This page is provided to you as a suggestion. It provides tips and tricks to help you become more successful with the LUX platform. Nothing from this page is guaranteed to bring you or your company more revenue although, many of these strategies have worked for some of our best companies.

 

How to boost your rating

 

Some of the top-rated companies using the LUX platform have implemented small changes to their day to day operations that received a big response from users. We have broken them down for you below.

 

  • Vehicle Appearance- Have you ever heard that it is all about first impressions? As soon as you pull up to the destination of your rider or escort them from the airport to your SUV they have determined how the rest of their experience will be. Most of the LUX users base their rating on the way their driver and vehicle looked. Some things you can do to help the appearance of your vehicle are:

    • Wash

    • Wax

    • Shine Tires

    • Clean Seats

    • Clean Carpet

    • Repair Damage

 

  • Driver Performance- Another big category reviews are based on is the driver. To have an excellent review your driver needs to be excellent as well. Here are some ways a driver can be at the top of their game.

     

  • Dress to Impress (suite and tie/dress, polished shoes,

                                     watch, etc.)

  • Clean Shave

  • Hair Maintained

  • No Foul Smell (cigarettes, too much cologne, BO, etc.)

  • Be Helpful (hold the door, grab bags, offer help, etc.)

  • Be Polite (Sir/Ma’am, ask about their day, etc.)

  • Be Knowledgeable

  • Drive Courteously

  • Do Not Road Rage (you would be surprised)

 

  • Amenities- In this category a little bit goes a long way. We have provided relatively cheap ways for you to make the user feel like they are receiving the best experience possible. Try offering these amenities as a courtesy.

    • Beverages (water, soda, sparkling water, tea, etc.)

    • Gum (a variety of flavors and/or brands)

    • Snacks (candy, chips, crackers, nuts, etc.)

    • Cleanliness (hand/face wipes, lint roller, etc.)

    • Entertainment (music, conversation, etc.)

 

 

How to Increase Revenue

 

This section helps you understand different techniques that companies are using to maximize revenue. The price of a ride is directly correlated to the driver rating, and the overall willingness of a rider to book your service. In other words, if you have a high price and a low rating your chances of securing a ride are much worse than if you had a price that reflected your rating. If you have a low rating implementing some of the techniques above will help.

 

First, you need to determine if your company does long rides, short rides, or a combination. Once you figure this out become familiar with the two prices you can control: Base Price & Cost Per Mile; for more details on these, review the How To Page in your company panel. Finally, figure out how much you need to make to cover all your costs. Once you have completed this you will be ready to review the strategies below.

Ride Type

 

  • Short Rides- If you have a vehicle or driver who mainly completes rides under 10 miles this strategy is for you. To maximize ride profit and still secure riders it is important to have a low base price and a high cost per mile. This way if a rider is only going a short distance, it will not cost them a fortune in base price fees but the revenue will be made up for every mile traveled.

 

  • Long Rides- If you have a vehicle or driver who mainly completes rides over 10 miles this strategy is for you. To maximize ride profit and still secure riders it is important to have a high base price and a low cost per mile. This way if a rider is going a far distance, you make your money upfront and every mile after is additional.

 

  • Combination- If you find that your company has a good mix of long and short rides, it would be wise to create multiple rate cards and assign them to the drivers or vehicles that do the most of each category. This way you are maximizing your profits on both spectrums.

 

 

Special Occasions

 

A great tip to make a little extra is to offer different rates on holidays and other special occasions. When it becomes important for people to travel they are willing to pay extra for a service.

 

 

Knowing How Much to Charge

 

To make an accurate price you need to know how much your services cost per ride. This can be very tricky at times but is also what makes business fun! I have provided an example of how I would break everything down to maximize my profits. All numbers used below are rounded up and are average for a given area. You will have to do the analysis on your own but this is a good start.

 

  1. Cost of vehicle per mile: Gas- $.16 ($3per gallon/19MPG)

                                                Oil- $.02 ($60 oil change/ 5,000 miles)

                                                Tires- $.02 ($800 set of tires/ 40,000 miles)

                                                Wear and Tear- $.46 ($80,000 new SUV/ 175,000 miles)

                                                Amenities~ $.50 (this will change for each ride)

     

                                                Overall Cost Per Mile:  $1.16

 

  1. Cost of driver: Wages- $.71 ($25 per hour/ 35miles traveled every hour worked)

 

                                 Overall Cost Per Mile: $.71

 

  1. Other Costs: Facilities- $1.54 ($8,000 per year/ 5,200 miles traveled per year)

                              Miscellaneous- $1.0 (for all other fees not included)

 

                              Overall Cost Per Mile: $2.54

 

Cost per mile to break even on expenses: $4.41

 

Short Ride Company (<10 miles per ride): Base Price: $5

                                                                         Cost Per Mile: $11

 

Long Ride Company (>10 miles per ride): Base Price: $50

                                                                        Cost Per Mile: $5

 

Example: Ride= 5 miles. To break even I will need $22.05. Using the short ride technique I will earn $60. Using the long ride technique I will earn $75. Either way I will make enough to cover all expenses and still pay myself, however, if company A is using the short ride technique and company B is using the long ride technique, provided both companies have the same rating, the rider will choose company A.

 

Example: Ride= 15 miles. To break even I will need $66.15. Using the short ride technique I will earn $170. Using the long ride technique I will earn $125. Either way I will make enough to cover all expenses and still pay myself, however, if company A is using the long ride technique and company B is using the short ride technique, provided both companies have the same rating, the rider will choose company A.

 

 

Overall when it comes to setting a price, you want to make sure you are setting a price that reflects the services you offer. If you have a brand-new vehicle that is in excellent shape with very professional drivers who offer an array of complementary goods, you will be able to charge more for your service and will receive 5-star ratings as well. Also, keep in mind that you are competing with the other companies for business, so set prices accordingly. As shown in the examples above just because you can make more off a given ride does not mean the rider will commit if there are other companies of your caliber in your area.

 

We hope this document found you well and the strategies in it will help to further your success with the LUX platform. If there are any other ways the LUX team can help, we are always open to suggestions and value your feedback.

 

 

Thank you – Luxury Transports Inc.  

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