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Thread: How to price a limo package????

  1. #1
    Senior Member Fusion Limos's Avatar
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    Question How to price a limo package????

    Hello everyone,

    I am in the process of trying to figure out how to price a "Museum Package" but I would like input if I am doing this properly.

    My hourly rate for my 2005 ECB Black LTC 10 passenger is $110/hr without gratuity.

    Currently I am thinking if I charge hour for hour, item for item:
    3hrs limo useage = 2hrs travel to/from museum and 1hr prep/clean-up/stand-by time. = $330
    3hrs while client is at museum. = $330
    2 12packs of pop. = $12
    2 bags of ice. = $3
    Party platter for 10-12 people. = $20
    Fuel & Tolls. = $35
    20% gratuity. = $146
    Total estimated actual cost = $876

    What I am actually thinking of offering/pricing at is:
    3hrs limo useage (as above). = $330
    3hrs for client at museum... Only charge 1hr stand-by time. = $110/hr
    2 12packs of pop. = $12
    2 bags of ice. = $3
    Party platter for 10-12 people. = $20
    Fuel & Tolls. = $35
    20% gratuity. = $102
    Museum Package Price = $612

    Am I doing this correctly to make it appealing to clients to get orders or interest in this package and make a profit??

    Or what does everyone recommend as input???

    Also, does anyone have a work-sheet or spreadsheet they made and use to figure how to price their packages out that they are willing to share????
    I made one for this example but its kinda sloppy.

    Thanks to all.....
    Thank you,

    Dan @ Fusion Limos ~ Closed

  2. #2
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    For that kind of money, I can provide a rest room equiped, 55 passenger Motor Coach that you do not have to bend over to get in and out of.

  3. #3
    Senior Member Cedar Mill Limousine's Avatar
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    You've got the idea right-making sure you're costs are covered. It all depends on what kind of clients you're reaching out to and what you're competitors are charging (until you've built a strong base of clients which then you can charge what you want to some degree).

    For waiting time-instead of thinking of it as only charging them for one hour, think of how much is it costing you to have the car and chauffeur there (and what are you missing out on-maybe a discount during the week?)

    Water is cheaper than pop ($5 for 24).
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    Two 12 packs of pop ofr $12? That is expensive. Around here you can usually find it for about $7 for two....less if you get the 24 count cases.

    Rich is right. Instead of charging only 1 hour for the 3 hour standby time, I think you should charge something like $30 per hour standby. That way they can take as much time as they want to go through the museum. If they take 3 hours, they take 3 hours. If they stroll slowly and take 5 hours...then you make a little more than the $110. Consider the value to the client. How much is it really going to cost you to sit there and advertise your car to all the other museum patrons?
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  5. #5

    Smile Packages

    Take a look at all the packages Jim Luff offers on his website. www.limousinescene.com

    Quote Originally Posted by Fusion Limos View Post
    Hello everyone,

    I am in the process of trying to figure out how to price a "Museum Package" but I would like input if I am doing this properly.

    My hourly rate for my 2005 ECB Black LTC 10 passenger is $110/hr without gratuity.

    Currently I am thinking if I charge hour for hour, item for item:
    3hrs limo useage = 2hrs travel to/from museum and 1hr prep/clean-up/stand-by time. = $330
    3hrs while client is at museum. = $330
    2 12packs of pop. = $12
    2 bags of ice. = $3
    Party platter for 10-12 people. = $20
    Fuel & Tolls. = $35
    20% gratuity. = $146
    Total estimated actual cost = $876

    What I am actually thinking of offering/pricing at is:
    3hrs limo useage (as above). = $330
    3hrs for client at museum... Only charge 1hr stand-by time. = $110/hr
    2 12packs of pop. = $12
    2 bags of ice. = $3
    Party platter for 10-12 people. = $20
    Fuel & Tolls. = $35
    20% gratuity. = $102
    Museum Package Price = $612

    Am I doing this correctly to make it appealing to clients to get orders or interest in this package and make a profit??

    Or what does everyone recommend as input???

    Also, does anyone have a work-sheet or spreadsheet they made and use to figure how to price their packages out that they are willing to share????
    I made one for this example but its kinda sloppy.

    Thanks to all.....
    Dean Schuler

  6. #6
    Senior Member DenverLimo's Avatar
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    Its really hard to say. Every one in here is in a different market. In Denver were not even close to $110 per hour for a 10 pack. Were at 80-90/hr tip included. So its kind on hard to offer advice in a different market. We dont really have the same packages as you do, our muesem is not so interesting i guess
    "Girls might be able to fake orgasams, but men can fake whole relationships"

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  7. #7

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    Quote Originally Posted by Earl Metcalf View Post
    For that kind of money, I can provide a rest room equiped, 55 passenger Motor Coach that you do not have to bend over to get in and out of.
    A motor coach is not a limousine. People wanting a limousine most of the time dont want a motor coach. Somebody with 30-50 people wanting to just get to their destination would want the motorcoach.

    Also in this economy $600 is alot for somebody to take to goto a museum. You should lower this price for all days except saturday (if thats your busiest time). If Sun - thurs is your super slow time then you shouldnt chrage the wait time at all to make it affordable. Simply put alot of people arnt going to pay $600 to get a ride to the museum when they can just jump in the car thelsves.
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    Quote Originally Posted by DenverLimo View Post
    We dont really have the same packages as you do, our muesem is not so interesting i guess
    Denver, did you know that Denver's art scene produces more revenue than its professional sports franchises? You may want to reconsider your thoughts on the museum--could be increased revenue in it for you. The people that buy art typically are not affected much by the economy either good or bad.

