes, it’s only October, but the thought of prom has probably already crossed the minds of many high schoolers at least once. After all, for teens it can be the highlight of their high school career.

Garfield Bowen, founder and publisher of Prom Guide Magazine, knows a thing or two about what teenagers want when it comes to limo service for proms. The publication is distributed to high schools all over the country, from New York to California.

When it comes to the big event, teens want everything from a two-seater sedan to a 28-passenger exotic limousine or limo bus. If the vehicle seats eight or more passengers, they expect to pay about $8 to $10 an hour per person.

Limousines are typically booked for four to 10 hours, depending on location and company requirements.

To find limo service for prom night, customers usually start with the Yellow Pages. However, Bowen notes, they get frustrated because most limousine companies don’t do proms. Clients then turn to other sources, such as Prom Guide, other magazines or the Internet. The biggest turn-off for teens is a dirty car. But the worst thing for prom-goers is a no-show or a late limo. Teenagers also don’t appreciate companies that pick them up in a different car than was ordered or getting a driver who can’t find the prom’s location. What’s the biggest turn on? High schoolers love it when they get extra assistance in planning pre-prom activities, such as dinner reservations.

As for preference in limo colors, years ago teens were able to have their choice because it was only Lincolns, stretches and superstretches, Bowen says. But now with exotics, they don’t have as many options. Typically, white is still the favorite color for the big event.

And don’t forget those amenities. Prom-goers go gaga for TVs, sunroofs, sound systems and other extras that make them go “wow.” But be warned: If extras such as stocking the limo with drinks and snacks means they’re going to have to pay more, they’ll forego some of the perks. Often parents are the ones paying for the limos, but everyone is price conscious these days.

Top 5 Hot Limos for Prom 2004

To recap the super hot limousine of choice for Prom 2004, the stretch Cadillac Escalade was No. 1. Teens were all over this car, with big name celebs like P’Diddy bolstering its hip factor.

The stretch Navigator followed as No. 2, with its cool and super-sleek look. Prom-goers loved that they could pack a bunch of their friends into it for the big event.

No. 3 was the stretch Lincoln sedan. Because it’s traditional and elegant, no teenager could go wrong by showing up in this one. The stretched PT Cruiser ranked No. 4 with its ultra funky and different vibe. Plus, teens didn’t seem to mind that it only seated six to eight passengers.

The No. 5 limo was the stretch Volkswagen Beetle. With its unique design, it was the epitome of high schoolers’ tastes, playing off their spunk and versatility.

Make Your Wedding a Day to Remember

For many wedding couples, having a limousine or car service is a must for the big day. Responses from wedding consultants who are members of the Association of Certified Professional Wedding Consultants show that couples can spend anywhere from $255 to $1,200 for limousine service, depending on location. Ann Nola, director of the association, says that based on members’ answers, the average amount spent is about $500.

Couples are still asking for horse-drawn carriages, vintage cars and Rolls Royces.

But one of the hottest trends right now is the H2 Hummer, according to some of the consultants in the association.

Kristin Tarpley, a consultant for A Wedding to Remember in Cory, N.C., says, “In the Raleigh area, the bigger the vehicle, the better. The Hummer, Escalade and Excursion are next to impossible to get.” And while white is still the dominant color, certain parts of the country, such as Atlanta, have always seen black limos as the vehicle of choice. “We’re still seeing more black now than we did before,” Nola says.

“Black is the color because it photographs so well with the bride’s white dress,” says Claudia Horak of Creative Weddings and Events in Cape Corral, Fla. Most wedding couples will book limo service for anywhere from three to five hours. They’ll book limos for about eight to 10 people on average, often for the couple and for the wedding party.

Cheryl Cox of Weddings & Events by Cheryl L. Cox of Myrtle Beach, S.C., notes that for the weddings she plans, the transportation is usually booked for the bride and groom only. “However, to utilize the limo for the minimum hours required, I’ll have the limo pick up and bring the groom, the bridesmaids and parents, and then have transportation arranged for them for after the ceremony.”

To find the perfect limo company for the big day, Nola says that many couples will go with referrals from wedding consultants. Also, bridal shows are a perfect place for couples to find limo service. “They can go to bridal shows, see the actual cars and meet the people who are running the businesses. Plus it is very competitive at bridal shows. The companies try to outdo one another and often times offer better deals.”

The next sources they turn to are referrals from friends, the Yellow Pages and bridal magazines. In addition, wedding couples may use the Internet, check with a bridal association or their local chamber of commerce.

Red carpet treatment is always a must for these clients, but Nola notes that decorating the cars is not as big as it used to be. The biggest gripe wedding couples make about limo service is that they’re required to book the service for a minimum number of hours, which is often more than what they need.

Cathy Johnson of Cathy Johnson Weddings, serving Central Oklahoma, says limo company representatives are not always customer friendly. In addition, the chauffeur doesn’t always behave professionally. “Brides and grooms feel like royalty on that one day and want to be treated as such,” she says. “Plus a lot of limo companies are willing to operate off a verbal commitment over the phone and brides want everything in writing.”

Operators should keep in mind that a bride and groom may run late the day of their wedding and need to extend their limousine service. But chauffeurs often have another job afterward and cannot accommodate this request.

Amanda Peloquin of Timeless Events in Tampa, Fla., confirms that her brides and grooms are often not concerned that they may run late and have not made contingency plans with their limo service.

Other gripes include limos that are not as clean as they should be; chauffeurs leave a bride and groom to do another run; a limo doesn’t show up or is late; and not sending the car the couple booked. But a big complaint, Nola says, is that many companies are not reliable. “Limo companies seem it be in and out of business,” she says, making it hard to find a reliable and stable company. And word gets around with wedding consultants,” Nola says. “A wedding consultant will never again use a limo company that ruins a wedding.”
 

Go Back To The Top

CORPORATE-TRANSFER HOME BUYERS ARE AN EXCELLENT MARKETING OPPORTUNITY FOR REAL ESTATE AGENTS DESPERATE TO SHOW HOMES AND CLOSE SALES.

By Darry Armstrong

Housing prices are down drastically nationwide. Mortgage companies are failing at an appalling rate. Your home that was worth $400,000 a year ago won't get you $300,000 today. How in the world could anyone in the real estate business use your limousine services? Honestly, a lot of them couldn't. Some of them wouldn't if they could, and only a select few actually could see some advantages in using luxury transportation as a tool to sell a home. However, those are the ones you want to target.
Some Realtors specialize in specific types of homes, mortgages, or clients. The ones you want to talk to are the ones that specialize in corporate transfers and understand how they work. Once upon a time, I was a corporate transferee, so I know some of the ins and outs of the game.
Corporate transferees absolutely will purchase a home in their new city. They're not "just looking." They've accepted the transfer, and they're going to have to live somewhere. The transferee usually has a dollar amount for which he/she is pre-approved to invest in housing. They know how much they have to spend on a new home, and they will not have any problem getting the financing for the prescribed amount.

Making It Work

Set a special rate to offer real estate agents on a Saturday or Sunday afternoon for a six-passenger vehicle. Most transferees look for homes on weekends, and you're not using your limousines until later that night. A six-passenger vehicle is big enough to hold the family (if they're along), and not so big that the agent and client have to yell at each other to be heard.
When you pick up the agent and the client (usually at the agent's office), the first place to go is to a local restaurant where you've set up a special price for a nice lunch where all the servers know the client is new in town (part of your "value-added" proposition for the agent), and they give him/her the "welcome to the city" treatment. Ultimately, the agent picks up the tab, but it's at a deal you've worked out for them — another part of your "value-added" proposition.
From there, it's on to the various homes the client has pre-selected to visit. Of course, you have the list ahead of time so you can organize it into an efficient route, and enter into your GPS device so you don't waste the time of the agent and the client. Remember, the agents are your clients so you must always consider their needs as well.
At some point in the day, you may want to present a small fruit or vegetable tray with some bottled water or soft drinks, or maybe some coffee. But you want to make sure the homebuyer is comfortable, and all the agent has on his or her mind is how to close the client.
Sometimes the homebuyer will bring children along. You'll need to know this in advance to plan for it, but if they do, find out the childrens' ages, and have DVDs appropriate to that age group available. Make sure you have power inverters to run whatever game system they bring along. Or how about WiFi so they can instant message their friends or access Facebook while their parents are busy? The homebuyer and the agent will thank you for keeping the kids busy while they take care of business.
To get started, find a good restaurant that wants to be the first restaurant to welcome the transferee into the community. Package your offering and contact a real estate agent specializing in corporate transfers to run this idea past them. Sell them on how you know their client is in a buying mood, and how what you offer will put their client at ease and enable the agent to concentrate on one thing — closing the sale. See if they don't think it's a good idea, too.
 

Websites Provide Excellent Affordable Marketing Sources for Small Operators

Clique Limousine Service won the LCT Best Marketing Award for its website

By Jon LeSage

The past year has been tough for Olathe, Kan. -based Clique Limousine Service, as it has been for the industry overall. Owner Jacob Hellner downsized to two Lincoln Town Car stretches (a 1999 100-inch and a 2005 120-inch) to serve retail customers in the Kansas City market. He's had enough to serve customers going to events at the new Sprint Center, attending weddings and proms, and visiting the two local wineries.
One thing that's worked well for his business has been launching and promoting an appealing website (www. cliquelimoke.com), and getting it linked to websites for local wedding planners, bridal shops, night clubs, and bars. The website won the Best Website Marketing Award at the 2008 International LCT Show.
Getting a great deal on the website has helped Clique market effectively and affordably. Hellner benefited from having a solid relationship with a local web designer. He's paid $400 for the site to be created and $40 a month for maintenance and updates.
"Ninety percent of the calls we get come from our website and other sites we're linked to," he says. "Yellow Pages is not worth the money."

