Operations

How Do Limousine Services Rank?

LCT staff
Posted on January 1, 1988

According to an article in the October, 1987 issue of Entrepreneur, the success potential for a limousine company is pretty good. Charles Fuller interviewed Limousine & Chauffeur's publisher, Maury Sutton, for an article entitled "Cruising Into Luxury With A Limousine Service."

Fuller points out in his article that, in the past decade or so, limousines have grown from being a transpor­tation option for the very wealthy only to being something that the middle- class can enjoy as well. This alone increases the market demand for limousine services.

The average startup costs for a limousine service, Fuller found, is about $90,000, although he adds that minimum start up costs can be as low as $31,000. Net profits before taxes average about $60,000, but can go up to $164,000 or higher. The stability of the business rated "av­erage," and the industry growth prospects rated "good." The risk fac­tor, however, is "above average," and the absentee ownership poten­tial is "limited," according to Fuller's research.

Related Topics: starting a limousine company

Comments ( 0 )
More Stories
Kevin Polite, business development and quality control manager for RMA Worldwide Chauffeured Transportation
News

Young Operator Finds Balance In Merger

eNews Exclusive: Kevin Polite has joined forces with veteran operator Robert Alexander to provide Washington, D.C. area clients with #RMAperfect rides.