North East Buses
Financials to Run a Small Operation - Printable Version

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Financials to Run a Small Operation - ASX_Terranova - 17 May 2024

Apologies if there is already a thread on this but I was curious about how much the operating costs are for a independent like JH or GCT. 
Alternatively if you were to just run the TB14, TB23, TB29 etc... would the operational costs be less or the same.


RE: Financials to Run a Small Operation - Storx - 17 May 2024

(17 May 2024, 10:19 pm)ASX_Terranova wrote Apologies if there is already a thread on this but I was curious about how much the operating costs are for a independent like JH or GCT. 
Alternatively if you were to just run the TB14, TB23, TB29 etc... would the operational costs be less or the same.

No-one is going to know this, if anyone does they'll be blagging it.

The TB's are just a few taxis though, much cheaper than a bus but at the same time no-one uses them so they're pointless. If you're going down that route you might aswell attempt a DRT which, no-one also uses, but at least it's not doing the same thing over and over again.


RE: Financials to Run a Small Operation - Ianthegoon - 18 May 2024

(17 May 2024, 10:19 pm)ASX_Terranova wrote Apologies if there is already a thread on this but I was curious about how much the operating costs are for a independent like JH or GCT. 
Alternatively if you were to just run the TB14, TB23, TB29 etc... would the operational costs be less or the same.

This is the kind of information that would fall into the "Commercially Sensitive" category, so no operator is going to make it publically available as that data is what they will use to run their company, winning or losing contracts, and if rivals were to know it, it would give them a competitive advantage over you.


RE: Financials to Run a Small Operation - DaveFromUpNorth - 18 May 2024

There info is out there however you will have to dig for the FOI request locate the bus contract worth possibly do some maths and work out how many hours the bus is running plus dead mileage possibly to see the cost either per day or hour. Off memory when I looked at one of the Nexus secured contracts it was about £40 an hour to run one bus per hour ish or that is what the contract figures from the FOI looked like


RE: Financials to Run a Small Operation - Adrian - 18 May 2024

(17 May 2024, 10:32 pm)Storx wrote No-one is going to know this, if anyone does they'll be blagging it.

The TB's are just a few taxis though, much cheaper than a bus but at the same time no-one uses them so they're pointless. If you're going down that route you might aswell attempt a DRT which, no-one also uses, but at least it's not doing the same thing over and over again.

Yes and no. The costs would differ depending on the operator, as there's too many variables involved.

Even if TBs are 'just a few taxis', you've still got the overheads of running the business. Premises, elec/gas/water/comms, business rates/taxes, admin, cost of maintaining vehicles, cost of fuel, cost of the vehicle/lease, driver wages. All that is before the TB gets out on the road.

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RE: Financials to Run a Small Operation - Adrian - 18 May 2024

(18 May 2024, 7:34 am)DaveFromUpNorth wrote There info is out there however you will have to dig for the FOI request locate the bus contract worth possibly do some maths and work out how many hours the bus is running plus dead mileage possibly to see the cost either per day or hour. Off memory when I looked at one of the Nexus secured contracts it was about £40 an hour to run one bus per hour ish or that is what the contract figures from the FOI looked like

The FOI will only give you what the operator has bid to run the contract, not the cost to them of running the contract.

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RE: Financials to Run a Small Operation - Storx - 18 May 2024

(18 May 2024, 11:49 am)Adrian wrote Yes and no. The costs would differ depending on the operator, as there's too many variables involved.

Even if TBs are 'just a few taxis', you've still got the overheads of running the business. Premises, elec/gas/water/comms, business rates/taxes, admin, cost of maintaining vehicles, cost of fuel, cost of the vehicle/lease, driver wages. All that is before the TB gets out on the road.

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Aye no arguments about that but since it's mainly ran by taxi companies they've already got the facilities in place from their existing business. 

All they need to do is deploy one of their 7 seaters on the route which I believe is what GCT do anyway.


RE: Financials to Run a Small Operation - ASX_Terranova - 18 May 2024

(18 May 2024, 1:23 pm)Storx wrote Aye no arguments about that but since it's mainly ran by taxi companies they've already got the facilities in place from their existing business. 

All they need to do is deploy one of their 7 seaters on the route which I believe is what GCT do anyway.
 
Lets say you ran 6 TB routes with 8 or 12 seaters allocated (if allowed). Would you turn a profit easily or not. (The routes are attached below). I would like to make the vehicles feel luxurious (automatic doors, panoramic roofs, usb charging, electric powetrains, etc...) so would have factor those costs in too.


RE: Financials to Run a Small Operation - Storx - 18 May 2024

(18 May 2024, 1:49 pm)ASX_Terranova wrote  
Lets say you ran 6 TB routes with 8 or 12 seaters allocated (if allowed). Would you turn a profit easily or not. (The routes are attached below). I would like to make the vehicles feel luxurious (automatic doors, panoramic roofs, usb charging, electric powetrains, etc...) so would have factor those costs in too.

Honestly I couldn't really tell you, taxi buses are generally confusing though as people will be intimidated by them I'd say as they're 'not a bus'. 

