Successful businesses often find a niche in an over crowded market. They ask what the customer wants, develop the idea and then offer something better.
Years ago, I joined a network club but the referrals didn’t cover my membership fees. One day the Regional Director visited. He asked me what was the average value of the business I received? “£90” I replied. “Hmm, what if it was £10,000” he asked? “Much better” I said.
We conversed a little more and concluded that one corporate customer was better than a hundred holiday makers. I researched the local corporate chauffeur market and found most competitors were just taxi firms still using fax machines!
They had poor administration and virtually no understanding of quality systems - let alone lean principles! It opened my eyes. Why on earth would a customer pay a supplier to maintain inefficiency and operate as if it were still 1985?
The next time I attended the network club I totally altered my sixty second pitch. I now represented a modern chauffeur company offering a reliable, quality service to the corporate market. With competitors thirty years behind the times, what else could I say?
Monday 20 December 2010
Friday 3 December 2010
The Three Golden Rules
A couple sit together in the back of a chauffeur-driven car as the driver heads for their destination. For a while they don’t speak but then they become animated and continue an argument over the TV remote control. They start to accuse each other of being unfair before one turns to the driver and asks “What do you think?”
Years ago, when I first joined the private hire industry, I was lucky to have an experienced driver take me under his wing and pass on some wisdom. Little did I know about the three golden rules of conversation? He took me to one side and said “There are three things you never talk about! Stick to these and you’ll be alright: One, don’t discuss politics. Two, don’t talk about religion and three - you don’t do domestics!!”
I took on board his advice. It proved some of the best guidance I’ve ever had. Even though a lot of people who travel with me are very inquisitive about the UK economy or which political party is in power, I am always conscious never to express an opinion or be biased in any way.
When it comes to politics or religion it is pretty straight forward to be impartial. However, when it comes to who should have the TV remote control, maybe it is better to ask where we are going again?
Years ago, when I first joined the private hire industry, I was lucky to have an experienced driver take me under his wing and pass on some wisdom. Little did I know about the three golden rules of conversation? He took me to one side and said “There are three things you never talk about! Stick to these and you’ll be alright: One, don’t discuss politics. Two, don’t talk about religion and three - you don’t do domestics!!”
I took on board his advice. It proved some of the best guidance I’ve ever had. Even though a lot of people who travel with me are very inquisitive about the UK economy or which political party is in power, I am always conscious never to express an opinion or be biased in any way.
When it comes to politics or religion it is pretty straight forward to be impartial. However, when it comes to who should have the TV remote control, maybe it is better to ask where we are going again?
Friday 12 November 2010
Is A Driver, Just A Driver?
Imagine your chauffeur arrives - they are polite, they are considerate, they open your door correctly and their car is luxurious. You set off and then the driver gladly demonstrates they have little control, refinement or competency in their driving ability! To know this, all you have to do is watch the way they steer.
It never ceases to amaze me how some experienced drivers who transport passengers still don’t know the basics of car control. One of the first things they should master is ‘steering’ and delivering a silky smooth ride for the passenger.
In normal conditions, a driver should hold the wheel lightly with both hands so they can react quickly in an emergency. The hands should be placed between ‘ten-to-two’ and ‘quarter-to-three’ (with a slight bend in the elbow). The hands should never leave the wheel unless required and the grip should only ever tighten when conditions demand. Additionally, the driver’s elbows should never be placed on an arm rest or window frame because it reduces control.
Furthermore in normal driving, a turn should always start with a pull on the wheel rather than a push and the hands should not cross twelve o’ clock. As the wheel is turned the driver’s body weight should be counterbalanced by their free hand as it mirrors the hand holding the wheel. This again will help deliver smoothness and greater control of the vehicle.
A conscientious driver will know the basics. They will have also learnt to feel the car, the road, the environment, everything - so they have better control! So, if you want to know how good your chauffeur is, just watch the way they steer.
It never ceases to amaze me how some experienced drivers who transport passengers still don’t know the basics of car control. One of the first things they should master is ‘steering’ and delivering a silky smooth ride for the passenger.
In normal conditions, a driver should hold the wheel lightly with both hands so they can react quickly in an emergency. The hands should be placed between ‘ten-to-two’ and ‘quarter-to-three’ (with a slight bend in the elbow). The hands should never leave the wheel unless required and the grip should only ever tighten when conditions demand. Additionally, the driver’s elbows should never be placed on an arm rest or window frame because it reduces control.
Furthermore in normal driving, a turn should always start with a pull on the wheel rather than a push and the hands should not cross twelve o’ clock. As the wheel is turned the driver’s body weight should be counterbalanced by their free hand as it mirrors the hand holding the wheel. This again will help deliver smoothness and greater control of the vehicle.
A conscientious driver will know the basics. They will have also learnt to feel the car, the road, the environment, everything - so they have better control! So, if you want to know how good your chauffeur is, just watch the way they steer.
Monday 8 November 2010
Is A Car Just A Car?
Suppose you travel for three-hours in a chauffeur-driven car to an important meeting. That meeting is with a valuable customer and needs your full attention. What difference could your vehicle possibly make?
In the book ‘Roadcraft, The Essential Police Driver’s Handbook’ there are two paragraphs titled, ‘Fatigue’ and ‘How to combat fatigue’. Fatigue is often known as tiredness, weakness or the inability to function at one’s normal level – something critical if your meeting is important!
In the book, two issues are considered when discussing fatigue: a comfortable posture and noting how noise and vibration cause fatigue. These issues are directly related to a car’s design, seats, noise levels and build quality. These issues are precisely why a chauffeur car should be at least executive class (a size larger than family saloon models).
Any one who has travelled in a high quality executive saloon will tell you it can make a world of difference. The effect it has on your physical and mental state at the end of a journey is considerable! Quite simply, if the meeting is important then so too is your car.
In the book ‘Roadcraft, The Essential Police Driver’s Handbook’ there are two paragraphs titled, ‘Fatigue’ and ‘How to combat fatigue’. Fatigue is often known as tiredness, weakness or the inability to function at one’s normal level – something critical if your meeting is important!
In the book, two issues are considered when discussing fatigue: a comfortable posture and noting how noise and vibration cause fatigue. These issues are directly related to a car’s design, seats, noise levels and build quality. These issues are precisely why a chauffeur car should be at least executive class (a size larger than family saloon models).
Any one who has travelled in a high quality executive saloon will tell you it can make a world of difference. The effect it has on your physical and mental state at the end of a journey is considerable! Quite simply, if the meeting is important then so too is your car.
Friday 29 October 2010
A Closer Look
So you’re ready for your chauffeur to drive you to the airport. They knock on your door, take your luggage and give you five minutes to say goodbye. All you have to do is to walk to the car. Now what should you expect of your driver?
A Chauffeur will open your door for you and open it correctly. The door should be opened before a passenger reaches the vehicle. The driver should stand heels-to-wheels (facing away from the car) and protect the passenger.
Protection is given by standing in one of two places: Either in front of the door or toward the rear of the car. Both of these places ensure the passenger can enter and exit with dignity – especially a lady. Next as you settle in to your seat, the driver should quietly close your door and walk round the rear of the car before they join you for the journey.
It is these subtle differences that set a chauffeur apart from regular drivers. It adds value to the service. In addition to the chauffeur’s etiquette, their driving should put you at ease and deliver a comfortable journey. After all that is what you pay for.
A Chauffeur will open your door for you and open it correctly. The door should be opened before a passenger reaches the vehicle. The driver should stand heels-to-wheels (facing away from the car) and protect the passenger.
Protection is given by standing in one of two places: Either in front of the door or toward the rear of the car. Both of these places ensure the passenger can enter and exit with dignity – especially a lady. Next as you settle in to your seat, the driver should quietly close your door and walk round the rear of the car before they join you for the journey.
It is these subtle differences that set a chauffeur apart from regular drivers. It adds value to the service. In addition to the chauffeur’s etiquette, their driving should put you at ease and deliver a comfortable journey. After all that is what you pay for.
Friday 8 October 2010
First Impressions
Imagine you book a chauffeur driven car to the airport. A nice vehicle arrives at your house, a smart driver gets out, they light a cigarette, walk across your lawn and hammer on your door. Would you be impressed?
In my last blog I wrote about the legalities of private hire and what tools a Chauffeur requires. In the real world there is so much more than just having a nice car and being legal. For a start it is important to get the basics right – dress smart, wear a tie, arrive early, be polite, give a firm hand shake, be prepared to wait, help the customer with any luggage and ensure you create the right impression.
As a Chauffeur your job is so much more than to drive. You need to gauge the passenger and any desire for conversation. Do they prefer a front seat or do they prefer the rear of the car? If they prefer the rear, the arm rest should be down, the front seat moved forward and the rear-view mirror slightly adjusted so the driver can make eye contact with the passenger.
Be aware the client could be attending a meeting, hospital appointment, interview or anything that could cause them to feel nervous. Being in a car with a driver you don’t know can sometimes add to the tension. The Chauffeur’s job is to calm the passenger, make them feel at ease and help them relax.
Now suppose the car arrives outside your home six minutes early, the driver parks neatly, walks along your path, knocks lightly on your door and simply asks if they can take your luggage while they wait for you? Would that be better?
In my last blog I wrote about the legalities of private hire and what tools a Chauffeur requires. In the real world there is so much more than just having a nice car and being legal. For a start it is important to get the basics right – dress smart, wear a tie, arrive early, be polite, give a firm hand shake, be prepared to wait, help the customer with any luggage and ensure you create the right impression.
As a Chauffeur your job is so much more than to drive. You need to gauge the passenger and any desire for conversation. Do they prefer a front seat or do they prefer the rear of the car? If they prefer the rear, the arm rest should be down, the front seat moved forward and the rear-view mirror slightly adjusted so the driver can make eye contact with the passenger.
Be aware the client could be attending a meeting, hospital appointment, interview or anything that could cause them to feel nervous. Being in a car with a driver you don’t know can sometimes add to the tension. The Chauffeur’s job is to calm the passenger, make them feel at ease and help them relax.
Now suppose the car arrives outside your home six minutes early, the driver parks neatly, walks along your path, knocks lightly on your door and simply asks if they can take your luggage while they wait for you? Would that be better?
Friday 17 September 2010
A Chauffeur's First Steps
People often ask “Do you just need a nice car to be a chauffeur and away you go?” Well, there is a little bit more to it than that.
A Chauffeur first needs a private hire licence. This involves a medical, a CRB (Criminal Records Bureau) check and references. A licensing authority may also request a knowledge test.
Once you have a driver’s badge (licence), you then need to insure your car. It is not the same as normal car insurance! You need to approach a private hire specialist because of carrying passengers and requiring public liability cover. It can cost up to seven times as much as a normal policy but with experience and no claims discounts it can drop to around £1,000 a year.
Next the vehicle will need to be licensed by a local authority (each has their own rules and conditions, such as an MOT twice a year). Some demand a vehicle has private hire plates attached and others allow them to be removed (with permission). Last but not least, the vehicle and driver need to be registered with an Operator. They also require a police check, a registered address and references before any bookings.
With licences in place, you are ready to start work as a driver. Before turning up for your first job though, you might want to carry some equipment in your vehicle. A chauffeur will often have call for:
Some drivers will also have ways to entertain themselves if they have waiting time on jobs. Some chauffeurs read a book, some watch a film, others browse the Internet, some listen to an MP3 or even play a game. Now that your vehicle is equipped, all that is left is to ensure it is clean, taxed and in good condition. You can then start to think about your first passenger and the route.
Once you have a driver’s badge (licence), you then need to insure your car. It is not the same as normal car insurance! You need to approach a private hire specialist because of carrying passengers and requiring public liability cover. It can cost up to seven times as much as a normal policy but with experience and no claims discounts it can drop to around £1,000 a year.
Next the vehicle will need to be licensed by a local authority (each has their own rules and conditions, such as an MOT twice a year). Some demand a vehicle has private hire plates attached and others allow them to be removed (with permission). Last but not least, the vehicle and driver need to be registered with an Operator. They also require a police check, a registered address and references before any bookings.
With licences in place, you are ready to start work as a driver. Before turning up for your first job though, you might want to carry some equipment in your vehicle. A chauffeur will often have call for:
- Mobile phone (with Internet access)
- Phone charger or spare phone
- A-Z maps, road Atlas and satellite navigation system
- Mints, chewing gum or boiled sweets
- Carpet brush, wipes, kitchen roll and glass cleaner
- Umbrella and a torch
- Toll road tags, car park concession card or restricted area pass
- Tyre pressure gauge, tyre pump and a wheel-nut breaker bar
- Breakdown cover and membership card (you never know!)
- Change of underwear (in case you go on a long journey at short notice)
- A small amount of change, receipts and possibly a credit card terminal
- First aid kit, fire extinguisher, rope and disposable gloves
Some drivers will also have ways to entertain themselves if they have waiting time on jobs. Some chauffeurs read a book, some watch a film, others browse the Internet, some listen to an MP3 or even play a game. Now that your vehicle is equipped, all that is left is to ensure it is clean, taxed and in good condition. You can then start to think about your first passenger and the route.
Friday 20 August 2010
Will Katla erupt?
As an airport transfer company, we have always relied on airports for passengers. In April 2010 when the Eyjafjallajökull volcano erupted, things changed. As I stated in an earlier blog, we actually saw an increase in our turnover as a result of airport closures and passengers booked journeys to ports or train stations like Holyhead, Hull, London and Dover. Eyjafjallajökull is expected to be classed as dormant later this year as its activity ceases but fifteen miles to the east is another volcano called Katla.
Katla erupts every 40 to 80 years and causes some disruption. Historically it has had a major eruption following Eyjafjallajökull (that is three times in the last millenium). The difference between the two volcanoes is vast. Eyjafjallajökull is just a baby in comparison to Katla and the disruption caused in April 2010 is nothing compared to what could happen if Katla blows. Some people are even suggesting Katla could trigger a mini iceage for the entire northern hemisphere causing crop failures and famine for years!
Since April 2010, I have been monitoring Katla through anything broadcast on it. I began by watching the Channel 4 documentary about Eyjafjallajökull “The Volcano That Stopped Britain” with Geologist Nick Petford and how that tore through 700ft of glacial ice. I have been tweeting about the developments too, including Iceland’s president Olafur Grimsson announcing a Katla eruption is imminent. At the moment, a Katla eruption seems 50/50 with no obvious data to suggest anything substantial but there are plenty of subtle indications to suggest something could be building.
It is hard to get good quality data and educated opinions on the Internet but basically earthquake swarms are a good way to monitor early activity. I’ve been using this site to watch Katla - Iceland Meteorological office - Earthquakes Mýrdalsjökull, Iceland. There have been up to 16 quakes within a 48 hour period at times and they continue to grow - the time between swarms has been decreasing too. This shows that Katla is worthy of attention! The depths of the quakes are important as most are at the surface (and can be attributed to glacial shift activity) but a blog from one scientist reported an epicentre 27km below the ground. The magnitude of the earthquakes are another indicator and most are reading around one or less on the Richter scale but last week one earthquake measured 2.5. The next thing to watch for is deformations in the ground or venting of steam clouds as this would indicate something is going to happen with Katla.
For now though it is interesting to note that airline experts are meeting in September 2010 to discuss how to respond to another eruption. For DrivenByQ, we have already examined our business plan and discussed if we need to do something special in preparation for airport closures or in penetrating new markets sectors as an alternative income. For now though we will keep watching the Global Volcanism Program website before panicking too much!
Katla erupts every 40 to 80 years and causes some disruption. Historically it has had a major eruption following Eyjafjallajökull (that is three times in the last millenium). The difference between the two volcanoes is vast. Eyjafjallajökull is just a baby in comparison to Katla and the disruption caused in April 2010 is nothing compared to what could happen if Katla blows. Some people are even suggesting Katla could trigger a mini iceage for the entire northern hemisphere causing crop failures and famine for years!
Since April 2010, I have been monitoring Katla through anything broadcast on it. I began by watching the Channel 4 documentary about Eyjafjallajökull “The Volcano That Stopped Britain” with Geologist Nick Petford and how that tore through 700ft of glacial ice. I have been tweeting about the developments too, including Iceland’s president Olafur Grimsson announcing a Katla eruption is imminent. At the moment, a Katla eruption seems 50/50 with no obvious data to suggest anything substantial but there are plenty of subtle indications to suggest something could be building.
It is hard to get good quality data and educated opinions on the Internet but basically earthquake swarms are a good way to monitor early activity. I’ve been using this site to watch Katla - Iceland Meteorological office - Earthquakes Mýrdalsjökull, Iceland. There have been up to 16 quakes within a 48 hour period at times and they continue to grow - the time between swarms has been decreasing too. This shows that Katla is worthy of attention! The depths of the quakes are important as most are at the surface (and can be attributed to glacial shift activity) but a blog from one scientist reported an epicentre 27km below the ground. The magnitude of the earthquakes are another indicator and most are reading around one or less on the Richter scale but last week one earthquake measured 2.5. The next thing to watch for is deformations in the ground or venting of steam clouds as this would indicate something is going to happen with Katla.
For now though it is interesting to note that airline experts are meeting in September 2010 to discuss how to respond to another eruption. For DrivenByQ, we have already examined our business plan and discussed if we need to do something special in preparation for airport closures or in penetrating new markets sectors as an alternative income. For now though we will keep watching the Global Volcanism Program website before panicking too much!
Wednesday 11 August 2010
DrivenByQ – The Web Site
When we recently researched Social Media, it became clear that our web site (or shop window) drivenbyq.co.uk offering “Chauffeur-Driven Cars” needed updating to compliment our profile. We knew colour changes or photo updates would not be enough to differentiate DrivenByQ from other airport transfer providers.
Our site needed something better than that! When we first published a web site many years ago, our rivals were virtually non-existent on the Internet - customers still used Yellow Pages in 2005! If you search on the Internet today though, it seems everybody has an on line presence with Airport Taxi, Airport Transfer, Airport Chauffeur or Airport Shuttle services all easy to find – even some of our corporate chauffeur service rivals are starting to catch up!