Keeping It Lean
Hellner believes in keeping the website lean, short, and sweet. When it was being designed, he wanted it to be informative and self explanatory. He doesn't want visitors to get frustrated digging deep into the site to find what they're looking for.
Customers can quickly get rate information, book rides, check out offered services, and learn something about the company.
Not everyone offers rate information on their websites. "We have pricing on the site even though some people wouldn't agree with us doing it," he says. "We might get a phone call that we wouldn't have had. Most know what they need to know when they call — they're ready to book."
Posting rates keeps him from having to "ramble on" during the phone calls and explain the transaction costs. What they see is what they get: an all-inclusive price.
Linking to local businesses has helped build traffic, as has participating in Google's Adwords program. The Adwords platform offers both cost-per-click and cost-per-impression pricing for ads served on google and partner sites. "This got us up to number one, or near it, on searches," he says.
Hellner learned an uneasy lesson about using the Internet for marketing goals: It takes a good deal of time and effort. When you start something but don't follow through, it's not worth it. While promoting his website after it waslaunched, he set up a site on MySpace. com to network and promote his business. "It wasn't lucrative," he says. "Maybe if I'd spent more time, it could have gone further. So I took down this site."
The Clique Limousine service website has been worth it, even during tough times. Word of mouth from repeat customers also has helped.
Another successful marketing venture has been sponsoring three-by-seven inch insert cards included in event tickets through Ticketmaster. The cards offer discount coupons and a description of offered services. "This has been a goldmine for us- it's led to lots of bookings."he says.
Since starting up Clique in 2005, Hellner says he's benefited deeply from meeting industry veterans and following their operations and marketing guidance. "Matt Harrison (consultant from The Goodwill Guy) has been a mentor. There have been times when I've felt like quitting, but he's been inspirational. Jim Luff (Limousine Scene owner and LCT Magazine contributing editor) was the first person in the industry I talked to; I always learn something about the business from him."


LIVERY & FRUGALTY Recession-Proof Your Operations for 2009
Recession-Proof
Your Operations
for 2009

Learn how to survive in a bad economy. See how operators nationwide plan to maintain profits despite sagging sales. We provide tips and advice for staying financially healthy.

It is hard to believe that 2009 is already here, and even harder to get a handle on what this year will bring for the economy. Unfortunately, many operators didn't do well during the down economy of the last two quarters in 2008. • Financial experts are predicting things will get worse before they get better. For the chauffeured transportation industry, that means we need to sharpen our pencils, start evaluating every aspect of operations, and seek out new, non-traditional sources of revenue. Now is the time to think outside the box.

Improving Quality

DOMENIC GALDO, VICE PRESIDENT of client services for BostonCoach, sums up the mission statement for 2009 best: "Quality matters more than ever when economic times get tough. We can't afford to hunker down and wait for the storm to pass. Instead, we've got to work harder than ever to keep up and even improve service quality. That means transporting clients in quality vehicles, which are always clean, inviting, and carefully maintained for the comfort of our passengers. It means offering a superior ride by picking up clients on time, helping them with their luggage, and even giving advice on where to have dinner. And it means driving clients safely and following a well-planned route. Quality improvements also enable us to cultivate new opportunities that will convert to greater ride volumes when the economic recovery arrives."
Mistakes ranging from getting lost to arriving late can prompt a client to shop around for a better company. Clients lost to a competitor may never return. In a poor economy, every client matters, and the loss of a single major account could spell financial disaster.

Examining Costs and Creating New Profit Centers

GONE ARE THE DAYS when the airlines generously served you a complimentary meal en route to your destination
as part of your fare. The same can be said for headsets, either to listen to music or watch an in-flight movie. Even the free soda and peanuts are on the way out. Airlines realized some time ago that people enjoyed these amenities so much that they would indeed be willing to pay a nominal fee.
It may be time to examine how much it costs to provide free bottled water, soft drinks, champagne, cider, and alcohol. Selling champagne or any other alcohol is not recommended because you must have a liquor license in most states to "sell" alcohol. In states such as California, where such amenities are popular and considered normal, operators may have to encourage patrons to engage in BYOB (bring your own booze) to save costs. As for the other items, it is easy to see why the airlines began charging for snacks and beverages. A single can of Pepsi has an average cost of about a quarter. No one thinks twice about paying $1 for a soda. If you begin charging a fee for "beverage set-up," you can easily earn a profit from each set-up that you complete.
Tim Wiegman Jr. of Kansas City, Mo.—based Boulevard Limousine is considering offering a small snack. "I like the idea of granola bars," Wiegman says. "They are a little more healthy than a bag of chips, and there is a lower crumb factor. Perhaps for the early-morning runs you could offer a piece of fruit like a banana."
Greg Phillips, with E & G Limousine Inc. in Olney, MD., says his strategy for survival is to avoid new debt. Phillips also says, "Although we are not downsizing, planned growth may be delayed. Even before the down-turn, we were retooling to move away from the big cars and move to-ward the airport and corporate work since that is where the fertile ground lies." Phillips adds, "We are definitely keeping cars longer, but have not sold anything off."
This same opinion of keeping cars longer was expressed by Geoff Levine of Limo Kings Service in San Diego. As the cars are pressed into longer periods of service, some operators are reupholstering the interiors and changing out carpets in favor of replacing the whole car. This is something that airlines also do to keep their fleets looking new despite a plane being 15 years old.

Trade and Barter

ONE WAY TO STRETCH your dollars further is by bartering or trading for service. While limousine companies have long traded for advertising, many other services and goods can be traded through one-on-one relationships, or even established barter networks such as ITEX, Barter Systems Inc., and BizXchange. Under these formal barter programs, fellow members write you a barter check for service received that is deposited into your barter account. When you obtain services from another vendor, you write a barter check using your accrued dollars from providing service to others.

Rodney Frame, fleet manager for Limousine Scene in Bakersfield, Calif., stated that mechanical services such as oil changes and repairs were bartered for the first time in 2008. After an analysis, Frame stated the company spent nearly $4,000 in barter dollars and actual costs of delivering service to barter club members was $1,500. With a barter network, you can barter vehicle repairs, food, hotel visits, computer equipment and services, copiers, and office supplies. The list is virtually endless, allowing you to save thousands of real dollars. Phillips also has implemented his own barter network in his community.

Diversify & Strengthen Relationships
MANY OPERATORS HAVE A specific focus such as airport sedan work, corporate business trips, or luxury limousine work. Unless you are extremely good at what you do, are well known, and have an abundance of clients, focusing on one market is like putting all your eggs in one basket. Seeking a variety of work through vertical marketing provides many sources of income.
Vertical marketing consists of specific proposals that address the unique needs of different types of clients. Tony Franzetti of Marriton Limousine in Austin, Texas, says he tries to select targets such as travel agents or funeral directors that are sources of repeat daily business. Once an account is landed, Franzetti says he works on developing relationships by learning more about his client's business and how he can adapt his service to better meet relationships such as these are mutually beneficial to each other and complement each other well. Travel agents are being virtually squeezed out by the Internet, so they think highly of livery services that pay them commissions. The agents will promote your business with a vested interest.
Consider marketing services such as immediate courier services to distant cites. We all know FedEx can get it there by tomorrow, but sometimes tomorrow just isn't soon enough. Examples include moving packages of blood for a blood bank or transporting human organs through an organ procurement network. They don't ship kidneys by FedEx but they do use chauffeurs. Workers compensation insurance carriers use transportation for their patients daily. This is a lucrative business as the runs usually consist of long-distance trips. Also consider pairing up with a dentist to provide transportation to ongoing orthodontic appointments for parents who have trouble getting time off work.
JIM LUFF, owner of Limousine Scene in Bakersfield, Calif., is an LCT Contributing Editor.  JANUARY 2009 LCTMAG
 

Maximize the Use of GPS Tracking Systems

FLEET SAFETY & CONTROL

GPS can control your fleet by tracking every vehicle at all times. With notification features, you can instruct your vehicles to contact you in a variety of ways such as via cell phone, email, or both. You can instruct it to call others as well or even split the duty by time of day. These notifications can include ignition times, speed limit violations, or departures from a specific geographic area known as a "geo fence."
With such detailed information, you should develop policies dealing with infractions such as speeding. De-
termine a consistent action policy that uses the GPS tracking system to employ only safe chauffeurs. While most insurance companies prohibit or discourage fleet vehicles from being taken home, in some cases it's needed. Now, at any given moment, you can see on a map where your vehicle is parked and what time the ignition waS turned off. Because you are liable for the vehicle at all times, this feature can give you peace of mind about where the vehicle is parked. You also can set a notification to alert you by phone when the vehicle is started.
If your vehicle is stolen, the tracking system becomes an invaluable tool for the police to reach your vehicle before significant damage is done. Just make sure it is really stolen before you call the police, as stopped stolen vehicles are treated as felonies and your chauffeur could end up prone on the ground if you fail to confirm his ID. Tell your insurance company about your GPS system to qualify for reduced premiums.

PAYROLL AND MONEY MATTERS
Operators often have used other methods to track payroll calculations and client billing. Airport trips are mostly paid on a flat, predetermined number of hours based on the average time of the trip instead of clock hours. Most limousine companies do not use time clocks, as many trips begin from a location other than the office such as the last drop-off location.
Your GPS system is your new time clock. It is more efficient than any wall model. As soon as the key is turned on or the gear is put in drive, the payroll clock begins. You can now review a history of vehicle trips. Personal errands or stops can easily be deducted using "breadcrumbs," or a tracking of the route the vehicle has traveled and when it arrived at its intended destination.
Likewise, you can precisely bill your clients. Sometimes a client will enter the vehicle immediately, although the vehicle arrived 15 minutes early. In the past, that was considered a bonus as a three-hour charter becomes a three-and-a-quarter-hour ride. Multiplied by four trips a day, you are giving away an hour a day of your service but probably were unaware of it. Your GPS tracking system can eliminate billing discrepancies with certain proof of vehicle service times.

VEHICLE MAINTENANCE
If your reservation software lacks vehicle maintenance monitoring, you can implement a comprehensive program using your GPS tracking system. Because the GPS tracks the actual number of vehicle miles, you can easily record the mileage between oil changes, tire changes, alignments, and even fluid checks. While chauffeurs should check fluid levels daily, having a predetermined inspection point for mechanics, such as every 3,000 miles, can save money long-term.
Some GPS systems even connect to the OBD systems (on board diagnostics) of vehicles and can spot problems. This feature can save thousands of dollars in refunds to stranded passengers and damage to your engine before it's too late.  

