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Thread: Giving in on price for quantity of runs...?

  1. #1
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    Default Giving in on price for quantity of runs...?

    So do you give in and drop prices to gain more quantity business, or do you keep your prices tight and go for quality over quantity...?

    Please discuss this...
    Our stance is less runs higher margin and costs. We will not be a slave making pennies to say we have large quantity of business....Smarter not harder.

  2. #2

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    You do what you have to do to stay in business.

  3. #3
    Senior Member Excalibur Limousine's Avatar
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    Quality over quantity, my thoughts exactly. If they the client is looking for a budget service, I don't want to hear the whining when they get a rude driver, old dirty vehicle, or a breakdown on the highway.
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    Right there is value in service and clean and new, if the client does not value that, we don't want you. Pass on to the next client that does pay and values what we offer. If we are life support , we should not be operating, lets be real here, that type of business only hurts this industry.

  5. #5

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    Quality runs pay, low quality don't pay simple as that. Keep your prices high to get quality business, leave the rest for the low ones. You'll make more with 2 than them with 5.

  6. #6

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    My problem is 90% of my calls are price shoppers. Its either make money on volume or be parked.
    Parked limos make zero dollars last I heard.

  7. #7
    Super Moderator gunny's Avatar
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    Play the surge price game. Up pricing during traditional busy times of the day and day of the week. Discount during dead periods of the day. In addition, for those who have some serious dead head times, serious discount to avoid running to or from airport empty ie., I'd rather make $40 on the hour drive to the AP to meet an incoming passenger v. make zero.
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  8. #8

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    Quote Originally Posted by gunny View Post
    Play the surge price game. Up pricing during traditional busy times of the day and day of the week. Discount during dead periods of the day. In addition, for those who have some serious dead head times, serious discount to avoid running to or from airport empty ie., I'd rather make $40 on the hour drive to the AP to meet an incoming passenger v. make zero.
    Great advice!!!!

  9. #9
    Senior Member Billy Bob's Avatar
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    Case Study: Us (Executive Shuttle Network)

    In 2007, we signed a temporary work agreement with one of the largest, and most prestigious Resorts in Alabama. We terminated this agreement in April 2014.

    During a management change; the General Manager, Sales Manager and Assistant Manager, the top three positions in management changed almost overnight. This resort also had one of the most prestigious national accounts in the country. During our Temporary Work Agreement, we transferred guests between the Airport and the Resort and the Resort, then to the School and return. They estimated we transferred 15,000 individuals over this seven-year period without incident. The estimated revenue from this account was estimated at $300,000.00 for the last 12-month period. Total company revenue for 2014 was $465,000.00

    Everyone who knew us thought we were loosing our mind that we walked away from this account. The main reason we left was “Dave Ramsey”. When management makes a statement, “we don’t think you will walk away for $308,000.00 in revenue”.

    Our response was “In a blink of an eye”.

    Our approximate net profit was between 5% to 8% in net profit in 2014. In 2015 our total revenue dropped to approximately $365,000.00. Now in 2016, our estimated gross revenue will be $265,000.00.

    So lets think about this scenario for a day. I will respond shortly.
    End of Part 1
    Last edited by Billy Bob; September 25th, 2016 at 07:02 PM.

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  11. #11
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    Here's the thing, in this industry, there are times cars will sit, If you are a operator and having a car sit is going to put you out of business, honestly you might want to take a look at your business cause thats not good business practice for success, just saying.

  12. #12

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    I think that people looking for budget runs don't have long term customer value. Meaning that they are looking for whatever is cheaper and are bound to not even think twice about using the cheaper alternative. People who dont mind good price for quality are more inclined to use your services over and over again. Provided you have great service of course.

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