  9. #9
    Senior Member Fusion Limos's Avatar
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    Thanks for everyones input, my eyes have been opened to many things....even motor-coach pricing...LOL

    Originally Posted by Earl Metcalf

    For that kind of money, I can provide a rest room equiped, 55 passenger Motor Coach that you do not have to bend over to get in and out of.


    I may have been off a little on the pricing of the soda, just going by memory and quoted high instead of low.

    My rates I believe are ball-park compared to other companies rates in my area. I have a part-time chauffer that drives for another company as well and he is advicing me on pricing different jobs. As chauffers and our driving skill we get compliments on a smooth ride from our current clients repeatedly, so I believe my rate is worth the skill level.

    The input of "slow period" pricing and a lower "wait-time" price also is a lot of help.

    My thinking was of actual time invested, what price to make it attractive for clients, and still make a profit with-out low-balling myself or being cheaper then the next guy to get the job. One thing I've noticed is the dis-appreciation towards the cut-throat limo companies on this forum. So I am trying not to be one of those bussinessman, but also make a profit and stayin business.

    About to hit my 2nd year in April :-)

    Once again, thank you to everyone for their input, keep it coming please.
    Thank you,

    Dan @ Fusion Limos ~ Closed

  10. #10
    Senior Member MrQ45Limo's Avatar
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    This price does seem a bit high...We do Indian Casino Packages that are sometimes Two or Three hours away from our Base, and alot of our customers are elderly folks and they can be quite frugal with their money. It is all in the way you sell the thing. Instead of charging them Wait time and telling them that, you might want to say that you charge a SPLIT Charge, if your vehicle is not running and you are covering your Chauffeurs wage you can make it look a little more attractive...As for all the extras (Pop & Party Platters) if you build them into your costs let your customers think that you are comping them, people love to feel like they are getting something for nothing. As far as your costs on these products I would suggest that you purchase in bulk if you are getting enough business, Off brand Soda Water can save you a bundle and usually people don't mind that much. I sure would like to know what they got going on in that Museum that these people are willing to shell out that kind of cash.

  11. #11
    Senior Member Fusion Limos's Avatar
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    This package idea was brought on by a trip to Chicagos Shedd Aquarium for a friends B-Day a few weeks ago. So I figured a "Museum Package" would be something to try and offer. My pricing does need work that is why I am seeking input from all. I havent posted this on my webpage so nothing is in stone yet....still brain-storming.....might be a little storm but gotta start somewhere.

    figure it might be a good package for those that have guest in from out-of-town and want to show them the city.
    Thank you,

    Dan @ Fusion Limos ~ Closed

  12. #12
    Senior Member Cedar Mill Limousine's Avatar
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    Quote Originally Posted by Fusion Limos View Post
    Figure it might be a good package for those that have guest in from out-of-town and want to show them the city.
    You're idea is very good. It's that kind of entrepreneurial attitude that will set you away from the rest. We are also on our second year-if you ever need help we are not too far away.
    Rich Rottier
    219.808.0976 | richrottier@gmail.com

  13. #13
    Senior Member DenverLimo's Avatar
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    I was talking about the muesem of nature and science. I get plenty of rides to Performing arts and ETC!

    Quote Originally Posted by Limo Insurance King View Post
    Denver, did you know that Denver's art scene produces more revenue than its professional sports franchises? You may want to reconsider your thoughts on the museum--could be increased revenue in it for you. The people that buy art typically are not affected much by the economy either good or bad.
    "Girls might be able to fake orgasams, but men can fake whole relationships"

    www.limoservicedenver.com

  14. #14

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    The thing to consider about "slow period" ie periods that all of your cars will not be rented, and its almost considered a book it or it sits type of run. For most non-corporate based limo companies this will be all days except saturday or during peak season all days except fri and saturday. Pricing is not only based on competitors but based on peoples budget and how bad the economy is. What that means is another comptitor might be $500 but that is just too much for the family to spend so they decide to just drive themselves instead of splurging on a limousine. Sometimes it pays to be able to "feel out the caller" and ask them "what do they think?" If they think its too high, offer them $50 or $100 off to get the booking, way better than having the car sit. THen you can get the higher priced runs but still get the budget people too. This only works for callers that will tell you what theyre thinking, and if they just see your price online and think its too high they wont call you at all. Pricing is a fine line.

    By having slow period pricing you can sometimes intice people to more their date to a non saturday and you pickup an extra booking on a slow day and can still book all your cars out for saturday and save them money. But you just might get an extra booking by offering off peak specials that they couldnt afford at full rate.
    I offer Search engine optimization for Limo Companies. Our main limo website has had over 9.6 million hits. Some of my clients: www.FirstClassLimos.net Rome Tours Tours in Rome Limo Service Philadelphia www.PartyBusToledo.com

    Call us at 1-888-51-LIMOS (54667) For referral work in Cleveland Ohio, Columbus, Toledo, & Pittsburgh PA and all cities in between - over 15,000+ customers and counting!

  15. #15
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    Default Don't advertise price

    Just advertise that you have a package and call for pricing. If the advertised price is too high, (which I think you are for an '05 Limo) they will just not call you.

    Next the "cut throat Guy" across town will under cut you every time. You need to get them on the phone to negotiate the deal. Some will pay anything but most will try to get you to lower the price.

    As far as the tip goes, do not include it with the price. Add language that a 15 or 20 percent gratuity is customary. It is the possibility that a Chauffeur may not get a tip is what makes a good Chauffeur. If he knows he is getting the tip, then why try to earn it.

    P.S. I still prefer a Motor Coach or Limo Coach to a Limo anytime. I just hate to see the little old Ladies having to crawl up the floor and then have to bend over to get out. It is so much more elegant to just step off the steps. Just my opinion.

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