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OUR TABLES OF OPERATING COSTS.

9th November 1926
Page 81
Page 81, 9th November 1926 — OUR TABLES OF OPERATING COSTS.
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An Invaluable and Indispensable Guide to Economic Vehicle Operation.

ONE of the features of Me Commercial Motor which has always proved extremely valuable to our readers and one which produces a large volume of appreciative correspondence is the series, of tables of operating ccsts for all types of commercial motor vchicle. In these tables we divide operating costs under two heads: (1) the running costs and (2) standing charges. Running costs embrace the five separate items of FUEL, LUBRICANTS, TYRES, MAINTENANCE and DEPRECIATION, because the expenditure in connection' with each of these is controlled by the amount of mileage covered. Standing charges embrace five items, LICENCE DUTIES, WAGES OF DRIVER AND ATTENDANT, RENT AND RATES OF GARAGE AND REPAIR SHOP, INSURANCE, AND INTEREST ON THE CAPITAL LOCKED UP IN THE VEHICLE. These charges go on even if the vehicle be standing idle.

The running costs are worked o-it at so much per mile, and the total cast in the course of a run or of a week is readily ascertained by multiplying the figure given in pence per mile by the number of miles covered.

Standing charges are given in weekly totals. The total of running costs and standing charges added together give the operating costs. Our tables specify these in pence per mile (which, of course, varies with the weekly mileage covered). They also specify them in the total cost of operation per week-again dependent upon mileage. To the figures thus arrived at we recommend the haulier to add an abitrary figure (which we specify) for his establishment charges (office rent, cost of telephone, postage, etc.) and the profit or remuneration he expects for his work. Then, with, all these figures, he is able to determine the minimum charge which he should mike per week or per mile for the use of his vehicle, and these figures are set out in complete detail according to the mileage covered.

The basis of our figures has been a mass of information which has been submitted -CO us in confidence by hauliers and carriers all over the country. It has been inevitable that our figures must be average ones, covering not only the transport business which is conducted in the flat Fen district, but also in the mountainous country of North Wales and the hilly districts of Devonshire and Derbyahire, but, as we explain very fully, in the preface to our tables, a haulier or carrier is able, therefore, to make his own modifications as a basis for the elucidation of his problems.

These tables are published from time to time and were last made up in March, 1926: There has been practically no alteration in costs since that date (for, although tyres were increased in price, they have now come back to the March figures). We then published them in pamphlet form and also in a form suitable for the pocketbook, and we issue them freely to all applicants, because we feel that it is desirable that the haulier quoting for a job should be fully versed in the matter of his costs.

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