Pricing of Driving Lessons

I recently received a phone call from a business man who was wanting to organise a driving course for an employee.  I kid you not, his opening gambit to me on the phone was “The thing is Tom, I’m very pushy in business, I want things exactly on my terms”.  Oh dear, how unfortunate I thought.

But I persevered, the criteria went along the lines of, the employee was only available on 2 days of the week, week-ends are out, and the course had to be completed before August.  So on that basis I managed to find 20 hrs and gave a price for 2 block bookings that equalled 20 hrs.  Then, it was discovered that the employee can also be free any weekday evening, so ok, I then found a further 7 hrs in the diary – so the max I was able to accommodate in my diary was 27 hrs.  So I added a further 7 hrs at the same hourly rate as the 20.  That process took a few texts and emails and a call or 2 to complete, about 2hrs of my time.  Then...... quiet..... nothing.

Yesterday I get a text from the employee, not the ‘pushy’ boss, querying the price.  He wanted the 27 hrs to be cheaper than my 30hr 1 week intensive course price.

Now whilst I accept ‘business is business’ and straight talking with no fancy frills is clearly a way some people like to do business, this idea that declaring yourself as being ‘pushy’ in the opening conversation somehow sets the scene for being a time waster is not one that I find attractive.

In over 3 years I’ve never had someone question my pricing like that before, but seeing as that has now happened, I will go over the pricing structure I do and also the industry I’m in:

Customers can pre-book a week long intensive course, which is a 30 hr course spread over 7 days – this is the cheapest rate available.

Customers who are not so pressured on time, can choose between a range of block booking options, 1/1.5/2/3 hr sessions which still offer a discounted rate but need to be used up within 3 months of booking.  These customers (who tend to be absolute beginners) are also entitled to a heavily discounted 2 hr introductory session.

Customers who want complete flexibility with no obligations whatsoever, can choose to just take lessons as and when they like(a range of 1/1.5/2 hr sessions are available) – this is the most expensive option available (PAYG) – these customers tend to come and go as they desire.

The above is, generally speaking how it works in our industry too – customers who are willing to show loyalty and commitment with a block booking are rewarded with a cheaper rate.  So ringing up as and when suits (PAYG) and expecting block booking rates is a non-starter, as is booking a block booking and expecting the rates of the intensive course. 

What I have never offered is a package of lessons for a very low fee.  So typically you will see ’10 lessons for £99’, or ‘5 lessons for £40’ and such like.  Personally, and this is just my opinion only, I don’t like the way those ‘offers’ de-value the industry we are in.  It is generally recognised in our industry that it costs £10/hr to run a driving school car – all of the costs included.  So when you have a Driving Instructor providing lessons for £9/hr and less, they are running at a loss, they are not on minimum wage even, they are literally losing money.  The way it works is that after those 10 lessons at a loss making £9, are used up (by the way, look at the small print as to how they are spread over the whole course of lessons), then the customer tends to stay with that Driving Instructor and pay ‘normal’ rates.  So the people who choose to employ these techniques, tend to be the people that cannot survive WITHOUT employing these techniques, in other words, you are hiring the services of the ‘weak’ that need to de-value the industry IN ORDER to survive.  And on that basis, you have to question if that is ultimately what you want for your child who is learning to drive.  


Now coffee houses, barbers, supermarket shopping etc all employ a variety of similar marketing ‘hooks’ but I ask you this..... what other 1:1 professional service that you hire employs such techniques?  I'm talking about a professional who LEGALLY has to be  officially registered in order to be paid for their service eg an accountant, dentist, solicitor – whose service do you hire who relies on such marketing techniques?  I bet if there is any, there wont be many, and there is a reason for that, because professionals who HAVE to adopt them, are de-valuing their industry.


 

Just my opinion .... have a good weekend everyone!

(And ‘Come on England’ for Sunday night)!!