Road Passenger operators compete not only with private cars but must also compete with other road passenger operators and even low cost airlines on international journeys.
The demand for low cost, value services is always apparent but many passenger operators struggle to ensure that adequate levels of profit are achieved in providing these services.
Scitrans can help with costing and pricing systems that are based on your own unique cost base. Standard costing enables the operator to quote accurate, competitive prices to the market even in the most restrictive circumstances.
Pricing is most often market led, however, operators should price on the basis of actual cost, combined with the level of service provided and accurate customer credit analysis. These elements of pricing form an integral part of our service to road passenger operators, we also evaluate the opportunities for marginal costing where appropriate, and can help to turn around loss making situations by identifying areas of waste or uneconomic use of assets. In cases where rate increases are essential to survival we can assist you by using price elasticity as a means of determining the extent of customer reaction to price increase on regular services routes.
Many passenger operators are now positioning themselves in the market place not simply as low price – low value operators, but are now offering quality services at premium rates to a market that is responsive to quality service providers.
Our experience of road passenger operations combined with our costing and pricing methods are at your disposal to help you to achieve the full potential of your passenger business.
At scitrans we can help you price according to customer needs, ability to pay and level of service. With an accurate costing system in place matched with a differentiated pricing approach, your company can benefit from an effective costing and pricing system to secure improved revenues and profitability.
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