By Dave Millhouser

Frolicking along Highway 401 west of Montreal, a peek at the rearview mirror revealed a vehicle gaining on me. We GENUINE bus drivers have a low tolerance for such things, so I stood on the throttle.

No joy; minutes later this jewel took to the passing lane and blasted by me. The humiliation was compounded by the fact it was a trolley bus.

It turns out that, in response to customer interest, a creative Canadian operator was rebuilding older coaches as trolley buses. They were a hit as convention shuttles, and still worked fine for airport transfers.

One hallmark of tough times is that good business people search for alternative sources of revenue. Typically they look for something that fits with what is already working for them.

A number of coach operators have longingly looked at limousines, sedans and small, midsize and trolley buses. At the same time, staring back at them, are limousine companies, ogling motorcoaches and trolleys as a way to supplement their stagnant, or shrinking, income.

In this transportation version of a singles bar, each might stumble into a match made in heaven -- or disaster. Like the old song: "I cocked an eye at her, she cocked an eye at me ... and there we were ... cockeyed as could be."

Everyone who successfully offers passenger transportation for hire has learned to buy and maintain vehicles, hire and train drivers, and sell their service. Too often, they stare across the bar, and assume that those skills are compatible with other transportation services. Its the "grass is greener syndrome."

Limo operators often migrate towards coaches by way of party buses and trolleys. Their customers ask for those services for weddings, bachelor parties and other events. And the size of the vehicles in their fleet begins scooching upward on them. At the same time, they inch past various regulatory milestones, such as drug testing and CDLs, often without knowing.

In many jurisdictions, limo and cab operators can treat their drivers as independent contractors, which saves money and bother. This all evaporates when the vehicle reaches a certain size and method of dispatch. Often no one raises a flag until the IRS or other government agencies become involved.

Years ago a Maryland limo operator thought hed found a loophole, and treated his coach drivers as contractors. When the drivers got surprise 1099s, there was nearly armed insurrection, and the company no longer exists.

The HUGE revenues that limo folks think coaches earn shrinks dramatically the first time a bus fails far from home. Limos, trolleys and party buses tend to sleep in their own bed at night, and a distant breakdown introduces a new and varied world of hurt.

Coach operators lust after the huge margins that limos, party buses and trolleys seem to command, without understanding that, like buses, those businesses also have dark sides.

The seasonal cycle that makes coach operators nervous is more intense in smaller vehicles. The economic cycle is pronounced in those types of businesses because most folks dont NEED them. And the customers are often very demanding and sometimes alcohol is involved.

Limousines, trolley buses and small and midsize buses dont hold their value as well as motorcoaches, which means at least two things. If youre in that business, you need to get back your investment quicker. If you leap into the fray, and things dont go well, you are going to take a pounding when you sell the equipment.

Maintenance is different. Motorcoach builders normally take responsibility for support and warranty for all but a few components.

Smaller vehicles are handled differently. Youll need to deal separately with a number of component manufacturers on the same unit. Chassis, body, HVAC and entertainment systems typically are handled by their own builders, not the assembler. If youre lucky, a good dealer can make things simple, but each supplier tends to think it was the other guys (or YOUR) fault.

Opportunities do exist, but before leaping look at a couple of things.

Is there a market for what youre going to try? Its great to have clientele already lined up to cover most of the risk. How stable is the need youre going to try and fill? (You dont want to gear up for one large client, and then find them on hard times.)

What is the regulatory environment in the area you are serving? Coach regulations are generally more straightforward than limousine, and less varied across jurisdictions. Know the rules going in; education is expensive when taught by tax and regulatory people.

Coaches and limos are two different businesses, and need to be operated that way

Its one thing to leap onto an opportunity, but it can be painful when you think youre landing on grass, and it turns out to be green concrete.

Dave Millhouser is a bus industry marketing consultant and freelance writer. Contact him at: dave_millhouser@hotmail.com.