Stop Trying to Be Everything—It’s Why You’re Not Profitable

WEBVTT
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you actually want service failures to happen.
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I'm, I'm telling people all this time because if you address them and get in front of it and call the people and show that you actually care, you just made them seven times more loyal than they'll ever be.
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good afternoon, ground Transportation podcast, audience.
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my name is Ken Luci from Driving Transactions.
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I'm your host today, my cohort, James Blaine from PAX Training is, out traveling the country, living outta suitcases, eating fast food, no doubt.
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training chauffeur and motor coach, drivers.
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So, James, you keep up the good fight, man.
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I miss you.
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But I am joined today by a friend and an industry icon, named Scott Woodruff from Majestic Limousine or Majestic Transportation in Des Moines, Iowa.
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Very active in the LNLA.
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always see him at the conferences.
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Always eager to help operators.
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So I think it's way overdue that we had you on the podcast, so I'm so happy that you've agreed.
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So Scott, welcome and tell us a little bit about your origin story.
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How did you get into the crazy business?
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We called chauffeur services.
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Well, first of all, thanks for having me, Ken.
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I always love talking about the business and any way we can help the operators, uh, and not trying to reinvent the wheel sometimes and, give them maybe a nugget or two that I've learned over the years.
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But, how'd that get in the industry?
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Well, I, oddly enough, graduated from Iowa State University, with a degree in transportation and logistics.
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No kidding.
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Probably one of the few guys in the industry that actually has a degree in transportation logistics.
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we didn't learn about that.
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We learned about warehouses and trucking companies and, shipping and all that stuff.
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but you know, it's kind of that little claim of fame like, Hey, I actually am doing what I, uh, went to school for.
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so got outta school and, uh.
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Started to work for insurance company.
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Des Moines is a huge insurance home.
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Offices are based here.
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Um, didn't really know what I wanted to do.
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I've always been a car nut guy.
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I mean, I'm the Motorhead guy.
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Like what size engine is that?
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I mean, I'm just all about that stuff.
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back in the day, you probably remember the magazine racks at the grocery stores and there was these things called Wheeler Dealer or Deals on Wheels.
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Um, and I put, you know, I was always looking in there, what's out here?
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And I'm like, there's a limo.
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I can buy a limo for 10 grand.
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Yeah.
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like, I'm not doing anything on the weekends.
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let's give it a shot.
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Uh, so I traded in my car and bought a limo.
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No kidding.
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Your primary car and, and you bought yourself a stress limit.
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Okay, good.
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yeah, yeah.
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So, uh, did that and, um.
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Continued to work at my full-time job, trying to navigate this whole thing.
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Oddly enough, I bought it and I missed the yellow page ad cutoff, which back in the day that that was a big deal.
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so the first year was a little rough.
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Um, but just went out there and started talking to bigger operators that are in the area, you know, saying I could help and, uh, it kind of took its spot from there.
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I bought it in November of 96 and, uh, I quit my full-time job in 98.
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Two years later.
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Wow.
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that's pretty darn good that you could replace your income in about two years, less than two years.
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it was to the point where, either I needed to put more effort into this and, and see it grow and try and work on it, or just keep doing what it was doing and.
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Having stuff go to answering machines, and I would, call'em back when I got home from work But, it just started to flourish.
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So I said, you know what?
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Let's, let's take the brisk
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Well, if you kept it on the side, it would only be a hobby business.
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And the constraints of your primary job would certainly get in the way eventually.
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tell us about the Des Moines market now.
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I was shocked It is the fastest growing major metro area in the Midwest, and it's number two for top performing mid-size metro markets in the entire country.
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I was shocked.
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Tell us about Des Moines.
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so Des Moines, yeah, it's in Iowa and no, we don't drive John Deeres to work.
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but, you know, Iowa's known for agriculture.
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That's our big, you know, claim to fame, feed the world.
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Um, but Des Moines.
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Is a huge financial town.
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lots of banks, lots
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A lot of insurance.
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Yep.
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of insurance companies, based in, Des Moines, Iowa.
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so oddly, a very white collar town.
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Um, and you know, I grew up here all my life.
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I didn't know any different.
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So, but, later on looking at it, you're like, wow, Des Moines, a very white collar town.
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And, the business started to progress and, noticed that there wasn't really, I mean, there was operators here doing it, but, the Des Moines market was hungry for maybe a higher level of transportation company.
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and because of that, I think it contributed a lot to the success.
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But yeah, so Des Moines, very financial, but you go outside of Des Moines and it's mostly agriculture.
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Sure.
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That's where you pass the John Deers.
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Right.
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That's where we pass the John Deeres.
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We get groups in and they, they say, are we gonna see any corn fields that bike?
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You will see them in about 10 minutes.
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it's funny because I, I live in an area that's got chicken farms and farms, so I, on my way home, always run into those John Deeres.
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I'm in the thriving metropolis of Salisbury, Maryland, but then when I head out towards Eden where I live, you're always running into those John Deere's.
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So tell me something, what, when you started and you bought that stretch, what made you pivot into,'cause I into corporate, I know you do a great job corporate wise.
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I went to my industry show, um, and, I started learning about the, back in the day, it was the LCT magazine.
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Then with Digest, And reading.
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I'm like, what are these shows?
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so I went to one and, I will tell you, I was on the show floor, didn't really know anything.
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I mean, I get it.
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it's very overwhelming when you're brand new.
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but I looked over and I saw this guy that really, you know, when you could look at somebody and say that guy looks like he really has you, you know, like he just gave off that air of
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Had a
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experience.
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He had a presence.
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Exactly.
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so I went over and I said hi.
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I told him I'm like, can I ask you a few questions?
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And, he was obviously just like anyone else in our industry, sure.
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what can I do for you?
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And I said, how do you make any money in this business?
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And he goes, well, you know, how many corporate accounts do you have?
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And I go.
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I don't have any.
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And he goes, okay, how many town cars do you have?
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I go, I don't have any.
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And he goes, that's, he goes, what do you do?
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And I go, I have a six passenger stretch limousine that I do weddings with.
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He goes, well, that does work on Saturdays and we need to find you some work that does 5, 6, 7 days out of the week.
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And so he started explaining it to me and it made sense.
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And he started to explain to me and his, his name was Gary Olson, silver West Limo in Dallas.
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I wish I could find him'cause I just tell him how much, his.
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Has given me five to 10 minutes on the show floor, made me realize a lot of things and made me pivot
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So I'm gonna stop you there.
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You know, so what year was this roughly?
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had to have been, the first part in 98, I'm guessing.
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one of the things that I, having been in the security industry, the medical health equipment, field, boutique ends, and now this business, this business more than any of the others, maybe the boutique ends, they helped each other out a lot.
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This business, I've never seen anything like our conferences where operators are so willing to help young operators.
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So that was a pivotal moment for you but here's the key.
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You could have not listened, you could have said, I'm just gonna do what I want to do.
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and you would've had a great part-time job.
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So when did you buy your first town car and how did you get out there in the market for corporate?
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How did you pivot?
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Networking wise or marketing wise?
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so then he explained to me how affiliate business works.
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I was like, okay, I got it.
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and so I started just, this is back in the day when on the show floor, empire would have a booth and Aircom would have a booth back when it was Aircom And, all these had booths.
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And I just went up and started telling them who I was and giving out cards.
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And, the phone doesn't ring right away, but they keep it, and next thing you know, you get that call, Hey, can you help me out?
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our provider fell through.
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I need somebody in an hour.
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Absolutely.
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and so, I maybe lost the question of what you were, how did I pick?
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So I bought my first town car after the show.
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I came
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So right after the show,
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Yep.
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Navy blue.
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I didn't know that Black was navy blue, A
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blew Okay.
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But that's still very acceptable.
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it was, people didn't, you know, we get so hung up on black a lot of times, but, I didn't know that it had to be black, but you know what, nobody really cared.
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It was nice, it was clean.
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It it did what it was supposed to do.
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so you primed the pump of your corporate business by doing affiliate work
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well, and, and my full-time job, um, I had access to a lot of vice presidents for the position that I was in and type of agent broker dealer compensation.
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Um, they got involved in that stuff.
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So, I was able to slip in here and there, hey, old and I do this, you know, I got this little, and I'm gonna tell you that did not help me, that's for sure.
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that's good.
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Your primary job, you were able to tell people what you did.
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You have this limousine company.
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Did it hurt your primary job in the beginning or no?
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I think everybody, I look back at that and I remember talking to them and, you know, that I can see in their eyes like, here's a young guy, 26 years old, and he's, he's trying to do something here.
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and they were just very supportive of that.
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obviously they liked me, with the job I was doing there, but there was a lot of people that was in my full-time job that.
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could see something that I didn't know I had in me.
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You know what I mean?
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Yeah.
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Like you were a hard worker at 26 years old.
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I mean, we can all relate to that from our generation.
