I have heard many myths and poor advice amongst the forums and driving instructor communities about the way to cost a lesson. From ‘ring round and charge £2.00 an hour less to pitch your price in the middle. Usually this is advice from an instructor who also complains about the cheapness of driving lessons. Let’s make this clear, it is Driving Instructors who dictate the price of lessons and it is this fundamental flaw that and belief that all the pupils want is cheap lessons. This has been generated by a succession of Instructors who have failed to price their business properly and many of whom have now gone bust. Remember, 95% of business fail and 4 out of 5 instructors go bust within 2 years so if you are going to survive you MUST get this right.
Below is an example of how to work out your charges. Fill in your own figures and see what it works out for you.
| Independent | Cheap Franchise | 1st 4 Driving Associate | |||
| Franchise/associate fee | £N/A | £150.00 | £23.38 (standard fee) | £44.60 max | |
| The car (lease) | £72.00 | £N/A | £72.00 | ||
| Fuel=No. of lessons x £3 | £102.00 | £102.00 | £102.00 | ||
| Service 2x year | £5.00 | N/A | £5.00 | ||
| Advertising | £25.00 | ?? | £included | ||
| Website | £9.42 (min) | N/A | £Included | ||
| Mobile website | £2.88 | N/A | £included | ||
| Theory materials | £5.00 | £5.00 | £Included | ||
| Stationary materials/ paper/ print cartridges | £2.00 | £2.00 | All online | ||
| Car Insurance | £10.00 | £10.00 | £10.00 | ||
| Tyre’s | £2.00 | N/A | N/A | ||
| Accountant fees | £2.50 | £2.50 | £2.50 | ||
| Pension | £20.00 | £20.00 | £20.00 | ||
| National Insurance | £2.50 | £2.50 | £2.50 | ||
| Weekly outgoing’s | £262.80 | £299.00 | £242.38 | ||
| Net cost per hour of | £7.73 | £8.79 | £7.13 | ||
| National minimum wage | £6.31 | £6.31 | £6.31 | ||
| Adjustment** | £8.53 | £8.53 | £8.53 | ||
| Minimum price per hour must be | £16.26 | £17.32 | £15.66 |
**Working week (hours)
Conducting lessons 34
Assuming 10hrs travelling 10
Paperwork 2
Total = 46hrs
National minimum wage currently £6.31 so 46 X £6.31 = £290.26
Adjusted so £290.26 is divided by number of paid hours = £8.53 per hour
