Taxi Driver Online

Are you saying then, that your circuit's turnover is based on the plate value of the member's vehicles, as well as the turnover in terms of customer profit?

I would based the price on the individual members' turnover... nothing to do with the circuit turnover as a whole.

If that is so, then surely if that gent waited, he could have joined your firm for whatever the price is now, less the plate value.

Firstly, we are not taking on anymore new members if that is what you mean. You have to buy an existing share. And, as I stated, there is no plate value as far as I am concerned. The only value is buying a ready made business, just like buying any franchise...there is no difference. I cannot see any of the existing members taking much less for their share then what has been paid in the past, regardless of what ever may happen.

In fact only recently someone who bought a members' share/plate came from a rent-a-radio type circuit. They have been in the trade for sometime. Knows fully what is going on, and I presume wanted the stability of belonging to an association rather than just another radio-renter.

And will your circuit have to be re-valued by whoever, if the plate value becomes nil?

The question does not arise as the association will never be for sale. Only an individual member share, i.e. position will ever be sold from time to time. And as previously stated I regard a plate by itself to be worthless. Why buy a plate that is not affiliated to an association. An independent plate working just the ranks sounds like very hard work with long hours... who wants that. An independent plate on a rent-a-radio circuit is still not worth anything as there is no security. Also, with circuits like this you get quite a bit of circuit hopping which is a bit unstable.

The money paid to purchase an existing membership on an association like mine, which is in a very strong position, buys stability, and peace of mind...as far as it can go... and a say in how the association is run. I am not saying it is perfect, but it is the only way I would ever be in this trade.

However of course all this would be down to the individual location and set up of each town/city.

Sorry to be so nosey, but it's looks like we are talking a lot of money.

Well it is a reasonable sum to walk into a ready made business.

A very interesting topic. Can I just take it away from scanners firm for a second?

If I owned a firm with 50 HCs in a restricted area, and the plate value for each was £20,000. This would give me a supposed asset of £1,000,000.

My firm itself was well run, good accounts, and was valued at £500,000. Thus my supposed assets added up to £1,500,000. I also have a good bank that has let me borrow on the back of those assets to buy better radio equipment, better vehicles and a better base station.

However following a delimit, these assets are only worth £500,000. Does that make me insolvent?

Alex

Depends, dunnit?
surely to god the bank didnt loan just on the asset value alone but on the annual profit as well? and the things you bought added some way to the efficiency?

a buisness or anythings value is based on what a willing buyer and a willing seller will pay?

Nothing much has changed since the OFT report, though we assume they will, and very soon.

going all WAV and how this is done, and new tests for drivers are bigger draw backs than oft, indeed the cruel situation from criminal inteligence unit, are massive draw backs.

so if you can still pay your loan then you cannot be insolvent, question is are you confident on future borrowing?

Wharfie

Surely a difference between Scanner's Association and the average rental-radio circuit, is that the association members also share the business risk too, while simultaneously sharing in the profits? Or, is it a not for profit association which ploughs back quasi-profit into lower costs or better facilities for the members? Either way, the member only has such security as the quality of the management.

Some of these associations are good. One I saw, however, was not quite so good.

At the end of the day, I see associations such as scanner's as a significant part of our trade's future, as the independant simply doesnt have enough muscle. Associate, or join a radio circuit, may be the only directions available to us soon. We can all see the big operators expanding while the independents get fewer and fewer. Its a sad fact of life, but a fact nonetheless.

_________________
There is Significant Unmet Demand for my Opinion.

Alex,
When I bought my plate the money was raised against my house,the Bank knew then in theory the plate was valueless. So your hypothesis of business value should never include plate values.
Ged

I think there will always be a place for the very small boys, and a place for the very big boys.

I believe it's those in between that will decline in numbers.

That's very interesting Ged.

But say your house was only worth half what your plate costs, would the bank have lent you the money?

Which is a bit like my imaginary firm. If it has debts of £1,000,000 and assets of only half that following de-limitation, then what future would it have?

Alex

Just for the record, my association is completely non-profit making and is run for the mutual benefit of its members...and has done since 1936.

THEY ARE A MUST AS THAT IS ALL THAT WILL SURVIVE!

I wish scanner all the luck in the world on this front, these associations can in the end join up into federation type buisnesses creating a national line.

much better than anything like t*******, or national cabline they can deliver service and quality.

Wharfie

I think you could be right, but in my experience they all want to be the boss, and do things their way.

Cooks and broth, and Chiefs and Indians spring to mind.

Explain exactly what you mean please.

My point is, that it is bad enough working under one boss, but if you have dozens of them (and I assume you have non-owners on your circuit), then it could become a nightmare.

Also for the committee (or the one) that make the decisions, trying to please umpteen different members, all with differing views, must also be a nightmare.

I hope they get paid well for it.

Alex,
The bank manager was adamant (No not Adam Ant) that they would not lend money against some thing so tenuous as a perceived value. Not only that they could not take any charge against the plate if things went pear shaped.
He was the last of the "old school" managers, wheras today they cant wait to give you money. Something that puzzles me though, I was able to offset the loan for tax purposes and I wonder how people get away with declaring one amount to the revenue and yet are able to service huge loans. But I suppose that should be another thread.
Ged
Ps when I try to post and put my username, it tells me that name is already taken. So I always appear as a guest and shows me having no previous posts.

Well it works... and it has done for over 60 years... I presume that you have never been a member of such an organisation or indeed ever have the chance to

Oh dear.

Do you log in, put your user name, password and tick the stay logged on box?

If you do, then I will look into it, because there is only one Ged.

Alex