SCHEDULING AND DISPATCHING EFFICIENTLY
OF COURSE, GPS TRACKING was designed to be more efficient by being able to call upon the closest vehicle. However, operators are most reluctant to use this feature. Unlike taxi services, our rides are prearranged days or weeks in advance, and most companies will routinely schedule a vehicle and a chauffeur beforehand. Once done, it seems to become set in stone more from habit than for efficiency. Because many trips are "as directed," we have no idea where the ride will actually end in the area. It just may end in an area close to another pick-up location.
It makes more sense in this era of high-priced fuel to reassign the vehicle already in a neighborhood to do that pick-up and reassign the previous vehicle to another trip. This will require having your vehicles well stocked and equipped to be refreshed in the field. You also might consider scheduling early-morning pick-ups in advance by assigning the chauffeur who lives closest to the pick-up location. To use this type of scheduling, you will need to create an "overlay," or map all residence locations for your chauffeurs. On some occasions, it just makes more sense to have the chauffeur go straight home and start in the field in the morning. If a last-minute order comes in late at night, this chauffeur might be the best one for the assignment since he already has the vehicle. You may need to reassign his previous run to another chauffeur with the help of GPS mapping.
LIMOUSINE & CHAUFFEURED TRANSPORTATION DECEMBER 2008

20 Tough Times Tactics

1. Keep customers and prospects informed, but don't bombard. There's been hardly a day since January that the warehouse retailer, Costco, hasn't sent emails to its customers. Too much? Weekly or monthly e-mails are mor effective.

2. Don't blink. There's a tendency to want to hunker down and let the storm go by. This is the time to increase your visiblity, particularly since the competition will likely become invisible, waiting for the good times to roll.

3. Off help. What customers need more than anything else is help with innovative ideas. Be their sounding board. You're the expert, so offer them help. If you can't be of assistance, you don't get business. Show them you can deliver more than a product or service.

4. Stay away from stupidity. In tougher times, the scam artists come out of the woodwork to prey on companies and salespeople feeling the impact of a downturn. It's easy to be drawn to such offers as "100 FREE leads" or "we'll make you more appointments than you can handle." Salespeople are believers who fall for a good sales pitch.

5. Hang on to customers. In the summer of 2007, Sprint Nextel sent out letters canning a group of customers who called too much. While getting rid of high-maintenance customers may seem tempting it can backfire. Wharton professors Jagmohan Raju and Z. John Zhang indicate that dumping low-value customers may actually reduce profits, while efforts to enhance their value can be counterproductive. Fidelity Investments has low-value customers wait longer for their calls to be answered, and devotes more time to high value customers, a better approach may be to keep them, but find more efficient ways to serve them.

6. Get serious about prospecting. The goal of a prospecting program is long-term growth, not instant sales. Get serious about identifying those who fit the profile of your best customers and start staying in touch with them via opt-in e-mail or direct mail seminars for example. Let them get to know that you're serious, competent and can help them. It pays off over time.

7. Focus on value. A clear shift is taking place with buyers. They want to know, "Where's the value?" If this isn't made clear, will they go elsewhere? A business owner tells of purchasing a high-end color printer and not once had the dealer made any effort to add value. "The only time they called us was when there was a 100 percent increase in the cost of supplies," he said. "We'll buy the next one online."

8. Make every meeting valuable. Most meetings waste time. Stop just dropping in on customers and have a clear purpose when you ask for a meeting and make sure the customer agrees that it is worthwhile.

9. Answer communications. Prompt, clear, and complete telephone and e-mail responses send the message that you're timely and efficient, qualities that will set you apart from a majority of other salespeople. Use the spell-check, too.

10. Know the economy. Reading trade publications is essential, but not enough. Know what's going on in the economy, both short-and longer-term. If you must choose one source make it USA Today online (usatoday.com), for concise, helpful, and accurate information.

11. Keep your antennae up. It's easy to get blindsided in tougher times. Listen to customers. Don't ignore their concerns and fears. Make sure your sales pitches and presentations speak to these issues. It sends the message that you are in sync with them.

12. Show customers ways to reduce costs. Don't assume your customers believe you are looking for ways to save them money. In fact, they may actually feel you want to do just the opposite! Always be alert for cost-cutting solutions and be sure to let them know that this is how you're working for them.

13. Tighten your schedule. We all fall into regular routines. We'd go nuts if we didn't. Yet that can work against us. Giving customers proper attention takes time, including making certain we stay in contact with them. If your routines haven't changed, you may be wasting valuable time.

14. Introduce proprietary products. There is nothing that can be more useful and beneficial than proprietary products and services. Look at your supermarket's shelves. "Name brands" are disappearing and lower-cost "store brands" are taking up more space. Proctor & Company, a Massachusetts-based employee benefit firm, introduced its "Proctor Plan" to differentiate it from others in the industry and to have a healthcare product that maintains quality but reduces employer costs.

15. Always tell the truth. While being truthful is always essential, it's even more important in difficult times. This is when customers need candid, thoughtful advisors more than ever. It's at such times as this that you can demonstrate to customers your true value.

16. Make every minute count. For example, never call a meeting without having an agenda. Also set time limits for meetings. If you're making sales calls, do everything you can to group them as close together as possible. If you're traveling to an area, arrange other appointments; don't just plan to "drop in," hoping someone will see you.

17. Stop the jargon and BS. Tougher times require plain, clear, direct talk. Some customers will tolerate it in good times, but not when they are stressed and under pressure. Stop acting as if everything is coming up roses. If you don't, you'll come across as disingenuous or a fake.

18. Be patient. Acting rushed sends customers the message that you're panicked. We don't see it as much in ourselves as we do in others - and we don't want to be around them. Both Pottery Barn and Costco have been e-blasting customers since the holidays, at least two and three times a week. It gives the feeling they're running scared. It's time to nurture customers, not bombard them.

19. Don't over promise. This is a tough one. When there are fewer or smaller order, salespeople often have trouble resisting the temptation to over promise just to get an order. Then, when you can't deliver on the promise, the empty excuses only serve to undermine your credibilty and the next order goes to a competitor.

20. Don't rely on the past. While Shakespeare said, "The past is prologue," it may not be today. It's always more comfortable to look backward than forward and to talk about what may lie ahead than face up to out track record. Where we have been is more comfortable than an unknown future. How many salespeople say, for example,"I know what my customers want," while totally oblivious to the changing behavior, needs, and wants. They are blinded by a past that may lead them down the wrong path.

   In tougher times, selling is tougher than ever. To be successful, to buck the trends, we need to make use of every resource we can. These 20 tactics can be helpful in making the most of a difficult economic environment. LD    


 
 
TOP 10 LOW-COST OR FREE WAYS TO PROMOTE FOUR BUSINESS
 
1. SEND AN E-MAIL NEWSLETTER
All this costs you is your time, but the benefits can be huge. Tip: for those of you who hate to write, there are a lot of people who will do the writing for you, inexpensively.

2. OFFER SOMETHING FOR FREE
An initial phone or in-person 1-hour consultation should be standard.

3. CO-MARKET WITH COMPLEMENTARY BUSINESSES
Share costs and prospect lists with a complementary, non-competing business. Or put links to a complementary business site on your website, and ask the other business to do the same.

4. OFFER A MONEY-BACK GUARANTEE
Offering this guarantee lets others know you stand behind your product or service, and is basically a risk-free proposition for prospects, which is a strong motivator to buy.

5. SPEAK TO GROUPS ABOUT YOUR SERVICE
Find local groups that contain your target market and speak to them about something that interests them and relates to your business. You will be perceived as an expert and may get business or referrals.
 
6. USE TESTIMONIALS
Use testimonials as much as possible in marketing materials, on your website, and during promotional activities.
 
7. SEND A PERSONAL THANK-YOU NOTE AND/OR GIFT
E-mail thank-you notes are fine, and hand-written, snail-mail notes are even better.

8. REMEMBER BIRTHDAYS
Everyone likes to be remembered on their special day. This may prompt them to use your service to celebrate

9. DONATE TO CHARITY
Studies have shown that people would rather do business with people who help the community. Plus, it's the right thing to do.

10. GET NOMINATED FOR AN AWARD
This guarantees publicity (as award nominees and winners are always published) and cements your credibility as a solid member of the community.
LIMOUSINE & CHAUFFEURED TRANSPORTATION OCTOBER 2007 



Attention Operators: We could be in for a bumpy ride...
 By Susan Rose

THERE'S no doubt the economy has been slumping, but a lot of people are throwing around the word "recession." However, the official recesssion criteria have not technically been met. A recession is defined as a negative or flat growth of the gross domestic product (GDP) for two consecutive quarters, of which we have not experienced. It doesn't take a rocket scientist, however, to see that belt tightening is happening.
The word of the year could easily be ambivalence. The nightly news and newspapers are filled with stories about stagnant growth, soaring gas prices, and slashed corporate travel budgets. According to Glenn Beck, a host on CNN, a $53 trillion—yes,with a "t"—asteroid is poised to hit the American people in the form of an economic meltdown. The stock market has been all over the place, largely due to the credit crunch and tanking housing markets. The writer's strike siphoned millions of dollars from the ancillary industries that depended on Hollywood punching the clock. David Hartson, our West Coast editor, reports that visitors to Las Vegas are opting for cabs over limos because of shrinking budgets in corporate America. Most of all, higher gas prices have pinched not only the limousine industry, but all industries that rely on transportation of goods and people for the last 2 1/2 years. (The last time gas was below $2.00 per gallon was February 2005, with the national average hovering around $3.17 at press time.)

The news is not all somber. Recessions hurt in various forms—higher prices, lower demand, and less retail value on used cars—but the good news is it incites a business housecleaning and a typical market correction is apparent within a few quarters. Experienced and savvy business professionals know that the industry can be easily affected by a lagging economy and already know how to weather the feast-or-famine waves. "I have been in the transportation industry since 1985, I have never seen the auto manufacturers pushing rebates and incentives the way they are this year," says Ed Feliciano, owner of Feliciano Limousine in Rochester, N.H. "This is not the first recession we have faced, and as we have in the past we will watch our numbers, and tighten up a little, and we will get through this one."
But, the unprepared operator may lose a footing and go out of business. "I see many of the smaller operators, who have historically sold on low price, being unable to pass on the higher costs and simply go out of business," says John Critchett, president of Palm Beach Tours & Transportatoin of West Palm Beach, Florida. "A large portion, though not all, of that business will go else-where. Thus, some bigger companies may actually gain business and grow slightly. This could be a flushing out of smaller companies in the U.S."
Companies are merging and expanding, economy be damned. We feature a New Jersey operator, Broadway Elite, the product of a successful merger, in this issue. Mainstream media sources across the country report on operators who are expanding despite the down economy. In Kansas City, the opening of the new Sprint Center, an arena, sparked a stream of revenue nearing 20 percent for limousine operators. Even the New York Times, a bastion of economic conditions, headlined this past December that "chauffeured transportation is thriving."
Kimberly McLea of GHL Global Transportation in Houston, Texas, agrees that not all is doomed by the economy. "I have a mindset that every day is the day after 9/11, sink or swim, which keeps me on the cutting edge and does not allow me to get too comfortable," she says. "So you invest when you need to and save otherwise. Don't give up. I think if you have the right attitude knowing failure is not an option then we will all survive." GHL, still a younger company, has experienced a growth spurt, which McLea attributes to supply and demand of GHL customers and a few new accounts secured earlier in the year. McLea is the president and a full-time salesperson for her company, a move that has served GHL well.