You'd be better trying to implement them into longer services really, whether you could though I'm unsure. 

Like for some of those it would be just as easy to change and that's what we need more of instead of duplicating say Hebburn to Team Valley you'd be better doing bus / metro / bus if the frequencies were all there.


RE: Financials to Run a Small Operation - ASX_Terranova - 18 May 2024

(18 May 2024, 1:59 pm)Storx wrote Honestly I couldn't really tell you, taxi buses are generally confusing though as people will be intimidated by them I'd say as they're 'not a bus'. 

You'd be better trying to implement them into longer services really, whether you could though I'm unsure. 

Like for some of those it would be just as easy to change and that's what we need more of instead of duplicating say Hebburn to Team Valley you'd be better doing bus / metro / bus if the frequencies were all there.

You would try and make taxibuses luxury so that people get more than you would on a regular bus for the same fares. Also improving overall frequency in East Gateshead, Washington & Chester-Le-Street is a good thing isn't it.


RE: Financials to Run a Small Operation - Andreos1 - 18 May 2024

(17 May 2024, 10:19 pm)ASX_Terranova wrote Apologies if there is already a thread on this but I was curious about how much the operating costs are for a independent like JH or GCT. 
Alternatively if you were to just run the TB14, TB23, TB29 etc... would the operational costs be less or the same.

You buying the vehicles or leasing them? 
What about the operating centre? You renting or do you already own it?
Are you hiring in a transport manager or do you have your own?


RE: Financials to Run a Small Operation - ASX_Terranova - 18 May 2024

(18 May 2024, 4:16 pm)Andreos1 wrote You buying the vehicles or leasing them? 
What about the operating centre? You renting or do you already own it?
Are you hiring in a transport manager or do you have your own?

Wouldn't depend on the purpose of the operation, commerical services or contracted work. Ideally any company would buy the vehicles so that they could upgrade to their ideal standards. You would buy a small depot, you would be the operations manager. Gives the enthauist full control.


RE: Financials to Run a Small Operation - Andreos1 - 18 May 2024

(18 May 2024, 5:00 pm)ASX_Terranova wrote Wouldn't depend on the purpose of the operation, commerical services or contracted work. Ideally any company would buy the vehicles so that they could upgrade to their ideal standards. You would buy a small depot, you would be the operations manager. Gives the enthauist full control.

Ideally yes, but if you don't have the capital to buy the vehicles, then leasing is going to be the only option. 

Either way, all of the things I mentioned will impact on the costs and overheads. 

If you put yourself through the CPC and become the Transport Manager, then you've potentially saved vs hiring in someone else.


RE: Financials to Run a Small Operation - ASX_Terranova - 18 May 2024

(18 May 2024, 5:26 pm)Andreos1 wrote Ideally yes, but if you don't have the capital to buy the vehicles, then leasing is going to be the only option. 

Either way, all of the things I mentioned will impact on the costs and overheads. 

If you put yourself through the CPC and become the Transport Manager, then you've potentially saved vs hiring in someone else.

If you lease the vehicle though, you can't paint or modify it. The whole point of the operation would be to make taxibuses more attractive and easier to identify as well.


RE: Financials to Run a Small Operation - Andreos1 - 18 May 2024

(18 May 2024, 7:02 pm)ASX_Terranova wrote If you lease the vehicle though, you can't paint or modify it. The whole point of the operation would be to make taxibuses more attractive and easier to identify as well.

But if you don't have the capital to invest in purchasing the vehicle, then you're going to have to lease. 

However, there is the potential to lease a high spec vehicle. 
Then there's the cost implications of that (presumably more expensive to lease a higher spec vehicle is the greater cost).


RE: Financials to Run a Small Operation - ASX_Terranova - 18 May 2024

(18 May 2024, 8:33 pm)Andreos1 wrote But if you don't have the capital to invest in purchasing the vehicle, then you're going to have to lease. 

However, there is the potential to lease a high spec vehicle. 
Then there's the cost implications of that (presumably more expensive to lease a higher spec vehicle is the greater cost).

There isn't really a first class option for a bus as opposed to a train, but could there be? Wouldn't need to be any more expensive fares wise but just in interior quality. I was thinking about this for my various TB routes.


RE: Financials to Run a Small Operation - Storx - 21 May 2024

(18 May 2024, 9:24 pm)ASX_Terranova wrote There isn't really a first class option for a bus as opposed to a train, but could there be? Wouldn't need to be any more expensive fares wise but just in interior quality. I was thinking about this for my various TB routes.

I'm not sure people would be bothered, taxi bus routes are generally so short it doesn't really matter. 

It's something GNE seems to miss aswell ordering high spec buses on the likes of the 53/54, people are on such a short time that they don't generally care. All they want is a seat, high frequencies and cleanliness. USB plugs etc are pretty pointless as by the time you get your wire out you'll be getting off anyway. 

The ambience etc only really matters when you start to look at routes where you're on 30 minutes+ where the rattle on the emergency door or the rock hard seats start to grind as an understatement.

Trains generally get this right where there's rarely first class on commuter trains for the same reasons.