Driving Transactions founder Ken Lucci and PAX Training President James Blain are taking industry education to a new level with the debut of their Ground Transportation Podcast. With the goal of helping transportation operators achieve financial health and success, the duo draws on their years—and sometimes decades—of experience operating their own businesses and direct daily interactions with operators, as well as wisdom from industry leaders.
Lucci, who runs the financial and M&A firm Driving Transactions, is a longtime industry consultant and a devoted student of financial metrics and business valuations. Using data compiled from more than 250 industry companies across the spectrum of revenue streams, he says that he has identified the patterns and problems organizations in our space share that make it difficult to turn a profit.
“When you're in a business that only drops 10 percent of every dollar to the bottom line, to the net profit, you're going to manage all the dollars, nickels, and quarters,” Lucci said during the inaugural episode of the podcast. “You have to take a holistic view of the business to know where we are missing things, and you and I both see the same issues,” he says referring to Blain. On top of escalating costs of insurance and labor, the pair sees quality of service waning, or at least inconsistent, for many companies.
“If the meal that's being put on the table is supposed to be a five-star experience but is now borderlining on two or three, profitability is going to suffer,” he added.
Blain, who has just under a decade of experience in the industry, also works with operators across the country through PAX, which offers numerous courses that home in on profitability through safety and service training at every level of the organization. In addition to the basics of transportation, PAX modules encourage a culture of service that differentiates luxury transportation from other budget modes of transportation. Additional courses explore vehicle maintenance, hiring, procedures for specialty vehicles, office positions like dispatch and reservations, and even an Entry-Level Driving Training Program.
“You can't get to actually provide a luxury experience if you can't nail that fundamental part of it, and that goes all throughout the business. If you don't have the fundamentals of your financials in place, you can't grow there,” said Blain during the introductory episode.
Using a blend of humor and practical, battle-tested advice, Blain and Lucci also want to help company owners recognize the components beyond the profit and loss sheets that impact revenue, including the evolution of the industry, fierce competition of low-cost providers, and the retention of skilled talent as labor costs soar.
There are five episodes currently available, including interviews with Bruce Heinrich of LEADER Worldwide (and founder of PAX Training), Adam Warner of inDrive, and NLA/NELA President Brett Barenholtz of Above All/Maine Limousine. On October 30, their interview with Mike Marroccoli of EPIC Insurance Brokers & Consultants addressing how you can manage the rising insurance costs will be released. The show plans to post episodes weekly.
Visit groundtransportationpodcast.com to listen to episodes for free and for more information.
[10.29.24]