Important Factors To Consider When Operating A Limousine Rental Business
Vanessa Arellano Doctor
February 16, 2008
With the tourism industry booming, and an increase is seen in the need for hiring private luxury vehicles to serve many occasions or events, many new limousine rental operators have been noted to set up shop these days, and most industry analysts note that despite the current slowdown brought about by the slump in the domestic housing markets as well as the credit crunch, limousine companies still continue to flourish and thrive.
Succeeding in operating a limousine rental busienss, requires considering many pertinent aspects, since these types of businesses could be quite capital-intensive sometimes.
What Should Be In A Limousine Service Contract
When you do have a contract with a potential client, which happens quite often, especially with prom kids, is that they are for example, a group of twenty persons, and they want to rent a large SUV limo or a Hummer. A week or so before the event, the twenty people have dwindled down to seven or eight, and they tell you that they can’t afford the limo that they wish to rent, but they already did put a deposit a week or month earlier. Now, they're asking for a refund of the deposit because they can't afford renting the vehicle anymore.
In this scenario, it's important to have their parents sign the initial contract and make it very clear that the deposit is non-refundable, or else they should need to give the rental firm at least thirty days notice to get a different size vehicle. You need to make sure that your clients fully read the contract details, before they sign up for your services.
How About Rental Services for Funerals?
This is considered steady work, as unfortunately people die on a regular basis. You need to know that dealing with funeral directors could be quite tough, as these people are very meticulous folks. They will as k that your chauffeur needs to be in a solid black suit, a pressed white shirt, solid black tie.
Usually they do like chauffeurs caps, and the vehicle has to be an immaculate, black stretch limousine most often. This stuff is usually low-key yet profitable work, and typically Monday to Friday, and once in a while there will be a Saturday or Sunday funeral service, which usually starts at 8:00 in the morning and is relatively done by early afternoon.
How Should You Price Your Rental Services
This is a good aspect to ponder on. A lot of business owners have hired accountants and financial analysts and computed the formulas on what should be properly charged; however it really comes down to what the market will bear. As you will try to get as much as we can, however you can't overprice your service, or your vehicles will be sitting idly on your yard.
And you should also try to use a strategy like the ones used in the airline and hotel industry, where when it’s busy their rates are higher, and when it’s slow the rates are quite lower. So the rates would basically depend on what the market will bear at the time.
Effective Ways Of Marketing and Advertising a Limo Rental Service
The aspect of marketing a limo rental over the years, has radically changed in style and substance.
For the moment, the Internet is seen as the best way to go. Online marketing methods like Google Adwords, pay-per-click are noted to bring in a large chunk of revenues. However, the concern with marketing on the Internet is that, the people will find you and they'll book a car with you, you'll make the reservation. However, some individuals quickly forget who they booked, as there's quite little loyalty on this online realm.
It's important that once you make that reservation and you service the client, it's pertinent to put your clients on a mailing list and send them hard mail, send them your business card, thank you card, and try to turn them into loyal customers, as well as get them off of the Internet the next time they wish to rent a limousine.
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