tangarinearmy wrote:
theres only one other co of any note and he wont be dropping any lower as he wouldnt have any drivers left .
all i know is my take home profit has gone way up,before the drop id be lucky to get a job every hour now its 3-4 every hour.
I can't speak for anyone else but around half of my takings go on overheads which aren't going to get cheaper by cutting prices. The 20% cut would then equate to around 40% of the profit from each job.
Fixed costs like insurance, radio, licences etc should not change but fuel, repairs and vehicle replacement would.
I reckon that if you were doing 2 jobs an hour before, you'd need to do at least 3 to stand still and probably 4 to make more money. If your firm is the only one doing it, it may work. But it will only take 1 or 2 to follow suit and you're back where you started - and for 20% less dough.
I also have to wonder how you expect the opposition to hold onto their drivers anyway, if your firm is taking a big chunk of their work?
It doesn't generate more work, it pulls work from the opposition to you. The opposition will end up with no choice but to cut fares or go bust. What happens if they decide to undercut you? 25%? 30%? Do you match them?
Quote:
skegness last year
orlando next year
Dole queue the year after?
