Saturday, May 23, 2009

Government



I imagine some number of entrepreneurs take on the limousine business each year, with the idea of making some good jink. I mean, let's face it, if you can rent out a stretch at anything from fifty-five to one-hundred and fifty-five dollars an hour, if you get get forty hours a week, well, that's....quite a lot of money.

And in fact, if that was all you were doing, it would be a pretty decent business. Even when gasoline goes back to previous highs, as a proportion of the costs, it won't be that big.

Three things kill budding transport moguls: interest on borrowed money, insurance, and bureaucracy. The first two are normal anticipated business costs, but the last one is more insidious.

It seems that every part of government wants some kind of permit, registration fee or licence. In our neck of the woods, operating into Tampa Airport is a must. That means money to Hillsborough County, (a sticker) and also to the airport itself (another sticker). Then there is the Port of Tampa, which requires a fee each year (sticker). If you need access to secondary places, like Sarasota Airport, that's money to Sarasota County, (sticker) and if you want to use the limousine park at that airport, more money again. (Stops you getting roughed up by the Town and Country boys.) And so on.

Note that these imposts are all cost, and no revenue - the fees come straight from the bottom line, and they amount to hundreds of dollars and tens of hours lost each year. That sucks.

Sometimes being a mere driver is quite okay.

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3 comments:

Don said...

"making some good jink" - so obviously I have an idea what you mean but where did you get the word 'jink'? Is it Aussie or have I just pointed out that I'm older than the hills and don't know modern slang?

You didn't mention it but I imagine these stretch limos are a tad expensive too. The regular Lincolns are probably pretty reasonable right about now but I doubt if there are many sales on the long ones.

BTW, do you have any of the weird ones? I mean Hummers or Volkswagen that have been turned into stretchs.

savannah said...

all of that revenue from guys clearing maybe 100k profit a year. what about the REALLY BIG GUYS, what the hell do they pay? proportionally not the same, i'm sure! no matter the administration, no matter the party, the small business owner gets screwed nine ways outta sunday, sugar. xoxo

Wombat said...

Sadly we have only conventional limos, Don. Just what the market would be for a stretched Prius or one of those two-seat bug-cars is a mystery to me. Still, I like the idea of them as a marketing tool.

Jink, ah yes. It is either Aussie or English, or both. Jink, wonga, readies...there must be more slang names for money other than sex, doncha think?

You got it, Sugar. The one-man operation would be the most difficult in this biz, IMHO. Scaling works in the limo biz, as long as you can keep all those assets out there working. Which might not always be that easy.