Tips and tipping

[BLVD Limo]

Good question Andy! You only need to raise your hourly rate the same amount of the dollars you raise the pay. So, if you charge $55/hour for a sedan and want to give your chauffeurs a $5.00 an hour raise, you raise your price to $60 and you are covered. Really not that difficult and if you lose business over a $5.00 per hour increase, you have a much bigger problem.

Plus the added FICA/Payroll taxes, Unemployment Insurance/Tax, and WC Insurance. Those are added on top of the $5 per hour raise.

[Limo Scene]

Those amounts are chump change Timmy and just a part of doing business. Hardly worth the breath to mention...but....if you want to worry about that, raise your rates $7 per hour, give your chauffeur $5 and use the rest for the employer cost to cover the joy of having employees so you can go golfing.

[Michael Bonanno]

I'm with you Edwin. I firmly believe that tips should be EARNED. I would NEVER tip a food server, bartender, bellman, valet attendant, barber or cabbie BEFORE they delivered service. Tim is right, this subject has been beat to a pulp in existing threads but it never hurts to repeat it. I follow the lead of BostonCoach has a business model of paying their chauffeurs a sufficient hourly wage that whether they get tipped or not, chauffeurs can make an okay living on hourly wages. You want minimum wage quality, hire minimum wage DRIVERS. You want sophistication, high-intelligence, high performing personnel, they aren't going to work for minimum wage! Why would they? If they are well-heeled, educated people, they would not accept minimum wage for their work. My lowest paid employee is at $13.25 per hour. The highest is at $18 per hour. Tips are the gravy on top and my employees WORK for the tip.

Could you imagine tipping your hairdresser a $10 when you got in the seat and then getting a crappy haircut and having to ask for the tip back? Once the damage is done.....it's done. Same with a chauffeured ride. One the ride is over, it is done. Tipping up front provides ZERO motivation. For those operators who say they want to make sure their people get a good tip......TRAIN THEM TO EARN A TIP. If you have a personal desire to make sure they have a good income, PAY THEM A GOOD INCOME!

Golden!! I coach chauffeurs that if people don't tip them, it's because THEY (The chauffeur) has already decided that the clien't does not tip. The future that they are living into(that of the client not tipping) dictates their action, their words, their image, their everything. Our actions are directly correlated to that which is most important to us. This also takes me to the Driver vs. Chauffeur mindset...but I won't go there..at least not tonight.

[Michael Bonanno]

another thought on this...the future that they are living into (That of the client not tipping) also dictates their lack of action, lack of service, lack of professionalism, relatedness, etc. It's always the future we are living into that dictates our present ways of being and acting.

[Cedar Mill Limousine]

another thought on this...the future that they are living into (That of the client not tipping) also dictates their lack of action, lack of service, lack of professionalism, relatedness, etc. It's always the future we are living into that dictates our present ways of being and acting.

I would disagree 100%. I have been an "employee" for different industries since around 1994. Tip was never a thought in any of those industries (carpenter, asphalt paver, trucker). I have received tips in all of those industries. I have known a few waitresses over the years, and it has always bothered me that they actually "work" for tips. By this, I mean that their pay is so low that they actually live on tips. Tips are supposed to be a gift for exceptional service. If you train your staff right you shouldn't have to worry how their service is and that holding back some income depending on their service. Like I said above, we have included a 20% gratuity on all of our prices for over 2 years now. Our chauffeurs routinely get "tipped" even though we have already included a 20% tip on the cost and they tell the customers that tip is already included and refuse it once. The customer still wants them to have this "gift". What changed my mind on the whole "mandatory tip" is a run I did myself 3 years ago. The customer found us on LDC. At that time (and I am unsure if LDC ever "fixed" this - one of the main reasons I will not use them anymore), LDC would not offer a "point to point" rate other than AP runs. In our market, a very large majority of our customers just want a luxurious ride from NW Indiana to Chicago and then brought back later on. We found a way to get around LDC's pricing so our "point to point" rate would show up. This customer was so happy that she found a service that would do this. Why she just didn't call the other companies to ask if they would offer this is beyond me as every company in our market does, but all I can say is that we had a wonderful phone conservation and she booked it on the spot. She sent a thank-you letter before we even did the run. That night came, I was the chauffeur, and everything was spot on. At the end of the night when I dropped them off, everyone went inside except her. She was almost in tears telling me how impressed she was and how much fun they had. She gave me a big hug and then handed me a wad of cash. Our tip was not included at that time and I never count out cash in front of the customer if it is "extra" (if it is what is owed - always count it out in case they accidentally put extra in and didn't mean it. If paid in full and they are "tipping" you, never count it out - just be happy they gave you something) and put in in my pocket. I still remember the look of happiness in her eyes. When I got in the car, I pulled the money out and counted it - $60. This was a $400 run. Honestly, I wasn't mad because I knew she truly felt like she over-tipped me. A week later she emailed a second thank you note with a bunch of pictures they took so we could put it on our website. The last thing I want is for our chauffeurs to get under-paid when they were spot-on. Some people just are not used to using such expensive services and do not even think of the 20% - they think a $60 tip is alot - and it is, because what percentage of people spend over $300 on a single service on one night? I like having educated customers - people now-a-days just want to know what the final cost is. I can go on and on about this, but unfortunately it is hard for me to put into words without rambling - if you train them right and hire the right people they will perform above and beyond your expectations! We have the best chauffeurs around!

