(Weston Association of Professional Driving Instructors)

Incorporating North Somerset & District areas

APPROVED DRIVING INSTRUCTOR (ADI)

ON TARGET EARNINGS (OTE) OF £30,000

Advertising often seen from Driving Instructor Training Organisations. 

How realistic is this and what could be your realistic take-home earnings? 

Your initial cost in earning your ADI Licence may be several thousand pounds in training fees, with no guarantee that you would qualify in the end. 

Many Driving Instructors start out this way and if successful in earning their ADI Licence, may be tied to a weekly franchise fee. This could be several hundreds of pounds each week, depending on the options available. Full franchise would include a car and all running costs (except fuel and maybe tyre damage etc.), Advertising, supply of Pupils and some Administration. At a fee of £300 per week, this is likely to cost £15,600 per year, plus additional costs such as your fuel. 

An alternative would be to become Independent, buy your own car, dual controls, insurance, advertising and pay for any servicing, repairs and carry out your own administration. This may reduce considerably your outgoings, giving a greater return, subject to a good supply of customers. Some strike alliances, working independently, but can share costs such as advertising and also cover for holidays. 

A good teacher/pupil confrontation weekly rate would be 28 hours, a lecturer would only expect 22 hours. On top of those confrontation hours, there will be some that are unproductive in terms of receiving an income, such as travelling time between home and customers. This could be as little as 15 minutes, but if you are expected to cover a large area it could be in excess of 45 minutes. There will be hours that you will be unable to fill, others cancelled or postponed (illness, overtime etc.) then there is the off road time such as your training (Continuous Professional Development [CPD]) telephone calls, servicing (replacing damaged tyres, refuelling etc.) and of course your individual book keeping, lesson preparation – notes etc. You may also wish to take a holiday. The longer your working day and week, the less likely you will be able to provide continuous good quality instruction.  Most of your customers are likely to work normal working hours, or attending college or university. This will mean much of your working day will be outside of your normal 9 to 5 working weekdays, so mostly unsocial hours. 

In the first few years the new ADI will be gaining experience, the learning never stops. To gain that experience you may be expected to work long hours for little return. 

You will see advertising, in the local press, ‘Your first 2 and even 5 Hours Free’, ‘Your first 5 hours for £20’, then Hours at the rate of £10 and £15. As a new ADI or one who is undergoing training, you may be expected to accept these rates. You will be learning on the job as you are teaching your pupils. Initially you are unlikely to be in a position to fully prepare a pupil to the standard required for that pupil to pass the Driving Standards Agency (DSA) Driving Test and should therefore be receiving guidance and help yourself.  The probable reason for the low rates advertised, is that those in question are struggling to attract enough customers. The established ADIs’ business will be mostly via referrals.

THE FIGURES 

£30,000 OTE. At £20 per hour this would equate to 1500 hours. 

Working 50 weeks a year, you would need to work 30 earning training hours per week.

For a 6 day working week, that would be five earning hours a day. If you allow an average of 30 minutes travel time at the beginning and end of your day also between lessons and if you could run them consecutively without a break, that would mean an 8 hour day, snatching lunch en route. Of course it doesn’t work like that, as you will have some busy and some quiet times. The quiet times can often be filled with the rest of the non earning activities.  In reality, your working day, except for holiday periods, is likely to be spread over 10 to 12 hours (60 to 72 hour week). Consider the effect of working these hours on your health, home life, plus the quality of the training you give is likely to be adversely affected. 

Working these hours to achieve this income level, means that you will have to immediately replace those that pass their Driving Test, those that cannot continue with their training (lack of funds, moved, illness, not for them etc.), or just unhappy/frustrated with their perceived lack of progress.  

Do a very good job, achieve regular good results and in a reasonable time scale, that will help to earn you those valuable referrals. Advertising is also important so that your potential customer can find you. 

Do expect and prepare for some lean times. 

Many of the long established and successful Driving Schools are independent, many with an additional income from a previous successful career and consider using their life experience skills to help in teaching the skill of driving, not just as a business but a vocation carried out with passion. 

If you come in to the business with a training organisation, with the aim to become independent (that is when you know you have succeeded, and it’s the vocation for you), you will be competing on price with those very same organisations, so your continued earning level is likely to be much less.   Any drop in lesson fee level, will naturally reduce your income. For example; at £15 per hour, for those 1500 hours, this would result in an income of £22,500, but your outgoings are likely to remain at about the same level.

COSTS FOR THE INDEPENDENT ADI

The major cost will be your Car. This is your work place, the place you hope to spend the majority of your time. It will need to be comfortable (air conditioning a must), have a wide range of adjustments to seating, steering etc. to cope with those varying sizes of customer, rugged and reliable, to cope with unintentional abuse, good fuel consumption (Diesel – also more robust) this will give you more miles (return) for your money, Dual Controls (piece of mind) and Car Signage.  CAR; £8,000 to £12,000. Expect a fairly high depreciation level of £3,000 to £5,000 which is not uncommon for the first year.

FUEL; Diesel at time of writing, is 96 pence per litre (£4.36 a gallon). Taking an average one hour driving lesson; travel to and from client 20 miles, 80% of lesson driving experience adding a further 16 miles and the other 20% manoeuvres/theory/administration, total 36 miles. For 1500 lessons a year = 54000 miles a year and at 50 mpg (diesel), giving a total cost of over £4,700. 

CAR SERVICE, INSURANCE AND REPAIRS; £2,000 to £3,000 per year. 

STATIONERY, ADVERTISING, FEES (ADI licence, association, accountants etc) AND INCIDENTALS; anything from £600 to £2,000.

IN SUMMARY

Taking an average of all figures and assuming an achieved 1500 earning hours 

INCOME; 1500 hours at £17.50 = £26,250 

OUTGOINGS; Car depreciation (£4,000), Fuel (£4,700), Service etc. (£2,500) Stationery etc. (£1,300) Total = £12,500 leaving an income of £13,750 less of course the dreaded Tax and National Insurance at 30%.