Fuel Surcharges

[Cedar Mill Limousine]

Phil, we raised our rates across the board this year, so because of the mandatory tip our chauffeurs wages increased this way too. We do not charge a fuel surcharge, we just send in a new tarriff and raise our rates. Most of our AP runs are across state lines, which do not require a new tariff.

[Limo Scene]

Rich, I don't mind getting hijacked. I think this is when the forum is at its best when ideas, philosophies etc. can be openly discussed and sometimes even debated. I actually like your logic in making a client call to say that something was bad. I want to know too but I use a different method to find out why. I also disagree upon the "risk with pay". If I am paying my chauffeur $16 per hour, they know that is their pay. They get that pay from the moment they clock in until the moment they clock out. There is no risk involved. The gratuity they EARN for doing a good job should be the icing on the cake. The sufficient hourly wage insures a decent paycheck for the work being performed. If they don't get a tip, the chauffeur can still make rent. Now, in the event a chauffeur is stiffed and they report it to the office, we can send out this letter upon request of the chauffeur and then end result is 95% the same - people ask us to add a tip to their card or they come right down and bring a tip. I don't want my people making their living off tips. Food servers do that.

Dear Client:


Recently we provided limousine service for you and we enjoyed doing so and look forward to serving you again.

During the processing of our paperwork, our chauffeurs are required to report the amount of cash tips they received for tax withholding purposes as required by the IRS. Your chauffeur reported he/she received no tip at all from you.

We are concerned that perhaps the service did not meet your expectations. Possibly we were late or your limousine was dirty or in some other way not up to our normal standards. Whatever the reason, if you were dissatisfied in any way with our service, we would like to hear from you so that we might have an opportunity to correct the problem.

If by chance it was an oversight on your part, we understand and want you to know our contact with you today is only to make sure everything was as you expected.

Please feel free to call our Operations Manager at 831-7955 (ext. 102) if you have any questions or comments.

Thank you for allowing us to serve you.

[Cedar Mill Limousine]

Rich, I don't mind getting hijacked. I think this is when the forum is at its best when ideas, philosophies etc. can be openly discussed and sometimes even debated. I actually like your logic in making a client call to say that something was bad. I want to know too but I use a different method to find out why. I also disagree upon the "risk with pay". If I am paying my chauffeur $16 per hour, they know that is their pay. They get that pay from the moment they clock in until the moment they clock out. There is no risk involved. The gratuity they EARN for doing a good job should be the icing on the cake. The sufficient hourly wage insures a decent paycheck for the work being performed. If they don't get a tip, the chauffeur can still make rent. Now, in the event a chauffeur is stiffed and they report it to the office, we can send out this letter upon request of the chauffeur and then end result is 95% the same - people ask us to add a tip to their card or they come right down and bring a tip. I don't want my people making their living off tips. Food servers do that.

Everything you have said makes sense, I suppose it could work both ways. Another side, I think a lot of our clients appreciate knowing the tip is already added. When going out for dinner, figuring out a decent tip is not usually a big deal. For some reason, once you get over $100, some people do not realize that a percentage goes up when the base number goes up (ie: $40 seems like a good tip to some people - no matter what the overall cost was). Our way, the client knows that the chauffeur is taken care of, and if I have someone that insists on tipping themselves (we have had a couple), I will let them, but then I tell the chauffeur that I will guarantee a certain amount. I am trying to encourage a good-mood workplace as much as I can. Good attitudes return quality work. The bad workers will be weeded out - its not hard to figure out who sucks - working for tip or not, some people are just made for this job and truly enjoy it. Nonetheless, I do understand leaving the tip up to the client (I tip garbagemen/women, mailmen/women, hair cutter, etc.), I just wanted to explain why we make it part of the cost up front. Works well for us.

[rjgst14]

Here is pgh, alot of companies charge a 20% gratuity & 6% surcharge (aka gas expense), the gratuity ends up being the drivers actual pay, not tip..... That ends up being a decent salary for the CDL trips, but little airport runs end up being pretty much worthless. And 6% only helps curve the pain at to the pumps, not eleminate the problem.