Page 1 of 2 12 LastLast
Results 1 to 15 of 17

Thread: outsourcing cars

  1. #1

    Default outsourcing cars

    Hi Guys, I'm pretty new in the industry and will like your input on this matter.
    I know allot of car service companies that use owner operators and interested in asking if you guys use owner operators at all? can I open a car service company and only use owner operators and not own cars will this be profitable?
    thanks for the help.

  2. #2
    Senior Member Limo Padawan limo bill's Avatar
    Join Date
    Feb 2008
    Location
    southern california
    Posts
    340

    Default

    You want to be a limo broker ? To be honest most limo operators do not like brokers. Brokers are consumed with their commissions are don't realy care about the logistics or customer service end of the business. Sorry , proberly not the answer you wanted .

  3. #3

    Default

    Quote Originally Posted by limo bill View Post
    You want to be a limo broker ? To be honest most limo operators do not like brokers. Brokers are consumed with their commissions are don't realy care about the logistics or customer service end of the business. Sorry , proberly not the answer you wanted .
    So basically they brokerout cars/ limos.
    does anyone in this forum do this? if so what are the licensing requirements? thanks and please keep posting. thanks

  4. #4
    Senior Member ADAM's Avatar
    Join Date
    Oct 2003
    Location
    Kalispell, Montana USA
    Posts
    318

    Default

    There has been extensive conversation about Independent Contractors versus Employees on this Forum. You should review those threads for more information. Under Montana law it is nearly impossible to justify an Independent Contractor in the limousine business. The IRS rules also make it very difficult to classify chauffeurs as Independent Contractors IMHO. A Pennsylvania judge recently ruled in favor of limousine operators utilizing Independent Contractors. Again, please review the threads already posted before stirring this topic up again. It has become quite passionate :-)
    Marc Rold
    Wild Horse Limousine
    www.wildhorselimo.com

  5. #5
    Senior Member Limo Padawan ziggyburd's Avatar
    Join Date
    Jun 2005
    Location
    Tampa Bay area of Florida
    Posts
    199

    Default

    http://www.limousinesonline.com/sear...?searchid=6454

    Hope this search link works. Lot's of questions, answers and most of all people experiences on the topic.
    Zane Burdette
    St. Petersburg, FL

    http://www.thefita.com/

    Malcontent Member

  6. #6

    Default

    Quote Originally Posted by ziggyburd View Post
    http://www.limousinesonline.com/sear...?searchid=6454

    Hope this search link works. Lot's of questions, answers and most of all people experiences on the topic.

    I tried to open a link and that did not work, same luck with the search online.

  7. #7

    Default

    Quote Originally Posted by rgnew View Post
    I tried to open a link and that did not work, same luck with the search online.
    I can search on and off and I did find some info on forum, but it seems like the it talks about hiring drivers not driver operators. I'm interesting in getting driver operators that have cars, insurance, and if anything goes wrong they are responsible for cany car damages. what I would bring would be the clients. any ideas. thanks guys

  8. #8

    Default

    Like Bill said, it sounds like you want to be a broker. A broker works with other companies and sends them clients. In return they get a commission(usually 10-20%). I don't think you need any special license to give clients to limo companies, but it probably depends how you are advertising yourself.
    Tough times don't last. Tough people do.

    Limo Kings Limousine Service
    www.limokings.net

  9. #9
    Senior Member
    Join Date
    Jul 1999
    Location
    Los Angeles, CA
    Posts
    807

    Default

    Quote Originally Posted by rgnew View Post
    I can search on and off and I did find some info on forum, but it seems like the it talks about hiring drivers not driver operators.
    That, in and of itself should tell you something.
    I'm interesting in getting driver operators that have cars, insurance, and if anything goes wrong they are responsible for cany car damages. what I would bring would be the clients. any ideas. thanks guys
    Start a taxi service. But forget about getting a bumper crop of chauffeurs who are willing to shoulder all the risks while waiting for you to put customers in their cars. They're able to do it themselves and not have to worry about paying you a commission (provided you can provide them with enough customers in the first place).

    Of course there are exceptions, but unless you have the resources and infrastructure approaching that of a Carey International, it's too risky to pull off effectively, especially for the smaller operator.
    Karl Jones

  10. #10
    Senior Member Limo Padawan Cliff Robinson's Avatar
    Join Date
    May 2006
    Location
    Portland, Oregon
    Posts
    215

    Thumbs up Driver Operators

    Most Driver Operators I know here in my area are already working hard to make their small business grow. What you seem to wish to start is a Broker service where you have an affiliate network of cars availiable for hire.

    I only own one sedan and a number of Stretch Limousines. I had a Broker offer his services to me yesterday and here is what I told Him.

    I have been in operation for over 3 years now. Why in the world would I take a cut in pay pay you for a lead and pay the insurance and labor and expenses and you would shoulder non of the costs and expenses I have yet benifit off of my services?? I do not consider for iNstance Limos.com as a Broker but a lead generator where my sales and people skills come into play and others get the same lead so it is up to me to distinguish myself from the others out there to earn the business. It is the cost of doing business and advertizing and I certainly do not wish to be Lumped into a group of folks I do not know and would never use one myself to get a Job done but would rather call the owner up or Operator and farm it out. To me there is a huge difference...

