Supplying and Maintaining a Vehicle.
Page 48
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The Editor, THE COMMERCIAL MOTOR.
[3406] Sir,-I have been a reader of your journal for a number of years and wonder if you will be good enough to help me in the following contract : I am supplying a new Ford 30-cwt. lorry to a firm of builders and have been asked to contract to keep it in perfect order, including tyres, for one year to five years, but each contract must state first year, second year, and onwards; mileage 10,000. The driver has to wash, oil and grease it once a week and they buy all new spares and I have to fit same.
I have made out a price, but I should like your
figures to check it. MAINTENANCE. Bolton.
LI must, as a preface to this reply, warn you that the operating costs of a vehicle engaged on building contract are higher than the average.
The running costs per week of your 30-cwt. vehicle (with petrol at is. per gallon) will be: Petrol, 1.00d.; lubricants, 0.05d.; tyres, 0.90d.; maintenance, 1.00d.; depreciation, 0.65d.; total, 3.60d. In a year, covering 10,000 miles, that amounts to £150.
Your standing charges will be : Licences, £25; wages, £172; rent and rates of garage, £26; insurance, £22; interest en first cost, £10; total, £255.
Take your establishment costs and allowance for contingencies not included in the above to be on the average £1 per week, total £52.
Allow for profit, £2 per week, 1104; grand tam], £561.
Deduct from that, say, £21 on account of spares supplied by your customer, and the net result, £540; is the appropriate charge for the contract.
You should, in your arrangements, make a charge of 6d. per mile excess of the 10,000 miles embodied in the agreement.-8.T.R.]