Check your rates with CM'S Tables
Page 41
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CM'S 1983/84 Tables of Operating Costs, on sale now for £3.50 including postage, covers the range of vehicles in most common use.
The tables have been compiled in association with Mercedes-Benz Transport Consultancy, a subsidiary of Mercedes-Benz (UK) Ltd.
All too frequently we hear that operators cannot get the rates we say should apply. Subsequent inquiries usually indicate that overheads are being charged at less than the 20 per cent we recommend.
In our experience, anything less than 20 per cent for these items is a step towards unprofitable operation.
Our figures are shown at a variety of mileages. They also are shown as 50 per cent utilisation or 75 per cent. We have assumed that vehicles are never fully laden on every mile they cover. Nevertheless, the operator must recoup the cost of dead mileage.
Therefore, a vehicle travelling 100 miles fully loaded and returning half loaded is 75 per cent productive but the round trip cost must be included in the rate.
On the bus and coach side of the industry the same rules apply. Probably the most contentious point in the tables is our calculation of interest. Whether this is paid in the hire purchase or bank overdraft cost, it is on cost, and is normally charged. However, there are those operators who do not pay interest; they purchase from capital reserves. They do not include interest in their charges — they should. If the amount used to purchase the vehi been invested it would ha attracted interest.
Burying overheads, cut maintenance and ignorin! interest will reduce haula! rates but accelerate bankr
Another heavy item of ( expenditure is the vehicle duty, which is paid in adv This also would attract int invested.
CM'S tables are widely wisely used by operators compare their own rates, transport users to check quotations from hauliers insurance companies to compute loss of use clain They are meant to be u a guide. Local authority r vary across the country. Operators can obtain sut discounts or take-back pr new vehicles. These item create small variations.
Insurance cover may v between brokers, in the a building, for identical co) Thousands of operator their customers take CM Tables of Operating Cosl year. It is their guide to profitability. This is a put you cannot afford to mis
The 1983/84 edition is available now. We will b, to quote groups for bulk in excess of 50. Write to Publishing Director, Con Motor, Quadrant House, Quadrant, Sutton, Surre 5AS.