ALLEN TOGWELL’S MARKETING PLACE
For a body of men who have traditionally been regarded as having a tongue-in-cheek reputation for being self styled experts on every subject imaginable, not surprisingly there are a few isolated individuals in the cab trade who are not only keen to dispel that myth, but support it with vitriol so out of sync with real life that one wonders if their reading matter of what’s going in the world is limited to just page three of The Sun! Also, I have never quite understood what it is about people who are elected into positions of authority that makes them a target from those whose sole occupation appears to centre around being constantly vociferous.   It’s been quite some time since I was this Society’s regular Aunt Sally, when the most popular pastime at DaC was "lets have a dig at Toggers."  Admittedly the players of that little hobby were a relatively small group, familiar to each other on the Finz and whilst I was often the subject of their attention, their satisfaction was I’m sure, to see their names constantly in print. Over the years their numbers have steadily dwindled, either through retirement, death, changing circuits or the sudden realisation that there is more to life than continually knocking the establishment. However, with nothing being heard of them for so long they had almost slipped from my mind, but as with the remnants of dinosaurs there’s always one to be found somewhere to give a sudden reminder of times past…      It was therefore with little surprise when, having noticed my name mentioned in last month’s Call Sign, to see the author of that little missive obviously still active, as blinkered as ever and regrettably still likely to remain so.   In his letter to the Editor, HE claims to remember when you could take a lady to a cinema, on to dinner and home for a nightcap and get change from a £1. He then with typical malevolence, chose to make reference to me in support of his argument. Exactly where he went for a £1, how he was dressed and whom he considered a lady, God knows! But I’m afraid it wouldn’t have got me very far when I was a young man, as my tastes then were no different to what they are now. Top quality mohair suit, handmade shirt, silk tie, stick pin, camel overcoat and Chelsea boots were considered the norm. A white Armstrong Sidley represented my wheels, a typical venue was the Tottenham Royal and if I struck lucky, it would be a meal in Soho and then on to a drinking club. As for the £1 - I usually spent that amount keeping my boots shiny!   Obviously reminding us of his previous life style was not the main point, he was airing his grievance at not getting a greater increase in this year’s taxi fare tariff. However, the fact is that he chose to compare today with the past, so perhaps he should have included the state of the cab trade when he was enjoying himself on a £1, because up to that period and beyond, the cab trade didn’t receive an automatic increase each year as we do now, they had to fight for it and in many instances were unsuccessful for up to several years at a time.         Equally so, for example, with Board members pay. There was a period when the Board, myself included, went four years not just without an increase, but actually had our money considerably reduced! We were not pleased but accepted it because the economy at that time, the state of the trade and the state of DaC in particular, dictated it just as the state of the trade does now. Not that some would realise it of course, because from their attitude one would think DaC was the only taxi supplier in London.    Well for their information, we’re not. Apart from Dial-a-Cab, there is also ComCab, DataCab, Xeta, RTL, Call-a-Cab, 40,000+ private hire and pedicabs, all competing for a section of business that has been steadily eroding since 9.11.2001 and continues to do so.
   Read any newspaper - in addition to the Sun - and not a day goes by when there is not news of staff redundancies or business travellers from the USA down by almost 50%. The tourist 
industry is still on the decrease, hotels continue to trade half-empty, restaurants, theatres and most tourist related  

 