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mean, I'm a little older than you, but I just remember there's no question that when you are that aggressive and that young and sometimes you don't know better, it's kind of the best combination, right?
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As long as you have common sense.
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So you said a few things there that are pretty important.
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Number one, he gave you the advice that you needed to get into the corporate space.
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Number two, he gave you the advice that you needed to start doing affiliate work.
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Okay?
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And number three, you did the right thing when those affiliates started calling you eventually.
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You said yes.
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You didn't hedge, you didn't push back, you didn't say, but you said yes and you made it happen.
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So when did you start really coming into your own on corporate accounts?
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So you left the primary job.
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how did you grow the business in those early years to attract corporate customers?
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I just started calling on him,
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When you say Colin, you mean walking in?
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walking in, trying to make email contacts.
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Who was what?
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leaning on my already contacts that I had at my full-time job of like, they, they all talked together, so it was really the admins.
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I'm like, so I would ask the admins.
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I, I'd say, Hey, Judy, who's, who's a good admin at, this company?
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And they, they knew everybody.
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I mean, that's Iowa.
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they're like, oh, get ahold of this person.
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So, leaning on those and, you know, it's, it's just good old organic growth.
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But those people talk, they all talk together.
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Look, we all talk operators, all talk about who should I use for delivery dealer?
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Who should I use for a gas card company?
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And it's the same in every market.
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Okay?
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Sure.
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There is some difficult markets like downtown man, you know, Manhattan, et cetera.
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But you can't discount what you did, which is you used your insurance training.
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To not figuratively or literally knock on doors, call people, send emails, but also connect the dots, right?
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Don't be afraid to ask somebody, Hey, do you know anybody at such and such a company?
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You know, I see some of the younger operators that, you know, they, they call me for help and they tell me they're not making any money.
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And I say, well, how do you get, and they're not growing.
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How do you get out there?
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How are you letting people know in your market who you are?
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How do we, and they don't have any concept of networking.
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I think it's almost a lost art.
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They want to throw money at Google Ads.
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You can't beat beating the pavement.
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I would go out and put flyers on cars, um, walking in the parking lot, putting'em everywhere.
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I'll share this.
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I got all these contacts of these admins, and so I went to, the, massage therapist that my wife goes to, and I walked in and I said, Hey, Judy, I'm gonna need 15 one hour gift certificates.
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She's like, great, that'll be, and I'm like, and I want you to give them to me.
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Interesting.
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And I go, I am gonna use this to tell people about me, but to give them something in return.
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so let's say, let's just make easy numbers.
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Let's just say it was 10.
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So 10, so five, don't use it.
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Right?
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Okay.
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So you didn't, you're not
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Agreed that that's 100% those statistics are
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other five, use it.
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And if you are as good as you are, which I know you are, you're gonna convert it least two or three of'em to regular clients.
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Was it worth it?
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And she says, yeah.
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And she gave me the gift certificates.
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Well, what you did, you did two things there that are critically important.
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Number one, you bartered, right?
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And You practice give to get.
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Okay.
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You also explained to her cost of lead, cost of inquiry,
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it and I didn't know what I was doing Yeah.
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No, but you know, you're either, you, you've got a long-term vision.
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You know, the, um, lifetime value of a customer is the most important thing when you make your first sale.
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So if she was spending a grand a month on whatever yellow pages,
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Yellow page.
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Yep.
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how many times does that phone have to ring and her to have to have new massage clients?
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To justify a thousand dollars yellow page ad, or you know, now it's Google Ads.
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So you know, that's what I call Gorilla marketing.
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that's the block and tackling of networking.
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Tell me something, did it hurt you that you were a local or regional business, or did it help you with those corporations?
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A lot of operators will say, no, I can't do that.
00:15:31.155 --> 00:15:32.836
That's what the networks do.
00:15:33.285 --> 00:15:38.235
Tell me your feeling about, think back when you were developing those corporate clients.
00:15:38.235 --> 00:15:41.926
Did it hurt you to be local or regional, or did it help you more often than not?
00:16:48.715 --> 00:16:51.415
Oh, I would say overwhelmed when they get helped you.
00:16:52.125 --> 00:16:56.665
because you're using somebody local, you have a relationship with, they know who to call.
00:16:56.665 --> 00:16:57.806
They know what they're getting.
00:16:57.865 --> 00:16:59.201
Um, and you can't beat it.
00:16:59.201 --> 00:17:03.612
That's why you go to the farmer's market when you always buy from this guy over here.
00:17:03.791 --> 00:17:04.902
'cause you know, his product.
00:17:04.961 --> 00:17:09.278
Um, uh, it's, it's, Why do you go to this restaurant in your area?
00:17:09.864 --> 00:17:10.973
That's maybe a mom pop.
00:17:11.003 --> 00:17:13.433
'cause you know what you're getting and you like that and you support it
00:17:13.534 --> 00:17:15.394
and especially in the service business, right?
00:17:15.453 --> 00:17:21.894
If I'm just buying, you know, the same staple, whether it's Home Depot, I go to, home Depot or Lowe's, I don't care.
00:17:21.894 --> 00:17:22.223
Right?
00:17:22.554 --> 00:17:25.824
But if it's a service, I'm gonna ask people.
00:17:25.824 --> 00:17:30.743
If I'm unhappy with my provider, I'm gonna ask people in my area who they use.
00:17:30.983 --> 00:17:36.510
And I also admire service businesses that are actively out there supporting the community.
00:17:36.691 --> 00:17:39.191
So now your, your wife works in the business.
00:17:39.240 --> 00:17:42.451
tell me a little bit about when you started, who did what.
00:17:43.141 --> 00:17:45.030
How did you get to the point?
00:17:45.030 --> 00:17:47.131
'cause I know you just went away on vacation.
00:17:47.340 --> 00:17:54.191
We will keep the location undisclosed, but you were able to go for a, for a, an extended period.
00:17:54.191 --> 00:17:59.590
So tell us in the beginning who did what and then how did you scale?
00:17:59.750 --> 00:18:05.300
we've not talked about the size of your business, but you know, just if you wanna share what roughly what kind of revenue.
00:18:06.306 --> 00:18:12.645
So oddly enough, when I started out and the phone started ringing more and I wasn't able to answer it all the time, like I was driving, I was doing all that stuff.
00:18:13.046 --> 00:18:15.806
I reached out to my friends and I says, anybody got a stay-at-home mom?
00:18:15.806 --> 00:18:18.865
That what maybe to help out here and there.
00:18:19.226 --> 00:18:27.355
my software was corporate car in line, which was really the first ever software that was in the cloud before the people really knew what the cloud was.
00:18:27.836 --> 00:18:31.526
you could just forward the phone to a cell phone, paid for call 40.
00:18:31.576 --> 00:18:32.416
I'll tell you the number.
00:18:32.416 --> 00:18:35.855
I paid her 600 a month and she answered the phones.
00:18:36.186 --> 00:18:37.476
She answered the phone.
00:18:37.476 --> 00:18:38.101
That's all they needed.
00:18:39.230 --> 00:18:40.551
She could do the software right there.
00:18:40.971 --> 00:18:52.161
having somebody answer the phone that isn't driving that can give the people the service they want was another one of those major pivotal moments that really launched it.
00:18:52.671 --> 00:18:55.101
People don't wanna leave a message and you call'em back.
00:18:55.131 --> 00:18:56.240
They're moving on to somebody else.
00:18:56.510 --> 00:18:58.641
they are a thousand percent moving on.
00:18:58.641 --> 00:19:02.361
The other thing they want, want to hear is, I'll have so and so get back to you.
00:19:02.510 --> 00:19:05.451
Scott's out driving, but I'll have him get back to you later.
00:19:05.611 --> 00:19:07.621
know, we're in an instant gratification world.
00:19:07.671 --> 00:19:09.980
they at least want the basics, right?
00:19:10.250 --> 00:19:18.921
Meaning that if they say, we want to do an over the world motor coach trip, of course, you know, my boss is gonna have to get back to you.
00:19:18.921 --> 00:19:26.721
But if it's vanilla ice cream, every day services, you've gotta answer their questions and you've got to.
00:19:27.155 --> 00:19:32.046
Try to sell value because you know the world we live in, everybody's looking for a lower price.
00:19:32.226 --> 00:19:36.696
So talk to me about, so after you did that, what did you do with your time?
00:19:36.696 --> 00:19:38.855
Then you hired somebody to answer the phones.
00:19:38.855 --> 00:19:41.346
What did you do when you were growing the business?
00:19:41.696 --> 00:19:53.786
then I was, I was doing the driving, I was doing the part that I enjoyed and meeting the people, doing the, the service levels that I expected.
00:19:54.216 --> 00:19:59.135
and I'll tell you about, you have to ask me later of how I really launched my service standards.
00:19:59.236 --> 00:20:03.509
and, um, you know, I, I met my wife at the time, in, 2004.
