MSA Newslink Marketing Special

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From the pages of Newslink What’s the right price for a driving lesson in 2021? Rod Came MSA GB South East You are an ADI, let me ask you a question – why do you work? The answer is, of course, the same for 99.9 per cent of people: to earn a living, in other words, to make money. If you had unlimited means would you still go out six days a week providing driving lessons? Unlike the lotterywinning pig swill operative who will keep working because he doesn’t want to let his pigs down, your answer is almost certainly ‘no’. There are only three ways for a self-employed individual, which most ADIs are, to be able to make money. They are: 1. To make a small amount of money from a lot of sales 2. To make a lot of money from a few sales 3. To make a lot of money from a lot of sales. Supermarkets tend to follow the first – small returns on many sales. Bespoke retail outlets use the second method, charging high prices for limited sales. The really successful people use the third method, high prices and high sales figures. Unfortunately, as ADIs, this method is not available to us, so it is a choice between Methods 1 and 2. Over decades before Covid, too many ADIs opted for Method 1, which meant providing 50/60 lessons a week at the cheapest price possible. They had to be cheap to keep the numbers up, thinking that because they were busy this equated to being successful. Depending on how you measure success depends whether you think you are successful or not. Job satisfaction may exceed the desire for financial gain. However, most ADIs I know have a combination of a partner, children and a mortgage, all of which need a steady supply of money, so for a relaxed home life, Method 2 has its attractions. But circumstances change. Nobody could have forecast that the whole country would be effectively shut down for 12 months, that ADIs would not be able to work at their chosen occupation, thereby suffering a substantial loss of income. It was beyond imagination that what we have endured would almost start to seem a normal way of life. It is said that every cloud has a silver lining and perversely the lockdown has provided an opportunity for ADIs. This industry has been bedevilled by those who see it as a temporary occupation between proper jobs. Such people have always thought that there is an unlimited supply of teenagers just bursting to learn to drive and they want some of that goldmine; unfortunately, a little research would have shown that it is not so. Every business needs a USP, a unique selling point, and the only USP that many trainees on a pink ticket and new ADIs can provide is to charge less than the established players, thus holding lesson prices down in a local area to the detriment of all. It has always been so. Now times have changed. There is a surplus of potential learner drivers. ADIs who have never had a waiting list are seeing a whole new phenomenon. All of a sudden it is a seller’s market due to a lack of ADIs against the demand for lessons. Now is the time to re-align lesson prices and raise them to a level where a comfortable way of life can be enjoyed by the provider. So how much is a reasonable price for a one hour driving lesson? It would be illegal for a group of ADIs, be that local or national, to form a cartel and agree a set price for lessons. Anyway, that would not work because the figure would be too high for some and too low for others. So each must choose their own. Historically, for many that has been determined by the prices of the cheapest, which has kept down the prices of the majority with only a few deciding to charge what they think they are worth. Maybe I am wrong there, perhaps the cheapest are charging what they are worth! Recently I had a local plumber free off a seized water tap in the village hall. After he had done the job he charged £45 + VAT = £54. It took him 15 minutes. Now that is a rip-off, but for an hour without the VAT I think it’s reasonable. Perhaps that is what good ADIs should be charging. What do you think? Replies to MSA GB Newslink. Prices: What’s your view? What should ADIs be charging? Is it time, as Rod suggests, to put prices up in the face of huge demand, or does that feel like opportunism? Click here to email the editor and let us know your charging plans 20 NEWSLINK SPECIAL n JUNE 2021
For all the latest news, see www.msagb.com Reminder: what to expect on test Some points to remember before taking pupils for their L-test: n All examiners will be masked throughout the test. n Waiting rooms are for ADIs only. Please do not arrive more than five minutes before the test time. n You must clean the inside of your car before your test. This means tidying any unnecessary items away from the dashboard, footwells, door pockets, cup holders and seats, and wiping down the dashboard and car controls. The examiner will do an additional clean of some surfaces. Examiners can refuse to take a car out on Failure to wear seatbelt needs points sanction Road safety and breakdown organisation GEM Motoring Assist is calling on the UK Government to honour the commitment made in its most recent road safety action plan and increase the penalty for drivers and passengers who do not wear a seatbelt on road journeys. In the plan, launched in July 2019, the Government said it would make seatbelt offences endorsable, meaning people caught not wearing a seatbelt would face penalty points on their licence as well as a fine. The offence has long been endorsable in Northern Ireland, where drivers who fail to ensure a child in a front or rear seat is not wearing a seatbelt also face points on their licence. However, these tougher sanctions do not apply in England, Scotland or Wales. GEM chief executive Neil Worth commented: “Official figures show that despite compliance rates of 98.6 per cent among car drivers, 27% of those killed in cars were not wearing a seat belt – more than 200 deaths. “Seatbelts reduce the risk of death by 45 per cent for drivers and front seat occupants. They also reduce the risk of serious injury by 50 per cent. “We have seen mobile phone penalties for drivers rise in recent years, and if seatbelt offences were dealt with in a similar way, we believe would see a significant and immediate reduction in the number of drivers and vehicle occupants killed and seriously injured on our roads.” test if they deem it to be unsanitary. n The car you use for your test must have at least one window open on each side throughout the test. Candidates must wear appropriate clothing for the test, including a face covering. n ADIs will not be able to accompany the L-test. However, they are encouraged to attend the post-test debrief, which will take place outside the car. Please remember to social distance if attending this. Click here for all the details WAITING ROOMS The vast majority of driving test centre waiting rooms have been reopened. The link below gives the latest information. This list is updated as and when the DVSA re-opens waiting rooms. Click here for the full list NEWSLINK SPECIAL n JUNE 2021 21
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