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Thread: How much should I expect to pay my limo drivers?

  1. #1
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    I'm considering starting a new limo business and will not have enough work in the beginning to hire a full time driver. How should I pay them, by the billable hours? Also what benefits should I expect to pay them once they do go full time?

    Thanks for your input.

  2. #2
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    sheri just call other limo companies & limo assoc.in your area.or you can order my books mylimoguy@hotmail.com

  3. #3
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    Hi Cheri,

    > I'm considering starting a new limo business
    > and will not have enough work in the beginning
    > to hire a full time driver.
    I am getting the impression that you think full time and part time drivers are very diffrent in terms of pay. At most companies full time and part time drivers are paid in the same way (structure) the full timers may get more (hourly)just because you want to hold on to them and they are usually more experienced.

    > How should I pay
    > them, by the billable hours?
    That is the norm if they do a 5 hour wedding they get paid for 5 hours. Of course be careful if you routenely send you cars an hour away to do a job and do not get any travel time for your drivers they can tend to get a little irratated at this. I can tell you the most amount of work I do on a run is 1 hour before and 1 hour after the run cleaning the limo. Why shouldn't drivers get paid for that time? (hook)



    We talked about this subject a little while back and came up that the general rule that drivers usually start at about 12.00 per hour and your more experienced drivers average around 20.00 an hour. Salary.com also confirmed this, go to the site and check your local area. Now the range is only half of the fun in figuring this out because now there are many diffrent ways you can figure out how a driver gets to his hourly pay. Here is a responce i did a while ago that dealt with one way to do it:
    > one issue that I am a bit uncertain about is
    > that of how to best compensate my drivers.
    I cannot help you with amounts as that will vary region to region but I will tell you a structure that many companies use and not only does it promote fairness but also may save you some money with your taxes.

    Basically its a base plus gratuity system.
    It's fair because the person driving the sedan would get an hourly rate of something like this:
    Hourly Base Rate = $ 5.00
    Gratuity 15% of $45 = $ 6.75
    Total Hourly = $ 11.75

    Where your 10 pass limousine driver would get something like:
    Hourly Base Rate = $ 5.00
    Gratuity 15% of $65 = $ 9.75
    Total Hourly = $ 14.75

    And your stretch Hummer driver would get something like:
    Hourly Base Rate = $ 5.00
    Gratuity 15% of 120 = $ 18.00
    Total Hourly = $ 23.00

    This is a good situation as raises based on performance can be added to the hourly rate or base and drivers automatically get a default raise when your rates go up. Also if you get a complaint that is justified about a driver they loose the gratuity and you do not charge the customer the gratuity.

    It is also inherently fair that sedan drivers do not have to do as much clean up during and after their run as drivers of multi passenger vehicles with glassware and all the rest.

    What comes in handy sometimes also is if you need your driver to wait somewhere (on their time) for a couple of hours in case of an emergency you pay them the base rate and it does not set you back that much as it would have if you paid a flat higher hourly rate.

    The bad part:
    You will get a lot more grief from your drivers if you low ball a run and it cuts into the pay they are used to. They will be watching the hourly figure like a hawk. Where as if you just did a straight hourly pay rate for all drivers they could care less how much you charge as they will be making the same amount.

    Now the money savings end:
    Someone else could correct me if I am wrong but I believe that payroll taxes and social security payments will be based on the hourly base pay and not the gratuity. The business is not responsible for paying tax on the gratuity only the driver is, Is that correct, please someone jump in here.

    Saying all this is this the system my company pays me with? No, I am on a flat hourly rate for the simple reason that I priced myself so high that it would not by in my bosses best interest to send me out for airports in a sedan, which is great because I hate doing them ;-) And this is another feature of this system that some drivers will like the sedan work more than the stretch work and vise versa so the amount they want to make will determine what cars they will gravitate to.

    > Also what benefits should I expect to pay them
    > once they do go full time?
    I think you may be in a small group of limousine owners if you want to start paying for medical or dental benefits, not to many companies pay them that I know of, but maybe I have not heard about them, anybody!


    Good Luck!!

    Steve Walker
    Azusa, CA
    steve@capriceshop.com
    http://www.capriceshop.com

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