We looked long and hard at our competitors both locally and nationally. We examined what their web site and marketing said about them. We asked how customers perceived them and more importantly, we researched how customers perceived us. What we found was very revealing because as a company, DrivenByQ reach out and connect with customers both psychologically and emotionally!
Our new shop window needed to mirror this. We wanted to express our values, our passion, our vision, our dedication; the commitment we give and we also wanted to echo the quality of service we provide. So, we redesigned the layout to be more tactile; we reduced the words on each page and then took photos in great locations such as Lake Vyrnwy, Porthmadog, the Horseshoe Pass and Snowdonia.
The images reveal our personal, one-to-one approach; they replicate how open we are, the reassurance we deliver and most importantly, the value it delivers to our clients. We have more pages to add to the new site but for now, we are really happy with what we have achieved.
Our site needed something better than that! When we first published a web site many years ago, our rivals were virtually non-existent on the Internet - customers still used Yellow Pages in 2005! If you search on the Internet today though, it seems everybody has an on line presence with Airport Taxi, Airport Transfer, Airport Chauffeur or Airport Shuttle services all easy to find – even some of our corporate chauffeur service rivals are starting to catch up!
We looked long and hard at our competitors both locally and nationally. We examined what their web site and marketing said about them. We asked how customers perceived them and more importantly, we researched how customers perceived us. What we found was very revealing because as a company, DrivenByQ reach out and connect with customers both psychologically and emotionally!
Our new shop window needed to mirror this. We wanted to express our values, our passion, our vision, our dedication; the commitment we give and we also wanted to echo the quality of service we provide. So, we redesigned the layout to be more tactile; we reduced the words on each page and then took photos in great locations such as Lake Vyrnwy, Porthmadog, the Horseshoe Pass and Snowdonia.
The images reveal our personal, one-to-one approach; they replicate how open we are, the reassurance we deliver and most importantly, the value it delivers to our clients. We have more pages to add to the new site but for now, we are really happy with what we have achieved.
Thursday 5 August 2010
Social Media
Last summer I attended a conference in Llandudno. Various people spoke and attempted to impart something useful upon the audience. By mid afternoon my frustration at the content was building until, somebody spoke about Social Media. In particular focussing on Twitter and Tweetdeck.
Up until this moment I honestly thought Social Media was just for teenagers or it was an extension of instant messaging. Once I realised though just how powerful Twitter is in connecting with people, I was consumed with enthusiasm and began investigating where it could fit in our organization.
I engaged with business leaders, web designers, gurus and marketing professionals and in particular, a PhD student from Glyndwr University. His analysis was concise and very clear. It suddenly put everything in perspective: Social Media isn’t something weird or tricky but simply a way to connect with people by using Internet technology as an extension of a brand or a service.
From this point on I had the confidence to start using Social Media in Ernest. We now have channels to connect with our consumers in a more virtually tactile way. Take this blog for instance; it is a great way to share technical knowledge, thoughts, feelings, experiences and issues affecting our business.
Then there is the Facebook page for sharing images from some of the places we go and things we do. Next is Twitter for posting useful information, important alerts or relevant stories and finally there is LinkedIn. This helps us to stay in touch with the business community and professional networks we build as part of our operation.
After doing all this, we realised our DrivenByQ web site was a bit out of date and needed a make-over but that is another blog for another day..
Up until this moment I honestly thought Social Media was just for teenagers or it was an extension of instant messaging. Once I realised though just how powerful Twitter is in connecting with people, I was consumed with enthusiasm and began investigating where it could fit in our organization.
I engaged with business leaders, web designers, gurus and marketing professionals and in particular, a PhD student from Glyndwr University. His analysis was concise and very clear. It suddenly put everything in perspective: Social Media isn’t something weird or tricky but simply a way to connect with people by using Internet technology as an extension of a brand or a service.
From this point on I had the confidence to start using Social Media in Ernest. We now have channels to connect with our consumers in a more virtually tactile way. Take this blog for instance; it is a great way to share technical knowledge, thoughts, feelings, experiences and issues affecting our business.
Then there is the Facebook page for sharing images from some of the places we go and things we do. Next is Twitter for posting useful information, important alerts or relevant stories and finally there is LinkedIn. This helps us to stay in touch with the business community and professional networks we build as part of our operation.
After doing all this, we realised our DrivenByQ web site was a bit out of date and needed a make-over but that is another blog for another day..
Wednesday 28 July 2010
Who Wants Paper?
Very often these days when I’m at an airport waiting to meet a client, a number of other drivers will be stood around doing the same thing. It is always interesting to observe their methodology. One thing that really makes me cringe is when their mobile phone rings and they pull out a clipboard with a printed spreadsheet while trying to talk to a client.
The spreadsheet will normally have lots of hand-written notes on it with one or two lines of thick black ink through it. Not only do they hand-write their scribbles the first time (while holding a mobile phone) but they have to type them up later when they get back to the office.
I could understand working in this way ten years ago but with the technology available today is there any need? Surely efficiency is about handling information just once? The more you transpose it, the more chance you have of creating errors and it takes longer too.
At DrivenByQ our customer can update a journey on line and the details are fed directly to the driver’s web page at the same time. The driver can read the update securely on a mobile phone. It’s quick, simple and efficient with less chance of errors. Oh, and there is no paper involved either!
The spreadsheet will normally have lots of hand-written notes on it with one or two lines of thick black ink through it. Not only do they hand-write their scribbles the first time (while holding a mobile phone) but they have to type them up later when they get back to the office.
I could understand working in this way ten years ago but with the technology available today is there any need? Surely efficiency is about handling information just once? The more you transpose it, the more chance you have of creating errors and it takes longer too.
At DrivenByQ our customer can update a journey on line and the details are fed directly to the driver’s web page at the same time. The driver can read the update securely on a mobile phone. It’s quick, simple and efficient with less chance of errors. Oh, and there is no paper involved either!
Thursday 8 July 2010
The Fantastic £85 Deal
The holiday market has a lot of competition for airport transfers at fantastic prices. Last year the recession forced many people out of full-time employment and some decided to have a crack at taxi driving or working a private hire office. The number of self-employed drivers at town centre offices increased. At the same time, the number of customers decreased.
It doesn’t take a genius to work out that increased competition in a decreasing market means less money to go around! It’s just like more people trying to eat a smaller cake. Some established private hire drivers looked at new markets to sustain their regular turnover and one of the most obvious places was airport transfer – some drivers have a list of clients that take holidays so it makes sense to offer them the service at a competitive price.
Some drivers offer trips to Manchester Airport for just £85 return from our local area in Wrexham. That is a great deal for the customer! For the driver though, I'm not so sure? There are costs which most people don’t calculate but I will share them. Let us assume you have a vehicle for which you paid £9,000 and you expect to cover 180,000 miles with it over three years. That will roughly give you: Vehicle depreciation of 5p per mile; Servicing and repairs of 3p per mile; Insurance costs of 2p per mile; Licences and car tax of 1p per mile and tyres of 5p per mile Therefore, the basic running costs are 16p per mile (as long as you don’t need any major repairs like a clutch at £1,000 a pop).
In an efficient car, such as a diesel (returning 44mpg or more, the cost of fuel would be at least £25 and the return journey would cover nearly 200 miles at the said 16p per mile (or £32). This leaves the driver with £28. Subtract £5.30 for the car park at Manchester Airport and we now have £22.70 for the best part of five hours work (which includes a 4am pick-up sometimes). Oh, and don’t forget to factor in tax and national insurance contributions and unpaid holidays.
Last year we stopped promoting cheap deals. We kept our prices where they needed to be and focussed on the corporate market. This year we are still in business, our volume has increased and more airport trips link-up. Our drivers are making a profit and they have plenty of regular sleep too! Wonder how long the driver with the £85 deal will be doing it for? Maybe they should spend money on advertising as well?
It doesn’t take a genius to work out that increased competition in a decreasing market means less money to go around! It’s just like more people trying to eat a smaller cake. Some established private hire drivers looked at new markets to sustain their regular turnover and one of the most obvious places was airport transfer – some drivers have a list of clients that take holidays so it makes sense to offer them the service at a competitive price.
Some drivers offer trips to Manchester Airport for just £85 return from our local area in Wrexham. That is a great deal for the customer! For the driver though, I'm not so sure? There are costs which most people don’t calculate but I will share them. Let us assume you have a vehicle for which you paid £9,000 and you expect to cover 180,000 miles with it over three years. That will roughly give you: Vehicle depreciation of 5p per mile; Servicing and repairs of 3p per mile; Insurance costs of 2p per mile; Licences and car tax of 1p per mile and tyres of 5p per mile Therefore, the basic running costs are 16p per mile (as long as you don’t need any major repairs like a clutch at £1,000 a pop).
In an efficient car, such as a diesel (returning 44mpg or more, the cost of fuel would be at least £25 and the return journey would cover nearly 200 miles at the said 16p per mile (or £32). This leaves the driver with £28. Subtract £5.30 for the car park at Manchester Airport and we now have £22.70 for the best part of five hours work (which includes a 4am pick-up sometimes). Oh, and don’t forget to factor in tax and national insurance contributions and unpaid holidays.
Last year we stopped promoting cheap deals. We kept our prices where they needed to be and focussed on the corporate market. This year we are still in business, our volume has increased and more airport trips link-up. Our drivers are making a profit and they have plenty of regular sleep too! Wonder how long the driver with the £85 deal will be doing it for? Maybe they should spend money on advertising as well?
Sunday 6 June 2010
Flexibility
It’s been a few weeks since the last blog. When the Eyjafjallajökull volcano began disrupting air travel, we had a number of cancellations. We then had a few days when vehicles were simply parked up and didn't move. (We took full advantage and went on a photo shoot, preview on our Facebook page) Then, people who needed to get home began to contact us.
The next few weeks took our business in a different direction and pushed our turnover up to a record high. The journeys we completed were out of the ordinary as people needed to reach train stations, ferry ports and airports in other countries. We even took seven passengers to Madrid. Now this is all well and good but, our business model relies on us sub-contracting work to a network of people. Normally it’s just a few journeys and that is never a problem.
Our network of drivers are paid on a fixed day every month so they never have to wait too long. It is one of the key factors in our growth model. It is how we build such a reliable and motivated network - if our customers need vehicles at short notice, we can arrange it because our rates and payments to drivers are so good.
When we invoice customers we simultaneously pay our drivers and then wait for customers to pay us - they effectively use our credit - it’s how we make profit and keep everybody happy. However, when you need all of your vehicles and each one completes a high value journey; this has an impact on cash flow. The last six weeks have been incredibly busy and just like last year we have to monitor our cash-flow – unlike last year though it is not because we have a decrease in turnover, it is because we have a substantial increase!
We recently took on new customers; extended some payment terms for others; and took on more work from some existing customers too. The combination of all this has been a large increase in our outgoings and a very real need to monitor our bank balance! Luckily we have a lot of systems in place to constantly update us but, this was not necessarily an issue we planned for or ever experienced before.
We needed to be a little bit creative and look more carefully at our forecasts and plans. At the same time, it is an issue which swallows a reasonable chunk of time on top of a time when you have a lot less time. All in all though, a very positive issue to have and one we are very pleased to deal with.
The next few weeks took our business in a different direction and pushed our turnover up to a record high. The journeys we completed were out of the ordinary as people needed to reach train stations, ferry ports and airports in other countries. We even took seven passengers to Madrid. Now this is all well and good but, our business model relies on us sub-contracting work to a network of people. Normally it’s just a few journeys and that is never a problem.
Our network of drivers are paid on a fixed day every month so they never have to wait too long. It is one of the key factors in our growth model. It is how we build such a reliable and motivated network - if our customers need vehicles at short notice, we can arrange it because our rates and payments to drivers are so good.