 
businesses are struggling as are the high street stores, all of which has been recently exacerbated by the War in Iraq, Sars and in some instances the Congestion Charge. Naturally, this is all having a dramatic effect on the non-radio street work. As for radio work, as I write I’ve just read in the business section of our favourite newspaper, ES, of tens of thousands of feet of office space being let by two of the largest law firms in London plus that the axe was falling amongst traders of several giants in the financial sector, all of the names being very familiar to us as traditional big users of taxis. Added to that, I’ve just heard news of a very large client issuing memos to all staff to use cash cabs off the street rather than on account. None of this is surprising to any of us at DaC, because for the past two years at practically every meeting we have had with our clients and prospective clients, we are constantly being told of cut- backs being made and warnings of future cut-backs in staff, taxi expenditure and taxi usage.   As always, when a company issues a directive to reduce costs, at the top of the list there is guaranteed to be a restriction on the use of taxis or an order to the facilities managers to dramatically reduce taxi fares or find a cheaper supplier. The retention of existing business has always been considered as an important role in our Sales and Customer Care department and since 9/11 it has played a major part in everybody’s daily agenda. Unfortunately, loyalty and past service means very little when the managers we deal with are under orders from their financial directors to make cut-backs.
    In the past ,our biggest enemy was private hire. Now we the have the problem of competing against two additional circuits within our own industry, one, namely Call-a-Cab - a branch of ComCab – who are spending considerable sums of money marketing a taxi service which includes NO run-in and NO Gratuity!   Whether or not Call-a-Cab is likely to become big enough to be a direct threat is of little concern to us, what is concerning is the initial message it sends to everybody that uses taxis - a message that says: If these drivers, the same drivers as ours, driving the same vehicles as ours, with the same overheads as ours are prepared to work without a run-in or a gratuity, why can’t DaC drivers…?   Just prior to the emergence of Call-a-Cab, Mayor Ken Livingstone was working on a plan, which involved the public being able to get a cash or credit card paying taxi service by ringing just one number that had access to all three major circuits. With mass advertising apparently funded by TfL, it could possibly have been a great success. Now we will never know all because yet again, the trade and those within it cannot work together.   In the 16 years I’ve been associated with Sales at Dial-a-Cab, I’ve seen far more damage done to the radio taxi trade from within than from without. Back stabbing, reneging on promises, collusion, price wars and predatory tactics between circuits at management level and un-cooperation, greed, illogical working practices and politics at driver level has prevented the radio circuits from becoming 10 times the size, or as powerful as they should be today.   When I joined DaC 20 years, ago we had 1400 drivers today we have around 2000 an average increase of 30 a year. Why? I could list a dozen reasons but if I had to select just two, they would be short-sightedness and apathy.
 In my last report, I asked for ideas on what you would be prepared to do to generate work during quiet periods. I also asked for suggestions on how you could justify the additional costs that passengers pay over that of the meter. I was sincere in my request and with two subjects high on many of our member’s minds, namely the acquisition and low attendance at our AGMs,
  I honestly believed I would get a reasonable response - particularly as both concern the future of our
Society and both relate to the popular perception that our members dislike the idea of changing our co-operative status because they want to continue to have a control on how our

 

Allen Togwell
  company is run. What ridiculous nonsense! Our members do not and never have run the company. It is run by those you elect to run it - the Board of Management – however, for the benefit of those who feel that they are running it, where was the response to my question? Where were the ideas, the suggestions and the policies that you as a collective body, feel would put more bums on seats? Where was this voice of the members that I could take to the Board and whose case I could argue on your behalf? Out of 2000 members, I had exactly 5, to whom incidentally I would like to take this opportunity of expressing my thanks to: Russell Hall (G44). George Wilson (F17). Laurence Kelvin (W88). Markham Kennedy (R94) and Stanley Roth (Y53). What surprised me most was the lack of response from many of those out of the 150 who attended the AGM who were incensed at the small turnout and argued it gave them no platform for a proper debate or to put forward ideas, proposals, propositions etc etc...
   What did we have instead? We had a member who wrote in, not with ideas on how to generate new business, not with cost effective ideas to encourage people into using taxis instead of their normal mode of transport, not with ideas on how to justify the additional costs that we apply over and above the meter fare, not with ideas about how to solve the problem of the numerous complaints we get from clients over cabs turning up with double the agreed run-ins or complaints about rude drivers or drivers ignoring the passengers whilst using their mobile phones etc, instead we get criticism about the low fare increase and a demand for proper fare negotiators "who" - and I love this bit - "live in the real world." He then follows by asking a question, quote: "Please tell me, when is it ever a good time to put up the prices?" I would have thought that was obvious, but evidently not. I would also have thought it obvious when NOT to put the price up, but again evidently not.   During my time of being associated with Sales at DaC, my own personal view has always been to protect the charges paid to our members ie waiting time and gratuity, fixed prices etc and not just the principle of the charges, but that the members should get the total amount unlike our competitors, who are known to claw back a percentage. In addition, that there should be a statuary gratuity charge of 10% to every client irrespective of usage. Those of you who have been on the circuit long enough, will remember when the gratuity that was previously 12.5% was reduced to 10%. The reason for that was because the admin system we had at the time was peculiar in that it was built with fixed parameters, in other words charges such as gratuity were not variable and every client had to pay either 12.5% or nothing at all! We only had a couple of senior accounts and during negotiations to retain the largest of them, we had to reduce the gratuity down to 10% or lose it. We agreed, but by altering the admin system it meant every other client’s gratuity being reduced as well.   That has been the only occasion I can think of when payments to our members have been reduced. Apart from that one instance, we have always endeavoured to get as much for our members as possible and giving them everything to which they are entitled, a policy that we are proud of and one of the reasons why we are known as the Gentleman’s Circuit and why we have always have a long waiting list of drivers wishing to join. But putting up costs can only be attempted when the economic climate and the quality of our service allows, as was the case for example when Dial-a-Cab became, and still is, the only licensed taxi circuit in London to introduce £8 minimum fares.   THAT IS LIVING IN THE REAL WORLD…!

AllenTogwell
DaC Marketing
allent@dialacab.co.uk


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