Recently, I received an angry email from a reader who was responding to an email I sent which had the following subject line, “Measly Motor Club Rates Be Damned.”

Here’s what got him so flustered.

An email I wrote…

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I still remember the first time a motor club rep put me in my place.

We were “negotiating” rates in my office, and he wasn’t happy with the way it was going.

Here’s what happened…

I flat-out asked him, “How on Earth can I afford to pay my drivers with these rates?”

Hearing this, he slowly stood up…grabbed his chair, and dragged it to my side of the desk.

Now…we were a mere 2 feet apart.

He sat down in the chair, turned his head slightly, leaned in real close while looking me in the eyes…

And, while tapping his finger on my desk to the tempo of his words, he said…

“If You Don’t Take These Rates…I Have 5 Other Companies Who Will.”

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The reader’s response; “Speak for yourself, I make 2 Grand a day for my pocket…”

Seriously? I’m not buying it.

Most likely, he’s grossing $2000 dollars per day.

And if that’s the case, he’s also spending a ton of money on trucks, drivers, fuel, and insurance, as well.

Which means – at the end of the day, he’s involved in a Ponzi scheme of sorts.

And like most House of Cards scenarios, it will eventually come tumbling down.

Because you can’t sell your services at cost and make it up in volume for very long.

Of course, I don’t wish him any ill will, and I’m not mocking the guy.

He’s just been sold a raw bill of goods.

The sad thing is, I’ve seen it happen time and time again.

You build your fleet and staff up with promises of volume.

You then become overly dependent on one or more of the clubs that have contracts with various vehicle manufacturers and other corporations.

And, life is good for a time.

Eventually, one or two of the clubs loses some contracts or is sold to another club, a club you’re not contracted with.

So, you receive fewer calls and eventually find it difficult to service debt, pay for repairs and fuel, and keep good people.

Why does this happen?

Because your margins are too thin.

And, with decreased volume, your profitability wanes.

Of course, there’s a way out of this mess.

Stop working solely for clubs who take a 40% finder’s fee.

Cut out the middleman. Do your own thing.

When you’re ready to make a change, click the link below, and let’s talk.

Contact

Don Archer