On the surface, the built-in gratuity is the silliest thing in the world.  What’s the point of a gratuity if it’s automatically included?  Isn’t the reason behind a gratuity To Insure Prompt Service?  Most would assume this trickery falls into the category of bogus surcharges, but the built-in gratuity is legit.  It’s a traditional and essential part of the limo business that protects the client and ensures chauffeur longevity.

Why is it important?

Control – First and foremost a chauffeur needs to control the vehicle.  When things get too wild, he needs to step in and curb the client’s behavior.  This is a basic safety issue.  When a limo driver thinks he might lose the tip (which is the bulk of his pay), he’ll let the client do anything.  This puts the client and the vehicle at risk.

Better Pay – The nice thing about the built-in gratuity is that clients usually tip a little extra at the end of a run.  In this system the chauffeurs simply make more money.

Better Companies – Good limousine drivers are finite.  The companies who forego this perk inevitably have trouble acquiring and retaining good chauffeurs.  Unless you’re an established operator with brand dominance in an uncompetitive market, do not go down this path.  You will assuredly bleed out talent.

Burnout – Nothing embitters a chauffeur faster than being shortchanged on the gratuity.  When I was a driver, I regularly drove the Saudi Royal Family.  I hated it.  These folks were spoiled and disrespectful.  The worst part was being shorted on the gratuity.  After a week of service, the security officers would inevitably pocket the driver gratuity and leave us hanging.

Collecting the proper gratuity is always a problem with large groups.  This is why restaurants include the gratuity in groups of six or more.  Without this policy, servers quit and find better gigs.  The same is true for limo drivers.

The Opposition

A lot of people simply can’t wrap their mind around the idea of a built-in gratuity.  It’s assumed that a chauffeur will go the extra mile if he has to earn his tip.  This couldn’t be further from the truth.  First, no amount of money can motivate a lazy driver.  These guys are on autopilot and could care less about the client.  Second, most clients tip on top of the built-in gratuity.  Industrious chauffeurs know this and hustle for the extra cash.

The other common belief is that customers don’t like it.  In some cases this is true, but corporate clients demand it.  With the tip included, busy executives pay nothing and corporate accountants can accurately track their transportation expenses.  The all-inclusive tip eliminates the padded expense accounts and the fabricated cab receipts.  If a customer is unhappy with the trip, they can always call the company and have the gratuity removed from the bill.

Get on Board

If you’re an operator who simply pays by the hour or holds back part of their chauffeur’s gratuity, get with the program!  The built-in gratuity helps everyone.  You benefit because you attract better chauffeurs.  The chauffeur benefits because he makes more money.  Lastly, the clients win because they get a happy chauffeur.  It’s a win, win, win.

Now if I could just find a way to get a built-in gratuity for blog posts ….