Call Sign July 2011
Page 16
At the recent monthly Dial-a-Cab Board meet-
Keith Cain's view on the subject fellow Board member Mike Son
ing, there was a lengthy discussion regarding
writes of in this issue
how we can attract more business. As you would
expect, there were mixed feelings amongst us as
Fixed Prices...
to what would be the best direction to take with
regard to attracting more work. Michael Son, as
you can read by his article, is very passionate
about us offering more fixed price journeys to
clients, which will enable them to budget their
honestly think so.
transport expenditure better. Michael believes
My argument has always been that we
that if we offer more realistic pricing, we will win
offer the product of a professional driver
back work. How I wish it were that simple!
who has studied and learned his profession.
In our approach to obtaining new clients and
There is a specially designed vehicle regulat-
holding onto existing ones, there has been the
ed to meet the highest standards with a pric-
policy to offer clients a variation in our charging.
ing tariff set by a governing body to be con-
If there are regular journeys taken, we have
sistent. We are a company with the technical
offered a fixed price. The common factor here is
ability to enable its clients to request their
not only for us to offer a client what we believe
vehicle quickly and efficiently. Basically, we
is a reasonable cost for a journey, but to offer
have a product that is still far better than any
what the client feels is a reasonable cost for them
other taxi or private hire company can offer.
to pay. Whatever price has been agreed, it has to
But our product comes at a cost and I do not
have been cost effective and set at a figure to be
think that this organisation is at a time in its
attractive enough for the driver to supply a ser-
history when we should consider selling
vice. Having listened to Mike's views at the meet-
itself cheap.
write this, it is mid-morning and I can overhear
ing and with the Editor providing a preview of
I have no doubt in my mind that to offer more
a call-back telephonist saying to an account
the article before going to print, I think it only
fixed rates will lead to cheaper fixed prices just
client who will be billed the meter fare, that we
correct that because Mike has looked towards
to compete. Meter fares will be a thing of the
did not have a cab available in their area and
the members for input, that I should add to the
past so why would a driver go on radio to work
would they like us to keep trying to get one?
debate and make members aware just some of
for less journey costs than they can pick up from
That pick-up was in NW8.
the problems our call centre controllers face on
the street? It would be a downward spiral. It is
The F/P trips we altered took place around 9
a daily basis with the current work at the prices
my opinion that we continue to ride the storm.
o'clock in the morning, but it makes no differ-
we have now.
Work will come back to the radio circuits albeit
ence what time of day it is, drivers just do not
Mike refers to a meter fare journey cost being
slowly, because when work is difficult for us to
like doing F/P work. Our evening and night shift
different on a daily basis and he is correct. The
cover, it's equally hard for private hire firms to
controllers will tell you they all have the same
same journey can differ by as much as £10 due
cover their work. When it rains, we see our
problems with covering F/P trips. Even our
to the length of time it takes to go from A to B
account clients coming out of the woodwork to
weekend controllers have to put premiums on
in London or delays caused by passengers when
use our service, with their policy of cost-cutting
meter fare trips before drivers will accept them.
getting into the cab. The big question is what is
being forgotten.
There are trips in the system where the fixed
a realistic fixed price? The answer to this will dif-
We have been contacted recently by a very
price is skinny; for example W2 to the City for
fer from every driver you talk to and to every
large account that left us some three years ago
£22 - cost on the meter £30. This particular trip
client you sell to. In addition, Mike states that he
for a private hire company. They are asking us
frequently has the F/P removed and the addi-
feels prices should be set at the equivalent meter
for an update on our service and to see if we can
tional cost is paid by the Society. If we have trou-
cost, including a driver's gratuity but reduced run
technically meet their requirements. They don't
ble covering fixed price trips now, what sort of
in - basically as close to the meter fare as possi-
do this if they are happy with their current sup-
service are we going to supply if we go along
ble and just like the charges are now. Included
plier. It used to be a common practise for
Michael's route and offer more of them? So I
also is that if the client keeps the cab waiting for
account clients to move from black cab circuit to
have to ask, if our prices are fixed at reasonable
longer than 10 minutes, the meter fare then
black cab circuit, only to return back to the orig-
prices close to the meter cost and our private
applies. The majority of fixed prices are set in
inal supplier. I believe we are starting to see that
hire competitors still offer their trips at a much
this way now although some clients do have
happen again, only this time clients are realising
lower price than ours, why would an account
some skinny ones, which are priced more in line
the cheaper supplier is not necessarily the best.
client pay more to Dial-a-Cab who would still be
with the prices quoted by private hire. Taking
As a Board member, I speak to many drivers
more expensive?
the different approach that Mike suggests and
who ask the question what we are doing about
Mike knows I am not a person to knock an
introducing more fixed price journeys will, in my
getting more work because they are finding it
idea if I do not have an alternative solution.
opinion, not increase work but lead to the
difficult on the radio. When we look to see what
Another possible avenue that could be followed
demise of this organisation.
their work pattern is like, we notice a lot of these
is regarding administration charges. Unlike pri-
We occasionally have a regular fixed price
drivers like to sit at the airport for long periods
vate hire companies, we charge an administra-
journey picking up from Belvedere Road SE1
or constantly reject trips. It was interesting to see
tion charge on top of the journey price, which is
going to EC2, the F/P being £15. On the very
recently that one driver, who was very passion-
set at a lower charge for the higher user and
morning I write this article, the controllers
ate about the need for the Board to increase our
higher charge for the lowest user. I know from
had to remove the F/P from the trip to get it
work, was a driver who during the buoyant years
experience, having been in the Sales team for
covered. As soon as it was offered with a
when work was in abundance had received sev-
many years, that if we were to offer no admin-
meter fare, it was snapped up immediately.
eral letters reminding him that he was not com-
istration charges whatsoever, we could gain
The driver arrived with a £4.40 run in and
pleting the minimum number of trips per month!
additional work. But even suggesting this, I
the journey cleared at £13.80. Add the gratu-
We know that work is vital, but no matter
know its shortcomings. To simplify it; let's say it
ity and the trip cost is only pennies different
what work we have it has to be acceptable to the
costs on average £5million to run the Society,
to the fixed price. Another trip today was
whole membership. If it is not, then we cannot
that's £2.5million made up from client's admin-
picking up from Knightsbridge SW1 to EC2 -
provide a service. Currently, it's all about cost
istration charges and £2.5million from driver's
fixed at £20. That too had to have the F/P
and clients pushing the cost down. We have one
subscriptions. Stop charging the clients their
removed because drivers constantly rejected
of the best products out there in our industry and
£2.5million and who do you think will have to
it. Again as soon as the F/P came out, the trip
like all good things, it comes at a price. I apolo-
meet the short fall? Yes, you guessed it... the dri-
was immediately accepted. The driver took
vers! It would mean drivers looking to pay a
gise to you all if you think I am wrong when I
10 minutes to arrive at the pick-up, making
possible £30/£40 more per week on their sub-
say I do not want to sell this Society cheap...
it 6 minutes late. At the end of the trip, the
scriptions. This method would retain the meter
driver cleared it for £17.80. Add the gratuity
fare cost for the journey, there would still be a
and the trip cost is actually below the F/P.
Keith Cain
run in and the driver gratuity would remain.
On this very day again, there were five
Call Centre Manager
Would this be acceptable to members if there
account rides - NOT fixed prices - all picking up
Driver Operations Manager
was an abundance of additional work? I don't
from the SW1W area that were not covered. As I
