Red Diamond Redditch

[Ash]

Never used red diamond before in Redditch but noticed on their website their offering what is a £1 day saver on services 57/58 as you buy a single for £1 and its valid the rest of the day. How do they make money from this, the buses must have to be rammed constantly to make high enough revenue to cover the operational costs shows their potentially making quite a nice profit from their busier black diamond services when their offering £1.70/£1.90 for a single and on some service £2.50 for a return which are higher fares compared to Redditch.

[Tony]

Never used red diamond before in Redditch but noticed on their website their offering what is a £1 day saver on services 57/58 as you buy a single for £1 and its valid the rest of the day. How do they make money from this, the buses must have to be rammed constantly to make high enough revenue to cover the operational costs shows their potentially making quite a nice profit from their busier black diamond services when their offering £1.70/£1.90 for a single and on some service £2.50 for a return which are higher fares compared to Redditch.

Not strictly true, remember the 57/58 are short routes, 15 minutes to Matchborough, 15 minutes back.

Buses cost per hour, not per trip. I don't know what Diamonds running costs are but say they are about £30 per hour, each bus will carry 4  different loads in an hour so only needs an average of 8 people paying £1 per trip to make a profit.

Now on the otherhand the 4H/4M take an hour from one end to the other so would need to take 15 £2.50s each trip to make a profit.

Economics aren't just more expensive fares mean bigger profits!

[jc]

Just going on the First Group 58 i caught last night (this being one of the night services Diamond withdrew) the driver took over £10 before we had even left Redditch, now this doesn't happen every trip but Diamond and First do seem to carry even loads throughout the day

[Stu]

So Tony, essentially you're saying that 'short' routes can be more profitable for an operator, rather than longer routes? Unless you have a long route that many passengers only use part of, so there is a faster 'turnaround' of paying passengers of course.

[Tony]

So Tony, essentially you're saying that 'short' routes can be more profitable for an operator, rather than longer routes? Unless you have a long route that many passengers only use part of, so there is a faster 'turnaround' of paying passengers of course.

Both can make good money, but you just have to look at takings per hour, rather than takings per journey as it costs about the same per hour to have a bus on the road whatever it is doing, but to operate from Redditch Bus Station to Matchborough is obviously cheaper than to run from Redditch to Birmingham

[Ash]

Also I suppose it has to take into account the type of passengers for example all concessionary pass users or people holding an n bus or network pass will not bring in as much money as some buying a return or a single fare, not sure how much a conessionary or nbus/n network pass brings in revenue when one is registered into the ticket machine. Also i would think the type of vehicle would be taken into account a solo surely would have lower running costs than a 15 year old dart for example so would mean the running costs would be less which is maybe why diamond are going for the use of smaller vehicles replacing the older full size darts they have.

[richie]

I would have thought the n ticket revenue is collectively shared amongst participating operators of the scheme regardless of how many times the machine is used i would say the larger your network the more you get. It would be flawed if it was from times the machine is pressed if I was a small independent i would press it all day long

[Ash]

I would have thought the n ticket revenue is collectively shared amongst participating operators of the scheme regardless of how many times the machine is used i would say the larger your network the more you get. It would be flawed if it was from times the machine is pressed if I was a small independent i would press it all day long

Yeah because I have noticed not all diamond drivers register them on their ticket machines, I would think diamond just keeps a count on how many people use the n bus/ n network tickets on their services and what periods throughout the day.

[Stu]

It would be flawed if it was from times the machine is pressed if I was a small independent i would press it all day long

That's where the Centro survey teams come in, you occasionally see them sat in pairs on buses, asking to see your ticket/pass and asking where you're going to. From this data, they can soon find out which operators are claiming more concessionary/season ticket usage than is actually happening.

[jc]

30851, 30856 and 30861 at least carry the branding as well as either 30852 or 30859.

http://www.flickr.com/photos/55059449@N06/8267305448/in/photostream/lightbox/ - 30861

[tank90]

I like the Christmas branding it makes the town centre more festive. Its a shame all of them couldnt carry some of the Christmas branding.

[jc]

20913 - 63/60
20674 - 50/64
S405JUA - 70/A

for anyone who needs them or is off to Redditch ... although can't think why you would want to go to Redditch ;-)

[Tomjusttom]

20913 - 63/60
20674 - 50/64
S405JUA - 70/A

for anyone who needs them or is off to Redditch ... although can't think why you would want to go to Redditch ;-)

(Tis a tad of a dump)