Prom season for the limousine industry is like Christmas to the retail industry. HUGE profits which in some cases make up as much 40% of a limousine operators annual income. One of the main reason for this boils down the age-old supply and demand dynamic. There are simply too many proms and not enough limos! People are willing to pay more when the demand is high the supply is low. Also, the kids all pitch in their share of the cost thus making it affordable for the entire group when otherwise the cost would be prohibitive. Therefore, limo operators often raise there prices during prom season and they raise the minimum charter time from an industry standard of 4hrs to 6 or even 8hrs!
Ever wonder why there are so many of those massive Hummer or other SUV limos that carry up to 20 people or the big limo busses that carry up to 30 people? Its really very simple...the more people you can get to pay their share...the more money you make. 10 people paying $99ea nets a limo operator $999 for the night. But 32 people paying $99ea nets the limo operator $3166! Just ONE charter makes the lease payment on the party bus!! Prom season starts around the 3rd or 4th week of March...is in FULL SWING in May and last until the 1st or 2nd week of June. If the party bus gets just 2 jobs a week in May, it will generate almost $32,000 in revenue!
While all of this sounds like limo companies are making a killing, the reality is...many have fallen behind on there lease payments or were unable to pay for basic fleet maintenance much less any major repair. For this reason, we rescued 39 prom teens last Saturday night who were abandoned by the companies who they made reservations with. Some companies told the kids the limo "broke down" and in some cases this may be true. But more often then not, the limo operator gets a last minute offer from someone else who's willing to pay more and the kids wind up getting dumped. I see it happen EVERY single year. Is that morally and ethically wrong? Of course it is! But we all know what types of decision people make when there's the almight dollar at stake.
While all of this sounds like limo companies are making a killing, the reality is...many have fallen behind on there lease payments or were unable to pay for basic fleet maintenance much less any major repair. For this reason, we rescued 39 prom teens last Saturday night who were abandoned by the companies who they made reservations with. Some companies told the kids the limo "broke down" and in some cases this may be true. But more often then not, the limo operator gets a last minute offer from someone else who's willing to pay more and the kids wind up getting dumped. I see it happen EVERY single year. Is that morally and ethically wrong? Of course it is! But we all know what types of decision people make when there's the almight dollar at stake.
I've been tempted to accept more money from a wealthy last minute parent whose kid waited too long to start calling for a limo. But never once have I ever abandoned a charter. We've also never had a limo "break down" but that's because our limos are newer and we maintain our fleet regularly. We also take care of repairs immediately. Do we charge a little bit more then our competitors? Yes...but is saving a $100 worth the pain and disappointment of sitting on the side of the highway in prom dresses and tuxes for 2hrs waiting for a back up ride, only to arrive at the prom as its winding down? This is a terrible memory that will last forever for these kids who will one day be getting married and will need a limo for the bachelor or bachelorette party, for the wedding or a corporate event or an anniversary!
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