May 14, 2007
Mile by mile | A chat with Chris Cameron, founder of Coastal Taxi Cab in Biddeford
Founded: April 2006
Employees: Cameron and three drivers (two full-time, one part-time)
Startup costs: $16,000
Revenue, year one: $30,000
Projected revenue, year two: $40,000-$50,000
Contact: 229-0783
177 Guinea Rd., Biddeford 04005
What areas do you cover?
Kennebunk, Wells, Biddeford, Kennebunkport, Ogunquit.
How did you get the idea for this business?
Well, I was talking to a lady that used to rent an apartment from me, who's the manager of Twin City Taxi [in Biddeford.] She was telling me about how many calls they were getting in the summertime down in [Wells] and that there was no cab company down there. I had been an automotive technician for about twenty years, and I started thinking about it.
What did you do before?
I worked at a Toyota dealership. New owners from Massachusetts bought it and they got rid of me. So I was sitting around thinking, "What am I going to do?" So I went to another dealership, a Nissan dealership, and the same person bought that. And I said, "I can't keep switching jobs because maybe he'll go buy another place." Because we just didn't get along.
So then what did you do?
I went to the town of Wells and applied for a business license. Then I called my insurance company ˆ our biggest expense is insurance ˆ [and] found out it was $3,000 a car to insure, with perfect driving records. I started out with one car, and I hired one driver. Then I bought another car, was able to hire another driver, and then I got another car. We just started answering the phone and doing calls.
How did you let people know about your business?
I had some fliers printed up, saying our name and our phone number and what we were doing. And I went door to door. I went to every hotel in Kennebunk and dropped off a flier. After that, we did advertise a little bit. I also went to the bars and the restaurants all by foot.
How do you make a car into a taxi?
First I find a decent car. I get it home, I have a look in my garage. We re-do the brake system, and I do a complete maintenance on it, where we drain all the fluids ˆ [and] all new fluids go in it. We put good tires on 'em, and then once it's mechanically sound, I wire up a taxi light on the roof. Once I put some lettering on the side, it's a taxi.
I'm the one that finds the cars and gets the cars up to par. That's the only reason I think we will be able to make money this year. I can keep our maintenance costs down. If I had to send these cars to the shop every time something went wrong, I don't think we would be able to profit ever.
Do you need to have the meter on the inside?
No, we charge by the [mile.] We read the odometer from the start of the pickup and from the end. We've been doing it long enough now where I know how many miles it is from A to B on a lot of our runs. We [charge] $2.50 a mile. To go to the airport, we have different rates for different towns. From Biddeford, our rate is $50. From Kennebunk, it's $65. To Logan, it's $180.
How do you communicate with the drivers?
We operate with cell phones. When [the driver is] done with the call, they will call and tell me if they're headed somewhere, so that when a customer calls, I can tell the customer how long it's going to be.
How does payment work?
The customer pays the driver, and I split the fares with the driver 50-50 so then they pay me at the end of the week.
What's the most interesting call you've taken?
Last year, we were in Walker's Point with one of our cars, helping some people get to and fro. One of my drivers has a picture with George Bush Sr. next to the car. They bomb-sniffed our car and searched underneath it and held us up for 45 minutes, but we were taking some of the White House people to the airport last year. That was a big highlight for one of our drivers.
New Entrepreneurs profiles young businesses, 6-18 months old. Send your suggestions and contact information to kelson@mainebiz.biz.
Employees: Cameron and three drivers (two full-time, one part-time)
Startup costs: $16,000
Revenue, year one: $30,000
Projected revenue, year two: $40,000-$50,000
Contact: 229-0783
177 Guinea Rd., Biddeford 04005
What areas do you cover?
Kennebunk, Wells, Biddeford, Kennebunkport, Ogunquit.
How did you get the idea for this business?
Well, I was talking to a lady that used to rent an apartment from me, who's the manager of Twin City Taxi [in Biddeford.] She was telling me about how many calls they were getting in the summertime down in [Wells] and that there was no cab company down there. I had been an automotive technician for about twenty years, and I started thinking about it.
What did you do before?
I worked at a Toyota dealership. New owners from Massachusetts bought it and they got rid of me. So I was sitting around thinking, "What am I going to do?" So I went to another dealership, a Nissan dealership, and the same person bought that. And I said, "I can't keep switching jobs because maybe he'll go buy another place." Because we just didn't get along.
So then what did you do?
I went to the town of Wells and applied for a business license. Then I called my insurance company ˆ our biggest expense is insurance ˆ [and] found out it was $3,000 a car to insure, with perfect driving records. I started out with one car, and I hired one driver. Then I bought another car, was able to hire another driver, and then I got another car. We just started answering the phone and doing calls.
How did you let people know about your business?
I had some fliers printed up, saying our name and our phone number and what we were doing. And I went door to door. I went to every hotel in Kennebunk and dropped off a flier. After that, we did advertise a little bit. I also went to the bars and the restaurants all by foot.
How do you make a car into a taxi?
First I find a decent car. I get it home, I have a look in my garage. We re-do the brake system, and I do a complete maintenance on it, where we drain all the fluids ˆ [and] all new fluids go in it. We put good tires on 'em, and then once it's mechanically sound, I wire up a taxi light on the roof. Once I put some lettering on the side, it's a taxi.
I'm the one that finds the cars and gets the cars up to par. That's the only reason I think we will be able to make money this year. I can keep our maintenance costs down. If I had to send these cars to the shop every time something went wrong, I don't think we would be able to profit ever.
Do you need to have the meter on the inside?
No, we charge by the [mile.] We read the odometer from the start of the pickup and from the end. We've been doing it long enough now where I know how many miles it is from A to B on a lot of our runs. We [charge] $2.50 a mile. To go to the airport, we have different rates for different towns. From Biddeford, our rate is $50. From Kennebunk, it's $65. To Logan, it's $180.
How do you communicate with the drivers?
We operate with cell phones. When [the driver is] done with the call, they will call and tell me if they're headed somewhere, so that when a customer calls, I can tell the customer how long it's going to be.
How does payment work?
The customer pays the driver, and I split the fares with the driver 50-50 so then they pay me at the end of the week.
What's the most interesting call you've taken?
Last year, we were in Walker's Point with one of our cars, helping some people get to and fro. One of my drivers has a picture with George Bush Sr. next to the car. They bomb-sniffed our car and searched underneath it and held us up for 45 minutes, but we were taking some of the White House people to the airport last year. That was a big highlight for one of our drivers.
Interview by Kerry Elson
New Entrepreneurs profiles young businesses, 6-18 months old. Send your suggestions and contact information to kelson@mainebiz.biz.
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