    The Other thing I forgot to add is Most of us as Owner Operators are working hard to build our names and market share and to do work for a Broker is to allow someone else to get the glory for the work I did and that is just not right.. When I do farm out work for other companies I realize I represent them and do so with all my might to make sure that I provide the best of service, one so they continue to use me when they need me and two it is a professional curtesy to represent them in the best light possiable. i know to many brokers who use services to provide runs I would not allow my enemys into their cars much less a client of mine. Just no way to ensure satisfaction and World Class Service that way...

    While I know a number of folks who use this model and some rather successfully I do not believe in the model. First of all a number of Brokers will use anyone as long as they can get a car for the client. Alot is rideing on the service and unless you know them personally you have no clue as to the shape and condition of the car or services offered.

    I for one would not give someone a percentage of my business for the privilage of getting a run and cutting into my expenses. insurance and Labor and Operating expenses are high and the Broker shares Non of the risk and expects the Operator to bear the brunt of the service.

    in my View we as Owner Operators work hard for our business and I for one would be damned if I am going to give up a penny to some broker somewhere who knows nothing about me and would likely only give me the occasional run and expect a discounted rate at that or a kick back of some sort for advertizing or for referals or booking.

    I think it is one thing to farm out a Job when lets say I am completly booked and use another company to do the job and I need to take care of my clients. I think it is another thing altogether to build a model on the backs of those who bear the brunt of the expenses and use them to earn money while expecting them to kick back 10% or what ever fee you may have in mind for a reservation.

    I may be the Odd Man out here but I doubt it! I do not like brokers and feel they hurt the industry more than they help it.

    A Wise operator would not use one and simply farm out their jobs till they can afford to either grow and aquire enough limousines to cover their business.

    Having a great relationship with other Operators help to eliminate the need for Brokers who simply share Non of the risk and expense in my view....
    Last edited by Cliff Robinson; September 14th, 2008 at 01:41 AM.

  11. #11
    Senior Member Limo Padawan ziggyburd's Avatar
    Join Date
    Jun 2005
    Location
    Tampa Bay area of Florida
    Posts
    199

    Default

    Sorry about the link. The system (server) may have dropped it.

    The post by Cliff sounds like my feels if I owned a company.

    Now your idea might work if your in an area that has very little demand and you were to get calls you could "farm out."
    Zane Burdette
    St. Petersburg, FL

    http://www.thefita.com/

    Malcontent Member

  12. #12

    Default Farmout Pricing

    Hi folks. First time poster here. Nice site !!!

    So in the thread about outsourcing and farmouts, are there industry guidelines that you would use when taking a farm in or giving a farm out - eg 10%, 0%, etc. ?

    Thanks

  13. #13
    Senior Member Cedar Mill Limousine's Avatar
    Join Date
    May 2008
    Location
    Crown Point, Indiana (Northern Indiana)
    Posts
    2,695

    Default

    All depends what your market calls for.

  14. #14
    Senior Member BLVD Limo's Avatar
    Join Date
    Sep 2008
    Location
    Kansas City Metro Area
    Posts
    2,609

    Default

    Market conditions will cause that to vary. A general range that I have found is 10-20%. Off course, if you send a farm-out, you want the higher percent because that would mean more money in your pocket for fielding the call and processing the transaction. If you accept a farm-in, you want the lower percentage because, again, you keep more $$$.

    I have agreements with other companies here locally and they vary depending on the company, and then the vehicle. One company I work gives me a wholesale price and I know what their retail price is on their vehicles. In some cases, I am able to sell service at rates higher than their retail pricing because I market more aggressively, especially online. This means that I can get an even greater profit than the 10-20%, plus it gives me the ability to discount my pricing down closer to their retail price.

    All I can say is that it is an art. Don't get too greedy because it will come back to bite ya!
    Tim Wiegman, Jr.
    Boulevard Limousine
    Travel Confidently!
    Serving Kansas City, Lawrence, Topeka
    http://www.BoulevardLimoKC.com - Kansas City Limos
    KC Airport Car Service

  15. #15

    Default

    Cliff: Why would you take a 10% pay cut? Becasue you were HANDED at no cost or marketing expense a booking which can fill a slot in your schedule. If your schedule is full simply decline the run.

    Affiliate business, even from local competitors or brokers, is a great way to generate more revenue once you get over the pride aspect of someone else 'benefiting' and focus on the bottom line.

    Most likely the affiliate or broker incurred some cost to get the lead. The commission you pay them helps offset some of that cost and if they are lucky they earn a few bucks too assuming the company doing the job doesn't screw it up.
    Last edited by TxLimoGuy; September 23rd, 2008 at 11:22 AM.
    Tony Franzetti
    Marriton Limousine, Austin, TX
    Austin Limousine service, Austin airport service, austin bus charters
    http://www.marritonlimo.com

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •