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Thread: Commissions

  1. #1
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    Default Commissions

    How many of you pay travel agent commissions on "one time" buyers? For example, we get a lot of inquries about paying agent commissions and we generally tell them that we don't pay on a first booking, only subsequent. ALl the agents promise more bookings but never deliver, this is why we changed our policy. I'm just wondering what some of the forum members do - and what percentage commission do you generally pay?

    Thanks
    Jim

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    1) Would you discount/pay a commission to "an affiliate" on the first booking they gave you?

    2) If after you do a booking for them, and you never get additional bookings have you been in contact with them to find out why there have not been additional bookings? Was there any dissatisfaction?
    Rick E.
    City Limousine Sales
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    ~Stupidity might be hereditary, but ignorance should be painful!~

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  3. #3
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    Rick...

    I am in a high tourist location and I have alot of travel agents worldwide calling us. As far as affiliates I tell them the same thing or to upcharge if it is a once in a blue moon booking.

    While we do book quite a few transfers through worldwide agents, we also never hear back from some after we tell them we don't pay a commission on the first booking. I was just thinking about this today after a discussion with a local agent who didn't like not getting a commission. I am wondering how many lost bookings there are because of this. I understand the need to weigh the discounts vs. lost bookings, however I was just curious as to what other operators are doing.

  4. #4
    Super Moderator gunny's Avatar
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    I tell all. This is my price. What they charge the persons is their deal.
    Airport Limo Service Spring Hill, Brooksville, Citrus County FL
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  5. #5
    Senior Member Wade Randolph's Avatar
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    Jim, try it for 60 days and track it. If it makes a difference keep doing it.

  6. #6
    Member skywaves's Avatar
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    Everyone is trying to make a dollar off of someone else's sweat. My prices are what I charge, period. I am in the industry to try to make a dollar of my hard work and dedication to my clients. As Gunny states, if they feel there is room to make profit over what I charge all the power to them.
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    Quote Originally Posted by skywaves View Post
    Everyone is trying to make a dollar off of someone else's sweat. My prices are what I charge, period. I am in the industry to try to make a dollar of my hard work and dedication to my clients. As Gunny states, if they feel there is room to make profit over what I charge all the power to them.
    If you would pay someone to market your business, why wouldn't you pay a travel agent that brings you business? After all, they are bringing you clients just like your marketing is bringing you clients. It is just another salesperson who happens to not be on your payroll.
    Tim Wiegman, Jr.
    Boulevard Limousine
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  8. #8

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    I make all the travel agents pay me $25 and sign a contract with a bunch of strict rules, to be on a responsible partners list. I also make them add me onto their insurance policy so I'm not liable if "their" clients get injured. Oh wait, that's what the wineries do to us.

    I don't mind giving commissions, but I have found there are some cheesy, cheapskate travel agents that throw around false promises of future business. I just offer them a fair price with a fair commission and they usually end up going with a cheaper, more desperate company.
    Tough times don't last. Tough people do.

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  9. #9
    Super Moderator gunny's Avatar
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    Quote Originally Posted by BLVD Limo View Post
    If you would pay someone to market your business, why wouldn't you pay a travel agent that brings you business? After all, they are bringing you clients just like your marketing is bringing you clients. It is just another salesperson who happens to not be on your payroll.
    Often TA's "rely" on obtaining transportation to close a travel package deal or in other words, they need us more then we need them. More important they need reliable transportation because if the shit falls through & the group is stranded at 4am waiting for a ride to the AP that isn't going to show the travelers are going to blame the TA. Sort of like an operator who is overbooked needing someone to cover their ass & demanding a piece of the action. Who needs who the most?
    Airport Limo Service Spring Hill, Brooksville, Citrus County FL
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  10. #10

    Default Travel Agents

    We offer a discount on our standard rates to the '' travel trade'' this covers affiliates, travel agents, hotels, casinos or anybody else booking transportation on behalf of somebody else... We actively go after travel agent business and always, always email them as soon as their clients have been dropped off at their destination, when they see that we're taking care of their clients .. repeat business is never a problem..
    Myles Flood
    Limos for Less
    www.lflcs.com
    www.limosforless.ie
    Dublin's Award Winning Limousine Service.

  11. #11
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    Jim,

    I was curious about your not giving affiliates a trade-rate on a first time booking. That is something that I had never heard of before.