00:20:03.659 --> 00:20:10.699
We got married in 2005, but 2004, you know, she was working for, a small little insurance agency here in Des Moines.
00:20:11.239 --> 00:20:18.558
And I, I must have been a good salesman'cause I con over to Condor, I'm like, come work for, you know me.
00:20:18.558 --> 00:20:18.798
We,
00:20:18.933 --> 00:20:20.163
let's just talk about this.
00:20:20.297 --> 00:20:21.886
Let's just talk about this for one second.
00:20:22.667 --> 00:20:31.937
You ma, she knowingly married into the limo business where she knew you were gonna be working seven days a week, and she signed on to work for you.
00:20:32.891 --> 00:20:35.441
I, yeah, I, I guess I had a great smile or something.
00:20:35.441 --> 00:20:35.980
I don't know.
00:20:37.871 --> 00:20:39.816
So what did she do when she came over?
00:20:41.253 --> 00:20:44.043
Uh, she just helped a lot with the office stuff.
00:20:44.093 --> 00:20:45.923
She could sell ice to Eskimos.
00:20:46.103 --> 00:20:47.123
she's good on the phone.
00:20:47.123 --> 00:20:48.353
She's good talking to people.
00:20:48.353 --> 00:20:49.643
She's fast on her feet.
00:20:50.222 --> 00:20:53.253
I'll give her a claim to fame way better than I ever could be.
00:20:53.803 --> 00:20:54.942
she knows how to work a crowd.
00:20:54.942 --> 00:20:56.472
She knows she loves people.
00:20:56.472 --> 00:20:57.523
She's an extrovert.
00:20:57.823 --> 00:21:07.053
so doing that, was once again one of those pivotal moments that you look back and you're like, wow, what a way to really launch into a higher level, of trips.
00:21:07.053 --> 00:21:09.063
And, you know, of course you start hiring chauffeur.
00:21:09.962 --> 00:21:11.432
People that do on the weekends.
00:21:11.643 --> 00:21:12.722
I could do it during the week.
00:21:12.903 --> 00:21:17.793
But then you started figuring out, oh crap, what happens when flights get delayed and they all come down top of each other?
00:21:18.393 --> 00:21:20.283
so you just start hiring other drivers.
00:21:20.283 --> 00:21:23.493
I found retired guys that were like, yeah, I'll help you out here and there.
00:21:24.363 --> 00:21:24.903
Well, guess what?
00:21:24.903 --> 00:21:28.653
The business started getting better and they're like, why did you need for this to be a full-time job?
00:21:28.653 --> 00:21:29.432
I'm like, I know.
00:21:29.432 --> 00:21:30.333
It's crazy, isn't it?
00:21:30.783 --> 00:21:35.793
Um, so, but yeah, getting software, was a big deal.
00:21:35.952 --> 00:21:39.462
I think if you're not running on a software now, I don't know how people do it.
00:21:40.732 --> 00:21:52.827
So did you talk about the networking aspect, meaning do you go to the Chamber of Commerce meetings, executive assistant and association, what's important to you to becoming known and staying relevant in the market?
00:21:53.962 --> 00:21:56.587
Well, I found out, so I know the, you know, the c not.
00:21:57.692 --> 00:21:58.982
Breakfast clubs, all that stuff.
00:21:59.343 --> 00:22:03.153
They're all filled with insurance people and real estate agents, it seemed like.
00:22:03.153 --> 00:22:05.043
And I was quickly finding out.
00:22:05.043 --> 00:22:06.747
I'm like, Where are the admin groups?
00:22:07.227 --> 00:22:08.547
How can I get with them?
00:22:09.086 --> 00:22:11.697
How can I provide lunch at their next meeting for them?
00:22:12.116 --> 00:22:13.257
How can I get in front of'em?
00:22:13.886 --> 00:22:15.567
those are the real decision makers.
00:22:15.687 --> 00:22:16.707
So that's what I went after.
00:22:17.157 --> 00:22:18.027
When do they meet?
00:22:18.207 --> 00:22:19.017
Who are they?
00:22:19.197 --> 00:22:23.997
How can I get involved in, how can I sponsor their chapter or whatever that is.
00:22:24.096 --> 00:22:25.767
and yeah, that's
00:22:25.872 --> 00:22:33.362
people people would be shocked In most markets there are executive assistant associations
00:22:33.612 --> 00:22:34.582
Yeah, absolutely.
00:22:35.102 --> 00:22:38.582
and there are also physician office manager associations.
00:22:40.592 --> 00:22:45.902
Law Clerk associations, the, not to mention the Bar association.
00:22:45.902 --> 00:22:48.961
So, you know, you did the regular and you're a personable guy.
00:22:48.961 --> 00:22:49.622
That's the key.
00:22:49.622 --> 00:22:55.951
You know, somebody said to me, I went to visit them the other, couple weeks ago, and they said, well, geez, Ken, you know, you can talk in front of people.
00:22:55.951 --> 00:22:56.971
You get the gift to gab.
00:22:56.971 --> 00:23:00.511
And I said, look, all you need to be is personable.
00:23:00.751 --> 00:23:05.221
Remember, and use their name and then leave them something of value.
00:23:05.352 --> 00:23:18.572
even if you're shy, you can, practice a 32nd commercial, always using the prospective person's, the client's name, and then it's collecting their information and making sure that they see your brand.
00:23:18.902 --> 00:23:24.001
You know, the art of, Hey, could I have your business card is kind of gone passe.
00:23:24.122 --> 00:23:27.422
So you have to have a memory of who they are and where they work.
00:23:27.812 --> 00:23:30.427
If you were starting out today.
00:23:31.372 --> 00:23:39.956
Knowing what you know now, but you were starting out, what would you tell your 20 year younger self
00:23:41.891 --> 00:23:43.871
Are you sure you wanna be in a 24 7 business?
00:23:44.186 --> 00:23:45.026
there you go.
00:23:45.056 --> 00:23:45.836
It's true.
00:23:45.895 --> 00:23:46.316
It's true.
00:23:46.316 --> 00:23:50.076
You have to be a special type of person, but how do you balance your life?
00:23:50.076 --> 00:23:56.155
Now you've got, you're obviously, enjoying yourself'cause you went away, but how do you balance that?
00:23:56.155 --> 00:24:01.135
How did you remove yourself from the 3:00 AM phone calls for reservations?
00:24:01.135 --> 00:24:04.056
Just standard reservations, you know, not accidents.
00:24:04.056 --> 00:24:05.736
We all get woken up for stuff.
00:24:05.736 --> 00:24:07.446
But How did you remove yourself?
00:24:08.270 --> 00:24:09.155
Well, it's no secret.
00:24:09.291 --> 00:24:10.191
You hear it all the time.
00:24:10.191 --> 00:24:11.841
You just surround yourself with good people.
00:24:12.201 --> 00:24:15.831
Everybody's like, oh, and they ask me and I'm like, it's not me, it's the team.
00:24:16.551 --> 00:24:20.105
Find the right person to be dedicated and part of the team.
00:24:20.506 --> 00:24:24.516
you know, I, I didn't realize it back then, but build a culture.
00:24:26.011 --> 00:24:28.292
Every company has a culture.
00:24:29.132 --> 00:24:30.842
Some are different than others.
00:24:31.261 --> 00:24:36.001
the culture in my mind will drive the other stuff.
00:24:36.062 --> 00:24:37.501
People are happy to come to work.
00:24:37.501 --> 00:24:38.612
They like the culture.
00:24:39.132 --> 00:24:41.112
we do regular outings, like we just got back.
00:24:41.122 --> 00:24:42.501
we took everybody to a hockey game.
00:24:42.615 --> 00:24:45.056
Um, and that's what we do.
00:24:45.105 --> 00:24:48.726
I get people that come in like, oh, we never do anything like this at my other job.
00:24:48.726 --> 00:24:51.119
And I'm like, we're, do we have potlucks?
00:24:51.119 --> 00:25:01.994
We have all kinds of stuff that we are, we want to drive that culture of a family and that people will then, they'll, they'll drive through fire for you.
00:25:02.024 --> 00:25:02.713
You know what I mean?
00:25:02.814 --> 00:25:03.713
when I call'em, I say.
00:25:04.328 --> 00:25:06.034
Like Ken, I have no other choice.
00:25:06.074 --> 00:25:08.624
can you help me out at this 4:00 AM trip tomorrow?
00:25:09.193 --> 00:25:09.854
Absolutely.
00:25:10.394 --> 00:25:10.784
Yeah.
00:25:11.354 --> 00:25:13.163
Well, they like, they like where they work.
00:25:13.163 --> 00:25:13.943
That's the key.
00:25:14.181 --> 00:25:15.441
you hit upon something.
00:25:15.441 --> 00:25:17.091
The culture starts at the top.
00:25:18.230 --> 00:25:27.354
there's an operator who shall remain nameless in the Midwest, who's got probably the worst reputation I've ever seen on reviews.
