HomeThe Ultimate Chauffeurs GuideThe Pro's and Pitfall's of subcontracting

The Pro's and Pitfall's of subcontracting

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For most of us, irrespective of how long we’ve been in the trade, subcontracting represents a major part of what we do – whether we’re the person giving away the job, or the one taking it on. Andy Dubberley discovers the up’s and down’s of passing work to another company…

For those of us who are the suppliers, it’s an important element in keeping clients happy and ensuring they stay loyal to our business. Using other owner/operators reduces the financial risk associated with taking on additional vehicles and directly employed drivers. It also enables many to accommodate the seasonal fluctuations in the level of work, which we all experience.

If you run a chauffeur business, there’s a multitude of choices you continually need to make with regards to how you operate. One such choice is whether you refuse bookings if you’ve already got something in the diary or try and make alternative arrangements to keep the customer on side. Let’s be honest, responding to an enquiry by simply saying “I’m sorry but I’m already booked, thank you and goodbye”, isn’t exactly going to result in you ingratiating yourself with someone who might potentially become a very regular and long term client.

Personally, I’ve never really got to grips with why anyone forks out many thousands of pounds on a car, several hundred on a fancy website and god knows how much on advertising only to make zero effort to satisfy a client’s needs because they happen to have another job on the same day.

The vast majority of us operators see the need to be part of a network because not only do you then connect with chauffeurs who might be able to cover jobs for you, long established and larger operators are a vital source of work for those who want to do business on a subcontract basis. Being willing to take on the overspill from other operators is hugely important if you’re new to the industry and in a position where you need to build up regular work.

There are many, even well established operators who rely solely on subbing for other firms and make a very comfortable living out of it because they’ve built a reputation for being professional, reliable, flexible and trustworthy. Trust is undoubtedly the key to a good employer/subcontractor relationship, get it right and the arrangement can be extremely beneficial for both parties, get it wrong and it can cause ill-feeling, resentment and can potentially affect the livelihood of either one, or both of you.

Choosing the right people to work with.

Any operator that’s been around for a while will tell you that finding good chauffeurs to pass work onto is a headache and nothing short of a minefield at times. The most straightforward and risk-adverse method is by asking for recommendations from other colleagues you already have a connection with and whose judgement you trust. The longer you’re in business, the more contacts you naturally build up from all kinds of sources and it does get to a stage where you end up being part of such a wide network that someone will almost always know someone else whose able to help you out in a particular area, or with a certain vehicle type. Having said that, it’s a much more difficult scenario if you’re new to the industry and don’t have those contacts in place yet, or you’re an established operator who is having to consider using someone for the first time, be it through choice or necessity.

Let’s be honest, passing on a job to someone you’ve never used before is a gamble – whether they come recommended by a colleague or not. Everyone of us has differing standards and a varied clientele so just because Joe Bloggs Travel Ltd is pleased with a particular chauffeur they often pass work onto, it doesn’t automatically follow that you, or indeed your client, will be. To be fair, recommendations do take some of the nervousness away but I still believe you need to do a little bit of homework yourself because only you know what a particular client’s requirements and expectations are.

For me personally, there are certain criteria any subcontractor I’m considering using needs to fulfil before I’ll give them any work at all. The standard of service they display and the way they conduct themselves will have a direct impact on my livelihood and reputation so doubts aren’t something I’m willing to run with. Most operators have a website these days and this is my first port of call when I’m checking someone out. If there’s a stock photo of a car that’s clearly being taken from some sales brochure and cut and pasted onto their site, I won’t waste anymore of my time.

If the text is full of obvious spelling and grammatical mistakes I’m put off straight away because that comes across to me as a lack of attention to detail. I’m definitely not brain of Britain myself and I realise many people sometimes struggle with spelling, but I don’t really think there’s any good reason for not having text on a website proof-read by someone who is ‘good at that sort of thing’, or having the common sense to switch on spell check! It goes without saying the content says a lot about the mindset of the chauffeur themselves, the standard of service they’re prepared to provide and how they present themselves or their company.

