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If George Steinbrenner operated a limousine service, Ken Lucci thinks it would look a lot like his.
“My management style is very simple,” Lucci says, citing Steinbrenner as an inspiration. “If we're not first, second, or third in the industry I have no interest in being in the market.”
The owner of Clearwater-based Ambassador Limo says Steinbrenner has “a day-to-day influence” on how his company operates. That influence has shown in Lucci's approach to the service industry since before the company began operating.
Prior to opening his business, Lucci spent a month at a five-star New York City hotel — not as a guest, but as a student, learning firsthand how to provide top-notch service. He read every hospitality book he could find to develop his understanding of how to deliver the best service.
That attention to detail in service has translated to a successful business on the Gulf Coast despite the downturn.
Today, Ambassador Limo boasts a freshly painted physical headquarters on U.S. 19 in Clearwater, a fleet of 40 or so vehicles (featuring a 1965 Silver Cloud Rolls Royce) and revenues approaching $3 million for 2009.
Revenues have more than doubled from a year ago, when the company brought in $1.2 million. For a company with no debt, and an owner with 100% ownership, that's a solid start on Lucci's $1.5 million investment at inception.
The recent growth has been propelled by a major acquisition from earlier this year. In July 2009, two years after Ambassador began doing business, Lucci purchased Julie's, a limousine service company formerly operated by Julie
Herring. Herring lost a difficult battle with cancer in 2008.
Lucci remembers Herring as “one of the only people who was helpful” in the industry. He recalls her offers of vehicle sharing, as well as industry advice, just as he was getting his own business starting.
Combined with her guidance early on, it's that acquisition that has helped Lucci's company take off this year.
Many of the additions from Julie's have complimented Lucci's own business well, especially the prime location on U.S. 19. According to Lucci, area brides can't miss his company's prominent signage.
That real estate purchase was made possible by financing through First Heritage Bank. The terms weren't the best for the company, as the bank ended up requiring a full 33% as a down payment. But by the nature of an asset-rich company with its fleet of 40 vehicles, Lucci had significant collateral to get the deal done. He declined to disclose the purchase price.
Beyond financing the purchase of the new facility, there were internal issues with the new business that required attention. In Lucci's words: “I inherited some culture.”
That culture lacked a focus on a key ingredient to growing a young business: customer retention.
As Lucci sees it, maintaining a high retention rate depends on the details. For his company, that translated to things like hiring a detailing expert for 75 hours a week, as well as a strict no-smoking policy.
“You hate to be a dictator,” Lucci allows, “but sometimes you have to.”
Lucci also requires that each chauffer that work for his company sign on as a full-time employee. Most other competitors rely to some extent on sub-contracting for drivers.
The potential for extra costs are obvious. But the policy has benefits, including the use of confidentiality agreements between client and driver. Those agreements bring in business from area bankers and financiers, Lucci says.
Another important feature: training. Lucci requires that his drivers receive some form of training every 30 days. That's a policy he couldn't enforce if the drivers weren't full-time employees.
Training has been key from the beginning. Right after the 30-day stint at the New York hotel, Lucci worked with a colleague with a military background to develop the company's first training manual.
In addition to the company's focus on details, its presence in a niche market has positioned Ambassador Limo for further expansion.
While the economy may be slow, the limo service industry continues to see business. As Lucci points out, “In a bad economy, people still get married; they still travel for business.”
As a result, Ambassador Limo will grow. Lucci is already beyond window-shopping for his next market. It will be Sarasota.
“We started getting work without a dime of advertising,” he says about the Sarasota market, attributing the success to a positive company image. Lucci quotes a manager from the Ritz-Carlton: “He said, 'You've gotta be kidding
me, even your bus drivers wear tuxedos.'”
Now that he's settled on location, Lucci is keeping an eye out for the right company. He's looking for someone that's been in business for three or four years, with a decent reputation, and a principal that'd be willing to stay on as branch manager. If that slam-dunk acquisition isn't out there, he's prepared to start cold.
Either way, Ambassador Limo fully intends to continue to grow, so be on the lookout for '65 Rolls Royces throughout the Gulf Coast.
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