00:25:27.354 --> 00:25:38.873
Some of these reviews are so toxic, and it all starts with rude, reservationist, rude dispatcher, rude driver, called in a complaint.
00:25:38.873 --> 00:25:45.503
The owner was rude, and my message is nice people deliver nice service When they're treated well.
00:25:45.803 --> 00:25:47.843
And that's the cultural aspect.
00:25:47.995 --> 00:25:53.605
I'm a new operator and I want to really build a company with a superior culture, what do you recommend?
00:25:54.538 --> 00:25:56.638
Well, first I'm gonna ask you, what's your vision statement?
00:25:56.638 --> 00:25:58.648
What's your corporate values and what's your mission statement?
00:25:59.067 --> 00:26:01.077
And they're gonna probably go, I, I don't know.
00:26:01.077 --> 00:26:02.968
I go, let's work on that first.
00:26:04.498 --> 00:26:07.138
Basically, what drives you?
00:26:07.288 --> 00:26:09.178
What do you think?
00:26:09.658 --> 00:26:13.817
How, and that's how you derive you know, those mission statement corporate values.
00:26:14.268 --> 00:26:19.458
once you develop those corporate values, then you eat, live and breathe those corporate values.
00:26:20.158 --> 00:26:21.087
no question.
00:26:21.898 --> 00:26:22.918
It's the why.
00:26:23.008 --> 00:26:24.268
Why are we here?
00:26:25.073 --> 00:26:27.993
our logo is a triangle, and there's three points to the triangle.
00:26:28.546 --> 00:26:30.480
Those three points are our three corporate values.
00:26:30.480 --> 00:26:32.071
They're the three Ps of majestic.
00:26:32.431 --> 00:26:37.921
Each point is a P of Majestic, professional, punctual, and precise.
00:26:39.151 --> 00:26:41.341
And precise is the details, details, details.
00:26:41.881 --> 00:26:42.868
That's what we live by.
00:26:43.628 --> 00:26:44.587
Gimme those again.
00:26:45.368 --> 00:26:46.178
Professional,
00:26:47.408 --> 00:26:48.158
punctual
00:26:48.428 --> 00:26:49.118
punctual,
00:26:49.748 --> 00:26:51.488
to be earliest, to be on time is to be late.
00:26:52.448 --> 00:26:53.258
And then precise.
00:26:53.258 --> 00:26:54.638
Details, details, details.
00:26:54.968 --> 00:26:57.008
Getting all the details is what sets us apart.
00:26:57.678 --> 00:27:10.458
we just started doing something and it wasn't me, it was my business partner and we have a retained client who asked, Hey, can you put something together from my data that, tracks my on time performance by, by driver?
00:27:10.458 --> 00:27:16.758
and we did that for them and we actually started offering it to all our retained clients.
00:27:16.788 --> 00:27:20.748
people don't understand the importance of a 15 minute spot time.
00:27:21.518 --> 00:27:30.063
I'm an anxious person by nature, and I don't want to have to look out a minute before I'm supposed to leave to see if that vehicle is there.
00:27:30.429 --> 00:27:32.679
it's the same with communication.
00:27:33.459 --> 00:27:37.209
And it's the same with repeating the data.
00:27:37.239 --> 00:27:41.599
When I call in for a reservation and somebody goes, yep, yep, yep, yep.
00:27:42.153 --> 00:27:43.869
It, it really makes me anxious.
00:27:43.869 --> 00:27:44.409
It's Mr.
00:27:44.409 --> 00:27:47.409
Lucci, can I repeat your information?
00:27:47.528 --> 00:27:48.909
It's kind of a lost art.
00:27:49.119 --> 00:27:49.479
Right?
00:27:49.869 --> 00:27:53.318
And can I repeat the information you just gave me?
00:27:53.499 --> 00:27:59.919
And then at the end, reconfirming it's at every stage of the process.
00:28:00.969 --> 00:28:07.766
Your three Ps really just crystallized where we should be as an industry.
00:28:07.766 --> 00:28:09.746
So let's talk about your service levels.
00:28:09.956 --> 00:28:11.576
You started as a driver.
00:28:12.101 --> 00:28:14.291
Back then, there was no PAX training.
00:28:14.291 --> 00:28:17.770
There was no, well, there might've been a Tom Mazda training.
00:28:17.770 --> 00:28:19.121
God got there.
00:28:19.181 --> 00:28:19.631
Might've been.
00:28:19.631 --> 00:28:20.500
But how did you
00:28:20.530 --> 00:28:21.730
He's still part of our training.
00:28:22.181 --> 00:28:23.411
They have to watch his video and take a
00:28:23.530 --> 00:28:28.601
isn't it amazing how many people watched the Tom Mazda show for training video?
00:28:28.601 --> 00:28:31.480
So how did you develop your service training initially?
00:29:37.711 --> 00:29:44.773
Well, I can't remember how I got, introduced to this, legend in service, but his name's John De Julius.
00:29:44.773 --> 00:29:49.773
He actually spoke a few LA shows, but the last one I think was our comeback show after COVID.
00:29:50.038 --> 00:29:51.208
he was our keynote speaker.
00:29:51.807 --> 00:29:56.098
and he talked about service levels and how to be five star.
00:29:56.408 --> 00:30:07.168
he owned, hair salons and one little example, in the hair salon, they wore black and white, you know, apron, I dunno what they call'em, you know, over when you're cutting your hair.
00:30:07.858 --> 00:30:14.488
so the white one was regular customers and the black ones, or, or it could have been flip flop, we're brand new customers their first time there.
00:30:15.788 --> 00:30:17.528
Oh, and Ken has a black one on.
00:30:17.528 --> 00:30:18.368
Oh, hi, Mr.
00:30:18.368 --> 00:30:18.698
Lucci.
00:30:18.698 --> 00:30:20.228
Hey, it's great to see you here.
00:30:20.528 --> 00:30:28.268
I'm, so and so I do nails or what, you know, like he, he figured out a secret way to find out information about people.
00:30:29.053 --> 00:30:33.702
and give it to his team to where it didn't look like they were like, wow, they're super nice here.
00:30:33.853 --> 00:30:34.753
but he has this book.
00:30:34.753 --> 00:30:36.283
It's, this is all my chauffeur.
00:30:36.313 --> 00:30:36.643
Read this.
00:30:36.643 --> 00:30:39.343
I don't know if you can, oh, I lost it.
00:30:39.432 --> 00:30:40.212
Oh, here we go.
00:30:41.173 --> 00:30:42.073
Secret service.
00:30:43.260 --> 00:30:51.961
Secret Service by John r De Julius iii, secret Service by John r De Julius iii.
00:30:52.471 --> 00:31:02.461
And the funny thing is this, this guy was in something as, I don't wanna say pedestrian, but it's something as simple as he owned a hair salon.
00:31:03.358 --> 00:31:15.587
and the key is, I bet you his prices were higher than the average because people listen, if you treat people much better than your competition, it's a license to print money.
00:31:15.638 --> 00:31:18.307
you can get more than the average,
00:31:18.490 --> 00:31:19.291
he will say in the book.
00:31:19.980 --> 00:31:21.541
Make price irrelevant.
00:31:22.111 --> 00:31:23.101
exactly.
00:31:23.431 --> 00:31:24.721
price irrelevant.
00:31:25.391 --> 00:31:32.451
there's a downturn in the economy, whatever, and, so and so's getting their haircut and be like, oh, well you should cut back and go to a different, well, no, that's a non-negotiable.
00:31:32.571 --> 00:31:35.721
I'm always going to his salon, make price irrelevant.
00:31:36.711 --> 00:31:37.791
We can cut back something else.
00:31:37.791 --> 00:31:43.671
We need hot dogs and not steaks, but I'm not giving up the Julius hair salon.
00:31:44.240 --> 00:31:52.531
Look, I would encourage anybody to look at that book, secret Service by John De Julius.
00:31:52.771 --> 00:31:57.031
my team has to read it and they have to do an essay on it, and they get a hundred bucks for reading it
00:31:57.421 --> 00:31:58.351
now wait a minute.
00:31:58.351 --> 00:31:58.831
Back up.
00:31:58.831 --> 00:32:00.480
You just dropped a golden nugget there.
00:32:00.480 --> 00:32:01.500
Tell me that again.
00:32:02.791 --> 00:32:08.421
Everybody on the team has to have to read it, write an essay on it, three, four paragraphs, What did you learn from it?
00:32:10.007 --> 00:32:10.217
Yeah.
00:32:10.217 --> 00:32:12.106
And I pay him a, i I pay him a hundred bucks.
00:32:12.167 --> 00:32:13.336
Yeah, okay.
00:32:13.427 --> 00:32:13.697
Yes.
00:32:13.697 --> 00:32:16.007
That, that can be a lot of money if you're just starting out, whatever.
00:32:16.007 --> 00:32:18.913
But the book is a such an easy read.
00:32:19.304 --> 00:32:20.384
It's a paperback book.