HERE ARE A FEW TIPS TO KEEP YOUR COMPANY SOLVENT IN TRYING TIMES:

Don't Panic: Now is the time to carefully, but quickly weigh your options. Are you one of those companies that may be sunk by the next cancellation? Your options may be to cut bait before you get too deep and digging out is impossible. If you've tried everything from slashing vehicles to eliminating wasteful spending, it's one of many options to consider. A buyout may save you from losing it all. But before throwing in the towel, do a reality check and see if something else is not lacking. A simple fix like advertising or hiring a salesperson, even part-time, may be the savior.

Cash Flow: Interest rates have dropped to encourage not only bank lending but to ensure a liquid economy. Take advantage of the lower interest rates to refinance loans on cars or mortgages on buildings. You never want to be in the position, at least not for long, when you are banking on the next trip to make your payroll. It may be hard to find the fat to trim, but every little dollar helps.

Watch Your Competitors: While you should be doing this anyway, gauging the success of your competitors is imperative to your growth and demise. If your competitors are growing while you are shrinking, find out why. Have your customers jumped ship for your competitors? You need to find out why and fix it—fast. Don't be one of the pack. What do your customers most want from you? Talk to them and find out how you can save your relationship with them. Everything is negotiable.

Advertising: While it would seem to be an obvious area to scale back, cutting advertising is one of the worst things a struggling company can do. When the downturn swings upward again, your competitors who didn't stop advertising will have a leg up with name recognition. Keeping your company's name on customers' minds will ensure a good bounce back. Also, by removing your name from ad venues, it sends a sign to your customers, especially corporate,that your company is fiscally strapped. Customers may be reticent to do business with a company that's hurting.

Staff: It's tempting to cut salaries or benefits in lean times. Stop. Remember, your employees are hurting, too, because their dollars are buying less and less. "Many of our high-profile travelers and companies continue to travel and sustain us at recent levels," says Eric Weiner, president of All Occasion Transportation in Providence, R.I. "However, it is getting more and more difficult for our employees. Day-to-day living expenses continue to go up at alarming rates, making it challenging for our employees. It is ironic that there is a growing spread between the haves and the have nots." Passing more financial burdens onto your staff will only leave you with a staff that's more worried about their personal financial health than that of your company's. If your employees don't care, how are you going to make money? Now is the time to shake out the bad and let the cream rise to the top. You want your strongest, sharpest employees to have your back when the chips are down. See who your top performers are and give them incentives for even trying
to bring in new business or saving the company money. You will need to reward for any effort even down to the maintenance crew. Working as a team is more important now than ever.

Maintenance: You know that stretching oil change intervals from 3,000 to 5,000 miles will save money, but will that damage the life of your car? It depends; not all miles are racked the same. If your fleet is run hard, then the 3,000 interval is probably beneficial. Proper maintenance is costly, but is imperative to the health of your fleet. Furthermore, a well-tuned, well-maintained fleet will save you money in fuel because your vehicles will be running optimally.

This industry is not recession proof, and learning to successfully surf the ups and downs will make your company stronger and more resilient to economic uncertainty. Heck, the U.S. was in a recession in the early 80s, and what followed was a decade of healthy profits and disposable spending. If history is on our side, we will see that again. LD

The Customer Experience...
EXCEEDING THEIR EXPECTATIONS
By Tony Franzetti

P S S S t ... want to know the secret to dramatically increasing your business volume in 12 months, and do it profitably? The secrets of the "Customer Experience" may hold the key to your success.
Everyone in the limousine business knows we are in a service industry, and that implies taking care of the customer's needs, so what is so magical about the Customer Experience? Embracing this concept will take an average business to a new level of service that not only meets the customers' expectations, but routinely exceeds them. The benefits of a Customer Experience culture within your business will begin to pay off almost immediately. When customers see that a company is fanatical about customer service they become repeat customers, tell friends, and are often willing to pay a premium price.
Below are the five most important steps to take when talking about the Customer Experience.

Step 1: Take care of your employees and customers—whatever it takes

It sounds so simple yet is rarely done properly in any business. At a business's very foundation are its employees and how they feel about coming to work. The attitude your staff embodies is what your customers will see and hear. A chauffeur driving around every day with a positive attitude toward your company is someone who will drive repeat business to your door. Reservationists or chauffeurs who are unhappy will kill your business as customers pick up on the bad attitude.
Is morale at your company good, bad, or indifferent? A Customer Experience culture begins with the owners and management taking a genuine interest in ensuring that everything possible within reason is being done to satisfy employee needs. Are your reservationists and chauffeurs treated with respect and dignity? Do all employees have an open door to management? Do they have a clean and comfortable work area? Are employees satisfied with their pay levels? Are they paid properly for all time worked and paid on time? If a concern is brought up by an employee, is it genuinely listened to and acted upon?
The Customer Experience culture demands that each of us constantly learn how to be a better owner or manager. Many limousine company owners started from the ground up as a chauffeur or otherwise got into the industry with no previous management experience, sometimes bringing in headstrong attitudes that can negatively affect the staff. These types of owners and managers, as well as just about anyone else, can often benefit from some management and HR courses available at business schools or community colleges. In the corporate world, this type of training is often an annual requirement! Annual employee surveys are another useful tool to measure employee satisfaction levels and identify areas where management needs to improve. You can create your own survey or purchase one off the Internet, just try to be consistent in your questions from year to year so you can track your results over time.

Step 2: Hire, train and retain only the best employees
This topic has been covered in depth by many writers in the past,but here is the Customer Experience twist: it's probably time to fire some people. Top cor-
porations routinely identify and fire or "manage out" the bottom 10 percent of performers on an annual basis. If you truly desire to routinely exceed customer expectations you must employ only the best. If you are simply hiring anyone who walks in the doorand throwing them a set of keys, then you likely have some housecleaning to do. You must be willing to eliminate poor performers quickly from your organization and, ideally, not hire them in the first place.
The interview process must be robust to filter out poor candidates. Pre-hire screening must be done, including drug testing and driving, and criminal history reviews. The training process must be thorough and arduous, and the importance of a superior customer service attitude must be made clear. Training graduates should be subject to ride-alongs with senior chauffeurs and secret shopper evaluations from your trusted customers. Only after all these steps should a new hire be entrusted to interact alone with your customers. Newly trained employees should embody a confident attitude and provide a polished performance from day one. Follow-up with 30-day and 90-day written evaluations should be done to ensure new hires are meeting documented company expectations and to answer any lingering questions or concerns the new hire may have. Any employee on the front lines must always present an exemplary image of your company. You certainly do not want your customers to be able to spot the new guy!

Step 3: Retain employees by treating them like the owner

Treat all employees as if they were owners and you will discover the secret to retention. Treating the staff like owners involves more than the previously mentioned things such as treating them with compassion and dignity. One simple tenet: if you demand the best be sure you are paying accordingly. Pay them a competitive wage for the effort you demand.
Secondly, don't hold back information. Similar to the corporate world, share your company vision, strategy, performance, and challenges with your entire staff at least on an annual basis. The more information you share with them the more buy-in you will get on the direction you are setting for the future. If you don't want to hold a quarterly state-of-the-business meeting, send out an e-mail summary or a one-page statement with their paychecks. Be sure to include Customer Experience success stories and publicly praise those employees who deserve extra recognition. When the employees feel valued and believe they truly have a stake in the future direction of the company they will go above and beyond to meet and exceed the needs of the customers on a day-to-day basis.

Step 4: Have a corrective action

Once your foundation is set by employing the right staff you can turn your attention to the customers. Providing a fanatical Customer Experience is all about identifying metrics, tracking them, and reacting quickly and overwhelmingly to incidents. Everyone has heard after-the-fact stories of incidents that occurred on a trip in which the chauffeur insisted the "client was okay at the end of the trip." Do not take this at face value. Follow-up on these incidents is important. Do not teach your staff to minimize the impact of incidents, but rather to bring any incident to the attention of management. Management reaction is critical here. When your reservationists and chauffeurs understand the desire is to exceed customer expectations, not to punish them for making or reporting a mistake, they will be much more likely to bring issues to your attention.
Most importantly, when an incident is identified, management must have in place a corrective-actions process to identify and implement a solution to minimize or eliminate this type of incident from reoccurring. Corrective action must be swift. If the incident involved a customer, contact the customer and communicate the results of your investigation and your corrective action to them so that he understands you took his incident seriously. Finally, give the customer a sincere apology and determine if any additional steps are required on your part for him to be not just satisfied, but more than satisfied.

Step 5: Track the metrics
The final tool in the Customer Experience toolbox is metrics.
Management must decide which customer-service metrics are important to track. Obvious metrics would be percentage on-time (met or exceeded 15 min. spot time) and percentage of trips without an incident. The phone reservations process is also full of potential quality metrics to measure, however a phone recording system, such as Davacord's Voice-Logger, is required to track and review phone calls. Finally a post-trip survey can be e-mailed or mailed to customers, and those results can be tracked as well. Metrics should be posted publicly for all staff to see, including goals and weekly updates on actual progress.

