Luxury Coach & Transportation

August 2019

Magazine for the professional limousine, charter and tour industry.

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OPERATIONS A Facebook group called Dead- beat Affiliate Limo Companies has gained quite the social traction lately as operators vent about a longstanding pet peeve in the industry. e page has been quite ac- tive with some well-known, big-name companies getting called out in a nega- tive and very public way. In May, Andi Gray , president of Strategy Leaders, presented "Effective Strategies to Maximize the Profit and Potential of your Business" to mem- bers of the Greater California Livery Association at a regional meeting in Los Angeles. She cautioned operators if they lack the financial resources to carry the debt of affiliates, they should not be doing it. Social Media Power ere is no doubt social media has given everyone the ability to expose companies for all types of misdeeds. Social media review sites like Trip- Advisor, Yelp, Google, and others give consumers a powerful voice. e voice can be so powerful that too many bad reviews can crush a busi- ness's reputation. Affiliates are now using the same tool to rat each other out on stiffed payments. Most operators using this power are usually able to collect their money quickly once they post about some- one not paying them, says the page's founder, Doug Schwartz , owner of Execu- tive Limousine on Long Island, N.Y. Operators message him once they have been paid and ask Schwartz, one of two page moderators, to take the post down. Schwartz says he steadfastly refuses to do so with good reason. "If they posted it, there was a problem. ere is a likelihood it will be repeated." Schwartz launched the Deadbeat Affiliate Limo Companies group on Facebook on Sept. 7, 2016. He created it as a result of an operator discussing his frustration with operators who fail to pay their affiliates but post photos on social media of lavish vacations, presumably paid for with money that should have gone to the affiliate before going on a vacation. Schwartz and 2 6 WWW.LCTMAG.COM LUXURY COACH & TRANSPORTATION AUGUST 2019 Dealing With Affiliates Extending credit is a dicey decision for operators unable to run credit checks or retain a financial cushion to float debts. By Jim A. Luff, LCT contributing editor Doug Schwartz E A B E A T

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