Taxi Driver Online

I don't know, but perhaps in some cases they mean easier profits.

As for the fare formula. If a council uses it then surely they assess the amount needed (fare tariff) on just one driver's income.

So if a HC owner has other drivers on his car, perhaps that's what they mean by excess profits.

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IDFIMH

So what exactly is an OK profit then?

What exactly should we be earning?

I'd just like to hear from someone who actually IS making "excess" profits. (Other than a Lawyer, that is).

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There is Significant Unmet Demand for my Opinion.

If the fares go up, my earnings should increase as well as my day drivers earnings.

Well...its not really for me to express what I personaly regard as a decent living...however..as you asked..I regard a decent living as to be able to pay the mortgage...& feed and clothe the family... just like most people... and to be able to keep a safe and good taxi on the road.

The trouble is that the expression "Excess Profits" is very misleading.

That was my reply ..Scanner..although it appeared is Guest.

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you should be able to have a third of your takings, as wage plus 21@ profit.

Wharfie

As I said yesterday the phrase 'excess profits' has nothing to do with whether anyone is making a 'decent living' or anything like that, and the exact number are not really relevant.

All that it means it that some market distortion means that some are making greater profits than they would without the plates.

Eg if entry to plumbing was limited and the they were making £20 per hour then this represent 'excess profits' because it's partly only because the market is restricted.

But if an electrician was making £25 per hour without restricted entry then he wouldn't be making excess profits because he's just being payed the rate decided by the free market.

If a provinical taxi owner made £20k a year with restricted numbers then this would be excess profits, but if a London cabbie made £40k without restricted numbers then there would be no excess profits.

The numbers aren't really relevant, it's the fact that the market is closed that's relevant as far as excess profits are concerned.

Dusty

So why do some trade groups use fare rises in an attempt to attract more drivers into the trade?

If more drivers come in, then the fare increase might well disappear because there's less work, surely?

Dusty

no thats wrong,
both electricians and plumbers are both in closed markets.
excess profits arise from the fixing of fares by local government

Not really Ged, if you charged less then the plate would probably be worth less, if you could charge more the plate would probably be worth more.

The point is that if plates have a value then that represent's excess profits, whatever the numbers actually are.

Dusty

Well that wasn't really the reply I was expecting Ged.

You seem to be saying that people knew the risks but just bought the plate anyway, as the OFT said.

So if people just had a punt on a plate then why should they be complaining now??

Dusty

If you say so, Mr Troll.

Dusty

Mr Troll? very droll

I think SM has a point over those of us that have journeymen, in an area that has a fare formula.

The fare formula (I think) is only based on one persons earnings meeting the running costs. If more than one meets that costs, then perhaps that is the excess.

Alex

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Perhaps it could be that unemployment figures are very low at the moment and it is difficult to attract people into the seemingly low life job of a cab driver. When the building trade was at an all time low in the eighties we were jammed packed with journeymen, full and part time. Now, along with our difficult Brief it is very difficult to get new drivers.

If we are to attract new people into our trade, we have to make it one hell of a lot more attractive in terms of safety, and in most places make it a lot more viable.

But you have to ask why we need to attract them in the first place?

Are we all earning fortunes, or are we all just getting by?

From my experience the only ones asking for more drivers, are some operators who charge too little to make it worth it, non working owners who want an easy life on the back of others, and some HC owners who want someone else to help pay for the plate premium.

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IDFIMH