The Customer Experience is a cultural shift. It is not just about providing a newspaper and a bottled water. It is not just about having the latest model vehicles. Anyone can do that. The Customer Experience culture is about being different and having a positive attitude throughout a highly trained and motivated organization. It is about measuring and tracking progress, treating customer incidents seriously, and resolving them quickly with no questions asked. Properly implemented, this cultural shift will leap you ahead of your competition and build a solid base of repeat business and referrals to significantly grow your business over the next year. LD



Blending Corporate & Retail
By Doug Patterson

You already know that handling retail and corporate customers are very different thought processes. Assuming that both require the same attention, the multiple hats that your staff must wear are essential to ensure that your customers are happy with your service and will call back. Below are a few important areas to consider before letting your staff book another reservation or handle another trip.
Reservations

Reservations is a make-or-break division. People answering calls must know what their purpose on the telephone is at all times. they must understand the types of telephone calls that will be coming in and how to handle each of them. A reservationist who is too chatty could upset a corporate client
enough to find another company, while that same person may be perfect for retail. Conversely, someone who is too terse may not get the most from retail customers, but may be better suited for the corporate caller. In either example, I have always practiced and taught customer service representatives (CSRTs0 to answer the telephone smiling.

Corporate Reservations

The initial telephone call and reservation can have either a negative or positive effect on the building of the actual trip. Depending on the diversity of the fleet, the CSR's experience and knowledge play an integral part in how the reservation will flow.
A textbook CSR is knowledgeable in both customer service and the general geography of the area. This type of CSR is good and strong for what a corporate  for when booking local and national trips. The administrative assistant does not have the time to chit-chat or discuss rates. In most cases, the administrative assistant knows what his or her boss wants and — expects from trip opening to trip closing. The CSR must be able to listen and take the reservation based on the information being given by the administrative assistant, or admin.
In most cases, the admin will be reserving a vehicle that is corporate-oriented, such as a black sedan, van, or SUV. It is very rare that anything ostentatious will be reserved unless it is a company gathering or the sky is the limit with the budget. The very last thing a corporate client will want seen on company property is something implying that he is spending money like there is no tomorrow.
Upon building a positive relationship with an admin, CSRs will find that the reservation process will become extremely short as the profiles of each person are compiled. In fact, most corporate-type reservations should take no more than about 60-90 seconds depending on software and information setup. The initial consultation will take longern to secure all the vital information.

Retail Reservations

When handling a retail reservation, the CSR is more of a salesperson and will need to lead the conversation. The sale and reservation can take 20-30 minutes to close. Reservationists handling retail events such as weddings, proms, and bachelor/ette parties must be ready to SELL. This will mean going over the requirements for the event, type of vehicle needed, and vehicle availability on the day needed. How many is it insured to hold versus how many additional people they will try to squeeze in? There are many, many details.
Perhaps the most important issue discussed during retail calls is pricing. This is where you will need to apply the proper techniques that keep
them on the telephone and make the sale. Companies handle pricing in a number of ways. Some will start high and discount down, while others will charge low, undercutting the local companies just to make the sale. Some may charge the local area average and simply discount from there.
The question remains: When should you discount? During my several years of working with diverse fleets, most CSRs offered a discount before it was even asked for just to make the sale easier. This has a negative impact on overall sales because a company budget includes how much and how often each vehicle type should be running to turn a profit. If people continuously give discounts, this will force an operation to potentially run vehicles twice as much as they should to bring in the bottom line. This will also increase maintenance, staff overtime, fuel, and the possibility of additional accidents due to higher volume and fewer dollars. Discounts should be used for special situations or potential customers who are on the fence if it will close the sale.

Corporate Dispatch

A great corporate dispatcher will have the same monetary thought process as an operations manager when it comes to revenue. In this position, the dispatcher realizes he is only to use the minimum amount of chauffeurs and equipment, as both will have an impact on the overall revenue.
He understands it is better to have fewer chauffeurs, which means fewer vehicles to cover the volume of work given. Too many chauffeurs means there are additional hours, which could mean overtime. He understands that each and every pickup must be monitored for proper dispatching, both via the Internet and confirming the information with the chauffeur. He must know just as much if not more than the chauffeur on each and every trip.
A great dispatcher is like a skilled air-traffic controller. Communication is key while multi-tasking in the world of corporate dispatching.

Retail Dispatch

A successful retail dispatcher will have the same responsibilities as a corporate dispatcher. Unfortunately, what has been seen on the retail side is the lack of experience with handling multiple changes and ASAP trips. To put it delicately, I've seen dispatchers become more "lax" with chauffeurs on retail runs.
Retail dispatchers often find themselves between a rock and hard place; the first thing that happens is they allow the chauffeurs to be late without a telephone call to the passenger. Instead of making a courtesy phone call, dispatchers say to a customer, "The chauffeur will only be a few minutes late, so we can give you an additional hour to make up for it."
This mentality does not work on the corporate side as the customer may have already driven herself or procured alternate transportation. It also tarnishes the company's reputation with a retail customer. I have always practiced strong communication with all CSRs and dispatch staff. I suggest using the following information regardless of the type of work you are doing. It is simply good communication and customer service.
When a chauffeur is going to be late, it is a dispatcher's job to dispatch another chauffeur (your own or from a reliable affiliate to make sure the customer is not inconvenienced). I have always found it best to make sure dispatchers know where each and every chauffeur is located. Upon knowing a chauffeur is going to be late, whether it is 20, 30, or even 45 minutes prior to the pickup, give the customer a call at that time. It is very rare that the customer will be irate. Given the amount of time prior to the pickup, the customer will usually understand you are doing the best you can to avoid the incident.

Chauffeurs

This is where the revenue stream for both retail and corporate will either be a one-time thing or grow into a professional relationship. In a perfect world, all chauffeurs could handle both retail and corporate clients. In today's world that is asking a bit too much. Not having multifaceted chauffeurs makes dispatching much more difficult as the flexibility and knowledge is not always there.

Corporate Chauffeurs

A talented corporate chauffeur is able to react to anything a customer needs. He should be well-versed on current events, and should know several routes to local landmarks such as government buildings, restaurants, and hotels. He should be familiar with all out-of-the-area cities, which can become a request depending on the executive's itinerary. I train all chauffeurs at my company to be knowledgeable of areas up to and including three or four hours away. Believe it or not, our customers expect such and get somewhat upset when chauffeurs are unaware of areas once in the destination city. A chauffeur should always be prepared.

Retail Chauffeur

In general, retail chauffeurs should be presented with a detailed trip sheet before the trip. This is the information they will follow. Unexpected changes are not always easy to handle. I have seen well over 70 percent of retail chauffeurs come back at a dispatcher or even manager and question why the different locations or points of interest were not listed in the itinerary. Just like the corporate side, the most complete and accurate information should be requested before the trip and documented on the itinerary so the chauffeur is well prepared and focused on serving the customer, not looking for directions.

Accounting

Today's software has come a long way. Most current software packages offer immediate billing, invoices, and receipts readily available right after the completion of a trip. This can usually be done via fax or e-mail the instant a trip is costed and closed. Some software can even have an invoice or receipt in an administrative assistant's inbox shortly after the passenger has cleared the vehicle. How convenient is that? Proper accounting and follow-through will allow both the customer and the company to keep the books balanced on a regular basis without constant follow-up. That makes everyone happy.

In closing, no matter what type of business you focus on, if everything from the reservation to final bill is handled correctly, it can be the cornerstone to reassuring a customer he has made the right decision in using your company. Prepare your staff well to handle all kinds of situations so that they can make the best choices to benefit you, your company, and most of all, your customer.

A Book Smart Business Plan

Harrison Global's Joshua Vermillion is writing a book for operators who want strong suggestions on how to build revenue

By Jon LeSage

Joshua Vermillion, vice president of sales at Harrison Global in Waltham, Mass., looks forward to his new role as an author. His experience at Harrison Global and years before at Nation-wide Limousine in Washington, D.C., have inspired him to write and publish a book targeted at midsize operators eager to expand their revenue. Vermillion is part of a management team that has built company revenue at Harrison Global, even during tough economic times. (See Smooth Operator in the Sept. 2008 issue.)
While larger chauffeured transportation companies maintain sales and marketing processes, small- to medium-sized operators use varying approaches. "There's not a single sales and marketing process throughout the industry now," Vermillion says. "This book will show you how to set up a process that will win over one in five prospects, as my company is doing right now."
His book is structured on building a successful sales and marketing program at your business. Topics include doing email blasts, making cold calls, building industry contacts and friends, joining associations, and participating at conventions. "It will be very informative to those who don't like sales," he says. "I want to share information on the most successful ways I've seen how to do this. Lots of small and midsize companies need salespeople, but can't afford it or don't know where to start."
The book's content will break out into serving different market segments (such as travel agents, affiliates, and travel managers) and using various marketing tools (effective sales calls, Internet marketing, and other methods) to build revenue. One of the key success ingredients that will be laid out in the book is sales communications. "You have to sell on the fly," he says. "It's what people call `elevator pitches.'"

Effective Affiliate Networking

Building revenue through industry affiliate networks has been a key part of Harrison Global's growth strategy. In the draft version of the book that Vermillion is writing, there are useful sections on steps to take to build revenue this way. Here's some of the content:
"I find that the most effective calling strategy for selling to affiliates is to provide as much information to them as possible. When you call, have a press pack about your company and your fleet information ready to go. (Preferably in PDF format so that everyone can view the content with ease.) Try to describe how their clients will be treated as if, or better, than your own. The best pitch is to show that your fleet is ready to go at a moment's notice. Say, Just let us show you how we serve our clients."
As for attending conventions, Vermillion recommends making a list early in the year with every event that you really need to attend, including LCT events and conventions orchestrated by the National Business Travel Association and the Airport Ground Transportation Association. Convention attendance is critical, he says, to stay current on technology, stir up new business, and to host customer appreciation meals. "Try to shake hands and stuff as many business cards into as many strangers' hands as possible," he says.
Joining industry associations has been a vital growth step for his company as well, Vermillion says. "These days, it seems that if you're not a member of NLA, NBTA, and Better Business Bureau, then your business is not legit. Some of the most informational ways to build leads and business growth come from classes, lunches, and conferences held by these associations. That's the definitive networking process." LCT


Customer Service Don't Just Take Orders and Deliver the Basics
Don't Just Take Orders and Deliver the Basics

IN A ROUGH ECONOMY, HOLDING ON TO CUSTOMERS AND GAINING NEW ONES
MEANS GOING THE EXTRA MILE AND EXCEEDING EXPECTATIONS. LEARN HOW TO
CONNECT WITH CLIENTS AND KEEP THEM FOREVER.

