SPECIAL REPORT Small Yet
Even as national school bus contractors continue to expand, a specialty market remains for smaller, local companies
Viable Owning and operating school buses is a tough business for
all, especially in this economy. Larger operators incur larger ex- penses, which is relative to being able to service larger, more lucrative contracts. But the result is that often these big com- panies have more resources to draw from. So how do smaller contractors survive? County Coach Corporation originated in 1955, at the same
time as the Lincoln Coach Company. Over the decades it has expanded but still only operates 65 buses out of two terminals, one in eastern Westchester County, N.Y., and another across the border in Connecticut. Diversification is a key to staying in busi- ness, according to David Kucera, president at County Coach. Te company not only runs school bus routes but also motorcoaches and public transit buses. “Most of the larger contractors only provide school bus trans-
portation,” he says. “Our company is one-stop shopping for a school district, and that’s why we remain a viable option.” And those options often arise because smaller, locally-based
contractors are seemingly available around the clock to address customer concerns. A school bus contractor in the Midwest who wished to remain anonymous says the school district deals directly with upper management and has access to home and cell phone numbers for after-hour inquiries. Many larger contractors have a more difficult time compet-
ing for business in more rural areas, where a smaller contractor perhaps has been in business — and has even resided — for generations. It all boils down to local control in more ways than one. Roger Branham, owner of J.R. Motor Works, Inc., in Herb- ster, Wis., says the local district had previously contracted with a bus company based about 120 miles away, which made service a challenge. J.R. Motor Works had been servicing the school’s vans and driver’s ed vehicles, and a school administrator knew Bran- ham also had previous experience in busing. When the contract came up for bid, the district encouraged Branham to apply. “The number of routes is not enough to be a viable entity on
its own but makes a very good fit with the repair shop,” he says. “The district has been pleased, because when there is a com- plaint or concern I can deal with it quickly and be at the school within 10 minutes, if required.” Branham says he tries to visit the district at least once a week
to not only stay on top of issues but to show he’s engaged in what the district is doing. “I have heard several times, even when people are upset, that it
means a lot to them to know who they are dealing with and that they are dealing with someone who has the authority to address their concerns,” he adds.
26 School Transportation News Magazine June 2011 Incoming NSTA President Magda Dimmendaal considers her
company, Dousman Transport in Wisconsin, is, today, a medium- sized contractor with 280 buses on the road each servicing 39 school contracts. But this wasn’t always the case. In 1988, when Dimmendaal purchased Dousman Transport thanks to an SBA loan, financing from the former owner and a second mortgage on her home, the company had only two contracts. And despite the growth over the past two decades, that small-business mentality is a continued selling point. “When I speak for Dousman Transport, I always tell our cus-
tomers, ‘Can you get it done cheaper? Possibly. Probably. But you can never get it done as well. We care, we’re local, we know your students, and we know the area,’” she says. “We hang our hat on service. Sometimes that does cost a little more, But you can’t put a price tag on that type of service.” One of Dousman’s school contracts recently commissioned
an independent efficiency and economy study, and Dimmendaal says the company “came out glowing.” Dousman opened up its books and worked closely with the
researchers, who soon found that Dousman doesn’t charge for such services as re-routing or re-districting. Tey are part of the overall service. “We came out looking very good,” Dimmendaal adds. “They’ve
said what we’ve always maintained; you may pay a little bit more but you get superior service.” Te resulting successes of these small contractors doesn’t go
unnoticed. Back at County Coach in New York, Kucera said the localized service leads to inquiries at least once a year by oth- er contractors seeking to purchase the business. But, he notes, there is no interest in selling. Even if the company was interested, Kucera said it would need to be a package deal, one that would scare off many larger contractors. Because County Coach also operates transit routes and private, over-the-road bus service, the company must comply with both FMCSA and FTA regula- tions, which can differ significantly. Kucera says County Coach is the only carrier in the area subject to those different regulations and the only one with a System Safety Plan on file with the New York State Public Transportation Safety Board. “We are unique because our company has to comply with them
all,” he adds, also noting the normal Article 19A school bus driver requirement governed by the state DMV for fingerprinting and background checks. “[All of our drivers], whether school, motor- coach or transit, are required to comply.” Smaller companies also rarely employ unionized drivers, which
cuts down on expenses tied to wage and benefit packages. Driver retention remains an issue at smaller bus companies, as drivers
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