Advice for a fresh faced entrepreneur...
Discussion
Thanks Iain 
That is quite a good idea, and would prevent me from having to finance too much at once. I could even hang onto our older cars for the saturday night idiots and not be too put out if one does get yacked in. Good plan. In theory then, I could increase my fleet size to 8 company owned cars and 2 owner-drivers very quickly. If I filled those up and kept them busy my turnover would be 'limited' at £1.7m
In reality a fair bit lower... but I've just worked out we are currently utilising around 25% of our fleets potential. The cars won't earn money parked outside a drivers house, or sitting in the yard. I know I'm arguing most of the points raised on this thread, but it's great being able to vent somewhere. I was in a bit of a 'wood and trees' situation. Now I'm getting a clearer picture of what needs to be done.
I've had a wicked marketing idea as well. To increase customer loyalty and introduce new customers. Basically we announce the campaign by text to our customer database (how many taxi companies can do that eh?
), we tell them to go to our new website to register for a £5 discount from their next fare, then we give them a PIN in return for contact details (to be used in later promotions only), and then we offer them the discount for each and every new customer that they introduce to us. The new contact uses the PIN number of the referee when they make their first booking and that automatically tells us to offer the discount when the referee makes their next booking.
Beauty being that we have all the technology in place to do it, so all it will cost us is c.£2 per new customer by having to pay the drivers cut of the discount.
Genius eh? So a new customer, and another layer to add to the 'pyramid effect', and a guaranteed customer each time we pay out.
Inspired
I'm available for consultancy work @ £1000 a day
That is quite a good idea, and would prevent me from having to finance too much at once. I could even hang onto our older cars for the saturday night idiots and not be too put out if one does get yacked in. Good plan. In theory then, I could increase my fleet size to 8 company owned cars and 2 owner-drivers very quickly. If I filled those up and kept them busy my turnover would be 'limited' at £1.7m
In reality a fair bit lower... but I've just worked out we are currently utilising around 25% of our fleets potential. The cars won't earn money parked outside a drivers house, or sitting in the yard. I know I'm arguing most of the points raised on this thread, but it's great being able to vent somewhere. I was in a bit of a 'wood and trees' situation. Now I'm getting a clearer picture of what needs to be done.
I've had a wicked marketing idea as well. To increase customer loyalty and introduce new customers. Basically we announce the campaign by text to our customer database (how many taxi companies can do that eh?
), we tell them to go to our new website to register for a £5 discount from their next fare, then we give them a PIN in return for contact details (to be used in later promotions only), and then we offer them the discount for each and every new customer that they introduce to us. The new contact uses the PIN number of the referee when they make their first booking and that automatically tells us to offer the discount when the referee makes their next booking.Beauty being that we have all the technology in place to do it, so all it will cost us is c.£2 per new customer by having to pay the drivers cut of the discount.
Genius eh? So a new customer, and another layer to add to the 'pyramid effect', and a guaranteed customer each time we pay out.
Inspired
I'm available for consultancy work @ £1000 a day
Edited by KingRichard on Monday 2nd July 23:08
KingRichard said:
I've had a wicked marketing idea as well. To increase customer loyalty and introduce new customers. Basically we announce the campaign by text to our customer database (how many taxi companies can do that eh? ), we tell them to go to our new website to register for a £5 discount from their next fare, then we give them a PIN in return for contact details (to be used in later promotions only), and then we offer them the discount for each and every new customer that they introduce to us. The new contact uses the PIN number of the referee when they make their first booking and that automatically tells us to offer the discount when the referee makes their next booking.
That sounds like a good idea, however I'm going to play devils advocate for a moment. ), we tell them to go to our new website to register for a £5 discount from their next fare, then we give them a PIN in return for contact details (to be used in later promotions only), and then we offer them the discount for each and every new customer that they introduce to us. The new contact uses the PIN number of the referee when they make their first booking and that automatically tells us to offer the discount when the referee makes their next booking.When I book a cab it's simply as a means to get somewhere. I don't want to think about the cab bit, I'm thinking about what I'm going to do when I get there. So a pin number system is possibly overcomplicated as I'm never going to remember that my mate told me to phone KingRichard Cabs and use this 4-digit pin to get a £5 discount...
What's wrong with what every DIY catalogue in the land offers - a cash discount when you introduce a new customer? By the sounds of it you have a customer database. So when a new customer phones up(you take their name to add to the database - conveniently checking if they are already a customer), they then give you the original customers name (you check database) and credit the 'account' of the original customer with £5.
Like I said, I think the ideas good but a bit too complicated for a promotion.
groomi said:
KingRichard said:
I've had a wicked marketing idea as well. To increase customer loyalty and introduce new customers. Basically we announce the campaign by text to our customer database (how many taxi companies can do that eh? ), we tell them to go to our new website to register for a £5 discount from their next fare, then we give them a PIN in return for contact details (to be used in later promotions only), and then we offer them the discount for each and every new customer that they introduce to us. The new contact uses the PIN number of the referee when they make their first booking and that automatically tells us to offer the discount when the referee makes their next booking.
That sounds like a good idea, however I'm going to play devils advocate for a moment. ), we tell them to go to our new website to register for a £5 discount from their next fare, then we give them a PIN in return for contact details (to be used in later promotions only), and then we offer them the discount for each and every new customer that they introduce to us. The new contact uses the PIN number of the referee when they make their first booking and that automatically tells us to offer the discount when the referee makes their next booking.When I book a cab it's simply as a means to get somewhere. I don't want to think about the cab bit, I'm thinking about what I'm going to do when I get there. So a pin number system is possibly overcomplicated as I'm never going to remember that my mate told me to phone KingRichard Cabs and use this 4-digit pin to get a £5 discount...
What's wrong with what every DIY catalogue in the land offers - a cash discount when you introduce a new customer? By the sounds of it you have a customer database. So when a new customer phones up(you take their name to add to the database - conveniently checking if they are already a customer), they then give you the original customers name (you check database) and credit the 'account' of the original customer with £5.
Like I said, I think the ideas good but a bit too complicated for a promotion.
If we offered a £5 discount for every new customer introduced, with a maximum one time discount of £25. Then start accumulating again. I reckon the students would go for it, and would be willing to register their details. We could then publish a newsletter with details of airport promotions, discounts, free gifts, special offers from local business', local events etc etc etc.
Every new customer can also register their details and recommend someone, so they then get their own discount. Surely if you can educate people to register with you, the promotion becomes self perpetuating?
Not sure where you are located KR but the cruise lines were truely ripping off the US passengers getting from ports to airports or into London. A vehicle capable of taking a party with shed loads of luggage could be charged at a premium, especialy if it was disabled eqippped. Convenience and quality of service is more important than price in that market. A number were doing Heathrow-Southhampton and at the top end were being charged £300+ one way by cruiselines. Accessing the market might need a bit of 'google ad' or something.
Some nice touches I have seen are thwe driver giving you a card with his face, fare and details on when you get in so you can feel safe and have no surprises. Simple rules on what drivers cannot wear: baseball caps, trackie bottoms, sweatshirts etc.
Some nice touches I have seen are thwe driver giving you a card with his face, fare and details on when you get in so you can feel safe and have no surprises. Simple rules on what drivers cannot wear: baseball caps, trackie bottoms, sweatshirts etc.
Richard, it sounds as though its going very well- congrats! We are a small firm of Management Consultants who live in the real world. We undertake Operational Reviews (snapshots) on a regular basis in addition to formal strategic Business Planning and Financial Planning and I think you are very wise to do it. Welcome to have a no obligation chat - just drop me a line- Based Cambs
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