When we invoice customers we simultaneously pay our drivers and then wait for customers to pay us - they effectively use our credit - it’s how we make profit and keep everybody happy. However, when you need all of your vehicles and each one completes a high value journey; this has an impact on cash flow. The last six weeks have been incredibly busy and just like last year we have to monitor our cash-flow – unlike last year though it is not because we have a decrease in turnover, it is because we have a substantial increase!
We recently took on new customers; extended some payment terms for others; and took on more work from some existing customers too. The combination of all this has been a large increase in our outgoings and a very real need to monitor our bank balance! Luckily we have a lot of systems in place to constantly update us but, this was not necessarily an issue we planned for or ever experienced before.
We needed to be a little bit creative and look more carefully at our forecasts and plans. At the same time, it is an issue which swallows a reasonable chunk of time on top of a time when you have a lot less time. All in all though, a very positive issue to have and one we are very pleased to deal with.
Monday 19 April 2010
Kaizen
Following from my last blog, once the decision was made to remove the need for business premises, I wanted to make sure the process we used to receive bookings was efficient.
The process used in 2005 was different to what we use today – mostly because of the volume of work we now manage. The technology we employ was a little different back then too.
Over time, our process has changed, improved and evolved in to the efficient system we have today. The Japanese have a word for this process of constant gradual improvement and it is known as Kaizen. Initially, there were benefits to using online booking forms but I didn’t really think about how the information we received would be used to communicate and what the full process flow of that information would be. For example, I didn’t really think about invoices in too much detail. I never thought about tracking customer trends, or Key Performance Indicators.
Going back to day one, we had an online booking form that would send a formatted email with a customers journey details. This would include the date, pick-up times, number of passengers etc. The information from that email was then copied manually in to a spreadsheet and while there was only myself as the driver, this worked fine. Things began to change though as the volume of bookings increased and the number of invoiced accounts improved. Imagine how long it would take at the end of each month to sort out all the bookings for one single client and then put them on an invoice. From here, there were a number of steps I went through to build a system that could manage the administrative side of the business – in a later blog I plan to talk about vehicles, drivers, chauffeur etiquette and all sorts of things about being out on the road but first, it is essential to get the foundation in place.
A business cannot operate efficiently unless it is managed appropriately. The first step in the chain was to move all bookings from a spreadsheet and in to a database so filters could separate information and group specific details together for invoicing – journeys for customer A, B or C between dates X and Y. Next, the reporting function of the database was used to construct a formatted invoice that could be exported to a recognised file format and emailed to a client as an attachment (printing everything out became a nightmare as our volumes increased, there was paper everywhere).
I realised a filter could be used to produce a list of future journeys that a driver had planned. These journeys could be listed in a report, then exported as a web page and uploaded to a secure area of our web site. Now a driver only had to check on their own web page to see which jobs they had coming up. This was great if we were all working different shifts and asleep at different times. I also realised that if a drivers journeys could be filtered, exported and uploaded so too could a customers journeys.
At this point, things really started to become much more technically involved and we approached our first software developer. He linked the email through some clever programming and it put the booking from the web page straight in to our database system thus automating the bookings and reduced the need for manual copying (which incidentally removed the opportunity for errors to occur).
The database system we now had made our entire operation much easier to handle. If we had an enquiry from a customer who travelled two years earlier, we could retrieve all the details within seconds. However, there was still one major problem and that was that we could not alter a journey unless we were sitting in front of the computer. The next improvement introduced “remote desktop”. Eventually we felt we developed our system as far as it would go and the next stage was to hand it over to a professional software company.
They could make it a web based booking system – basically a database that runs on a web server that drivers and customer can access 24 hours a day. The added bonus with this is that our manager’s had a new interface which meant they now manage bookings directly from their mobile phone (in real time).
Over time, our process has changed, improved and evolved in to the efficient system we have today. The Japanese have a word for this process of constant gradual improvement and it is known as Kaizen. Initially, there were benefits to using online booking forms but I didn’t really think about how the information we received would be used to communicate and what the full process flow of that information would be. For example, I didn’t really think about invoices in too much detail. I never thought about tracking customer trends, or Key Performance Indicators.
Going back to day one, we had an online booking form that would send a formatted email with a customers journey details. This would include the date, pick-up times, number of passengers etc. The information from that email was then copied manually in to a spreadsheet and while there was only myself as the driver, this worked fine. Things began to change though as the volume of bookings increased and the number of invoiced accounts improved. Imagine how long it would take at the end of each month to sort out all the bookings for one single client and then put them on an invoice. From here, there were a number of steps I went through to build a system that could manage the administrative side of the business – in a later blog I plan to talk about vehicles, drivers, chauffeur etiquette and all sorts of things about being out on the road but first, it is essential to get the foundation in place.
A business cannot operate efficiently unless it is managed appropriately. The first step in the chain was to move all bookings from a spreadsheet and in to a database so filters could separate information and group specific details together for invoicing – journeys for customer A, B or C between dates X and Y. Next, the reporting function of the database was used to construct a formatted invoice that could be exported to a recognised file format and emailed to a client as an attachment (printing everything out became a nightmare as our volumes increased, there was paper everywhere).
I realised a filter could be used to produce a list of future journeys that a driver had planned. These journeys could be listed in a report, then exported as a web page and uploaded to a secure area of our web site. Now a driver only had to check on their own web page to see which jobs they had coming up. This was great if we were all working different shifts and asleep at different times. I also realised that if a drivers journeys could be filtered, exported and uploaded so too could a customers journeys.
At this point, things really started to become much more technically involved and we approached our first software developer. He linked the email through some clever programming and it put the booking from the web page straight in to our database system thus automating the bookings and reduced the need for manual copying (which incidentally removed the opportunity for errors to occur).
The database system we now had made our entire operation much easier to handle. If we had an enquiry from a customer who travelled two years earlier, we could retrieve all the details within seconds. However, there was still one major problem and that was that we could not alter a journey unless we were sitting in front of the computer. The next improvement introduced “remote desktop”. Eventually we felt we developed our system as far as it would go and the next stage was to hand it over to a professional software company.
