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Battle is Joined, Says Founder of The Bus Co-Op

March 1, 2007

By Neil Eisenberg
President/CEO
VanGo!
Sun Valley, Calif.

The lines have been drawn and the battle joined.

Whether you operate a single motorcoach or 49, you're facing the most serious industry challenge of the day.

Simply put, are we -- as small- to medium-sized carriers -- going to allow an ad hoc group of bus brokers to affect changes in our industry?

Are we going to permit them to dictate who will or will not survive by virtue of their dubious marketing practices?

Are we to tolerate their sweetheart deals with "shady operators" (quoted from Bus & Motorcoach News and not condoned by the author of this article) only to have them (the brokers) blame the carriers for poor performance?

For me, the answer is "no."

And for those unwilling to say it, this battle is also with the mega carriers that have even more power to squeeze us out of business.

If you doubt the veracity of this allegation, think of how many well-run companies are no longer operating since the buyout spree of the mid-to-late 1990s. Are we in for another round of buyouts? More importantly, what kind of companies might these carriers have their eye on?

First, let's get some facts straight.

The small- to medium-sized carriers (49 or fewer buses and motorcoaches) in the United States and Canada are the backbone of our industry. We own and operate more buses and motorcoaches, move more passengers, effect more innovation, and are the major catalysts of change within our industry.

Like most of you, I live and breathe my company every waking hour of every day. Most days I love it, and others, well… but without the day-to-day exhilaration and pride of seeing my coaches safely and comfortably transporting people down the highway, my life would somehow be less rewarding.

For those of you who feel the way I do you must take action now. If not, we will most assuredly become an industry of mega carriers, brokers, and aimless drones begging for scraps from the aforementioned.

After reading the Feb. 15 issue of Bus and Motorcoach News, I believe it is best to allow the brokers even more editorial latitude so they can take shots at each other and those who legitimately threaten their existence.

I am in contact with dozens of operators daily, and not one of them buys into the convoluted rationalizations, baseless misrepresentations and shameful rhetoric as authored by two broker owners. They are our guests in this industry, and as far as I am concerned, they have worn out their welcome unless they change their business practices.

Say what you will Mr. Bus Broker(s), The Bus Co-Op and any other entity trying to derail you is a good thing for our industry.

So what are the issues involved? If you're a broker, then call yourself a broker.

Don't dress up your Web sites to look as if you operate hundreds of vehicles.

Don't boldly proclaim, as one of the largest brokers does on its Web site: "We're not local bus owners. We're not brokers."

I say, if it walks like a duck and quacks like a duck, it must be a duck.

When you speak for your broker brethren, get your stories straight. One broker vented his anger at The Bus Co-Op in his editorial by touting internet advertising sites as a "better deal," while another tore into the same advertising site in his editorial. For the record, neither The Bus Co-Op, nor any of my colleagues, have anything against these advertising sites.

We (carriers) must prominently place our operating authorities on all vehicles and advertising. Why not have the brokers prominently display their authorities online as well?

Why not post bonds as truck brokers do?

Why expose and berate unsuspecting carriers by not giving them all pertinent information when booking them? Let your carrier know if alcohol consumption, potentially destructive passengers or overtime may occur.

Don't profess due diligence in researching your sub-contracted carrier when he accepts your rock-bottom price. The old adage is as accurate today as a century ago: "You get what you pay for."

If you really want to provide customers with the highest quality equipment, safety and service, don't use the cut-rate carriers. Finally, adhere to the same 10 percent return that truck brokers are federally mandated to.

But, alas, that will cut into your obscenely high margins, and cripple your ability to throw money at the search engines to monopolize a few critical key words. Beware bus brokers there are enough of us small- and medium-sized carriers to effect change. It would probably be to your advantage to work with us to effect these changes now, rather than have the fed's come in and force the issue later.

But we operators are realists, the money is way too good and the business is way too easy for the vast majority of brokers. We are simply going to have to use our combined strength to oppose the dictates of these ad hoc brokers. As I and many others see it, we either use one of the national associations as our voice, or move to a new entity like The Bus Co-Op, which will not allow brokers as members, push to generate Internet and other business, as well as establish enormous buying power for its member owners.

Speaking for The Bus Co-Op and VanGo "The Art of Transportation", we implore the federal government to regulate bus brokers in at least the same manner as truck brokering companies. We are, after all, speaking of transporting people, not property. Please contact your association of choice and voice your opinion on this issue.