I am a fan of boxing. At the moment, it feels that the coach industry is like a boxer on the ropes. We are taking a lot of punishment: From Heathrow virtually doubling the price of airport pick-ups – on the unbelievable grounds that its coach park was not being used very much – to a well-known supplier of adult-only holidays moving the goalposts on customer deposits.
It seems to be a case of ‘how many punches can you take and come out the other side still swinging back?’
Battered and bloody, but ready for the fight that lies ahead
To continue the boxing analogy, we are now moving into the Championship rounds. Those who are still standing will hopefully be in a position to come through to the final bell. Bloodied and battered, but ready for the next fight.
There are tentative signs of recovery. Wedding bookings, school work and private hires are slowly creeping in. Holiday sales are way better than we could have hoped, even in our most optimistic moments.
Those we can control, to a degree. Each company can have a USP, whether that be door-to-door pick-ups or all inclusive at the bar, to persuade customers to spend their hard-earned money with you. Private hire, though, is a straightforward ‘who is cheapest’ competition. It is, and always has been, a battle to educate customers that paying a bit more often delivers better value for money.
Pricing pressures are to be expected as work returns
So now as we recover and things open up, work will still be there, but a lot less of it than normal. That is inevitably going to drive prices down. I have seen that happening first-hand. There is an old adage: Your first coach out of the yard is always cheaper than your last, and we all have a lot of first vehicles ready to go!
There will be a view that it is better to earn a bit and get cash flow going rather than hold out for more and lose the job. Finance holidays are over and vehicles need paying for. Some will take to social media or the phone and say that they will not be reducing prices, but the reality may be different. A case of saying one thing, and meaning it, but taking a different and arguably more pragmatic view when logging on to online bank accounts.
Formulas no longer much use for deciding rates
I am finding it difficult to price jobs now. I was always good at knowing where I could get a bit more for a job, and where I needed to shave a bit off. The tried-and-tested formulas don’t seem much use at the moment.
Things might be starting to get easier, but uncertainty still reigns supreme. Good luck.
