Calculating costs for passenger transport companies
Tue, 21/02/2006 - 19:52
Hi!
Just wondering if anybody might be able to help us out here.
My girlfriend and I are in the process of setting up a minibus company, but are stuck on this one!
We've worked out our running costs, in terms of how much it costs us per mile of travel. However, we're not sure how to go about working out how much to charge our prospective passengers. Our difficulty lies in that we not only have to take into account the distance travelled in any journey (and therefore the cost of petrol), but that the number of people undertaking each journey could be different.
What I mean by this is that we can't just estimate the total number of miles that we will travel in one year, and then use this figure to work out the costs, as we will be offering tours where each person pays individually, so the figures will obviously be very different if we travel 10000 miles in a year and have an average of 6 people travelling with us each time, to if we travel 10000 miles in a year and have an average of 12 people travelling with us each time.
I hope this makes sense?!!
If anyone has any ideas as to how we can get around this uncertainty of the number of passengers and help us with working out how much we should charge our passengers, then we would be very grateful.
Cheers. :?
Darren
"Work is the curse of the drinking classes!"
Tue, 21/02/2006 - 22:46
#1
what about...
can you clarify what you are after..
is this used like a bus service on a regular route or a taxi or a tour bus?
I guess you have some predictions of passenger numbers for your business plan?
You will also have to make some educated guess on the milage if it is not a regular route ie 4 times to the airport a week or 3 trips to blackpool etc.
will try to help if you have any info!
Dave
Sat, 25/02/2006 - 20:33
#3
What does the competition charge?
Hi Dazbus,
Rather than a "this is the service, let's charge a bit more than cost", let me ask another question - what does your competition charge? Looks like an alternative to National Express et al for a standard Oxford to London trip so what makes you different? Do you do personal pick-up and drop-off, for example, or is the 'tour' something different? To focus on surfers could also be good - particularly if you were able to change the location to suit their weather conditions. Do you have links with accommodation sites around the coast? All sorts of ways of adding value and the more value you can add, the better the market will support a good price. My suggestion is therefore to price according to the service and benefits to your customers rather than according to your own costs.
Take Care,
John
Take Care,
John
Tue, 21/03/2006 - 20:13
#4
Hi darren
Hi darren
drop me a mail on ,
If you have messenger we can do it over there as its easier if i talk to you
sorry for the delay#!
Dave
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Hi Dave!
Thanks very much for your swift reply to our cry for help!
It's a tour bus service, aimed at students and backpackers.
We're running 4 different trips each week, which will be departing from London and Oxford. A surfing tour down to Cornwall at the weekend, and 3 day trips throughout the week.
We estimate our total mileage each year to be around 50 000 miles.
We estimate the total number of passengers each year to be around 1200.
Our running costs are 41p per mile.
Any help would be much appreciated.
Cheers!
Darren
"Work is the curse of the drinking classes!"