Crunching the numbers

[BTGary]

Hello all, I have been doing this business for about three years and have learned a TON not only from the OJT but also from this discussion forum...thank you! But I was wondering more about the financial aspect of this business...besides looking at the gross revenue numbers per car per month as well as the monthly expenses (seems like some months it is two steps forward and three steps back), is there any other data that you folks monitor that is of importance to you, such as, revenue per ride, revenue per hour, etc.? I have heard revenue per car should be around $5,000/month. Is there a standard for the industry, or would it depend on the individual market? FYI I have 8 cars with a staff of 8 PT drivers.

Thanks...Gary

[Wade Randolph]

Hello all, I have been doing this business for about three years and have learned a TON not only from the OJT but also from this discussion forum...thank you! But I was wondering more about the financial aspect of this business...besides looking at the gross revenue numbers per car per month as well as the monthly expenses (seems like some months it is two steps forward and three steps back), is there any other data that you folks monitor that is of importance to you, such as, revenue per ride, revenue per hour, etc.? I have heard revenue per car should be around $5,000/month. Is there a standard for the industry, or would it depend on the individual market? FYI I have 8 cars with a staff of 8 PT drivers.

Thanks...Gary

Gary, that pretty much depends on your overhead. I think a good rule of thumb is that vehicles should do a minimum of at least 6k per month each to make a reasonable profit. This would be for fleets with sedans, suv's and limos. Large motorcoaches would need to bring in at least 10k per month each. This is my general rule of thumb and my involvement with other operators around the country. The goal should be that eventually each vehicle should bring in an average of 100k each year

[Elegant Limousines of Palm Coast]

Gary, that pretty much depends on your overhead. I think a good rule of thumb is that vehicles should do a minimum of at least 6k per month each to make a reasonable profit. This would be for fleets with sedans, suv's and limos. Large motorcoaches would need to bring in at least 10k per month each. This is my general rule of thumb and my involvement with other operators around the country. The goal should be that eventually each vehicle should bring in an average of 100k each year

With #s like that I would have more hair and sleep better. Just the price we pay for living in FL. LOL

[BTGary]

Gary, that pretty much depends on your overhead. I think a good rule of thumb is that vehicles should do a minimum of at least 6k per month each to make a reasonable profit. This would be for fleets with sedans, suv's and limos. Large motorcoaches would need to bring in at least 10k per month each. This is my general rule of thumb and my involvement with other operators around the country. The goal should be that eventually each vehicle should bring in an average of 100k each year

Wade, thanks so much, and those numbers are what I am looking for. Would they vary much depending on the market you're in? I am in a city with about 220K people (Modesto, CA) and plenty of smaller limo companies to compete with in neighboring cities. I guess I need to expand my client base into more of the outer regions...most of our staedy business is airport, weddings, and quinceneras.

[Wade Randolph]

Wade, thanks so much, and those numbers are what I am looking for. Would they vary much depending on the market you're in? I am in a city with about 220K people (Modesto, CA) and plenty of smaller limo companies to compete with in neighboring cities. I guess I need to expand my client base into more of the outer regions...most of our staedy business is airport, weddings, and quinceneras.

Gary, it took me 20 years to reach that goal of at least 100k per year per vehicle. There seems to be a synergy when your vehicles are going out 6-7 days per week. This will probably not happen with limousines and will have to involve sedans, suv's and buses.

One of my biggest personal and business goals was to be able to leave my business for at least 2 weeks. To me, that is when I knew that I had a real business and not some mom and pop limo business that depended on me being here 24/7. When you are able to delegate and have systems in place things just seem to happen and it's like magic. I have a friend in the business that is literally killing himself and his marriage because he thinks he has to do everything. I don't think any of us want that out of life.

[Cedar Mill Limousine]

Gary, it took me 20 years to reach that goal of at least 100k per year per vehicle. There seems to be a synergy when your vehicles are going out 6-7 days per week. This will probably not happen with limousines and will have to involve sedans, suv's and buses.

One of my biggest personal and business goals was to be able to leave my business for at least 2 weeks. To me, that is when I knew that I had a real business and not some mom and pop limo business that depended on me being here 24/7. When you are able to delegate and have systems in place things just seem to happen and it's like magic. I have a friend in the business that is literally killing himself and his marriage because he thinks he has to do everything. I don't think any of us want that out of life.

Wonderful advice throughout this whole thread, Wade. Thank you.

[brandon1]

Yeah great advice Wade.

[BTGary]

Gary, it took me 20 years to reach that goal of at least 100k per year per vehicle. There seems to be a synergy when your vehicles are going out 6-7 days per week. This will probably not happen with limousines and will have to involve sedans, suv's and buses.

One of my biggest personal and business goals was to be able to leave my business for at least 2 weeks. To me, that is when I knew that I had a real business and not some mom and pop limo business that depended on me being here 24/7. When you are able to delegate and have systems in place things just seem to happen and it's like magic. I have a friend in the business that is literally killing himself and his marriage because he thinks he has to do everything. I don't think any of us want that out of life.

Hello Wade, sage advice indeed, and thank you. Since I am committed to growing my business, it sounds like I have a ways to go! Interesting comment about your perception of the 100K per year per vehicle business leaning towards sedans, SUVs and buses. I have considered updating my 10paks, but you have given me pause indeed. I have seen the weekly business grow over time, which is exciting. So true about sacrificing personal life...and for right now I enjoy doing most things myself because of being in the learning mode....love to learn new things!