wee eddie wrote:
Dusty: My concept of a Discount is to offer 10% off the Meter Price, not 30 or 40% off. That would be my Profit Margin away and running at Cost or Below.
No offence, Eddie, but in my experience those who moan most about discounting are those who discount themselves. The problem with them seems to be people who are offering a bigger discount. All very 'do as I say, not as I do'.
And as regards the size of the discounts, it all depends on the local market and numerous other factors which I'm sure you're aware of yourself so I won't bother with the details.
But simple economics dictate that the further the journey the bigger discount drivers tend to offer. I don't do discounts on short journies, but I'd be daft not to offer them on longer runs, since every other driver does it, so if I stick to the meter then chances are someone else will do it cheaper.
And the size of the discount must depend on where the meter is in the first place. It stands to reason that if the meters in area A are set 20% above those in area B then discounts in area A will be bigger.
Note also that Sussex didn't say what others would do the journey for, he just said that it was 40% below the meter. I mean, I doubt if many drivers anywhere in the country are quoting £2.20/mile on a 65 mile journey, not even in Brighton.
The bottom line is that drivers tend to offer discounts so increase their earnings, not decrease them, but of course they may miscalculate things. I'm sure we've all done that from time to time, but that's just business - it's not unusual to even see items in Tesco that have obviously been mispriced, probably simply due to human error.