00:32:20.384 --> 00:32:21.344
It's not very big.
00:32:21.933 --> 00:32:26.134
and it's an easy read and it really hits on a lot of service standards.
00:32:26.134 --> 00:32:36.699
Like, you send a chauffeur route and, and the, the, you know, back when we used to do champagne, things like that, the bride says, oh, I was supposed to have champagne, so, which, which is better.
00:32:36.939 --> 00:32:39.999
And he talks about this, the, the chauffeur going, oh, here's my trip sheet.
00:32:39.999 --> 00:32:41.589
Doesn't say anywhere about champagne.
00:32:42.579 --> 00:32:43.749
Why would you do that?
00:32:44.019 --> 00:32:46.389
You still have the same problem, right?
00:32:47.199 --> 00:32:52.109
Don't try to, and we always try to make it so people are like, well, it's not my fault, it's not my fault.
00:32:52.109 --> 00:32:53.159
It doesn't matter.
00:32:53.399 --> 00:32:55.379
We still have the same problem.
00:32:55.499 --> 00:32:56.519
fix the problem.
00:32:56.894 --> 00:32:57.673
Fix the problem.
00:32:57.673 --> 00:33:01.173
We'll deal with that part Later But yeah, you still got the same problem, right?
00:33:01.384 --> 00:33:02.494
She just doesn't have any champagne.
00:33:03.693 --> 00:33:08.134
You know, it's so easy, it's so common sense to take ownership of the issue.
00:33:08.234 --> 00:33:12.091
When did it come appropriate in corporate America to play the blame game?
00:33:12.091 --> 00:33:14.010
It's not my fault, it's not my job.
00:33:14.611 --> 00:33:17.250
would you agree it's gotten worse since after the pandemic?
00:33:18.396 --> 00:33:19.801
I, I, a hundred percent.
00:33:19.829 --> 00:33:22.288
you actually want service failures to happen.
00:33:22.499 --> 00:33:36.079
I'm, I'm telling people all this time because if you address them and get in front of it and call the people and show that you actually care, you just made them seven times more loyal than they'll ever be.
00:33:36.439 --> 00:33:37.189
a hundred percent.
00:33:37.189 --> 00:33:46.436
You, first of all, I don't, subscribe to, there's no way with as much moving parts as we have in our industry not to have an occasional.
00:33:47.291 --> 00:33:51.510
Service failure, but you can engineer them out by addressing them.
00:33:51.657 --> 00:33:52.647
I get frustrated.
00:33:52.647 --> 00:33:56.277
I have one specific client who really has a problem hanging on to help.
00:33:56.846 --> 00:34:03.507
And he talked, he complained about his employees one time, and he said, this has happened four times in the past week.
00:34:03.507 --> 00:34:05.007
I said, okay, that's not their fault.
00:34:05.007 --> 00:34:05.667
It's your fault.
00:34:06.162 --> 00:34:06.582
Mm-hmm.
00:34:06.596 --> 00:34:07.076
do you mean?
00:34:07.797 --> 00:34:10.766
Well, first of all, it's something called a teachable moment.
00:34:11.487 --> 00:34:14.036
Don't jump down their throat, okay?
00:34:14.516 --> 00:34:16.166
Don't jump down their throat.
00:34:16.257 --> 00:34:19.206
Say, listen, Let's just dissect what happened here.
00:34:19.657 --> 00:34:25.936
And how do you suggest making sure we never, ever forget the champagne in the future.
00:34:26.956 --> 00:34:27.826
That's number one.
00:34:28.277 --> 00:34:38.206
And number two, I want you to know you can go outta your way and I will always, always compensate you if you have to do whatever.
00:34:38.237 --> 00:34:40.516
I'm gonna stand behind you fixing the problem.
00:34:40.936 --> 00:34:43.217
What you're describing is the Ritz Carlton way.
00:34:43.907 --> 00:34:44.746
It's the Ritz car.
00:34:44.771 --> 00:34:45.976
It, it, it totally is.
00:34:45.976 --> 00:34:54.436
But I love this de Julius because people say, and again, we're talking about Secret, the book Secret Service by John de Julius.
00:34:54.496 --> 00:34:57.257
By the way, I would buy it just because it says Secret Service.
00:34:57.257 --> 00:35:03.317
And I'd get halfway into it and realize it's not about the United States Secret Service, but I love it Yeah.
00:35:03.317 --> 00:35:12.994
But what he's saying there with the title is, if you do it right, people they expect it, but they don't notice the mechanics of you providing it.
00:35:12.994 --> 00:35:15.784
I can already tell what he is talking about.
00:35:16.054 --> 00:35:20.884
I think we've lost that as an art in our industry and in our culture.
00:35:21.543 --> 00:35:26.534
And I don't think people realize how valuable it is in our industry.
00:35:26.594 --> 00:35:32.443
I think they're just so hung up on, well, I'm competing against so and so and so and so and so and so.
00:35:32.594 --> 00:35:33.523
Don't worry about it.
00:35:33.673 --> 00:35:35.563
You're really only competing with yourself.
00:35:36.088 --> 00:35:36.628
you're right.
00:35:36.688 --> 00:35:43.409
Well, what Uber does that I'm like, oh, we're not Uber like, you know, I tell everybody when we train them, our customers are the first 10 rows of the airplane.
00:35:44.639 --> 00:35:45.028
Okay.
00:35:45.063 --> 00:35:45.253
hundred.
00:35:45.463 --> 00:35:46.273
Absolutely.
00:35:46.748 --> 00:35:47.378
and they're like, huh.
00:35:47.378 --> 00:35:55.358
And I'm like, they paid two or three times as much to ride on the same airplane, but they got a bigger seat.
00:35:55.808 --> 00:35:57.278
They got a little better service.
00:35:57.338 --> 00:35:58.568
And that's what they want.
00:35:58.853 --> 00:35:59.933
They expect more.
00:36:00.579 --> 00:36:03.579
they expect more and they're willing to
00:36:03.623 --> 00:36:04.313
to pay for it.
00:36:04.449 --> 00:36:09.608
I'm, how do you how do you, tell some, you know,$150 to the airport?
00:36:09.969 --> 00:36:10.838
Those are our people.
00:36:10.989 --> 00:36:13.898
Now, when somebody goes, oh, 150 to the airport, I'm like.
00:36:14.663 --> 00:36:18.188
Respectfully, you're not, you're not in our, clientele.
00:36:18.248 --> 00:36:21.967
That's just not us for you, but we're here for the other people.
00:36:22.327 --> 00:36:25.208
And then just recognizing what do they do?
00:36:25.208 --> 00:36:27.998
Like did, did they walk down with an Orange crush?
00:36:27.998 --> 00:36:28.838
Pop in their hand.
00:36:29.108 --> 00:36:29.768
Okay, great.
00:36:29.768 --> 00:36:30.608
That's good to know.
00:36:30.818 --> 00:36:32.798
Note their client, note their profile.
00:36:33.278 --> 00:36:33.518
I know.
00:36:33.518 --> 00:36:33.907
You know what?
00:36:33.907 --> 00:36:36.788
I like Orange Crush that you were drinking it the other day.
00:36:37.768 --> 00:36:38.608
a hundred percent.
00:36:38.608 --> 00:36:42.557
and listen, the reality is that it's in the small details.
00:36:42.918 --> 00:36:43.307
Okay?
00:36:43.338 --> 00:36:49.038
It's in the small details, and it's the level of service that distinguishes your company.
00:36:49.038 --> 00:36:50.418
Not the lowest price.
00:36:50.717 --> 00:36:52.847
Lowest price is the race to the bottom.
00:36:52.847 --> 00:36:59.128
I've had this debate with everybody throughout the years, but this is the only job where I've actually had the data.
00:36:59.518 --> 00:37:13.097
Every single successful company that's profitable, where the owner does very well and owns their own building and actually has a really good net worth outside the industry, outside the job.
00:37:13.788 --> 00:37:16.548
Their prices are always in the top half of the market.
00:37:17.313 --> 00:37:18.423
Make price irrelevant.
00:37:18.663 --> 00:37:18.903
Make
00:37:19.083 --> 00:37:28.153
they And I, I just, sometimes I get real frustrated arguing with operators and people in the industry that say, well, the corporations want the lowest price.
00:37:28.273 --> 00:37:29.383
Actually, that's not true.
00:37:30.463 --> 00:37:34.302
Prices price is only as relevant as you make it.
00:37:34.302 --> 00:37:40.003
And as it, it's lit, it's the more important the service is to your customer.
00:37:40.333 --> 00:37:47.052
Meaning the executive assistant who doesn't want the phone call at three o'clock in the morning'cause the car didn't show up.
00:37:47.472 --> 00:37:48.853
She, she's the one.
00:37:48.853 --> 00:37:55.242
You need to say, you know what, yeah, we are a little bit higher price, but I'll tell you, our on time performance is fantastic.