By Jim A. Luff

With the economy needing a $700 billion bailout, it is safe to assume that luxury transportation may be one of the casualties of cutbacks in spending by companies and individuals alike.
For those who continue to use luxury transportation, they may shop for the best bargain. You may not even realize they are gone until it is too late, and they have signed up with another company. You may think there is nothing you can do about this, but in fact there are many ways to cement your client relationships even if you have the highest prices in town.
You won't be able to save them all, because a bride is probably looking for a way to fit a limousine into her budget and probably doesn't care much about why you charge so much. But repeat users are your bread and butter and they will care. So, if you don't take care of them, you will soon need your own financial bailout.

Meeting Basic Expectations

Basic expectations start the moment your phone rings. This phone call sets the image in the mind of the customer.
Answering the phone promptly within three rings is important. If you must put a client on hold, always ask if they mind being placed on hold for a moment. If they say no, take their name and number and promptly call them back.
Never leave a customer on hold longer than two minutes. You might consider messages on hold that tell your clients about current specials, apologize for the delay, and assure them they are important.
Take orders in a prompt and efficient manner and always repeat back the pertinent information including day of the week, date, and pick-up time, including the verification of AM or PM. Make sure you repeat the pickup location including the address or airline and flight number. If you fail to get the correct information in the reservation process, you will never recover from the error. Spell street names phonetically if needed. By repeating the information, your client knows the importance of details to your company.
On the day of the trip, make sure the chauffeur arrives to the pick-up location early. Make sure the chauffeur knows the exact location of the pick-up. Provide maps when needed or verify the location in the chauffeur's GPS navigation device.
Make sure the vehicle is clean inside and out, and always inspect the vehicle thoroughly before driving it. Make sure the vehicle includes all amenities such as soft drinks, bottled water, champagne, cider, newspapers, magazines, and any-thing else promised. Of course, all such amenities add value. Failing to supply a vehicle properly will be noticed and remembered. No one likes a broken promise. Do not allow chauffeurs to add things to vehicles without your approval. If the newspaper is in the sedan one morning and not the next, it leaves the client wondering why.
Training is the key to excellent customer service. All employees should receive initial training in their job functions, and ongoing training in the form of refresher classes or safety meetings that address various topics. Make sure each employee does his or her job the same way to provide efficient service and meet expectations.

Going Over the Top

While a bride may only rent for one day, she has the ability to refer future business to you based on the service she received. So exceed expectations by literally rolling out the red carpet. If legal in your area, the chauffeur can open the bottle of champagne and serve the bride and groom some bubbly to sip on the way to the reception. This creates a great photo opportunity. The chauffeur should avail himself to help the wedding coordinator with any duties at the church.
Simple signs in the vehicle bearing your logo and a phrase such as "Happy Birthday, Cindy" or "Happy Anniversary, Mr. & Mrs. Jones" can show your clients how important their event is to your company. It also costs very little. Print the signs on heavy paper that can be a keepsake, and add the date of the ride in small print.
If the client had a particular request such as a special bottle of wine (where legal), or a copy of the Wall Street Journal in the car, make note of this and always include these items if the cost is reasonable. This small gesture will endear clients to you just for remembering such details.
If your client will need a wheelchair or help at the airport, offer to make such arrangements for them. Offer to make dinner reservations if they have not already done so. When going to large venues, find out the location of their seats so they are dropped off at the closest entrance.
If your chauffeur cannot go in the airport and meet an arriving passenger, consider hiring a greeter to do so.

Stay in Touch


Focus Pocus

As the client flow slows, operators and chauffeurs must sharpen their attention on customers, service, and referrals.

By Scott Mezger

December is the ideal time to reflect on the year about to conclude, and to look ahead to 2009. If I had to sum up the livery business in 2008, I would say it was a challenging year for this industry, including coachbuilders, insurance companies, operators, and chauffeurs. The number of professionals who have been shaken and slammed by the economic slowdown is growing.
Shrinking business travel budgets and reduced personal entertainment spending have caused many operators to see flat or reduced revenues. Numerous company leaders are being forced to make some tough decisions. I am convinced that in order to survive and prosper in this slumping fiscal environment, it could be a fatal mistake for anyone to resist change by continuing to do business as usual.
Many of the people I have recently spoken with sent a cross-section of different businesses. It is obvious that the dilemmas we may face resemble the ones experienced within countless industries today. Old-fashioned business models no longer guarantee financial success. Organizations must search for innovative new ways to remain competitive in the marketplace.
I just finished reading an article in which the CEO of a major well-known national restaurant chain was interviewed. The business leader discussed the motivation for the recent multi-million-dollar remodel of all of his company's restaurant outlets. To quote him, he said that his company had "rested on its laurels" for too long, resulting in a significant loss of market share to other more aggressive competitors. In order to survive and prosper, they felt that they had to take drastic measures such as this.
This example highlights the topic of this month's article, which is focus. I believe that everyone who works for an organization, including a livery company, must focus 
on specific problems to solve them. Let's start by looking at professional chauffeurs, who should be focusing on two equally important things: client retention and job performance.
A point that I need to stress is that all clients should be consistently treated with the respect that they deserve. You must impress the paying customer. Remember to go out of your way to make your passengers feel relaxed and comfortable. By doing so, you will increase the odds of repeat business for future occasions, and build a company's customer base through referrals from satisfied clients.
As professionals, we will constantly be measured by our clients who will likely rate our job performance using several criteria. Did the vehicle arrive on time? Was the chauffeur friendly and courteous? Was the vehicle clean? Did the chauffeur look sharp and do the job professionally? Did their chauffeur display the necessary confidence to execute the job efficiently?
An honest evaluation of your individual efforts is always a good idea. Hint: Remember to be critical and candid. Have you gotten lazy, or perhaps even become a bit apathetic ately? Do you take a welcoming and polite approach when you are dealing with clients? Have you taken the time, expense, and trouble to keep your work attire updated and clean?
Are you diligent in your efforts to look up expected travel locations in advance? Do you have the foresight to
do "drive-bys" whenever necessary, to become familiar with previously unknown locations that you will need to be acquainted with? Do you present the proper positive attitude to all members of the management team, your indispensable dispatchers, and to other chauffeurs at your place of work?
If you are honest with yourself, and have found some deficiencies in your work performance, then you must focus on them now. You and your company will benefit, as nobody can afford the luxury of losing any customers. For many of us, they have become increasingly rare these days.
LIMOUSINE & CHAUFFEURED TRANSPORTATION DECEMBER 2008 

Media Secrets Revealed

GETTING FREE MEDIA EXPOSURE FOR YOUR BUSINESS IS AN ART FORM.
HERE'S HOW YOU CAN MASTER IT TO YOUR ADVANTAGE.

By Martin Romjue

Any business of any size needs to get its word out, especially during this unusual recession. Complementing any advertising and marketing approach should be a third effort: Milking the media.
The upside of media exposure is you can get free publicity with street credibility. As that Visa commercial says: Priceless. On the downside, you can't control the final outcome, only your message and your pitch. And your payoff is far more intangible than the objective measurements of clicks and calls.
For many businesses, media exposure is a form of oxygen. So how do you get your local newspaper, TV and radio stations, and online area guides and websites to feature your business?
After almost two decades in the mainstream local media, I've done this media-business dance countless times, and I know how it works from the other side. I'd like to share some practical tips and insights so you can maximize your client reach by getting the most out of the media.
1. IF YOU LET GO, YOU WILL GOLW
When aiming for media coverage, accept up front that you are not in control and never will be. Reporters and editors always get the last word. If you come across as controlling by demanding to see a story before print, repeatedly calling to check up, or negotiation questions, you will lose. The media hates control freaks. Media coverage is a resk, just like a capital investment, so be prepared for varying outcomes.
2. DISARM WITH CHARM
Be open, honest, humorous, and friendly. That draws attention to your operations and business. Offer a news hook or divulge something unique. Don't just call up and ask for publicity because someone else go it, or because you think your business is the greatest. Give the media outlet a reason to probe further: A recent accomplishment? An exciting new fleet vehicle or client run? A special event or activity? A rags-to-riches success story? Overcoming seemingly insurmountabel odds? Charity worK? In other words, what is your story, and why should anyone care? When you are in media mode, you must be extroverted and personable.
3. BECOME AN EXPERT
Present yourself as the local go-to authority on chauffeured and ground transportation. Learn about and know your industry thoroughly. Memorize some helpful statistics. Along with getting a story about your business, you want to be quoted as often as possible. That extra mention as an expert or reliable local business source can work wonders in raising your profile.
4. TALK THE WALK
Crucial to establishing yourself as an expert and getting exposure is being articulate. Speak clearly in quotable sound-bytes and sentences. The better you become at public speaking, the easier it will be to answer questions from a reporter. Don't run at the mouth and talk incessantly about your accomplishments. No bragging. Simplicity and humility should be your hidden talking points.
5. ALWAYS BE AVAILABLE
Hand-in-hand with being articulate goes availability. The best media public relations campaign is giving out your cell phone number and answering questions at any time. Media organizations often get accused of favoring certain sources. The number one reason journalists gravitate to certain sources is because they are always available for a smart, insightful comment or answer, especially on deadline. One of the most media-savvy CEOs I've met was one who actually answered his cell phone and did an interview while vacationing on a beach. The worst CEO I've encountered got snippy with me the first time I met him because he didn't have complete control over a staged event. Who do you think soars to the top of the Rolodex? For those of you who lead a large operation, yes, you really do have the time to answer questions. Just as you are quick to make time to return calls from key investors and board members, you should treat the media the same.
6. PITCH, BUT DON'T BITCH
In other words, don't nag. Some of the worst business and public relations people are the ones who repeatedly and heatedly call a journalist, intensely reciting the virtues of their business and taking up valuable time. Such pitching and nagging will only get you blackballed, as journalists automatically will avoid featuring anyone who is overbearing and obnoxious. If you don't get noticed or covered the first time, lie low and try again later. It's just not your time yet.
7. BEWARE OF PUBLIC RELATIONS FIRMS
They promise you so much and then take even more. As I mentioned before, you, the business owner, are the best PR approach. It's all about being genuine. Public relations firms, while being able to field calls and hustle on your behalf, add another layer between you and your message. Most of what they do you can master yourself. Public relations firms often charge high dollars to deliver a lot of media contacts. I can't tell you how many times I would get pitched by some public relations person who was promoting a business not even remotely of interest to my media organization or coverage area. That person was simply scoring "calls" to fulfill a contact quota for a client. I also encountered so many PR reps who hardly knew their subject matter or couldn't even answer basic questions about a business. That just makes you look bad. If you do retain a PR firm, make sure they truly know you and have spent plenty of time with your operations.
8.STAY COOL,KEEP IT REAL
If you are consistently out there in the media, there will be a mistake at some point that requires a correction. First, don't get angry, Second, call whoever did the report about you. Only call an editor or news director if you  don't get satisfactory results. And only contact the publisher or station owner in an extremely unprofessional situation. Going straight to the top and pitching a major fit simply earns you a grudge, and likely compromised your future media access. Journalists are notoriously thin-skinned.
9. JUST THE FACTS
To forestall the above situation, prepare a fact sheet about your business that covers all the basics: History, names, titles, numbers, locations, vehicles and specs, staff, services, and details, details, details. Make sure every member of the media you deal with gets your emailed fact sheet. Journalists can be lazy, and they sure know how to procrastinate, so the more you can supply them helpful information without doing the work for them, the more likely you will end up with better results.
10.WORK THE WEEKENDS
Media outlets are starved for spicy and enticing weekend content. Newspapers often go begging for local filler stories for their Saturday, Sunday, and Monday editions. TV stations see their slowest newscasts on Saturdays and Sundays. If you have a great idea or tip about something your business is doing on the weekend, make sure you tell the media about it. Slow news days are abundant and can work in your favor.  
11. ADVOCATE FOR BUSINESS
Media hounds are not numbers people and never will be. The vast majority do not own nor ever will own or run a business. Economics and entrepreneurship are not their forte. Too many in the media are suspicious of free markets and capitalism. Be aware of this reality, but not hostile to it, as you talk about your business. It could be a good opportunity to explain and highlight the virtues of owning and running a business, and the countless contributions independent businesses make to our economic and transportation systems.
FINALLY, AN HONEST DISCLAIMER.
Media exposure is all about making more money. The more you are out there in the media sphere, the more likely you will get noticed. There is nothing wrong with that. That's just how the business and media world works. The media knows it. You know it. And so do all the media consumers — and prospective customers.LCT

