A one-man-band chauffeur company begins to grow and soon there are two full-time drivers and then three. The owner realises it takes time to organise: bookings, schedules, enquiries, alterations and other administrative tasks like filing receipts or sending invoices. So what management fee should they factor in?
I have spoken to people in the industry recently about administrative costs and commission charges. It’s a discussion I love because you find out just how efficiently other people manage their business. It is surprising how some don’t see the time it takes to manage, as a cost or an overhead.
One person proudly boasted “I pay drivers the same as I charge customers”. Little does he realise he is actually declaring himself a charity and a martyr. A 0% commission rate is not a prudent choice. On the flip side however, some companies charge up to 40% because they are so inefficient and have high overheads.
At DrivenByQ we have modernised, improved efficiency and automated processes. This lowers costs which reduces commission rates and increases driver pay. With good systems, motivated drivers and a quality service, is it any wonder our customers prefer to pay less for a whole lot more?
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