They could make it a web based booking system – basically a database that runs on a web server that drivers and customer can access 24 hours a day. The added bonus with this is that our manager’s had a new interface which meant they now manage bookings directly from their mobile phone (in real time).
Thursday 8 April 2010
Lean
In my last blog, I wrote about Toyota and how their principles focus on eliminating waste or “Muda”. When I first set up DrivenByQ, I wanted it to be lean – for there to be no waste. In order to do this it was important to understand how a conventional company operated and to analyse its procedures. For example a conventional private hire company has a phone line and a member of staff to answer it.
A member of staff is typically operating a radio 'base' station or data system. That system needs an aerial to communicate with the vehicles. The radio system needs tall premises to mount a large aerial on top. The building needs electricity and it incurs other costs like rent, rates, insurance, furniture, stationery and even things like fire extinguishers. There is also a cost for cover during staff holidays or sickness.
Most offices these days have computerised despatch so there are IT costs to add and hardware eventually needs replacing too. The data heads, or radio equipment in the cars are costs which must also be included too! The office has only one way of recovering the costs in relation to fare paying passengers and that is by charging their drivers a rental fee for a radio (known in the industry as settle - typically between £100 and £120 per week). The driver then works a number of shifts and what they earn in fares is what they keep (minus their fuel, insurance, servicing costs, etc).
An office typically needs 17 cars just to break even each week. With all these factors in mind, I set about analysing the work flow related to receiving a booking - right the way through to despatching a car. I questioned each stage of the process and asked if it could be reduced? I also asked if there was a newer technology that could assist in the process. It took no time at all to realise that using an online booking system would instantly negate the need for a member of staff as the customer could input their details directly in to a web page.
Without a member of staff, there was no need for a fixed phone line or the associated costs. A booking page enhanced the quality of information received too as web forms would not submit until all the key information was acquired. The submitted booking from our web site sent an email notification directly to my smart phone - eliminating the need for radio equipment. Without the need for a member of staff, a phone line or radio, the premises themselves become obsolete and so did all the associated costs. This was just the start of process improvement and elimination of Muda in our organisation and the beginning of lean.
A member of staff is typically operating a radio 'base' station or data system. That system needs an aerial to communicate with the vehicles. The radio system needs tall premises to mount a large aerial on top. The building needs electricity and it incurs other costs like rent, rates, insurance, furniture, stationery and even things like fire extinguishers. There is also a cost for cover during staff holidays or sickness.
Most offices these days have computerised despatch so there are IT costs to add and hardware eventually needs replacing too. The data heads, or radio equipment in the cars are costs which must also be included too! The office has only one way of recovering the costs in relation to fare paying passengers and that is by charging their drivers a rental fee for a radio (known in the industry as settle - typically between £100 and £120 per week). The driver then works a number of shifts and what they earn in fares is what they keep (minus their fuel, insurance, servicing costs, etc).
An office typically needs 17 cars just to break even each week. With all these factors in mind, I set about analysing the work flow related to receiving a booking - right the way through to despatching a car. I questioned each stage of the process and asked if it could be reduced? I also asked if there was a newer technology that could assist in the process. It took no time at all to realise that using an online booking system would instantly negate the need for a member of staff as the customer could input their details directly in to a web page.
Without a member of staff, there was no need for a fixed phone line or the associated costs. A booking page enhanced the quality of information received too as web forms would not submit until all the key information was acquired. The submitted booking from our web site sent an email notification directly to my smart phone - eliminating the need for radio equipment. Without the need for a member of staff, a phone line or radio, the premises themselves become obsolete and so did all the associated costs. This was just the start of process improvement and elimination of Muda in our organisation and the beginning of lean.
Friday 26 March 2010
Basic Principles
Last night I watched “The Toyota Story” on BBC2. It was sad to see the mighty giant in so much difficulty and receiving so much bad publicity. The programme showed how Toyota became the World leader in manufacturing and the five key principles that got it there. For me it was important to be reminded about those principles but also how vital it is to stay focussed on them.
DrivenByQ is based around the same principles and the importance of eliminating waste or “Muda” as the Japanese call it. A lot of people think the principles can only be applied to a manufacturing company with a manufacturing process but to me it can be applied to any company with a continually repeated process.
Take for example the visit that Toyota paid to Ford and the tour around its vast Detroit plant back in the 1950’s. The Japanese witnessed how Ford made cars and how some vehicles had reoccurring faults that appeared in the manufacturing process. At the end of the production line, Ford had an inspection area and any defect vehicles would move to an area for re-work so the individual car could be fixed.
The Japanese saw this and decided that constantly fixing the same fault was ridiculous. They decided it was better to understand the root-cause of the problem and fix that instead. This way the fault could never re-occur. Toyota of course moved to eliminate the re-work area as it was a wasteful process. Why would anyone want to spend time making something wrong and then spend a second amount of time (and money) making it right – today they call it the “right first time” philosophy.
Finding the root cause of a problem is also the heart of a quality system and is intrinsic to a quality process. This story is important because it is a simple but fundamental element in running a modern “lean” business. You can see this directly translated in to our own organization in the way we receive data from our customers. Our booking forms cannot be submitted until all the necessary basic information is present. We receive quality information to begin with so that the rest of the process stands a chance of being correct.
Some of our competitors still use fax machines with no control over the format or completeness of the information they receive. When our competitors have to pick up the phone and call a customer for them to do re-work and acquire the missing data, DrivenByQ is already ahead and ultimately more cost-effective.
DrivenByQ is based around the same principles and the importance of eliminating waste or “Muda” as the Japanese call it. A lot of people think the principles can only be applied to a manufacturing company with a manufacturing process but to me it can be applied to any company with a continually repeated process.
Take for example the visit that Toyota paid to Ford and the tour around its vast Detroit plant back in the 1950’s. The Japanese witnessed how Ford made cars and how some vehicles had reoccurring faults that appeared in the manufacturing process. At the end of the production line, Ford had an inspection area and any defect vehicles would move to an area for re-work so the individual car could be fixed.