    Travel agents get a commission from airlines, cruise ship lines, hotels, and car rental companies for each and every booking. While I understand that you want to get the most for each trip, I can certainly understand a travel agent only booking with those who commission them. Like everyone else, they don't want to work for free. If your retail rates are so low that you can't compensate the travel agency for bringing you work then you would have to either (a) turn down agency work or (b) raise your retail rates.
    Rick E.
    City Limousine Sales
    √XTS Livery Sedans√Escalade ESV Livery Package SUV's√Lincoln & Cadillac Limousines & Funeral Coaches by Federal Coach√GMC Professional Grade SUV's & 15 Passenger Vans√Cadillac & Buick Passenger Cars, Crossovers, and SUV's.

    ~Stupidity might be hereditary, but ignorance should be painful!~

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  12. #12
    Super Moderator Limo Scene's Avatar
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    Someone said someone is always trying to make a buck off someone else. Yes, it is called enterprise. The hay farmer tries to make a buck selling his hay to the cattle rancher. The cattle rancher is fattening his cows to sell to the meat processing plant. They are trying to sell meat to the wholesalers who then sell it to the retailers who sell it to the consumer. My point is, somebody made a little bit of money off someone else and that is how our economy works.

    I pay commissions to travel agents, wedding planners, event planners, meeting planners etc. as I realize the world is driven by greed. I know the agents want to make money with everything they touch and they too need alternate revenue streams so I provide it. They help close the sale. They are eager to do it at my price even if it may not be the lowest because they know they get a cut and the higher the price, the better for them. We cut commission checks on the 15th of every month for the preceding month for arrangements that are COMPLETED.

    I consider these people to be my sales/marketing force that are connecting me with people every day. I have tons of travel agents that just feed us every single day. And, because commissions are a normal part of business for us, our rates are set up to include the commission as a factor and the best part is, with non-commission sales, we get to keep all that as profit.

    Here is a copy and paste of my travel agent program:

    Earn CASH Commissions AND Free Limousine Usage


    Limousine Scene's Travel Agent Commission Program is your opportunity to earn cash and the use of limousines based on the volume of work submitted to us.

    If you would like to have brochures to distribute to your clients, please give us a call at the number below and we will deliver them to you within 24 hours.

    We look forward to working with you.

    Commission Schedule

    15% of the total base price of your order
    * Excludes gratuity, fuel surcharges, catering etc.

    Commission paid monthly on the 15th day of each month for all completed rides in the prior month.

    Limousine Usage

    For every $2500.00 in sales within a 6-month period you are entitled to a 3-hour limousine rental. This is an 8-passenger limousine.

    For every $5000.00 in sales within a 12-month period you are entitled to a 5-hour limousine rental. This is an 8-passenger limousine.

    For every $10,000.00 in sales within a 12-month period you are entitled to a 5-hour use of our 25-passenger limo-bus or up to (4) 3-hour limousine rentals.
    Jim A. Luff
    Forum Moderator
    Contributing Editor & Consultant - LCT Magazine

    Limousine Scene - An Award Winning Company Since 1990
    Bakersfield, CA
    Limousines, Sedans, Vans, Charter Buses, Limo-Buses, Wheelchair Vans www.limousinescene.com

  13. #13
    Member skywaves's Avatar
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    I totally agree with the commission package. Based on the business sent to you at your operating rates, commissions will be paid back. You are not lowering your operating rates till business levels have been met.
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  14. #14
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    Quote Originally Posted by skywaves View Post
    I totally agree with the commission package. Based on the business sent to you at your operating rates, commissions will be paid back. You are not lowering your operating rates till business levels have been met.
    Errrr NO. The "free" limo use is after minimums have been met. Jim pays commissions on each and every booking a travel agent gives him.
    Rick E.
    City Limousine Sales
    √XTS Livery Sedans√Escalade ESV Livery Package SUV's√Lincoln & Cadillac Limousines & Funeral Coaches by Federal Coach√GMC Professional Grade SUV's & 15 Passenger Vans√Cadillac & Buick Passenger Cars, Crossovers, and SUV's.

    ~Stupidity might be hereditary, but ignorance should be painful!~

    www.citylimosales.com

  15. #15
    Member skywaves's Avatar
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    My thoughts exactly, I apologize for not being clear in my post.
    Excalibur Limousine Service

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    Lincoln TC 120" Super Stretch - Krystal 120V5
    Lincoln Navigator 140" Stretch - Krystal
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