Limousine Charter & Tour

January 2017

Magazine for the professional limousine, charter and tour industry.

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32 LIMOUSINE, CHARTER & TOUR JANUARY 2017 WWW.LCTMAG.COM It all adds up. Experience + Knowledge = Professional Consulting Resources, Inc. email: website: phone: 786-229-3662 Ron Sorci, Founder and CEO ACCOUNTING All accounting and bookkeeping functions. Outsource to save major dollars. SALES & MARKETING Develop and implement affi liate programs, outside sales support, conduct client surveys and more. OPERATIONS Fleet utilization, customer service, background checks. CONSULTING Develop and review business plans and all contracts. Mentor Program. INSURANCE Monitor and review all claims fi led on your behalf. Proven subrogation results. HUMAN RESOURCES Compliance, employee recognition program, health insurance options, human resources functions, interview process including telephone prescreening, problem resolution, employee training MERGERS & ACQUISITIONS Assist in the buying & selling of companies, evaluating businesses and negotiations of potential purchases or sales Forming focus groups for all size companies // Call or email for more information All functions above are priced to fi t all budgets tors to enjoy the fruits of their labors as they are using their profits to pay for fuel, payroll, and insurance premiums of jobs completed long ago but not yet paid for. While cash flow can appear to be positive by constantly collecting old debt, the cost of inflation diminishes the value of the money by the time it is received. A $3 per hour net profit earned 120 days ago will buy less when it is received due to inflation. If the operator raises his prices, TNCs look more appealing to clients, yet TNCs don't invoice. Operators worry about taking any actions that might make their corporate clients rethink their relationships. They are literally scared to eliminate the practice of in- voicing for fear a client will find some- one else who will invoice them. While $3 per hour isn't much, a corporate client who uses 50 hours of service monthly is worth $1,800 towards the annual bottom line profit. 3. The On-Demand Challenge The Internet has changed how con- sumers shop. From booking hotel rooms to ride reservations, we have and fire union hall bulletin boards to advertise for part-time or event work. Retaining employees is also a prob- lem. One creative operator in the Los Angeles area has enjoyed success by providing employees with a new car. The operator shared his cost informa- tion: $250 per month for the lease of a brand new Honda. Leave the com- pany, give up the car. While it might seem unconventional, the fact is, the cost equates to about $62 per week or less than $2 for each hour worked. 2. Accounts Receivable Challenge The second biggest challenge is collect- ing money from corporate clients after service is delivered. While most opera- tors have shed the practice of invoic- ing clients since the recession of 2008, some corporate accounts still must be billed for one reason or another. Some small- to medium-size operators have reported carrying accounts receivable balances of $70,000 as an average debt, with some of that amount in the 90-120 day columns. When profit margins are 7% or less, it is nearly impossible for small opera- the level of quality falls below that desired by most operators. Operators have dismissed across the board as being too expensive. LinkedIn has been determined to be a place where mostly professionals visit to look for professional jobs requiring a college degree. In a recent group meeting, operators shared moderate success working with military recruit- ers or "family readiness" units of the military to offer employment to service personnel returning to civilian life. All agreed these recruits appear clean cut, are usually squared away, and have no problem following orders. However, once they get acclimated back to civil- ian life, they are likely to jump ship or use their military education benefits to return to school. Another possible source of poten- tial chauffeurs is Services Corps of Re- tired Executives (SCORE), a non-profit group that connects retired executives with businesses seeking business ad- vice from experts who have retired from their fields of expertise, but de- sire to stay active through volunteer work. Other sources include police MONEY: MANAGEMENT

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