PROBLEMS OF THE HAULIER AND CARRIER.
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A Coach Contract for a Golf Club.
THE use of a motor coach during the summer months on a contract basis is quite a common business transaction; therefore, no excuse. is needed for dealing with this subject, as no doubt many of our readers are placed in a similar position to that of the inquirer to whom I am referring in the present instance.
The committee of a golf club desires the use of two motor coaches until September 30th, apparently for transporting members of the club from a local station or other point to the course and back. While so employed each vehicle will cover 500 miles per week.
Giving an Estimate on a Mileage Basis.
The inquirer wants to know what it will cost him to run his two vehicles, including everything, and also what minimum rates of charge should be made to the club for the use of the vehicles as specified. In this class of work the carrier is rather fortunately placed in one respect, as he is not concerned with the number of passengers ; the estimate is made upon a mileage basis, and consequently, whether two passengers are carried per trip or the full number for which the vehicle is designed, does i'iot interest him so far as his income Is concerned. .
The vehicles in question are both 14-seaters, the one a Ford and the other . a somewhat larger vehicle. The type of tyres employed is not specified, but I presume that pneumatics are the equipment in both cases.
One piece of information is available which must be taken into account-namely, garage costs. This is not exactly definite in one respect, the inquirer stating that garaging amounts to £24 per year ; but he does not state whether this is the sum paid by him to a garage owner for housing his vehicles, or whether it is merely for rent of the premises which he hires himself. In the latter case there may be an extra amount for rates to be added, but I shall work on the ground that the £24 per annum for the two vehicles includes everything. Should this not be correct, the inquirer must make his own adjustments in accordance with the circumstances. A sum of 4s. 8d. per char-h.-banes per week will, therefore, be calculated upon in arriving at the standing charges.
• The Costs of a Ford as a 14-seater.
Dealing with the Ford, in the first instance, the figures given in The Commercial Motor Operating Costs Tables cannot be rigidly adhered to, as the Ford is reckoned therein as a ten-passenger vehicle. I have amended tha figures slightly, and I think the following represents a fair statement of accounts so far as running costs are concerned :Fuel, 1.12d.; lubricants, 0.17d.; tyres, 0.69d.; maintenance, 0.99d.; depreciation, 0.7d.; total, 3.67d. per mile. Standing charges will be made up as follow :-Licences, 9s. 10d.; wages, £3; rent and rates, 4s. 8d., as previously mentioned ; insurance, 11s. 8d.; interest, 4s. 6d.; total standing
charges per week, £4 10s. 8d.
The weekly mileage Is 500; therefore to obtain the weekly operating costs, the running-cost figure is multiplied by 500 and the standing charges added ; we get £12 3s. 7d. as the total weekly expenditure for the Ford. The cost per Mile will therefore be 5.84d.
Turning now to the other vehicle, the running costs will be as follow :-Fuel, 1.25d. ; lubricants, 0.I6d.; tyres, 1.40d.; maintenance, 1,I5d. ;depreciation, 0.90c1.; total, 4.86d. per mile. The stand
ing charges are :-Licences, 9s. 10d. ' • wages, ' £3; rent and rates, 4s. 8d. ; insurance, 11s. 8d. ; interest, lls.; total weekly standing charges, £4 17s. 2d.
For the 500-mile week the total expenditure will be £14 19s. 8d., which equals 7.19d. per mile,
Having ascertained the costs of the job, the next problem is the charge which the carrier must make for the use of his vehicles, So far as the Ford is concerned, I think he will find that £17 Os. per week, or 8.304d. per mile, will be about right, and £20 per week, or 9,6c1. per mile, for the other vehicle.
The figures just quoted will yield a profit of £3 12s. 5d. per week on the Ford, plus £1 10s. for establishment -costs allowance, arid the profit derived from the other-vehicle will be £3 10s. 4d., plus the same allowance for establishment expenses.
During the period of use, which is a day or two over 17 weeks, the two vehicles will earn a combined profit of £121 Os. 9d. for their owner.
As to whether this sum represents what is desired, I must leave the inquirer to settle. It should not be overlooked that this is a summer-time job only, and he must bear'' in mind that, should the vehicles, or one of them, be laid up during the winter owing to lack of work, the full amount of Profit desired for the year must be obtained during the working season.
Quoting a Combined Price for two Differing Vehicles.
In all prObability, in estimating to the club committee,• it will be advisable to quote a combined figure per week or for the whole job, as both coaches are 14-seaters, but their operating costs vary somewhat. Those engaged in the carrying trade will recognize the fact that the layman may jib when told that one vehicle costs more to run than another of equal capacity.
The wage figure in respect of each vehicle has been put down on the assumption that only one driver will be required per coach. Should extra long hours have to be worked and double shifts be required, a proportionatkly higher allowance must be made. It is quite possible that, in the event of a constant service being required to meet trains, three men for two coaches may facilitate arrangements at meal-times and reduce working .hours slightly, Maintenance figures require a little thought owing to • the circumstances of the case; those quoted hold good for normal average conditions. The job in question looks like a seven-day week and a 12-hour day, in which case upkeep and repair work will have to be carried out late and early, involving overtime rates. If the inquirer runs a spare vehicle its use may help matters in this respect, but he must make adjustments in accordance with his own judgment. At the rates reckoned upon in regard to maintenance figures, the allowance for 17 weeks for the two coaches will be £75 15s. 10d. Whether this amount will be a correct provision must be settled by the carrier concerned. s.p.n.