Luxury Coach & Transportation

February 2014

Magazine for the professional limousine, charter and tour industry.

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LIMOUSINE, CHARTER & TOUR FEBRUARY 2014 57 LimoInsure is not available in all states. Nationwide coverage except AK, HI, LA, MA, NY. *Ratings as of .ambest.com. Insurance product obligations are the sole r . Certain ough licensed surplus lines brokers. LimoInsur Need a new insurance option for your limousine operation? Call LimoInsure. LimoInsure of ed insurance solutions that help safeguard businesses against Competitive rates • High limits – up to $5 million coverage • Br emium financing estrictions • 24/7 claims support • Program offer Visit LimoInsure.com or call India Myhre at 1-866-562-4048 today. Read It Here First Access Industry News, Company Announcements, Laws/Regulations, Vehicle Updates and more FREE Weekly E-Newsletter Join us at www.lctmag.com/newsletter ers now can compare pricing online and book right from there. You need to know what your competitor is doing but you also don't want to give away the house." Both told operators to understand cash management. "Cash is king," Wolf- ington said. "When you are looking at you P&L and you are making money but you have no cash in your bank ac- count, you are upside down. Make sure you have a cash f ow statement as part of your f nancial statements." Rose told everyone that he signs ev- ery check for his operation. "Sign every check and you will always know where your money is going. Know what is be- ing procured in your organization. Also manage your credit cards. Make sure that credit card purchases are handled and logged the same way that cash pur- chases are." make this a priority every day." On vehicles, Rose explained that his company is testing and trying many different vehicles. Both stressed that the life cycle of the vehicle plays into the costs. "The older the vehicle gets, the more it costs you in maintenance. You need to know and understand the cost of keep- ing older vehicles." On insurance, Rose said he hired an insurance consultant. "For years, I was with the same company. Now I take myself out of the mix. The consul- tant prepares an RFP and I get the best pricing. Shop around your top tier costs. On the other end of the phone is always a sales person who wants your business." You should understand your selling price. Both encouraged owners to make sure that what you are selling your service for covers all costs. "You need to know TOP WAYS TO IMPROVE YOUR BOTTOM LINE 1. Set goals and make profitability part of them 2. Develop metrics and benchmarks 3. Understand your costs 4. Make sure your prices cover your costs 5. Know what purchases are being made in your organization make this a priority every day." On vehicles, Rose explained that his company is testing and trying many different vehicles. Both stressed that the life cycle of the vehicle plays into the costs. "The older the vehicle gets, the more it costs you in maintenance. You need to know and understand the cost of keep- ing older vehicles." On insurance, Rose said he hired an insurance consultant. "For years, I was with the same company. Now I take myself out of the mix. The consul- tant prepares an RFP and I get the best pricing. Shop around your top tier costs. On t he o th er e nd o f th e ph one is a lw ays T O P WAY S T O IMPR O V how many trips you need to do to cover your overhead," Wolf ngton said. "Def ne what costs are direct expenses and what is general overhead." Rose added, "You should understand how much it costs you to take a reser- vation. Whether it is $5 or $6, there are ways that you can reduce this through automation. Encourage your clients to use your online booking tool." Carrying Customers Customers are becoming more sophis- ticated, Rose said. "You need to have transparency in your pricing. Custom- L I M O _ 0 2 1 4 b o t t o m . i n d d 5 7 LIMO_0214bottom.indd 57 1 / 2 1 / 1 4 1 1 : 5 5 A M 1/21/14 11:55 AM

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