[Michael Bonanno]

I would disagree 100%. I have been an "employee" for different industries since around 1994. Tip was never a thought in any of those industries (carpenter, asphalt paver, trucker). I have received tips in all of those industries. I have known a few waitresses over the years, and it has always bothered me that they actually "work" for tips. By this, I mean that their pay is so low that they actually live on tips. Tips are supposed to be a gift for exceptional service. If you train your staff right you shouldn't have to worry how their service is and that holding back some income depending on their service. Like I said above, we have included a 20% gratuity on all of our prices for over 2 years now. Our chauffeurs routinely get "tipped" even though we have already included a 20% tip on the cost and they tell the customers that tip is already included and refuse it once. The customer still wants them to have this "gift". What changed my mind on the whole "mandatory tip" is a run I did myself 3 years ago. The customer found us on LDC. At that time (and I am unsure if LDC ever "fixed" this - one of the main reasons I will not use them anymore), LDC would not offer a "point to point" rate other than AP runs. In our market, a very large majority of our customers just want a luxurious ride from NW Indiana to Chicago and then brought back later on. We found a way to get around LDC's pricing so our "point to point" rate would show up. This customer was so happy that she found a service that would do this. Why she just didn't call the other companies to ask if they would offer this is beyond me as every company in our market does, but all I can say is that we had a wonderful phone conservation and she booked it on the spot. She sent a thank-you letter before we even did the run. That night came, I was the chauffeur, and everything was spot on. At the end of the night when I dropped them off, everyone went inside except her. She was almost in tears telling me how impressed she was and how much fun they had. She gave me a big hug and then handed me a wad of cash. Our tip was not included at that time and I never count out cash in front of the customer if it is "extra" (if it is what is owed - always count it out in case they accidentally put extra in and didn't mean it. If paid in full and they are "tipping" you, never count it out - just be happy they gave you something) and put in in my pocket. I still remember the look of happiness in her eyes. When I got in the car, I pulled the money out and counted it - $60. This was a $400 run. Honestly, I wasn't mad because I knew she truly felt like she over-tipped me. A week later she emailed a second thank you note with a bunch of pictures they took so we could put it on our website. The last thing I want is for our chauffeurs to get under-paid when they were spot-on. Some people just are not used to using such expensive services and do not even think of the 20% - they think a $60 tip is alot - and it is, because what percentage of people spend over $300 on a single service on one night? I like having educated customers - people now-a-days just want to know what the final cost is. I can go on and on about this, but unfortunately it is hard for me to put into words without rambling - if you train them right and hire the right people they will perform above and beyond your expectations! We have the best chauffeurs around!

This is brilliant and I will assert that althought you were an "employee" you did not have the mindset of an "employee". This post is from that of a creator. One who creates.
Thanks for your share. It really is remarkable the contribution your attitiude is to this industry.