00:37:55.452 --> 00:37:58.273
We are absolutely early morning professionals.
00:37:58.393 --> 00:38:00.133
We will never let you down.
00:38:00.432 --> 00:38:01.722
She's gonna do that.
00:38:01.903 --> 00:38:04.213
She's going to buy into the service level.
00:38:04.572 --> 00:38:05.713
So let's switch gears and
00:38:06.552 --> 00:38:07.512
I just, quick story.
00:38:08.682 --> 00:38:14.168
I had, a pretty well known person in Des Moines, a wealthy individual that was starting a car service.
00:38:15.913 --> 00:38:22.278
he actually came and visited my shop and we talked and he goes, I just wanna let you know, I thought it was really nice.
00:38:22.278 --> 00:38:24.617
I'm like, Hey, I'm gonna go after corporate business.
00:38:24.677 --> 00:38:26.568
I'm gonna be calling on a lot of these people.
00:38:27.708 --> 00:38:29.898
And I said, great.
00:38:29.958 --> 00:38:30.677
I wish you luck.
00:38:30.677 --> 00:38:31.637
I hope Paul goes well.
00:38:32.057 --> 00:38:35.268
And he goes, I just wanted to let you know,'cause I didn't want you to be blindsided.
00:38:35.268 --> 00:38:37.307
And he left and somebody says, what's he doing?
00:38:37.307 --> 00:38:38.628
I told him, he goes, are you scared?
00:38:39.018 --> 00:38:47.238
and I said, I'm not scared because if they leave us to go to him, shame on us.
00:38:49.148 --> 00:38:49.637
Correct,
00:38:49.887 --> 00:38:56.217
Because they obviously weren't, they were looking for something else, And so they're like, what do you mean?
00:38:56.217 --> 00:38:58.018
I'm like, just keep doing what you're doing.
00:38:58.467 --> 00:39:00.148
Be the best, be the best.
00:39:00.478 --> 00:39:03.947
People Don't leave for$5 They won't leave for that.
00:39:04.518 --> 00:39:09.488
They'll leave because they didn't get what they want and the relationship's not there, and their expectations aren't being met,
00:39:10.603 --> 00:39:11.403
a hundred percent.
00:39:11.413 --> 00:39:19.813
you did not make enough of an impression to make your service worth 10, 15, 20% more.
00:39:20.262 --> 00:39:22.842
And every survey proves it.
00:39:23.322 --> 00:39:29.503
Every anecdotal story out there will prove it that people will pay extra if you make them feel special.
00:39:29.503 --> 00:39:31.742
And if you live up to what you just did.
00:39:32.222 --> 00:39:34.653
The professional, the precision.
00:39:36.182 --> 00:39:36.273
the
00:39:36.458 --> 00:39:37.822
punctual, professional,
00:39:37.853 --> 00:39:38.213
it.
00:39:39.143 --> 00:39:47.052
And, you know, at the end of the day, the punctual thing, I also think this is really suffered after the pandemic is the thought process of a 15 minute spot time.
00:39:47.148 --> 00:39:48.648
I have, well, we don't do that.
00:39:48.677 --> 00:39:56.028
I've had operators been standing inside operators when they're on the phone with an affiliate and they say, well, we don't guarantee that we don't do that.
00:39:56.418 --> 00:40:01.008
And I whisper to the operator, find another affiliate, find another affiliate.
00:40:01.818 --> 00:40:02.807
You know what they're telling you?
00:40:02.898 --> 00:40:04.518
They don't give a shit about your business
00:40:04.952 --> 00:40:05.103
Mm-hmm.
00:40:05.568 --> 00:40:06.197
if they're gonna
00:40:06.262 --> 00:40:07.733
and they're running it super lean.
00:40:08.182 --> 00:40:09.083
Super lean.
00:40:09.443 --> 00:40:11.182
it's okay to be five minutes late for them.
00:40:11.213 --> 00:40:12.730
That's not a big deal that's fine.
00:40:12.730 --> 00:40:14.260
That's not a Ritz Carlton.
00:40:14.650 --> 00:40:17.470
That's probably a Marriott or a Hyatt or something like that.
00:40:18.130 --> 00:40:19.940
But which space do you want be in?
00:40:20.269 --> 00:40:29.450
You either space is fine, to make money, but if you're gonna charge a premium, if you wanna charge 220 at an airport, then work it.
00:40:29.450 --> 00:40:30.170
That's fine.
00:40:30.744 --> 00:40:33.954
and you can absolutely distinguish the value.
00:40:34.235 --> 00:40:42.525
you know, our mutual friend Doug Schwartz and I talk all the time and I've got him kind of programmed a little bit.
00:40:42.914 --> 00:40:49.664
When people call in for an Uber ride, he says, you know what, A lot of people call and try to compare us to Uber.
00:40:49.905 --> 00:40:58.454
We are definitely gonna be more expensive, but if you use us, you're not gonna have to call me tomorrow morning at four 30 when your Uber doesn't show up.
00:40:58.934 --> 00:41:01.244
This happens all the time with us.
00:41:01.514 --> 00:41:08.434
People compare us with an Uber, but then something happens at four 30 in the morning because they can't guarantee the driver will be there.
00:41:08.704 --> 00:41:09.965
Our driver will be there.
00:41:09.965 --> 00:41:11.704
Let me tell you what our systems are like.
00:41:11.945 --> 00:41:17.206
So you're absolutely right and, and I don't know why people are so scared to.
00:41:17.715 --> 00:41:19.036
Charge what they're worth.
00:41:19.066 --> 00:41:23.384
Maybe they feel that they can't live up to the Ritz Carlton level expectations.
00:41:23.384 --> 00:41:38.264
But again, I mean, we didn't go, I didn't expect to go down this road and with John De Julius, maybe we'll have to get him on the podcast, but the book you have all of you people read is by John de Julius, and it's called Secret Service.
00:41:39.164 --> 00:41:39.644
Exactly.
00:41:40.349 --> 00:41:45.284
I also love the fact that you have them write an essay, but you pay'em a hundred bucks for it.
00:41:45.574 --> 00:41:50.824
Scott, there's no mistaking that you purposefully built a superior culture.
00:41:50.974 --> 00:41:53.188
So, let's talk metal for a little bit.
00:41:53.644 --> 00:42:00.454
talk to me about, you in the beginning obviously had a diversified fleet, but then you standardized talk.
00:42:00.485 --> 00:42:03.235
to us about the evolution of your fleet.
00:42:04.470 --> 00:42:04.760
Well.
00:42:05.675 --> 00:42:11.883
Just like any operator, I think you feel like, you always remember the calls you couldn't service.
00:42:12.572 --> 00:42:16.353
Somebody calls in and wants a, oh, I need, I want a vintage car for my wedding.
00:42:16.878 --> 00:42:17.208
yep,
00:42:17.463 --> 00:42:18.483
Oh, okay.
00:42:18.722 --> 00:42:20.923
And I fell into the trap.
00:42:21.012 --> 00:42:22.842
I'm like, oh, let's get some Hummer limos.
00:42:22.842 --> 00:42:24.342
Let's get a vintage car.
00:42:24.523 --> 00:42:26.503
Let's get an Escalade.
00:42:26.503 --> 00:42:27.463
Let's get a Suburban.
00:42:27.463 --> 00:42:34.363
Let's get all these different types of vehicles because I, I want to be everybody, to everybody, everything to everybody, I should say.
00:42:34.858 --> 00:42:35.353
right, right.
00:42:36.163 --> 00:42:45.342
Well, then you start looking at the numbers and you're like, this vehicle's tying up a prime real estate in my shop to
00:42:45.483 --> 00:42:45.702
Yep.
00:42:45.793 --> 00:42:46.273
Saturday.
00:42:46.963 --> 00:42:47.452
Correct.
00:42:47.893 --> 00:42:48.793
What does it bring in?
00:42:48.822 --> 00:42:48.853
Okay.
00:42:49.693 --> 00:42:49.913
so.
00:42:50.802 --> 00:42:53.383
I, while I still wanted, you know, it's hard.
00:42:53.413 --> 00:42:55.873
We we're a very ego-driven industry.
00:42:55.873 --> 00:43:04.123
We, we love to talk about our shiny vehicles, we love to talk about this and we have that, we have this, and I just made the decision.
00:43:04.733 --> 00:43:05.663
it was pre COVID.
00:43:05.663 --> 00:43:08.903
I was starting to go this way, but after COVID I said, Nope, this is what we're doing.
00:43:09.643 --> 00:43:11.333
I said, Nope, We're not gonna be that.
00:43:11.842 --> 00:43:19.103
We are focusing on, you know, our bus industry and our, our corporate transportation executive, and that's what we want to be.
00:43:19.733 --> 00:43:21.833
and got rid of all the limos and all that stuff.
00:43:22.208 --> 00:43:23.648
you did something important.
