$15/hr Minimum wage is coming. Here’s what to do.
Across as many as 15 states and various cities across the United States, new laws were passed enacting a $15/hr minimum wage rate hike. Some have gone into effect already, others will be a stepped process over the next 2 years.
So what does this mean for the limousine industry? Plenty. For starters, many companies utilize a lower hourly rate worker to handle some incredibly important functions within the business such as administration, dispatching, scheduling,etc. As a part of the limo and transportation industry, we at LImoLive24 are very much aware that profits are slimmer than other industries and maximizing every opportunity to lower overhead is always at the forefront of the minds of most, if not all owner/operators.
Many smaller to mid-sized transportation companies may typically employ 1-3 people to cover phones and take care of administrative duties. Some of which includes answering phones around the clock. Many of these employees are paid $10 per hour, sometimes less depending on the part of the country they are in. An increase in wages by as much as 30% may not sound like a lot, but over the course of 1 year, the difference can be astounding.
For example, a limo company with 2 full time employees paid at $10 hour for 40 hours per week are paid approximately $400 per week, each, $800 in total. At the end of 1 year, that total employee payments are approximately $20,800, each. $41,600 per year total.
Now add in the 30% wage increase, and you could be looking at paying out $62,400 per year, an increase of $20,800 per year - exactly what some pay for 1 full time employee currently.
LimoLive24 Knows these costs are hurting the limo industry, and we are trying to support our limo clients in any way we can. This is part of the reason we have rolled out our new “sharing” concept to the limo and transportation industry.
By sharing, we are referring to sharing labor, sharing costs, and now sharing profits with those who take advantage of this concept along with us. A shared service or cost helps drive down overhead for everyone involved. That includes LimoLive24 and our clients!
LimoLive24 has now handled over 2 million phone calls for our clients, and throughout this time we have been able to find some amazing statistics that most transportation company owners probably did not know.
The biggest and most shocking stat that we uncovered was that if a limo company misses just 1 call per day (which we all know most do.) They are handing over approximately $36,000 per year to their competitor in ride fees. If you include that on top of the coming $15/hr minimum wage increase that is likely to roll out across the country, and you are looking at a staggering amount of money ($55,000 or more) in costs that you SHOULD NOT have to give away.
LimoLive24 created our “Sharing” concept to help our clients understand the idea of what our call center truly is. A service that was created to leverage the “Sharing” concept in order to lower everyone’s overhead costs.
Our clients typically see their overhead costs reduced by as much as 75% when they utilize our services.
When you see a potential savings of $46,800 ($62,400 employee costs x 75% savings) and then on top of that have the peace of mind that you will never miss a call and hand $36,000 per year in ride fees to your competition, it becomes a very easy choice for owner/operators who understand this to begin service with LimoLive24. In case you didn’t add that up, it’s a potential savings of $82,000 per year. We’re guessing that would be quite a change to your bottom line.
If you’d like to find out more about our sharing program and how you can begin to see potential savings in the tens of thousands per year, then please do not hesitate to give us a call right now.
Call 855-5-LIMO24 right now for all the details.