[Michael Bonanno]

[QUOTE=Cedar Mill Limousine;108176]I would disagree 100%. I have been an "employee" for different industries since around 1994. Tip was never a thought in any of those industries (carpenter, asphalt paver, trucker). I have received tips in all of those industries. I have known a few waitresses over the years, and it has always bothered me that they actually "work" for tips. By this, I mean that their pay is so low that they actually live on tips. Tips are supposed to be a gift for exceptional service. If you train your staff right you shouldn't have to worry how their service is and that holding back some income depending on their service. Like I said above, we have included a 20% gratuity on all of our prices for over 2 years now. Our chauffeurs routinely get "tipped" even though we have already included a 20% tip on the cost and they tell the customers that tip is already included and refuse it once. The customer still wants them to have this "gift". What changed my mind on the whole "mandatory tip" is a run I did myself 3 years ago. The customer found us on LDC. At that time (and I am unsure if LDC ever "fixed" this - one of the main reasons I will not use them anymore), LDC would not offer a "point to point" rate other than AP runs. In our market, a very large majority of our customers just want a luxurious ride from NW Indiana to Chicago and then brought back later on. We found a way to get around LDC's pricing so our "point to point" rate would show up. This customer was so happy that she found a service that would do this. Why she just didn't call the other companies to ask if they would offer this is beyond me as every company in our market does, but all I can say is that we had a wonderful phone conservation and she booked it on the spot. She sent a thank-you letter before we even did the run. That night came, I was the chauffeur, and everything was spot on. At the end of the night when I dropped them off, everyone went inside except her. She was almost in tears telling me how impressed she was and how much fun they had. She gave me a big hug and then handed me a wad of cash. Our tip was not included at that time and I never count out cash in front of the customer if it is "extra" (if it is what is owed - always count it out in case they accidentally put extra in and didn't mean it. If paid in full and they are "tipping" you, never count it out - just be happy they gave you something) and put in in my pocket. I still remember the look of happiness in her eyes. When I got in the car, I pulled the money out and counted it - $60. This was a $400 run. Honestly, I wasn't mad because I knew she truly felt like she over-tipped me. A week later she emailed a second thank you note with a bunch of pictures they took so we could put it on our website. The last thing I want is for our chauffeurs to get under-paid when they were spot-on. Some people just are not used to using such expensive services and do not even think of the 20% - they think a $60 tip is alot - and it is, because what percentage of people spend over $300 on a single service on one night? I like having educated customers - people now-a-days just want to know what the final cost is. I can go on and on about this, but unfortunately it is hard for me to put into words without rambling - if you train them right and hire the right people they will perform above and beyond your expectations! We have the best chauffeurs around![/QUOTE]

Now THAT's what I'm talking about!

[Cedar Mill Limousine]

This is brilliant and I will assert that althought you were an "employee" you did not have the mindset of an "employee". This post is from that of a creator. One who creates.
Thanks for your share. It really is remarkable the contribution your attitiude is to this industry.

Thank you, but I truly do not believe that I am an "exception". There are a lot of people out there that "just want to work" and are willing to go above and beyond if given the support. By the way, it has been very busy around here the last few months, "welcome" to you if I have not said so yet!

[Michael Bonanno]

Thank you for the welcome.
I appreciate the opportunity to contribute.
You are absolutely right, hire right and then provide support. "If you dont win, I dont win."

[Gselsidi]

Edwin from my opinion do it. Alot of companies do it nowadays. I am going to be working with a company that doesn't include tips the guy told me avg drivers gross 86k, and when I asked him about tips he said you I'll make about 3k in tips!!!!!If I worked with a company that had 20% gratuity that should be 17K!! what the 3k tells me is that when the option is given to people around 60% of the people won't tip or way undertip you.I would try it out a few months see how your business does if you slow down, ect. Or if people call and complain just return their tip. Especially with stretch limos people drunk, weddings thinking it's taken car of, I would personally do it. I would just give them the price with whatever tip you charge and if they ask tell them gratuity is included.

[Gselsidi]

And on a second note honestly, unless you are dealing with high end clientele where money isn't an issue, people just don't want to tip 15%-20%. Limo black car services aren't cheap then when they think of now adding another $10-20 dollars to a normal trip, most won't. It's not like the food industry where we are conditioned to pay tip because we know the people work on tip. People think I'm their mind. This guy drove me around and make twice as much money as I do in a day. They look at the high fare and think most drivers are making enough. They don't consider gas, car payments, insurance, ect. Or what the driver is getting paid if he is working hourly.