There seems to be two types of transportation providers. Those who farm-in and farm-out, and those that simply don’t.
It is almost like the anti-farmers are weak vegetarians. They have a code, a belief in their chosen lifestyle, but every once in a while you will catch one at McDonald’s.
I don’t even know if it is possible to run a transportation company without alliances or working partners.
I knew a company back in the day who used a unique strategy. When really busy he would farm out the kibble. This way it was done and out of mind. He kept the bits for his in-house fleet. This allowed him to have strategic juggling capabilities. Creative perspective and I get it.
Historically, the problem with farmouts were operators “carding” or soliciting your clients. Although that does not appear to be a big factor today, it never ceases to amaze me how people farm out to wrapped or branded vehicles. Times have certainly changed.
Airlines have code share and interline agreements with other carriers and some airlines are even adding buses to the mix for the final mile. Hotels regularly have agreements for overflow.
I met a rookie operator from Ohio years ago at the Limousine & Chauffeur show. His mother who was with him was the financier and the obvious consigliere of the family. She presented her son with a brilliant plan.
He wanted to start a limousine business and studied and learned and trained and was ready to launch. His mother made it simple. Build a crew of sub-contractors and get started. When you farm out enough business to support your first car and can maintain the flow for 3 weeks I will pay cash for your first choice of vehicle.
After that, keep growing, follow the rules and “I” will keep buying. I lost touch with him, it’s been years, but I trust all is well.
The operators out there who self-stunt their growth out of some warped view of honor or passion to their craft intrigue me. I think deep down inside they are afraid of failure or perhaps have self esteem issues.
Seriously, who puts in all of their blood, sweat, and tears in a business hoping to be the smallest?