How does a wheelchair transport company price its trips?
A wheelchair transport company usually builds each price from a base fare, the distance, any waiting time and add-ons such as an escort or a stretcher, with separate rates for facility contracts. A buyer should ask for the current rate sheet and when it was last reset.
Families often search for what a ride costs. A buyer asks the same thing from the other side: how does this company turn a trip into revenue, and does the structure still work? Ask to see the rate sheet.
The usual building blocks
Most rate sheets start with a base charge for picking someone up, then add a charge for distance. Waiting time is billed separately, since a driver who stays through an appointment cannot take another job. Extras may include help up stairs, an escort, a stretcher or a second attendant. Ask which of these the company actually bills, and which it gives away.
Contract rates versus private-pay rates
A facility or agency that books many rides may have its own agreed rates, set out in a contract. Private riders usually pay the standard sheet. Read each contract for how the rates were set, who can change them, and how long they last. A rate that has not moved in years can be a quiet problem for a new owner.
Questions for the seller
- When were the rates last changed, and how did customers respond?
- Which charges are billed in practice, and which are written off?
- Do the contract rates cover the cost of the trips they pay for?
- Does anyone outside the company set or approve the rates?
Checking the sheet against reality
Compare the sheet to a sample of paid invoices. If billed amounts are regularly lower than the sheet, find out why. Our due diligence guide lists related checks, and the page on how these companies stay profitable shows how pricing meets operating records.
Related reading
15 pages on the same subject, grouped by topic.
Due diligence
Buying
- GuideBuying a medical transport company in Canada
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- Expert answerHow do I check where a medical supply store’s customers come from before buying?
- Expert answerHow do I find a stairlift or accessibility lift business for sale?
- Expert answerWhat should I check before buying a stairlift and home lift dealer?
- Expert answerHow do I assess a day camp’s field trip and bus vendor relationships?
Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are financial statements?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat is the operating profit margin?
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