Well, tenants have moved in to both of the flats in my converted house now, since it still hasn't sold. If I had known it was going to take this long and had put tenants in in the first place, I would have had an extra GBP12,000 in income so far this year!!!
Pun: two lots of tenants have moved in, so now I have twenty ants. Geddit??? LOL!
Friday, September 17, 2004
Saturday, September 11, 2004
The Microeconomics of Minicabbing
Well, I've been trying to earn a living by driving a company minicab (MPV or people carrier) for a while now, but have stopped because it seem to me that it just isn't worth the effort (or, at least, I don't feel that desperate). I was working for a good company that kept me very busy most of the time. Here is how the finances stacked up:
Weekly Costs
Circuit Fees £135
Insurance £70
Car Rental £100 (this may be an underestimate, I never checked it exactly; using one's own car you would have to put maintenance and depreciation costs in here instead)
Insurance Excess £50 (assuming one minor prang every 10 weeks at 1000 miles per week driven)
Diesel £100 (i.e., £20 per day)
Parking £10 (at least, per day (it is necessary to park at airports when collecting customers))
TOTAL WEEKLY COSTS £505
Weekly Income
My minimum target was a gross income of £140 per day, which I didn't always make. Assuming it is the average, though (a good day could be £200, a bad day, £70), weekly income for 5 days is £700.
£700 Less Costs of £505 leaves £195 net income per week... before tax!
And for that, I would be working from 4am to 6pm, that is, 70 hours per week. What rubbish! As I feel that I can take home the same money for an office job working half the hours, I have quit the minicabbing forthwith.
The figures above are slightly distorted as they exclude account work, which pays for the car rental in theory - although in fact I ended up owing the company some of that from my cash takings too. On some of the days where the cash takings were low, that was because I had done a lot of account work. Nevertheless, if account work is excluded (i.e., the cost of the car rental), net takings are still only £295 per week for 70 hours worked (and more, sometimes). Still not worth the effort, except when desperate, I think. And, although I really, really need the money, I also need a life. The industry is structured so that it is only economic if you are prepared to work very long hours, and probably more than 5 days a week too. No thanks.
Weekly Costs
Circuit Fees £135
Insurance £70
Car Rental £100 (this may be an underestimate, I never checked it exactly; using one's own car you would have to put maintenance and depreciation costs in here instead)
Insurance Excess £50 (assuming one minor prang every 10 weeks at 1000 miles per week driven)
Diesel £100 (i.e., £20 per day)
Parking £10 (at least, per day (it is necessary to park at airports when collecting customers))
TOTAL WEEKLY COSTS £505
Weekly Income
My minimum target was a gross income of £140 per day, which I didn't always make. Assuming it is the average, though (a good day could be £200, a bad day, £70), weekly income for 5 days is £700.
£700 Less Costs of £505 leaves £195 net income per week... before tax!
And for that, I would be working from 4am to 6pm, that is, 70 hours per week. What rubbish! As I feel that I can take home the same money for an office job working half the hours, I have quit the minicabbing forthwith.
The figures above are slightly distorted as they exclude account work, which pays for the car rental in theory - although in fact I ended up owing the company some of that from my cash takings too. On some of the days where the cash takings were low, that was because I had done a lot of account work. Nevertheless, if account work is excluded (i.e., the cost of the car rental), net takings are still only £295 per week for 70 hours worked (and more, sometimes). Still not worth the effort, except when desperate, I think. And, although I really, really need the money, I also need a life. The industry is structured so that it is only economic if you are prepared to work very long hours, and probably more than 5 days a week too. No thanks.
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