 Going for Global Alliances

There is no easy way. It takes lots of homework and enterprise.

By Martin Romjue

The more an operator can build its own network of affiliates, the more efficiently it can serve clients. And the less an operator is at the mercy of costlier large chauffeured transportation networks.
At Partners Executive Transportation in New York, director of global operations Guy Palumbo has rapidly built up an affiliate network in just two years that now spans 239 national affiliates and 104 international affiliates in 46 countries and territories. Partners ranked No. 38 this year on LCT's Top 100 Fleets list, and as of late October operated 98 vehicles. The company also is the official chauffeured transportation provider for the New York Yankees.
When Palumbo came aboard in August 2006 after 21 years of running a New York real estate brokerage, Partners had only about 25 to 30 affiliates in the U.S. and three abroad in London, Paris, and Rome. About 90% of the new affiliate growth happened between August 2006 and December 2007.
Palumbo shared some of his insights recently with LCT Magazine.

For newer, smaller operators, what are the best ways to build a global affiliate network?

I took the NLA book and I looked for operators located where we were having needs. I crosschecked them on the Internet and on websites. The initial ones were obvious. I stayed away from the chains, such as Carey and Dav El. I looked for individual operators who were not part of a known network. I would then ask those affiliates if they knew of someone in another city. If I was in Kansas City, I would ask if they knew someone in Oshkosh, Wisc. I would also get calls from other operators who knew I was looking.

If you can't travel to each potential affiliate, what are the best ways to screen and vet them?

We send out emails and talk to them, and get a feel for how they are and what they do. We also send out a survey questionnaire. You always do your due diligence and see if an affiliate has all the bells and whistles you're looking for. We send them our answers to the same questionnaire so they know who we are. I didn't have to travel too often. We have clients who travel a lot, and we would comp them a ride if they used a particular service and then gave us a report.
It is difficult to get global affiliates. It's helpful to have met people who have networks and work together, such as relatives or good friends in other cities.
You also have to make sure you have a seamless booking system and billing system. Do not just make an email reservation; use faxes as well. When it comes to the rest of the world, although they claim to be 24 hours, the night phone will often be transferred to someone's home. We always insist on getting a back-up phone number. If there isn't one, then we do not take that company as an affiliate.

How do you get started beyond using the NLA directory?

If operators are going to get started, they should contact their clients. You know you're taking them to airports and specific flights. Do some research and get a feel for where they are going. Get an idea as to where your people travel. You can also backtrack it and call the customer. Where are frequent places they travel to?
You may first have to go through online sites or broker-type agencies. Then look at ads in papers, magazines, and publications. Start calling and try to get out to whatever places you can. It'll take time, but hit the cities that your people travel to.
If you must have a connection right away, go through one of the big national networks. But cost-wise, it makes more sense to eventually set up your own network instead of going through a national booking service or agency. If you don't want to bother with it, you can book through the bigger companies, but you'll have to charge too much. If you don't care about money, then go through one of the chains or brokers. LCT

 

CORPORATE-TRANSFER HOME BUYERS ARE AN EXCELLENT MARKETING OPPORTUNITY FOR REAL ESTATE AGENTS DESPERATE TO SHOW HOMES AND CLOSE SALES.

By Darry Armstrong

Housing prices are down drastically nationwide. Mortgage companies are failing at an appalling rate. Your home that was worth $400,000 a year ago won't get you $300,000 today. How in the world could anyone in the real estate business use your limousine services? Honestly, a lot of them couldn't. Some of them wouldn't if they could, and only a select few actually could see some advantages in using luxury transportation as a tool to sell a home. However, those are the ones you want to target.
Some Realtors specialize in specific types of homes, mortgages, or clients. The ones you want to talk to are the ones that specialize in corporate transfers and understand how they work. Once upon a time, I was a corporate transferee, so I know some of the ins and outs of the game.
Corporate transferees absolutely will purchase a home in their new city. They're not "just looking." They've accepted the transfer, and they're going to have to live somewhere. The transferee usually has a dollar amount for which he/she is pre-approved to invest in housing. They know how much they have to spend on a new home, and they will not have any problem getting the financing for the prescribed amount.

Making It Work

Set a special rate to offer real estate agents on a Saturday or Sunday afternoon for a six-passenger vehicle. Most transferees look for homes on weekends, and you're not using your limousines until later that night. A six-passenger vehicle is big enough to hold the family (if they're along), and not so big that the agent and client have to yell at each other to be heard.
When you pick up the agent and the client (usually at the agent's office), the first place to go is to a local restaurant where you've set up a special price for a nice lunch where all the servers know the client is new in town (part of your "value-added" proposition for the agent), and they give him/her the "welcome to the city" treatment. Ultimately, the agent picks up the tab, but it's at a deal you've worked out for them — another part of your "value-added" proposition.
From there, it's on to the various homes the client has pre-selected to visit. Of course, you have the list ahead of time so you can organize it into an efficient route, and enter into your GPS device so you don't waste the time of the agent and the client. Remember, the agents are your clients so you must always consider their needs as well.
At some point in the day, you may want to present a small fruit or vegetable tray with some bottled water or soft drinks, or maybe some coffee. But you want to make sure the homebuyer is comfortable, and all the agent has on his or her mind is how to close the client.
Sometimes the homebuyer will bring children along. You'll need to know this in advance to plan for it, but if they do, find out the childrens' ages, and have DVDs appropriate to that age group available. Make sure you have power inverters to run whatever game system they bring along. Or how about WiFi so they can instant message their friends or access Facebook while their parents are busy? The homebuyer and the agent will thank you for keeping the kids busy while they take care of business.
To get started, find a good restaurant that wants to be the first restaurant to welcome the transferee into the community. Package your offering and contact a real estate agent specializing in corporate transfers to run this idea past them. Sell them on how you know their client is in a buying mood, and how what you offer will put their client at ease and enable the agent to concentrate on one thing — closing the sale. See if they don't think it's a good idea, too.
 

Websites Provide Excellent Affordable Marketing Sources for Small Operators

Clique Limousine Service won the LCT Best Marketing Award for its website

By Jon LeSage

The past year has been tough for Olathe, Kan. -based Clique Limousine Service, as it has been for the industry overall. Owner Jacob Hellner downsized to two Lincoln Town Car stretches (a 1999 100-inch and a 2005 120-inch) to serve retail customers in the Kansas City market. He's had enough to serve customers going to events at the new Sprint Center, attending weddings and proms, and visiting the two local wineries.
One thing that's worked well for his business has been launching and promoting an appealing website (www. cliquelimoke.com), and getting it linked to websites for local wedding planners, bridal shops, night clubs, and bars. The website won the Best Website Marketing Award at the 2008 International LCT Show.
Getting a great deal on the website has helped Clique market effectively and affordably. Hellner benefited from having a solid relationship with a local web designer. He's paid $400 for the site to be created and $40 a month for maintenance and updates.
"Ninety percent of the calls we get come from our website and other sites we're linked to," he says. "Yellow Pages is not worth the money."

Keeping It Lean
Hellner believes in keeping the website lean, short, and sweet. When it was being designed, he wanted it to be informative and self explanatory. He doesn't want visitors to get frustrated digging deep into the site to find what they're looking for.
Customers can quickly get rate information, book rides, check out offered services, and learn something about the company.
Not everyone offers rate information on their websites. "We have pricing on the site even though some people wouldn't agree with us doing it," he says. "We might get a phone call that we wouldn't have had. Most know what they need to know when they call — they're ready to book."
Posting rates keeps him from having to "ramble on" during the phone calls and explain the transaction costs. What they see is what they get: an all-inclusive price.
Linking to local businesses has helped build traffic, as has participating in Google's Adwords program. The Adwords platform offers both cost-per-click and cost-per-impression pricing for ads served on google and partner sites. "This got us up to number one, or near it, on searches," he says.
Hellner learned an uneasy lesson about using the Internet for marketing goals: It takes a good deal of time and effort. When you start something but don't follow through, it's not worth it. While promoting his website after it waslaunched, he set up a site on MySpace. com to network and promote his business. "It wasn't lucrative," he says. "Maybe if I'd spent more time, it could have gone further. So I took down this site."
The Clique Limousine service website has been worth it, even during tough times. Word of mouth from repeat customers also has helped.
Another successful marketing venture has been sponsoring three-by-seven inch insert cards included in event tickets through Ticketmaster. The cards offer discount coupons and a description of offered services. "This has been a goldmine for us- it's led to lots of bookings."he says.
Since starting up Clique in 2005, Hellner says he's benefited deeply from meeting industry veterans and following their operations and marketing guidance. "Matt Harrison (consultant from The Goodwill Guy) has been a mentor. There have been times when I've felt like quitting, but he's been inspirational. Jim Luff (Limousine Scene owner and LCT Magazine contributing editor) was the first person in the industry I talked to; I always learn something about the business from him."


