Arbitrary pricing plagues the industry - Fair and profitable pricing comes down to basic business principles

摘要

For too many years too many bus and motorcoach operators have practiced under-pricing as a means to remain competitive. Such single-minded competitive pricing as a standard operating procedure has plagued the motorcoach industry. The fact is this is happening because a great number of coach operators do not fully understand how to price their services. The fair and profitable approach to pricing comes down to some very basic business principles. The successful business owner knows the fixed costs - the costs to stay in business even if the company does not produce one dollar in revenue. Fixed costs include employee salaries, principle and interest on loans, rent and leases, property and vehicle payments.