00:43:23.648 --> 00:43:33.157
You know, first of all, you measured the vehicles, the asset by the revenue it brings in, not by the ego of saying, Hey, I have this in my fleet.
00:43:33.728 --> 00:43:36.217
I fell into that trap when I was an operator.
00:43:36.367 --> 00:43:41.208
And, but having said that, I wanted to go deep into the wedding space.
00:43:41.447 --> 00:43:41.867
Okay?
00:43:41.898 --> 00:43:42.827
Deep, deep, deep.
00:43:42.827 --> 00:43:46.068
Like we did a million dollars in weddings and.
00:43:46.697 --> 00:43:48.768
The vintage made sense for us.
00:43:49.068 --> 00:44:02.258
But the other piece is when we were in the corporate space, I would find anything I could find for a sedan, whether it was new or used, and I didn't standardize.
00:44:02.258 --> 00:44:08.467
You know, I made a comment on Facebook one time and somebody jumped out at me because they didn't catch what I was saying.
00:44:09.157 --> 00:44:24.896
The most profitable companies I know are, are so standardized on everything that the same rim and the same tire is on every single SUV, every single sedan, they buy from the same coach builder.
00:44:25.195 --> 00:44:27.356
Everything is a gretch, right?
00:44:27.655 --> 00:44:30.416
And they buy the same motor coaches.
00:44:30.476 --> 00:44:33.776
Everything is MCI, whatever you want, right?
00:44:34.586 --> 00:44:36.985
The lack of standardization costs you money.
00:44:37.376 --> 00:44:42.206
And I always found the most profitable businesses are the ones that.
00:44:42.596 --> 00:44:46.826
Everything was standard that they could possibly make standard.
00:44:47.186 --> 00:44:51.686
So let's pivot a little bit and tell you were an early adopter into motor coaches.
00:44:51.686 --> 00:44:52.286
What'd you get into
00:44:52.465 --> 00:44:57.615
It and I wanna say on the retail business that while we jumped out of it, I'll get back to motor cook it.
00:44:57.646 --> 00:44:58.546
there's a market for that.
00:44:58.546 --> 00:45:01.846
I mean, I don't wanna discount people can specialize in that.
00:45:01.846 --> 00:45:08.566
You could be the best vintage car operator and make a killing Just pick something and be, be the best at it.
00:45:08.566 --> 00:45:09.856
Pick something and be the best at it.
00:45:10.046 --> 00:45:12.326
jacks of all trades don't work in anything.
00:45:12.425 --> 00:45:13.536
that's why I admire Dougie.
00:45:13.536 --> 00:45:19.385
Dougie kills it in weddings, and he's absolutely on top of it as far as airport, corporate, airport.
00:45:19.546 --> 00:45:21.106
but he doesn't try to do shuttles.
00:45:21.155 --> 00:45:25.266
and by the way, he's not the least expensive ride to the airport.
00:45:25.316 --> 00:45:26.546
Just go that way.
00:45:26.546 --> 00:45:29.316
You're not everybody's, bowl of soup, right?
00:45:29.316 --> 00:45:30.485
Just don't worry about it.
00:45:30.876 --> 00:45:31.655
but you're right.
00:45:31.706 --> 00:45:36.146
specialize in and build your systems around it to be the best at it.
00:45:36.865 --> 00:45:37.496
So yeah.
00:45:37.526 --> 00:45:38.826
Let's pivot to motor coaches.
00:45:38.826 --> 00:45:39.936
That was a big move.
00:45:40.891 --> 00:45:42.510
So I've had motor coaches before.
00:45:42.510 --> 00:45:43.141
They were cool.
00:45:43.800 --> 00:46:01.876
back in 2004, we were getting to a point where we were doing, a little larger groups, things like this and, not to knock the bus industry, I'm not knocking that it was just the providers that we were able to secure in the bigger buses didn't match the service levels that we were wanting to hit.
00:46:02.566 --> 00:46:09.791
And so in 2004 when I'd had enough of it, I basically said, I'm just gonna get a bus.
00:46:09.820 --> 00:46:10.990
How hard could it be?
00:46:11.260 --> 00:46:11.771
Right, Ken?
00:46:11.951 --> 00:46:13.240
How hard could it be?
00:46:13.666 --> 00:46:13.885
Yep.
00:46:14.320 --> 00:46:16.121
I went and looked at my first motor coach.
00:46:16.121 --> 00:46:21.681
It was a used one, it was a five speed, MCI, the guy said, you gotta double clutch it.
00:46:21.681 --> 00:46:23.961
I'm like, I don't know what that means, but I'm trying to figure it out.
00:46:24.380 --> 00:46:25.280
You know what he said to me?
00:46:25.401 --> 00:46:27.530
He said, you got a good mechanic.
00:46:28.191 --> 00:46:30.110
And I go, why?
00:46:30.501 --> 00:46:37.731
He goes, and he chuckled at me and then I bought the bus, and then I soon figured out why he was chuckling at me.
00:46:38.530 --> 00:46:44.510
but so we adopted it in 2004 we bought a bus, and then next thing you know, I bought another, 45 footer.
00:46:44.931 --> 00:46:47.061
trying to figure that whole thing out
00:46:47.356 --> 00:46:47.576
yep.
00:46:48.501 --> 00:46:50.661
and I didn't know what I was doing.
00:46:51.021 --> 00:46:53.840
and then, you know, pre COVID started coming around.
00:46:53.891 --> 00:46:56.681
We are getting more into this business here.
00:46:57.255 --> 00:46:57.476
Yep.
00:46:57.731 --> 00:47:02.010
And, we have some big gorillas in Iowa, that are huge.
00:47:02.010 --> 00:47:03.570
They have buses all over.
00:47:04.221 --> 00:47:06.110
but I said we're gonna start taking a piece of that pie.
00:47:06.740 --> 00:47:11.871
Let's just work on our corporate values of how we can provide that level of service in a bus.
00:47:12.481 --> 00:47:13.215
and that's what we did.
00:47:13.891 --> 00:47:17.760
So you were kind of on the bleeding edge of motor coaches.
00:47:17.760 --> 00:47:28.588
What would you, if you were, your younger self, what would you advise any chauffeur operator before they considered getting into motor Coach?
00:47:28.588 --> 00:47:38.804
'cause I have to tell you, Scott, I have seen delving into motor coaches kill more small chauffeur companies than high insurance.
00:47:39.224 --> 00:47:43.184
I have seen it just kill their companies.
00:47:43.184 --> 00:47:49.023
It was a company in, North Carolina, the guy called me a year and a half ago wanting to sell it, but, or two years ago, wanting to sell it.
00:47:49.023 --> 00:47:51.213
And he was upside down on two motor coaches.
00:47:52.594 --> 00:47:57.334
It also came back to me because four or five people in the market he talked to about buying it.
00:47:57.443 --> 00:48:03.193
what I told him when I looked at it for him initially was, you're upside down on your buses.
00:48:03.733 --> 00:48:07.844
You're charging rates that were even low before COVID.
00:48:08.563 --> 00:48:11.324
I hate to tell you, you don't have a business to sell you.
00:48:11.324 --> 00:48:14.264
he was getting eaten alive by repair and maintenance.
00:48:14.836 --> 00:48:19.277
this is critical, what would you tell your younger self about motor coaches?
00:48:19.336 --> 00:48:24.467
Certainly you wouldn't say, don't get into them because it's been good to you, but what are your primary lessons?
00:48:25.981 --> 00:48:27.601
Well, you can't just buy one.
00:48:28.561 --> 00:48:29.942
You always gotta buy at least two
00:48:30.287 --> 00:48:30.646
Yep.
00:48:30.992 --> 00:48:38.942
and be prepared to figure out how to get the bus on the highway and not just being used around town.
00:48:39.302 --> 00:48:42.032
Around town is not gonna pay for a half a million dollar bus.
00:48:42.706 --> 00:48:43.007
Right.
00:48:43.052 --> 00:48:57.791
Getting trips over the road, getting in touch with sports teams, schools, all that, the military, to get that business because you are dining around for four hours, you're not gonna make.
00:48:58.331 --> 00:48:58.872
Any money.
00:48:59.112 --> 00:49:04.182
And if you are, it's because you bought a a hundred thousand dollars motor coach that you constantly are fixing.
00:49:04.392 --> 00:49:04.932
Constantly.
00:49:04.981 --> 00:49:10.516
and you know, you buy a brand new motor coach the first year, you're constantly fixing it before it finally gets all its lins worked out.
00:49:10.726 --> 00:49:14.546
It doesn't matter what brand it is, but it's different.
00:49:14.936 --> 00:49:17.396
There's a lot of DOT regulations that go into it.
00:49:17.996 --> 00:49:21.806
There's a lot of training that goes into driving a 45 foot bus.
00:49:22.251 --> 00:49:27.615
You, you see these newer operators and The right side's all banged up and the back end's all banked up right turns and backing up.
00:49:28.516 --> 00:49:30.465
And you can't just put a driver in it.