The Japanese saw this and decided that constantly fixing the same fault was ridiculous. They decided it was better to understand the root-cause of the problem and fix that instead. This way the fault could never re-occur. Toyota of course moved to eliminate the re-work area as it was a wasteful process. Why would anyone want to spend time making something wrong and then spend a second amount of time (and money) making it right – today they call it the “right first time” philosophy.
Finding the root cause of a problem is also the heart of a quality system and is intrinsic to a quality process. This story is important because it is a simple but fundamental element in running a modern “lean” business. You can see this directly translated in to our own organization in the way we receive data from our customers. Our booking forms cannot be submitted until all the necessary basic information is present. We receive quality information to begin with so that the rest of the process stands a chance of being correct.
Some of our competitors still use fax machines with no control over the format or completeness of the information they receive. When our competitors have to pick up the phone and call a customer for them to do re-work and acquire the missing data, DrivenByQ is already ahead and ultimately more cost-effective.
Wednesday 17 March 2010
Increased costs, increased opportunities
Yesterday I read that the cost of petrol (and diesel) is likely to increase in the next few weeks to a record high. There is also a planned increase of 3p per litre in fuel duty by the government on 1 April 2010. In addition to this, Manchester Airport just increased their annual car parking costs by 80%. That is a significant increase!
Now, when you get in to the business of airport transfers, you quickly realise there is a LOT of competition in the market place; there are low barriers to entry and most of your competitors never calculate their break even point when setting their prices – a lot of them don’t calculate the turnover they need to continue trading either.
So, you might ask, am I bothered? Am I feeling depressed and gloomy? Well, no. I actually see this as an opportunity to develop our business and sing about the benefits of our fantastic customer service. From day one, we were always going to be the most efficient company in the market place. We embraced new technology and ensured that our business model was not only robust but that it gave the best value to our customers and (importantly) our drivers. We also ensured that we knew our costs and what type of volume we needed in order to operate at a profit.
After the recession of last year, we are now in a much stronger position. First of all we are established in the ‘airport transfer’ market so people know we are reliable and reputable (the growth we have had in the last five years speaks for itself). Secondly, we deal with high volume so a lot of our airport transfer journeys link-up (this gives us economies of scale). And finally, our on-line booking and management system delivers such a saving on conventional office based overheads, we are way ahead of our competition.
In short, although the increased costs of fuel, parking and licensing are significant, there is comfort in the knowledge our competitors are facing the same challenges. There is also a lot of excitement in the fact we can really shine as an efficient company and offer so much more to our own – and our competitors - customers.
Now, when you get in to the business of airport transfers, you quickly realise there is a LOT of competition in the market place; there are low barriers to entry and most of your competitors never calculate their break even point when setting their prices – a lot of them don’t calculate the turnover they need to continue trading either.
So, you might ask, am I bothered? Am I feeling depressed and gloomy? Well, no. I actually see this as an opportunity to develop our business and sing about the benefits of our fantastic customer service. From day one, we were always going to be the most efficient company in the market place. We embraced new technology and ensured that our business model was not only robust but that it gave the best value to our customers and (importantly) our drivers. We also ensured that we knew our costs and what type of volume we needed in order to operate at a profit.
After the recession of last year, we are now in a much stronger position. First of all we are established in the ‘airport transfer’ market so people know we are reliable and reputable (the growth we have had in the last five years speaks for itself). Secondly, we deal with high volume so a lot of our airport transfer journeys link-up (this gives us economies of scale). And finally, our on-line booking and management system delivers such a saving on conventional office based overheads, we are way ahead of our competition.
In short, although the increased costs of fuel, parking and licensing are significant, there is comfort in the knowledge our competitors are facing the same challenges. There is also a lot of excitement in the fact we can really shine as an efficient company and offer so much more to our own – and our competitors - customers.
Thursday 11 March 2010
Transition
Welcome to my first ever blog.
It seems a good time to start a blog because there is so much going on right now that is easy to talk about. Take for instance the recession of last year and how it really made me focus on who our customer is and what is our niche in the market place.
I came to realise that in the past we have maybe had the mindset of a smaller, sole-trader business and we have been competing on the merits of a sole trader. By that I mean we sold what was good about a sole-trader.. For the customer, they always get to talk to the decision maker, they get to know you personally and build an ongoing relationship with a high degree of familiarity. For us, we get to know the customer too and understand the way they work much better.
What happens though when you want to grow your business and make it more professional. How do you start to differentiate yourself from your competitors and deliver a better level of support to your customer. Well, how about looking at the benefits you give as a bigger company while still holding on to the best bits of being a sole-trader.
How about offering a 24-hour support telephone number. How about reassurance that you are not the only driver and will be out working all sorts of silly hours. How about taking more time to listen to your customer and understanding what else you can do to help them. Last year we introduced an on-line booking system that handles our information in a very efficient manner. It gives us the ability to manage our business in a way that a sole-trader could only dream of.
What we haven't done though is find a way of showing new customers just how good the system is and how much extra support it gives a corporate client. Anyway, in order to achieve this, we are currently investigating branding and how to convey our message in a different way. A way that is more reliable and easily understandable by a customer.
I came to realise that in the past we have maybe had the mindset of a smaller, sole-trader business and we have been competing on the merits of a sole trader. By that I mean we sold what was good about a sole-trader.. For the customer, they always get to talk to the decision maker, they get to know you personally and build an ongoing relationship with a high degree of familiarity. For us, we get to know the customer too and understand the way they work much better.
What happens though when you want to grow your business and make it more professional. How do you start to differentiate yourself from your competitors and deliver a better level of support to your customer. Well, how about looking at the benefits you give as a bigger company while still holding on to the best bits of being a sole-trader.
How about offering a 24-hour support telephone number. How about reassurance that you are not the only driver and will be out working all sorts of silly hours. How about taking more time to listen to your customer and understanding what else you can do to help them. Last year we introduced an on-line booking system that handles our information in a very efficient manner. It gives us the ability to manage our business in a way that a sole-trader could only dream of.
What we haven't done though is find a way of showing new customers just how good the system is and how much extra support it gives a corporate client. Anyway, in order to achieve this, we are currently investigating branding and how to convey our message in a different way. A way that is more reliable and easily understandable by a customer.
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