For coach operators, vehicle and driver quality are often heralded as being of paramount importance. As this year’s UK Coach Rally showed, the industry has much to be proud of in both regards.
Not often given the same amount of air time are rates and payment terms.
Seldom does an operator lack a story that involves work being undercut, so it was refreshing to hear from one coach business that refused to concede when a contract customer requested a change to payment arrangements.
In this scenario, the client wanted a major extension to its credit terms. The operator in question could no doubt accommodate that. It chose not to.
That was a brave decision. But the operator retained the work and strengthened its own hand in the process. Such an action should be applauded; it demonstrates that not everyone will kowtow when threatened with a change to payment terms or rates.
And why should they? London’s ULEZ, which came into force on Monday (8 April), will be followed by comparable Clean Air Zones and Low Emission Zones in England, Wales and Scotland.
They will place an additional finance burden on operators as they upgrade to Euro 6 if they are to avoid daily charges to enter these zones. That is before any impact that the current ‘will it, won’t it’ Brexit charade may have on costs.
There will always be competitors that will work for less. It’s a fact of life in the coach industry, just as it is in any realm of business. To avoid getting drawn into that, the unique selling point is king.
And as one operator showed, holding fast where terms and rates are concerned helps, too.