00:49:30.856 --> 00:49:36.586
You gotta train them and get them to a level that they're understanding on how to do that stuff.
00:49:37.036 --> 00:49:38.385
They just can't go everywhere.
00:49:38.635 --> 00:49:42.806
are you prepared to take the risk of the big financial outlay.
00:49:43.481 --> 00:49:45.251
Are you prepared to put the training in?
00:49:45.911 --> 00:49:51.130
And are you prepared to be everything that the DOT and F-M-C-S-A wants you to do?
00:49:51.550 --> 00:49:52.691
Are you that person?
00:49:52.691 --> 00:49:56.771
And if you're not that detailed person, I'm a black and white rules guy.
00:49:57.641 --> 00:50:05.675
If you're not and you're gonna get in the buses, you need to find somebody who is, because FMCA doesn't care about, well they were almost back.
00:50:05.675 --> 00:50:08.036
They only went over their hours by five minutes.
00:50:08.296 --> 00:50:11.530
It doesn't matter to them, it's a violation.
00:50:11.990 --> 00:50:15.010
and you gotta have that detailed person there, which is part of the corporate value.
00:50:15.596 --> 00:50:19.836
And what I see when you got into your business was already doing well.
00:50:21.005 --> 00:50:21.396
Right.
00:50:22.175 --> 00:50:22.536
Okay.
00:50:22.746 --> 00:50:27.724
How much motor Coach did you farm out before you bought your first bus?
00:50:28.369 --> 00:50:29.028
Oh gosh.
00:50:29.079 --> 00:50:30.309
so that was many years ago.
00:50:30.358 --> 00:50:35.009
but we were farming out, you know, two to three trips a week.
00:50:35.354 --> 00:50:35.744
Yep.
00:50:36.028 --> 00:50:37.829
and then we were babysitting the crap out of them.
00:50:38.144 --> 00:50:41.204
Right, so you already had a book of business out there.
00:50:41.253 --> 00:50:44.764
you already had a mature, profitable limo company.
00:50:45.124 --> 00:50:53.074
I see too many operators trying to get in to motor coaches as a Hail Mary pass to save a company that's just not doing well.
00:50:53.434 --> 00:50:56.854
and I think that that's one of the primary issues of our industry.
00:50:59.028 --> 00:50:59.749
First of all, why?
00:50:59.798 --> 00:51:00.759
Why are they not doing well?
00:51:01.119 --> 00:51:02.079
That's the first step.
00:51:02.574 --> 00:51:03.293
hundred percent.
00:51:03.324 --> 00:51:08.943
Most of them don't really understand how to price and they think top line revenue is their answer.
00:51:09.213 --> 00:51:16.713
And I'm just gonna buy a motor coach because I see people buying them and they say, I can do two or 300,000 a year in revenue.
00:51:16.894 --> 00:51:19.554
I mean, you had a methodical plan.
00:51:19.554 --> 00:51:22.974
You did it because you couldn't find providers that lived up to your standard.
00:51:23.244 --> 00:51:27.104
And now I would argue you have a nice second division of your company.
00:51:27.114 --> 00:51:28.014
That's valuable.
00:51:28.374 --> 00:51:38.487
You go buy a billboard for 300 a month, and if you tell me all I gotta do is do two airport transfers and I paid for the billboard, that's not right.
00:51:39.146 --> 00:51:39.537
Yep.
00:51:39.637 --> 00:51:46.356
you need to go to Ken Lucci school because he will show you how many airport rides that actually takes to pay for that.
00:51:46.902 --> 00:51:52.297
it's the argument I have with people on their spending$3,000 a month on Google ads.
00:51:52.836 --> 00:51:55.626
And they say, oh, I got$20,000 worth of business.
00:51:55.626 --> 00:51:59.827
I'm like, congratulations, you kind of broke even, right?
00:51:59.827 --> 00:52:03.467
Because you know, at the end of the NOI you make 10 to 15%.
00:52:03.706 --> 00:52:06.237
But Motor Coach is a, huge investment.
00:52:06.507 --> 00:52:12.356
what final advice would you have for newer operators in the space?
00:52:12.961 --> 00:52:15.722
what, what do you want the audience to know from you?
00:52:17.117 --> 00:52:19.291
so inspect what you expect.
00:52:20.862 --> 00:52:26.322
if your expectations are here, but you're not making sure that's being done, then you're failing your team.
00:52:27.461 --> 00:52:28.331
Create a culture.
00:52:28.751 --> 00:52:30.251
What do you want your culture to be?
00:52:30.402 --> 00:52:35.862
And that's why coming up with your corporate values and all that stuff, create that culture and make sure that everybody understands it.
00:52:36.192 --> 00:52:41.291
Plastered in your shop or, or if you're at a home office, make sure you're signed up that talks about your culture.
00:52:42.942 --> 00:52:44.142
Work on your service values.
00:52:44.172 --> 00:52:52.442
If you want to be that Ritz Carlton and just take care of your team, treat'em like they want to be treated.
00:52:53.192 --> 00:52:56.132
you don't yell at people, you don't get on'em.
00:52:56.402 --> 00:53:01.442
You have a service cell, you talk through it, you figure out how you could do better and then you move on.
00:53:02.481 --> 00:53:05.240
and the secret to success is it doesn't happen again.
00:53:05.240 --> 00:53:06.651
That's the secret to knowing.
00:53:07.146 --> 00:53:09.695
When you've solved the problem, don't keep repeating,
00:53:10.776 --> 00:53:13.666
But if I was to sit down with somebody and say, tell me about your business.
00:53:13.666 --> 00:53:14.536
You've done this to me.
00:53:14.776 --> 00:53:15.675
Tell me about your business.
00:53:16.365 --> 00:53:17.505
And they go, well, I do.
00:53:17.836 --> 00:53:18.856
I'm like, let's focus.
00:53:18.856 --> 00:53:19.635
What do you want to do?
00:53:20.865 --> 00:53:22.036
Create your corporate values.
00:53:23.686 --> 00:53:24.976
Who do you wanna service?
00:53:25.336 --> 00:53:26.026
Then go after it.
00:53:26.206 --> 00:53:29.646
If you wanna be the best damn vintage car operator then do it
00:53:30.510 --> 00:53:30.800
yeah,
00:53:30.876 --> 00:53:31.865
and be successful at it.
00:53:31.956 --> 00:53:32.766
Be the best at it.
00:53:33.516 --> 00:53:40.871
I've seen people in all aspects when they specialize and when they run to ground the finest detail.
00:53:41.021 --> 00:53:44.380
I've seen them profit in every silo.
00:53:44.380 --> 00:53:49.360
It's the jack of all trades that think they have to sell on low price that never make it.
00:53:49.840 --> 00:53:51.041
the costs are too high.
00:53:51.461 --> 00:53:55.601
The people cost a lot of money to provide the service.
00:53:55.851 --> 00:53:59.121
but the right clients, you know, the right clients will pay for it.
00:53:59.331 --> 00:54:02.030
don't get sucked into the, you don't necessarily need an escalate.
00:54:02.121 --> 00:54:07.041
Maybe your market does why, but do you really need, are they gonna pay for it?
00:54:07.606 --> 00:54:09.255
Are they gonna pay you extra for it?
00:54:09.465 --> 00:54:10.726
Are they gonna pay you extra?
00:54:11.115 --> 00:54:16.456
I'm seeing a lot of people operate business class and then they have an executive class.
00:54:16.456 --> 00:54:23.606
But your point is, don't go out and spend 108,000 on an Escalade when a$70,000 suburban will do.
00:54:24.266 --> 00:54:28.485
Well, that's where we have to end it, because we've gone into our second hour.
00:54:28.726 --> 00:54:40.755
Listen, Scott, I gotta tell you, when you first called, I said I wanna look more into this, into your business because I've seen you around and seen you all the work you do with the NLA and I have to tell you, you've got an impressive company.
00:54:40.916 --> 00:54:45.346
next time you go to the chauffeur driven NLA conference, look for Scott.
00:54:45.346 --> 00:54:47.521
He'll absolutely help you Any way he can.
00:54:47.836 --> 00:54:48.425
Happy to.
00:54:48.916 --> 00:54:54.695
And thank you for everything you do with the NLA and for the industry, and I hope you'll come back again.
00:54:55.546 --> 00:54:55.836
Okay.
00:54:57.728 --> 00:55:00.967
Thank you for listening to the ground transportation podcast.
00:55:01.148 --> 00:55:08.197
If you enjoyed this episode, please remember to subscribe to the show on apple, Spotify, YouTube, or wherever you get your podcasts.
00:55:08.407 --> 00:55:13.748
For more information about PAX training and to contact James, go to PAX training.com.
00:55:13.798 --> 00:55:20.998
And for more information about driving transactions and to contact Ken, Go to driving transactions.com.
00:55:21.577 --> 00:55:25.807
We'll see you next time on the ground transportation podcast.