Rather controversially some might think, I feel that’s it’s also worth taking a look at their personal profile on Facebook. For those who might question what an operator’s personal profile has to do with their professional life, in my own view it’s a very important consideration because the security, safety and comfort of your client is still your responsibility. Most of us have a client base made up of varied personalities with differing views, (some more strongly than others), cultures, beliefs and lifestyles. If an operator’s personal profile shows them being part of a radical organisation, or they clearly have exceptionally strong views on politics generally, foreign policy, immigration, or a myriad of other subjects, do you really want to expose your client to such a person? In short, it’s your client and your livelihood, so it needs to be your rules-the buck stops with you.

Personally speaking, once I’ve been satisfied by these checks, I’ll speak to this unfamiliar operator on the phone, (or in person if possible because that’s always the best option). This might be a strange and somewhat obvious statement, but it’s vital to me that, quite simply, they’re a nice person and someone I can get on with. If they have an attitude, are arrogant, or think they know it all, theres little point in trying to build a relationship as far as I’m concerned. My view is that if they come across to me in a negative way, the chances are my client would get exactly the same impression. I’d be lying if I said I hadn’t made mistakes over the years and I’ve had the odd client ask me not to send them a particular chauffeur again, something I have found utterly mortifying.

The devil is in the detail

If you end up being happy to use a chauffeur you’ve never used before, my advice would be to brief them on every tiny detail – fail to do so at your peril! Over the years, I’ve made far too many assumptions and haven’t pointed things out because they seemed obvious and common sense to me… that the car would be immaculate, that the chauffeur wouldn’t have his top button undone and tie pulled down, that he wouldn’t have the radio on unless the client requested it and that he might just have done a bit of research or planning just in case the most obvious route was blocked… lesson learned and I’ll never assume anything again.

The price is right

There’s been many a falling out between subbie and supplier over the rate for a job, it’s par for the course to be honest but both parties can take steps to avoid misunderstandings. If you’re doing a job for an operator, especially if you’re new to the industry, don’t think discussing the rate for a job is taboo because it’s better for all concerned if the subject of pounds and pence is discussed upfront.

The chances are you will be asked to quote first and it is your responsibility to get it right because it’s not acceptable to go back to the supplier after the job moaning that you should have charged more, (unless the job changed in some way of course). The other reason for getting your rates right is because it’s very irritating for suppliers if a subbie sends out an email a month down the line telling everyone they’re putting their prices up because they haven’t been charging enough, that’s your problem not the supplier’s.

As a company, we sometimes offer jobs to subbies which are slightly out of their area and the most straightforward way to handle that is for us to say ‘that’s what it pays so is it of interest’ and it’s up to them to say yea or nay… simples.

Invoicing

The other monetary aspect to discuss upfront is invoicing because this can also become a bone of contention after a job. It works both ways, it’s up to a subbie to ask what the payment terms are before the job is carried out and it’s up to the supplier to be equally as clear. Generally, terms are 30 days as they are in most industries because many operators aren’t big enough to have the cash flow reserves to pay any quicker than that. Remember that they’re also waiting for clients to settle their bills so showing a little patience and understanding as a subbie is necessary. As suppliers, we appreciate that cash flow is a big issue if you’ve just started out in business but to put it bluntly, that’s your problem and a very good reason why you shouldn’t buy a £50k car if a £25k motor would have been adequate whilst you get things off the ground. Trust me, sending an invoice before you’ve even done the job isn’t going to win you many friends either so I certainly wouldn’t recommend pulling that little stunt, unless it’s by prior arrangement of course.

Trust is a must

There’s always been an unwritten rule in the chauffeur industry that no one covering a job for another operator makes any attempt to ‘poach’ a client, most of us see it as the cardinal sin. To me, it is the ultimate breach of trust in our business and it’s inexcusable.

The vast majority of operators appreciate the work given to them and wouldn’t risk their reputation by handing over their own business card or trying to sell themselves in any way. There are of course a few unscrupulous individuals who don’t play by the rules but clients will very often let you know if it happens because many find it as unacceptable as you!

From my own experience, having a network of trusted colleagues is a godsend and works very well for all concerned, but be careful because the old saying that a ‘good reputation takes a long time to gain but a short time to lose’ is very, very true in the chauffeur industry.

Andy Dubberley

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