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Del Papa Distributing's story begins in 1910 when Omero Del Papa transformed his retail grocery store into a wholesale company with his brother-in-law. The journey wasn't without its challenges – the Prohibition Era in 1920 forced Omero to liquidate his wholesale business and temporarily return to Italy. But true to the entrepreneurial spirit that would define the company for generations to come, he returned to Galveston, Texas in 1930 and purchased a wholesale firm to start anew.
Today, Del Papa Distributing stands as a testament to resilience and adaptation. From that single grocery store, the company has expanded to serve 17 counties across the Texas Gulf Coast, employing 375 people and delivering an extensive portfolio of the highest-quality beer brands.
Recently at the NBWA’s 10th Annual Next Generation Success in Leadership Conference, nearly 250 emerging leaders in the beer distribution industry came together to network with and learn from peers.
That included the best practice session “Get More for Your Money by Transitioning to a Vehicle Reimbursement Program,” featuring LJ Del Papa in conversation with our own Caitlin Collord. LJ shared the details behind their decision to move to a Fixed and Variable Rate (FAVR) reimbursement program.
[.866][.blue-line]The bottom line is it was a win-win.[.blue-line][.866]
The FAVR program both saves their company money and puts more money into employee's pockets!
You can watch a full recording of a session here (23-minute video). For those who prefer to read, below is a summary.
To receive a copy of the slides, please enter your email here.
Del Papa's growth brought new challenges, particularly in how they managed vehicle reimbursements for their expanding workforce.
The company's original approach to vehicle reimbursement reflected their commitment to taking care of employees – a monthly allowance program that seemed straightforward and fair at first glance. However, as the business grew, limitations became apparent. Without proper mileage tracking, they couldn't verify if reimbursements were equitable across their workforce. There was no reliable mileage tracking in place so it was impossible to reimburse accurately. Additionally, the allowance program created an unexpected burden: employees faced additional taxation on their reimbursements, leading to frustration and complaints. Read our True Cost Guide to learn more about all the extra costs associated with car allowances.
Eric, Del Papa's VP of Operations, recognized these challenges and began searching for a better solution. The company was on the verge of signing with another provider when a chance encounter at an industry conference changed their trajectory. There, they discovered Everlance and the Fixed and Variable Rate (FAVR) program – a revelation that would transform their approach to vehicle reimbursement.
The decision to partner with Everlance wasn't made lightly. As LJ Del Papa explains,
[.quote-wrap][.quote-top][.quote-top]Just to toot Everlance’s horn a little bit, they've been a really great partner, really faithful partner. They follow-up on everything they say they're going to do. They really hear our requests, the requests of our people, our sales force when they were on our calls, and tailored a program that best fits our company’s needs. There's other FAVR programs out there, but I'm pretty biased.[.author-attribute][.is-ljdelpapa][.is-ljdelpapa][.author-facts][.author-facts][.author-bold]LJ Del Papa, [.author-bold][.author-pos]Sales Consultant for Del Papa Distributing[.author-pos][.author-attribute][.quote-bottom][.quote-bottom][.quote-wrap]
This employee-centric perspective guided every aspect of the transition.
The implementation process began with several months of collaborative planning. Everlance worked closely with Del Papa to fine-tune the FAVR program, ensuring it addressed both company and employee needs. This careful preparation proved crucial in addressing two major concerns that initially gave Del Papa pause.
The first concern centered around the fairness of the variable rate. LJ Del Papa remembers,
[.quote-wrap][.quote-top][.quote-top] "One of the concerns that we really wanted to make sure we had right was that variable cost – what factors are going into that variable cost that are going to be reimbursed to our people every month."[.author-attribute][.is-ljdelpapa][.is-ljdelpapa][.author-facts][.author-facts][.author-bold]LJ Del Papa, [.author-bold][.author-pos]Sales Consultant for Del Papa Distributing[.author-pos][.author-attribute][.quote-bottom][.quote-bottom][.quote-wrap]
Everlance's team took time to explain how local gas prices and other factors influence the variable portion, demonstrating how this approach would actually provide more equitable reimbursement than their previous program that lacked accurate mileage tracking.
Insurance requirements presented the second challenge. While Del Papa had always required certain insurance levels from their drivers, enforcement had been inconsistent. The transition to a FAVR program, with its IRS compliance requirements, necessitated stricter adherence to these policies. Rather than viewing this as a hurdle, Del Papa's leadership recognized an opportunity to enhance driver safety and protection while explaining how insurance costs factored into the fixed reimbursement calculations. Furthermore, the program gave risk reduction to the company because the driver’s insurance would be the primary.
The technology implementation proved surprisingly straightforward. Everlance's mobile app won over employees with its intuitive interface. As LJ Del Papa describes it,
[.quote-wrap][.quote-top][.quote-top]"It's like Tinder. You swipe left if it's a personal trip, you swipe right if it's a work-related trip. It can't really be much easier than that. Then all those work-related trips add up to the dollars you get reimbursed. The user-friendliness of the app is a huge win, not only just for me but for any of our employees to get on board with."[.author-attribute][.is-ljdelpapa][.is-ljdelpapa][.author-facts][.author-facts][.author-bold]LJ Del Papa, [.author-bold][.author-pos]Sales Consultant for Del Papa Distributing[.author-pos][.author-attribute][.quote-bottom][.quote-bottom][.quote-wrap]
This insight reflects Del Papa's century-long commitment to finding innovative solutions while staying true to their values.
The implementation of Everlance's FAVR program has delivered transformative results across multiple dimensions of Del Papa's business.
For Employees:
For Management:
For the Company:
The simplicity of the Everlance FAVR program and app drove high adoption rates, but the benefits went far beyond ease of use. For the first time, Del Papa gained visibility into their drivers' actual mileage patterns. The ability to track daily, weekly, monthly and yearly mileage provided unprecedented insights into their distribution operations. This data enables them to ensure reimbursements truly reflect each employee's vehicle usage while maintaining full compliance with IRS requirements.
Perhaps most importantly, the transition achieved Del Papa's primary goal: making reimbursements tax-free for their employees. The new program covers all necessary expenses – from car payments and gas to maintenance and depreciation – while eliminating the tax burden that had frustrated employees under the previous allowance system. Now they are happy they don’t have to pay taxes on their allowance, effectively increasing their take home pay.
Del Papa's successful transition demonstrates how companies can modernize their vehicle reimbursement programs while maintaining strong employee relationships. Their experience shows that with the right partner and proper planning, even large-scale changes can be implemented smoothly and deliver immediate benefits while positioning the company for long-term success.
Embodying the forward thinking mindset by Omero Del Papa over 100 years ago, the partnership with Everlance shows that Del Papa is dedicated to embrace positive change that benefits both the company and its employees, ensuring their legacy of leadership in the distribution industry for generations to come.
To learn more about how FAVR works, please check out our guide on How to Save on Employee Mileage Reimbursements. Or answer a few quick questions about yourself, and we'll be in touch.
Damask is the Content Marketing Lead at Everlance, where she develops engaging content to showcase how Everlance's mileage tracking software help businesses and self-employed professionals track for taxes. She specializes in creating educational resources that demonstrate how users can maximize their savings on business expenses through mileage tracking.
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