LIVERY & FRUGALTY Recession-Proof Your Operations for 2009
Recession-Proof
Your Operations
for 2009

Learn how to survive in a bad economy. See how operators nationwide plan to maintain profits despite sagging sales. We provide tips and advice for staying financially healthy.

It is hard to believe that 2009 is already here, and even harder to get a handle on what this year will bring for the economy. Unfortunately, many operators didn't do well during the down economy of the last two quarters in 2008. • Financial experts are predicting things will get worse before they get better. For the chauffeured transportation industry, that means we need to sharpen our pencils, start evaluating every aspect of operations, and seek out new, non-traditional sources of revenue. Now is the time to think outside the box.

Improving Quality

DOMENIC GALDO, VICE PRESIDENT of client services for BostonCoach, sums up the mission statement for 2009 best: "Quality matters more than ever when economic times get tough. We can't afford to hunker down and wait for the storm to pass. Instead, we've got to work harder than ever to keep up and even improve service quality. That means transporting clients in quality vehicles, which are always clean, inviting, and carefully maintained for the comfort of our passengers. It means offering a superior ride by picking up clients on time, helping them with their luggage, and even giving advice on where to have dinner. And it means driving clients safely and following a well-planned route. Quality improvements also enable us to cultivate new opportunities that will convert to greater ride volumes when the economic recovery arrives."
Mistakes ranging from getting lost to arriving late can prompt a client to shop around for a better company. Clients lost to a competitor may never return. In a poor economy, every client matters, and the loss of a single major account could spell financial disaster.

Examining Costs and Creating New Profit Centers

GONE ARE THE DAYS when the airlines generously served you a complimentary meal en route to your destination
as part of your fare. The same can be said for headsets, either to listen to music or watch an in-flight movie. Even the free soda and peanuts are on the way out. Airlines realized some time ago that people enjoyed these amenities so much that they would indeed be willing to pay a nominal fee.
It may be time to examine how much it costs to provide free bottled water, soft drinks, champagne, cider, and alcohol. Selling champagne or any other alcohol is not recommended because you must have a liquor license in most states to "sell" alcohol. In states such as California, where such amenities are popular and considered normal, operators may have to encourage patrons to engage in BYOB (bring your own booze) to save costs. As for the other items, it is easy to see why the airlines began charging for snacks and beverages. A single can of Pepsi has an average cost of about a quarter. No one thinks twice about paying $1 for a soda. If you begin charging a fee for "beverage set-up," you can easily earn a profit from each set-up that you complete.
Tim Wiegman Jr. of Kansas City, Mo.—based Boulevard Limousine is considering offering a small snack. "I like the idea of granola bars," Wiegman says. "They are a little more healthy than a bag of chips, and there is a lower crumb factor. Perhaps for the early-morning runs you could offer a piece of fruit like a banana."
Greg Phillips, with E & G Limousine Inc. in Olney, MD., says his strategy for survival is to avoid new debt. Phillips also says, "Although we are not downsizing, planned growth may be delayed. Even before the down-turn, we were retooling to move away from the big cars and move to-ward the airport and corporate work since that is where the fertile ground lies." Phillips adds, "We are definitely keeping cars longer, but have not sold anything off."
This same opinion of keeping cars longer was expressed by Geoff Levine of Limo Kings Service in San Diego. As the cars are pressed into longer periods of service, some operators are reupholstering the interiors and changing out carpets in favor of replacing the whole car. This is something that airlines also do to keep their fleets looking new despite a plane being 15 years old.

Trade and Barter

ONE WAY TO STRETCH your dollars further is by bartering or trading for service. While limousine companies have long traded for advertising, many other services and goods can be traded through one-on-one relationships, or even established barter networks such as ITEX, Barter Systems Inc., and BizXchange. Under these formal barter programs, fellow members write you a barter check for service received that is deposited into your barter account. When you obtain services from another vendor, you write a barter check using your accrued dollars from providing service to others.

Rodney Frame, fleet manager for Limousine Scene in Bakersfield, Calif., stated that mechanical services such as oil changes and repairs were bartered for the first time in 2008. After an analysis, Frame stated the company spent nearly $4,000 in barter dollars and actual costs of delivering service to barter club members was $1,500. With a barter network, you can barter vehicle repairs, food, hotel visits, computer equipment and services, copiers, and office supplies. The list is virtually endless, allowing you to save thousands of real dollars. Phillips also has implemented his own barter network in his community.

Diversify & Strengthen Relationships
MANY OPERATORS HAVE A specific focus such as airport sedan work, corporate business trips, or luxury limousine work. Unless you are extremely good at what you do, are well known, and have an abundance of clients, focusing on one market is like putting all your eggs in one basket. Seeking a variety of work through vertical marketing provides many sources of income.
Vertical marketing consists of specific proposals that address the unique needs of different types of clients. Tony Franzetti of Marriton Limousine in Austin, Texas, says he tries to select targets such as travel agents or funeral directors that are sources of repeat daily business. Once an account is landed, Franzetti says he works on developing relationships by learning more about his client's business and how he can adapt his service to better meet relationships such as these are mutually beneficial to each other and complement each other well. Travel agents are being virtually squeezed out by the Internet, so they think highly of livery services that pay them commissions. The agents will promote your business with a vested interest.
Consider marketing services such as immediate courier services to distant cites. We all know FedEx can get it there by tomorrow, but sometimes tomorrow just isn't soon enough. Examples include moving packages of blood for a blood bank or transporting human organs through an organ procurement network. They don't ship kidneys by FedEx but they do use chauffeurs. Workers compensation insurance carriers use transportation for their patients daily. This is a lucrative business as the runs usually consist of long-distance trips. Also consider pairing up with a dentist to provide transportation to ongoing orthodontic appointments for parents who have trouble getting time off work.
JIM LUFF, owner of Limousine Scene in Bakersfield, Calif., is an LCT Contributing Editor.  JANUARY 2009 LCTMAG
 

Maximize the Use of GPS Tracking Systems

FLEET SAFETY & CONTROL

GPS can control your fleet by tracking every vehicle at all times. With notification features, you can instruct your vehicles to contact you in a variety of ways such as via cell phone, email, or both. You can instruct it to call others as well or even split the duty by time of day. These notifications can include ignition times, speed limit violations, or departures from a specific geographic area known as a "geo fence."
With such detailed information, you should develop policies dealing with infractions such as speeding. De-
termine a consistent action policy that uses the GPS tracking system to employ only safe chauffeurs. While most insurance companies prohibit or discourage fleet vehicles from being taken home, in some cases it's needed. Now, at any given moment, you can see on a map where your vehicle is parked and what time the ignition waS turned off. Because you are liable for the vehicle at all times, this feature can give you peace of mind about where the vehicle is parked. You also can set a notification to alert you by phone when the vehicle is started.
If your vehicle is stolen, the tracking system becomes an invaluable tool for the police to reach your vehicle before significant damage is done. Just make sure it is really stolen before you call the police, as stopped stolen vehicles are treated as felonies and your chauffeur could end up prone on the ground if you fail to confirm his ID. Tell your insurance company about your GPS system to qualify for reduced premiums.

PAYROLL AND MONEY MATTERS
Operators often have used other methods to track payroll calculations and client billing. Airport trips are mostly paid on a flat, predetermined number of hours based on the average time of the trip instead of clock hours. Most limousine companies do not use time clocks, as many trips begin from a location other than the office such as the last drop-off location.
Your GPS system is your new time clock. It is more efficient than any wall model. As soon as the key is turned on or the gear is put in drive, the payroll clock begins. You can now review a history of vehicle trips. Personal errands or stops can easily be deducted using "breadcrumbs," or a tracking of the route the vehicle has traveled and when it arrived at its intended destination.
Likewise, you can precisely bill your clients. Sometimes a client will enter the vehicle immediately, although the vehicle arrived 15 minutes early. In the past, that was considered a bonus as a three-hour charter becomes a three-and-a-quarter-hour ride. Multiplied by four trips a day, you are giving away an hour a day of your service but probably were unaware of it. Your GPS tracking system can eliminate billing discrepancies with certain proof of vehicle service times.

VEHICLE MAINTENANCE
If your reservation software lacks vehicle maintenance monitoring, you can implement a comprehensive program using your GPS tracking system. Because the GPS tracks the actual number of vehicle miles, you can easily record the mileage between oil changes, tire changes, alignments, and even fluid checks. While chauffeurs should check fluid levels daily, having a predetermined inspection point for mechanics, such as every 3,000 miles, can save money long-term.
Some GPS systems even connect to the OBD systems (on board diagnostics) of vehicles and can spot problems. This feature can save thousands of dollars in refunds to stranded passengers and damage to your engine before it's too late.  

SCHEDULING AND DISPATCHING EFFICIENTLY
OF COURSE, GPS TRACKING was designed to be more efficient by being able to call upon the closest vehicle. However, operators are most reluctant to use this feature. Unlike taxi services, our rides are prearranged days or weeks in advance, and most companies will routinely schedule a vehicle and a chauffeur beforehand. Once done, it seems to become set in stone more from habit than for efficiency. Because many trips are "as directed," we have no idea where the ride will actually end in the area. It just may end in an area close to another pick-up location.
It makes more sense in this era of high-priced fuel to reassign the vehicle already in a neighborhood to do that pick-up and reassign the previous vehicle to another trip. This will require having your vehicles well stocked and equipped to be refreshed in the field. You also might consider scheduling early-morning pick-ups in advance by assigning the chauffeur who lives closest to the pick-up location. To use this type of scheduling, you will need to create an "overlay," or map all residence locations for your chauffeurs. On some occasions, it just makes more sense to have the chauffeur go straight home and start in the field in the morning. If a last-minute order comes in late at night, this chauffeur might be the best one for the assignment since he already has the vehicle. You may need to reassign his previous run to another chauffeur with the help of GPS mapping.
LIMOUSINE & CHAUFFEURED TRANSPORTATION DECEMBER 2008