New business gaining clients by being cheaper than my competition?

[Blackvans1234]

Hello there!

I am considering starting a non medical transportation company (ambulette service).
Basically we will have wheelchair accessible vans to transport wheelchair bound patients to doctors appointments and other necessary appointments.



We take old people from their nursing home to doctor appointments.
The nursing home is the one who pays for the trip (these services are not covered by medicare, as is is non emergency transport)
The nursing home cares more about cost than anything else (cost cutting in health care has gotten extreme). By providing the same service for less, they will use our service.

In many industries, customer service is more important than cost, however due to the nature of this business, I think that cost is much more of a consideration.

Now don't go ballistic on me--- I believe that as an owner-operator I can provide my service for less, when compared to a company with a dispatcher, billing department, etc. I also think that my customer service will be exceptional as well (I am the type of guy that is a stickler for good service-I'm always evaluating those I come into contact with- cashiers, waiters/waitresses, retail salespeople etc)

I want to hear what experienced business owners think about this idea.
I assume my next step is to call these facilities and inquire if they have a contract with certain transport companies..

[Harold Mansfield]

I agree that with every business cost is always a factor. That's with everything. However in this specific business care is a factor and you haven't mentioned that you can provide the level of care that these medical facilities may be looking for. They will not put their clients or patients at risk to save a few bucks if the level of care is not there because it opens them up to litigation which is far more costly than saving a few bucks on transport services.

Also, do you have any medical training? Don't you have to know at least the basics when transporting people from nursing homes?
If not, and anyone can do it then how will you do better than say....just calling an Uber?

I guess it depends on the area. I used to be a Limo Drive in Las Vegas. The money was fabulous. But this was also before Uber. I wouldn't get into any kind of people transportation today knowing what new things are coming. But again, depends on the area just know that better cheaper transportation options are on the horizon and may be here quicker than we think.

[Blackvans1234]

Thanks for your reply.
I have a background in healthcare, I am a Registered Nurse. Companies hiring drivers require a cpr certification which I already have. However please note that this is a wheelchair transport service, not an emergency transport service (ambulance). An example is a patient with oxygen- If the person is on oxygen all the time, and they have their own portable tank, we can take them. If they do not have any portable oxygen, we can not (they require a service that provides the oxygen - an ambulance). Also- If something ''comes up'' during a transport, we could provide basic first aide, however we call 911.

In regards to the actual care provided during transport, there is no care provided. If any sort of care is needed, the patients are transported by ambulance instead of ambulette.
The last point you have mentioned is if Uber/Lyft will kill the industry.
I have thought about this as it is a very real threat and could decimate the industry. There are a few factors that prevent Uber from really entering this niche- The biggest is that you need a vehicle that is converted with a wheelchair ramp and room for the person sitting in the wheelchair (as well as securing them once they're in the vehicle). This is a costly investment (around 10k). Uber does not let you schedule a pickup time in advance, however they may change this in the future. To drive an ambulette you need a hack license which has its own set of requirements from the county. The service will also provide a wheelchair to transport the client, especially for clients who are leaving the hospital (hospital won't let you borrow their chair ;) )
When it comes to transporting ambulatory clients (those who can just ''get in''), the uber threat is real. I am not going to focus my business on that market.

[Harold Mansfield]

The background in healthcare makes me feel much better about it now. So you see a need and have the experience in the industry, identified a niche market and think you can fill it and do a better job. That's exactly how companies are born.

I agree that it's unlikely that someone like an Uber will get into this kind of specialized transport, however that doesn't mean that you can borrow a few ideas from them. I'm willing to bet there are more potential customers than just nursing homes. Yes, those contracts will pay the bills, but I'm sure there are many home bound people who need the same service and who have loved ones who can't always take off work to transport them to appointments.

I like it. I think you should investigate doing this and make sure of the numbers.

[Blackvans1234]

Additionally, do you have any restorative preparing? Don't you need to know in any event the fundamentals while transporting individuals from nursing homes?

Sorry, come again?

I know how to drive a van
I know how to safely operate a wheelchair
Securing a wheelchair bound person into the van is fairly straightforward as well.
....
In regards to getting into the industry/gaining clients, I have received some promising information from someone I work with:
The social worker where I currently work said that she does about 5 wheelchair discharges per day. There are a few social workers in this facility so I would assume that number is greater.

I inquired further regarding who she calls and why, and there is no concrete reasoning. She said ''Al always picks up the phone right away, his guys are always nice to the patients. Company A and B never answer. Guy C is rude. Don works mostly weekends and dosen't charge extra to take people to the town next to us.
When it comes to nursing homes, the transportation agencies are contracted (I assume a billing agreement along the lines of ''X dollars per transport, billed monthly").

I have a few other concerns regarding this business, I may start a second Thread to address those issues.


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Edit: Do you mean how to fix a broken down vehicle?
Not really. However I know how to change a flat tire.