London Midland Admin Charge

Dogger69

Crabman wrote: »

Here's a previous post of mine, in case you didn't see it

So you didn't say:

Crabman wrote: »

Use some common sense and consider what happened when MSE started pushing for bank charges refunds. Same for MSE's PPI reclaiming campaign. Did the banks successfully justify their costs or did they end up paying out £billions?

Remind me which of these found admin fees to be unlawful? :rotfl:

Crabman

Dogger69 wrote: »

Remind me which of these found admin fees to be unlawful? :rotfl:

Again, you're ignoring my post and instead trying to change the topic by referring to something else entirely.

I never said admin fees were found to be unlawful. I simply referred to MSE's record on challenging admin fees. Anyway, it seems you're just out to argue for the sake of it so I'd suggest we let this one go.

Andy_L

Crabman wrote: »

Glad you agree.

If other train operating companies were to follow suit, it would be good news for consumers.

Good news for customers who have to ammend/cancel tickets. Bad news for those who don't whose ticket price will have gone up to cover the admin costs

DCodd

p00hsticks wrote: »

It may be a fixed cost, but it doesn't mean that it shouldn't be factored into the prices charged - it just means that the price set should depend on how many transactions are made. The more transactions there are for the fixed cost to be spread over, the lower the price needs to be for the operator to break even on the operation.

So you will determine the price you charge for making an administrative change by looking both at the fixed cost of putting the equipment in place to offer that service and the variable cost of staffing.

yangptangkipperbang wrote: »

You obviously have never employed anyone yourself ! If you take into a account all the "extras" the employer has to pay: - NI, Insurance, Business Rates, building costs/rent, heating/lighting, IT equipment/infrastructure, furniture, pension - the true cost of employing a person is a lot more than their hourly wage.

A rule of thumb figure is that a single employee needs to bring in 3 to 4 times their salary to make it worth their employer giving them a job...............

I'm sorry but you are both so very very wrong. If you built a large scale business on that kind of model you would be bankrupt inside 6 months.

The ticket prices or what you charge for your products / services have to include those basic infrastructure costs end of, you can't rely on speculative "extras" to cover your overheads. So an administration cost is to cover administration, it should not be part of your profit generation.

tripled

DCodd wrote: »

I'm sorry but you are both so very very wrong. If you built a large scale business on that kind of model you would be bankrupt inside 6 months.

The ticket prices or what you charge for your products / services have to include those basic infrastructure costs end of, you can't rely on speculative "extras" to cover your overheads. So an administration cost is to cover administration, it should not be part of your profit generation.

A lot of Ryanair's revenue is based on speculative "extras", I wasn't aware they were on the verge of bankruptcy.

DCodd

tripled wrote: »

A lot of Ryanair's revenue is based on speculative "extras", I wasn't aware they were on the verge of bankruptcy.

No It's not. You misunderstand Ryanair's business model.

tripled

Over 20% of Ryanair's revenue is classed as ancillary revenue. This includes a range of additional income sources of which "speculative extras" form a part. The "extras" in the context of punitive charges also have the effect of helping reduce operating costs. If Ryanair offered free airport check-in for example, more people would check in at the airport and they would need to employ more check-in staff (at a cost). So "speculative extras" are vary much a part of Ryanair's business model as they serve to increase revenue and decrease cost at the same time.

A small proportion of Ryanair's main revenue will even be as a result of "speculative extras". Previously having made a mistake when booking a flight I simply rebooked as it was cheaper than contacting them to resolve the issue. I'm sure many thousands have done this, boosting revenue and reducing the number of staff needed to deal with enquiries.