at a crossroads

albajohn · Jan 7, 2006

Hello everyone and first up let me say hello .Im John new to the forum,
i work for myself as an cab driver in scotland my own cab.the problem i have is that the running costs of the cab are getting more and more every year i.e. fuel, insurance radio hire,lisence from the council.repairs,tax,you know where im going ,as it comes in it goes out as fast, and i dont want to work any more hours as im working around 70 hours a week at the moment.The crossroads im at is do i give the taxi to someone else and let them work the cab and take a fee from them and go into something else i was thinking of buying a van to do small removals and deliveries in and around my area with a plan to get another van on the road in the near future ,or buy myself a top of the range people carrier i.e. 8 seater with dvd and the likes and target the hire end market for functions and nights out,if any other members are in this business i would be very grateful for any advise
thanks .
John mcphee.

Hayles · Jan 7, 2006

Hi

We were thinking of moving up to Scotland last year and my hubby was going to start a taxi service. Where we'd live takes 2.5 hours by bus to get to Perth because the bus goes around all the small villages on the way. It's only a 40 min journey direct. Our idea (although we hadn't gone as far as pricing it thoroughly!), was to get an 8 seater and then offer regular taxis to Perth and back (prebooked). 8 passengers @ £6-8 each could make it worthwhile if you could do several runs a day on top of other jobs.... just an idea!

Urban Space · Jan 7, 2006

Hmmm, I know what you mean about the petrol; I remember when it was £0.6/litre!

If you're thinking about going into delivery, what would differentiate you from large delivery companies like Royal Mail?

I'm not to sure of the market as far as hire is concerned. That would differ from area to area I suppose.

You need to follow what you think's right, you're the one with the experience!

Hope that helps?

Liam

albajohn · Jan 7, 2006

hello there i have been in the taxi business now for over ten years working through the same company , there is still plenty of business as i am working in a large city, but the overheads are just to much now you have to work longer hours nowdays to make the same kind of money that you were making years ago,my running cost were over £17000 last year before i made a coin for myself.as the saying goes its all about working smarter nowdays rather than working harder.
cheers john

Urban Space · Jan 7, 2006

That's the trouble, maintenance. What make of vehicle do you drive? What model? Petrol or deisel?

Liam

albajohn · Jan 7, 2006

hi liam at the moment i have a 406 deisel. good car mind you .but the one thing is with my business is you will never starve because you can always go out and make a bob, but you will never get rich .
cheers john

Urban Space · Jan 7, 2006

Well compare that with a people-carrier and your overheads will soar. A people-carrier will require much more fuel and maintenance.

Liam

Cornish Steve · Jan 7, 2006

albajohn said:
Hello everyone and first up let me say hello .Im John new to the forum,
i work for myself as an cab driver in scotland my own cab.the problem i have is that the running costs of the cab are getting more and more every year i.e. fuel, insurance radio hire,lisence from the council.repairs,tax,you know where im going ,as it comes in it goes out as fast, and i dont want to work any more hours as im working around 70 hours a week at the moment.The crossroads im at is do i give the taxi to someone else and let them work the cab and take a fee from them and go into something else i was thinking of buying a van to do small removals and deliveries in and around my area with a plan to get another van on the road in the near future ,or buy myself a top of the range people carrier i.e. 8 seater with dvd and the likes and target the hire end market for functions and nights out,if any other members are in this business i would be very grateful for any advise
thanks .
John mcphee.

This may sound like a weird idea, but what about buying a hybrid vehicle? Not only would you save on fuel costs, but I'll bet that you'd win some new customers from novelty value.

I used to take a shuttle from a local shopping area to the airport. My wife had to drop me at the departure point; others parked their cars there for free and took the bus. It was cheaper than driving to the airport and paying for parking there. The disadvantage for me, as the customer, was that I would sometimes be crowded in an 8-seater with people I didn't know and (without going into details) would prefer not to sit next to. At other times, the van would be almost empty, probably resulting in a loss to the company.

Have you thought about offering supplemental services to your customers? What about lending them a cellphone for £1 per call, for example?

Jayne · Jan 7, 2006

Are you sure you are only 14 yrs old Liam, or is this really Liam's Dad?

You know a lot about petrol for 14 :lol:

Jayne

bwglaw · Jan 7, 2006

Why not offer a more specialised service i.e. airport service / executive service where you can charge a larger amount.

I have paid for a chauffeured E-class Mercedes to collect me from Stansted Airport to my home, about 1 and half an hour away for £100.

Due to the larger charges, it would mean less hours and they would all be pre-booked.

Which city are you near? If Edinburgh you will make a killing if you contact hotels etc. You could always offer hotels a personal executive service for their guests at a slightly higher than average price. You will need a good car for this and you can lease a Merc for £350/month and get someone else to drive the other car for the normal service.

KM-Tiger · Jan 7, 2006

You are right that you need to find a new market, or you will never do more than earn a living. You need to find the gap in the market and then pursue it.

My experience of transport companies is that those that succeed are those that tell their customers what they can do, rather than what they can't do. Customers want to hear "yes" rather than "no".

25 odd years ago I always used to ask for a particular driver from our local cab company, as he always seemed to cope easily with my "awkward" requests, delivering things at odd times to odd places, that sort of thing.

