GCLA Impact Survey Results

Dear Friends….

Let me start this note by thanking you for responding to the Impact Study survey last week. We are now able to use the data to build a case for extra state financial concessions. We are working hard to “stand out” in the long line of industries pounding on the states door for help in this current business crisis. The squeaky wheel gets greased so that is precisely what we’re committed to doing and FACTS matter.

I appreciate that so many operators gave us personal feedback too. The resounding sentiments are:

1. Why hang in there? The harsh reality is that there really is nowhere to run. Outside of a small number of protected industries, the majority of us are all suspended in space right now. With that truth, we all must “hunker down” and focus on survival. How to do this? Find every means of revenue possible (including the loans and grants now available via the CARE Act) and reduce your expenses to the bare necessities. On the expense side, by now you should have plenty of “To do’s” to work from, but if not, reach out to us at GCLA headquarters and we will get you the help you need. On the revenue side, focus on finding ways to generate money with the few vehicle(s) you are operating – helping lost clients with deliveries and other services; finding new clients that are on the “Essential Business” list. There is one operator in California I know who is running 50 buses a day for hospitals. If your fleet is completely shut down, I urge you to seek work in the delivery industry. Amazon and others are hiring drivers on the spot. Side hustles are what saved a lot of displaced workers during the Great Recession, so keep your options open.

1. Insurance – If your vehicles are financed, the lean holders will require a minimum amount of coverage in case, say a stored vehicle caught on fire. If you own vehicles, you may be able to store them for minimal coverage (but you still want some insurance in case something happens to the vehicle while in storage). Depending on the relationship you have with your agency, you may be able to get payments deferred for up to 6 months, but it comes down to how long you have been with your agency, your track record, your fleet value, etc. The transportation insurance industry is flush right now thanks to Shelter-In-Place. The lack of vehicles on the roads has radically reduced vehicles claims. Maybe you can add this to your argument.

1. Big affiliates freezing their money and not paying for services performed – The simple version is, if the service was performed to the satisfaction of the Network and not in dispute, they owe for services rendered. However, you can’t squeeze blood from a turnip. The Networks are in dire straits and do not have a way to pay their bills. As much as many of you badly need that money, for now don’t wait on it to save you. Focus on what is in front of you and what you can control. This will get sorted out once we know when our economy can resume functioning. Networks depend on your businesses for their own livelihoods. As frustrating as it is, try and be patient. When business travel resumes your accounts will be reconciled.

1. Refunds – Many of you are refunding for cancelled trips. I spoke to the leadership at the California Bus Association and they have been successful in negotiating “postponements” and not cancelled trips. I realize we serve a different transportation niche, but I also think that we should try our best to negotiate before refunding and offer incentives for the future, like a voucher system.

1. Lost clients – Most everyone is in a limbo stage of business right now and trying to stave off more drastic measures including closing doors. So, for now, just make sure you are calling and writing to your customers, including all your farm out/industry relationships. Helping people get through their day by simply calling to say you are thinking of them will go a very long way. Educate yourself on ZOOM. It’s easy to learn and here to stay. YouTube has tutorials. It allows you to see who you’re talking to via desktop. It’s a game changer in the relationship business. And, that’s what we’re all about in chauffeured services.

The U.S. travel and tourism market generates almost $2 trillion dollars. It’s an industry on its knees. It’s also one that is near and dear to the heart of President Trump. Be thankful that our niche is directly tied together as the connection component to air and hotel. Travel is the FIRST on the list of industry’s to be reinstituted. C.A.R.E. is designed to aid small businesses like ours while the airlines, hotels and restaurant chains work with our nations leadership to get unstuck as quickly as possible.

Let’s stay focused on what we can control and try to relax for another week. Changes are happening every day. Don’t go too far over your skies right now.

My parting shot…we invoiced the entire community in the state of California including operators and suppliers. GCLA memberships are the least expensive I know of. My team of 6, plus the board and your committees are working around the clock on your behalf for you. While many associations are shuddering, we are trying to stay open but MUST have 100% support. Our base membership fees are $6.25 a month – that’s less than a coffee and Danish from one trip to Starbucks. The timing is terrible for us to be passing the hat around but we are reliant on member and sponsors to keep the doors open. Thank you to those who paid. If you need another invoice or have questions, reach out to me.

Peace be with you and your families during the holy holidays.

Sara Eastwood-Richardson,
Executive Director