We thought we would consider how breakdown cover organisations like The AA now diversify into as many financial areas as possible to increase bottom line profits. Of course many breakdown cover motoring clubs (as they were once known) as owned by insurance or financial organisations and see breakdown cover as an add on product rather than the main one.
In order to understand this more we are today looking at the homepage of the AA, to see what other services they sell and what you are likely to see in your emails, contact details and hear when talking to the sales call centre.
As far as the menu is concerned the homepage shoes the AA breakdown cover service as first, but when it comes to images the car insurance sticks out more., it is then followed by home insurance and the AA credit card. The largest area is dedicated to the new home breakdown cover service , which is probably expected with a new service. Move down the page below the fold and you start to see a whole array of other services, starting with Loans, then travel insurance, before travel themes finish off the homepage.
The AA has always been involved in travel by car, from rating bed and breakfasts to restaurants, but now all types of travel are part of its portfolio. A question we don’t know is, does these extra services support the AA breakdown cover service, in keeping costs down as economies of scale kick in. Or are they measured separately and are another way of added more money to the bottom line.
Continuing the theme of bringing breakdown cover news or information to you, the AA wins hands down on this front. The AA press release page on their official site is by far the best from the top 3 breakdown cover providers. Of course the news goes beyond breakdown cover and focusses on just about everything teh AA does from insurance to raod safety and even news information aimed at cyclists or any road user, but just about everyday some news item is added to keep the press and possibly us here at breakdown cover today filled with news.
Last week we had stories on motoring authorities being sympathetic to the postal strike, new AA publications and the AA credit cards release, which has nothing to do with AA breakdown cover granted, but at lease it is news as it happens, rather than a half hearted attempt at publishing something. Other weeks the news could be totally dedicated to breakdown cover, so it is swings and rounabouts. Anyway, for us it is a shame the other 2 top guys don’t do it a s well.
No this is not a lot of camels pulling a tractor, or 2 guys rolling over a van that we see on you tube, but the Western India Automobile Association just like the AA here at home. It was founded in 1919 just after the first world war when Brtian pretty much ruled the country still and with it so left some customs and ideas. In 1919 the Western India AA was set up with the same ideas as the Automobile Association had back here in the UK, inspired by the french equivelant organisation. Even now there badges look the same as back here in Blighty and although is a far bigger country (even just the western bit) there is also a need for breakdown cover out there too.
As india develops into one of the Super States it should be no surprise that organiastion like the AA will expand to the same amount of resourse than elsewhere in the world. The need for breakdown cover will explode as more and more Indians are now buying newer cars that justify the expense rather than the tractor and run down vehicles they may have used. Communications, newer cars and a corproste lifestyle is what teh avaerage Indian is looking for and breakdown cover is likely t grow with its economy and who but the established AA will have a the best opportunity ot capitalise on it.
If you want to know how the AA (Automobile Association) used to market themselves back in the 80’s take a look at this old advert. The first thing you will notice is the Ital vans (not the best decision) and the AA patrolmen used to wear uniforms similar to the army. In those days the AA was still seen as a motoring club rather than an insurance policy as it tends to be now, but you get the idea.
Ironically the price of an AA breakdown Cover policy was not that much different than it is today, when you take into account inflation, wage rises etec, it is quite astonishing how cheap breakdown cover has generally become. Your paper bill for the month is likely to be moer expensive that a full years roadside policy. This is the main benefit of running your business online and using the economies of scale of an insurance company. cars today are mor reliable and most of its problems tend ot be human related, such as flat batteries, locking themselves out or clipping a kerb and damaging the wheels. What is sure, even from this old TV advert, is even with more reliable cars, there is still a need for breakdown cover for mosts motorists.
We heard a rumour not so long ago that the AA basic roadside premium was going up above the £30 mark. But when we have checked today online it is reading a clear £28. For those who do not visit the AA breakdown cover website very often may be a bit confused on pricing as it often tends to be cheaper than the prices advertised on TV. You have to presume it is the administration costs of running a sales department, or possibibly to cover the costs of TV advertising we are not sure. But what is certain, you can always get the cheapest option direct from the AA by visiting them online, even when their prices are in line with press and TV.
It is also possible that both Green Flag and RAC did not follow with a price rise at the end of summer, so a quick U turn was needed to bring them into line with the other national breakdown cover suppliers. This tends to be a quiet time with breakdown cover as long summer holiday journeys are no longer occuring and it is not cold enough yet to have starting issues. So we wait for busier times.