Limousine companies are extremely expensive to run, primarily because of the notoriously high insurance premiums they have to pay and the ongoing need for advanced technology. But when examined from an alternate perspective, these two factors are revealed as opportunities for increasing revenue and gaining a massive competitive edge.
Technology can be more of a friend than an enemy, and insurance premiums can be lowered with the right business strategies. Making these changes requires a crucial investment that will be surprisingly easy to pay off due to the inevitable boost in business and decrease of operational costs.
Here are a few ways limousine companies can expand by benefiting from technology and lowering insurance premiums:
EVERYONE LOVES TECHNOLOGY
The average limousine rider now expects the vehicle to possess the most up-to-date gadgets. Every driver must have access to GPS navigation and high-speed Internet, which must be made available to passengers as well. Vehicles must also contain strong sound systems, alarm systems, and numerous ports for charging mobile phones so passengers can take care of business-related tasks during the trip.
These additions, however, are actually among the least important technological elements of a limousine company. The biggest concern of these companies are ride sharing services like Uber because they allow users to summon luxury vehicles with a few easy clicks. In order for limousine companies to remain competitive, they must create their own apps offering similar conveniences, such as instant quotes, geo-location and the ability to book a ride via smartphone. Once limousine companies begin rolling out their own apps, customers will compare them to digital ride sharing services and realize they cannot offer the same perks as limousine companies, like a higher degree of safety.
FUNDING YOUR LEG UP ON THE COMPETITION
You’re going to need to hire a development team to design your company’s app, and this obviously comes with a price. But alternative business financing companies like United Capital Source would gladly supply the funding for such a profitable investment, especially if it will be accompanied by the installation of essential equipment. What better way to maximize revenue than decking your limousines out with the latest gear and making them easier than ever to book?
The majority of limousine rentals are booked via credit card, making limousine companies perfect candidates for Merchant Account Cash Advances. This funding program provides a lump sum of funds today in exchange for a fixed percentage of future credit card sales taken from each credit card batch. It will likely take time for your new app produce results but with a Merchant Cash Advance, you don’t have to immediately begin making monthly payments or worry about a due date when business is yet to pick up. When you experience an increase in business that’s when the bulk of the balance is paid, meaning you will be able to grow your business and cover regular expenses while having a minimum effect on cash flow at the same time.
CUTTING INSURANCE PREMIUMS
Various factors such as vehicle type and level of cover can lower insurance premiums but only a few will simultaneously lead to long-term growth. According to Limousines4Sale.co.uk, insurance providers have been known to lower quotes on drivers who pass additional driver training courses and have clean safety records. Depending the severity of the incident, it may be possible for drivers to expedite the removal of penalty points by participating in similar training sessions. Discounts of up to 15% have also been reported by drivers who become members of certain ownership clubs or limo forums.
Investing in employee training and such membership opportunities will lower the cost of running your company and provide your drivers with solid reputations that can be advertised along with your brand, which will soon be associated with highly-qualified employees. If this wasn’t promising enough, the courses and clubs will likely help drivers secure connections that lead to an influx of new customers. A great deal of wealthy passengers might only enlist the services of limousine companies that are widely known throughout the industry and offer drivers with impeccable records.
OWNING THE TOWN
Insurance premiums will be cheaper if your trips don’t cover a significant amount of distance because the longer the trip, the more likely you are to get into an accident. This is why it is wise for limousine companies to offer an array of discounts for local trips and related activities such as pub/winery tours, shopping excursions, or shuttle services to airports and hotels. These discounts are of little use, however, if no one knows about them.
There’s a good chance that when you pay off a loan on time, you will become eligible for a second, much larger loan that might have even better terms than the first. Your goal is to cement your company as the go-to source for all local trips, and the most effective way to accomplish this is investing in an expansive marketing initiative that targets the individuals who will most likely require your services. In addition to people who live in the area, your advertisements will be displayed before potential customers of a certain age, potential customers with special occasions coming up, or potential customers that have recently booked vacations. These strategies will be most effective during the summer and holiday season.
YES, UCS HAS EXPERIENCE WITH THIS INDUSTRY TOO
The ROI of these endeavors will eventually show you that running a limousine company seems a lot less expensive when you know you are making your best efforts to increase business. It’s understandable for limousine companies to be skeptical of long-term investments due to the industry’s cyclical inconsistencies with cash flow and the high cost of regular expenses like maintenance. But companies have crafted small business loans for limo companies tailored specifically to accommodate these circumstances and ensure that the funds can be paid off without having to dig into operational or personal funding. With the means to recruit the right people and acquire the right tools, your limousine company can have as much control of the market as even your most sizable competitors.