It was a shame when he left to set up this company. It can be done!

Urban Space · Jan 7, 2006

Jayne said:
Are you sure you are only 14 yrs old Liam, or is this really Liam's Dad?

You know a lot about petrol for 14 :lol:

Jayne

Lol, I've just heard Dad moaning about petrol alot! :lol:!

goldctrsteve said:
but what about buying a hybrid

Good idea! Though the initial cost would be expensive, I'm sure it'd pay for itself with the interest you'll be getting!

golctrsteve said:
What about lending them a cellphone for £1 per call

But then what if they talked for the whole duration of the journey? You'd need some terms and conditions.

Liam

bwglaw · Jan 7, 2006

Or lease an Executive 16-seater minibus, or a standard minibus and set up your own routes to take people to popular destinations i.e. Airport etc for £1

How many airport trips can you do in a day, both directions? Work out how many trips can be done in a day and how many people in each direction come on board and you will have a good income. Say you are 30 mins away from the airport with a 16 seater, you will make £32/hour on a full bus at £1 per person. You could still charge £2 and get £64. Whether this is viable depends where you are and where you intend to operate.

Follow the easyBus/MegaBus concept, but don't use their name or branding!

Cornish Steve · Jan 7, 2006

Urban Space said:
goldctrsteve said:

but what about buying a hybrid

Click to expand...

Good idea! Though the initial cost would be expensive, I'm sure it'd pay for itself with the interest you'll be getting!

In the US, hybrid owners can claim a sizable deduction against income taxes. Does the British government offer a similar benefit?

Toyota and Honda sell most of the hybrids around today. The mileage is about double what a regular car can get. Maybe you could convince local hybrid dealers to pay for an ad on the side of your taxi.

Urban Space · Jan 7, 2006

Honda's new model will do 330 miles per gallon or cell or whatever they run them on! :lol:!

Liam

KM-Tiger · Jan 7, 2006

goldctrsteve said:
In the US, hybrid owners can claim a sizable deduction against income taxes. Does the British government offer a similar benefit?

No, other than paying the lower Road Tax, and not having to pay the London Congestion Charge.

Funnily enough I had been thinking of buying a hybrid for the pure pleasure of raising two proverbial fingers to the London Congestion Tax, but the recent report on the true cost of car ownership has put me off. When you factor in depreciation, they are more expensive.

fastfences · Jan 7, 2006

Urban Space said:
Hmmm, I know what you mean about the petrol; I remember when it was £0.6/litre!

Yeah, right. When you were in a pram! :wink:
Cheers, Nigel

bwglaw · Jan 7, 2006

When he was a mere embyro!

albajohn · Jan 7, 2006

thank you for all your comments ,i know i must find another income stream the problem is i do really enjoy my business i love meeting people chatting and i do enjoy driving. so it will be something along the lines im doing just now.i was dropping a fare off just before christmas in town 2 females at one of the well known pubs ,and this party bus thing turns up just an old double decker bus with the windows painted and some signage on the bus .there must have been 25 females got off that bus i think it was a hen night or something
that got me thinking of something along those lines because i think the company that runs that business charge something like £30 a head or something .now thats not a bad nights work £30 x 25
cheers john

creacom · Jan 7, 2006

Hi John

Another Scot on the forum !! We seem to be starting an invasion !! ':lol:'

What about doing a motorbike express service to the airports - Glasgow, Edinburgh and Prestwick ? They are really becoming popular and we even have one here up in Inverness.

I havent seen one advertised in the airports in Glasgow when Ive been down there.

Of course it would mean having a motorbike and the appropriate license but if you dont do it then you can be sure that someone else will soon.

Best of luck in anycase

Jacqui

bwglaw · Jan 8, 2006

What about a specialist taxi for females, with female drivers. Realistically, how often are you going to get a double-decker full of people for a party? £30/head does seem steep.

I think getting a double decker and offering cheap transfers/city drops will be a good idea. You are likely to get more if you charge £1 and less if you charge £10.

You don't need to change your income stream, just change the service to cater a niche market.

fastfences · Jan 8, 2006

handsongroup said:
What about a specialist taxi for females, with female drivers.
You don't need to change your income stream, just change the service to cater a niche market.

Hi there.
Jonathan's suggestion is quite fruitful in some areas. The company, Pink Ladies: http://www.pinkladiesmembers.co.uk/ comes to mind as a fellow finalist in the Natwest Business Start-up Awards 2005. May require a bit of capital to set up though! And choose another colour :wink:
Cheers, Nigel

10Yetis · Jan 8, 2006

I know in Gloucestershire we now have a Party Engine... which is a an ex fire engine that has been converted into a bar and kind of limo... looks a but chav but I heard from a journo that it does good business and if it is unique to your area it could get you good press?

Also, in brum there is a beer bus that goes on tours of various pubs and has a bar on board. Could you do something like that?

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at a crossroads

albajohn

Hayles

Urban Space

albajohn

Urban Space

albajohn

Urban Space

Cornish Steve

Jayne

bwglaw

KM-Tiger

Urban Space

bwglaw

Cornish Steve

Urban Space

KM-Tiger

fastfences

bwglaw

albajohn

creacom

bwglaw

fastfences

10Yetis

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