will then know, within a penny or two, what profit
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he can make from a job at a given charge. It is then that he appreciates the value of the oiler's lower costs. And that may mean all the profit to be made on the job.
The saving effected by the use of the oiler should go into the pocket of the haulier. It should at least be enough to iurn the scale in his favour as compared with his petrolengined vehicles, because he can compete and still be sure that he is not rate-cutting, because he is working at a reasonable profit.
In other words, the oiler puts him in a better position to bargain in cases where the profit is narrow and earns him a bigger profit in those cases where the profit at the rate quoted is good enough anyway.
Another critic points out that in last week's article I set out to advise an inquirer, a beginner, what kind of haulage he should enter but that I did not give the inquirer the information he asked for. He says that I set out all the pros and cons of several branches of haulage but did. not state which the inquirer should take up.
He is quite right: and he will continue to be right, for I cannot give that answer without knowing the man himself. It is the personal element which decides the choice, hence my evasion of the -real point at issue, Perhaps I should go over the ground again, for the benefit of the many readers of this journal who also are desirous of starting out in the haulage business.
My inquirer had a capital of £1,100 which is, as a matter of fact, insufficient. He reviewed the situation as it applied to one in his position. He asked me to consider the following alternatives and direct him to the one which seemed best to me.
He asked first about contract-A licences. My view of these was they were a way of entering the industry through the back door. It was full of pitfalls for the unwary. Only too often the merchant who considers it is, perhaps naturally, seeking a way of getting his haulage done on the cheap. Indeed, the only safeguard the budding haulier has is that the Licensing Authority will himself examine the contract and will grant the Licence only if in his opinion the rate is an economic one.
Work from Clearing Houses
He is on safer ground if he buys a vehicle from someone who has a special A licence, provided he is sure that the vehicle is worth buying—many are not. With such a licence, however, if he has not been "stung," he can make some sort of a start. He will probably have a thin time for a year or so and would be well advised, having obtained the special A licence, to obtain a job which will keep his vehicle going for part of each week. He asked if he could rely on work obtained from clearing houses to make up the rest of the week.
Given a right choice of clearing house, he may quite likely be on the right track there But I cannot say whether that would be the best thing for him to do. His case was interesting inasmuch as he had the right idea as to the way to regard his capital. He proposed to buy a used 7-ton oiler, " carefully vetted" to be paid for outright. His inquiry about revenues rather emphasized his lack of experience. He asked if a revenue of £20 to £25 per week would be sufficient as earnings. The answer to that was that the bare operating costs of a 7-ton oiler total £32 at least.
This man was of the adventurous type: he eschewed local haulage because he preferred to take up long-distance haulage. Yet he was cautious in venturing into the more difficult kind of business. That characteristic justified me in recommending him to take up long-distance traffic but only if he were fortunate enough to acquire a sound vehicle.
If he made a mistake, it might well cost him enough in delays to ruin his chances.
I thus made as good a recommendation as was possible in the circumstances. He would at least have to work hard. as he envisaged when he said he expected to have to work as many hours as the law allows. I must, before I leave this problem, give this budding haulier a word about overloading, as being something which beginners should avoid. There are no figures for the cost of Operating overloaded vehicles. Users who overload consistently will not admit the high cost of such procedure.
Actually there is hardly an item of running cost which is not affected. As regards fuel, for example, overloading causes an increase in fuel costs which will be increased.* proportion to the gross weight of the loaded vehicle. If, for example, as in this case, the load carried on the 7-tonner is usually 10 tons, as it may well be, the fuel-consumption rate will be 20 per cent, more than the average should be.
One difficulty which arises when overloading is continuous is that in a district which is hilly the proportionate increase in fuel cost due to overloading will be the more severe. Its cost will rise more rapidly than is to be expected in flat country.
Another item of running cost which is affected by overloading is tyres, A good deal depends on the size of the tyres fitted in the first place. If these are accurately proportional to the rated load of the vehicle, overloading will greatly increase the tyre cost. Indeed, the first point! would make in discussing the wisdom of overloading would be in respect of tyres. If the tyres first fitted are of ample dimensions, adjustment of the pressures might save the operator some part of what he would have to spend on tyres. I do not suggest, however, that increasing the pressure will enable a vehicle to be overloaded with impunity.
Rapid Clutch Wear The one item of operating cost which is undoubtedly liable to suffer in consequence of overloading is maintenance; almost every aspect of the mechanical side is affected. Rapid wear of clutches and brakes can be expected. An engine that is driven all out, as it must be when the vehicle is overloaded, will need overhauling including reboring sooner than one which is not overloaded. The same caution should be taken in connection with repairs to bodywork.
Above all, the tyro in the haulage business should realize that increased cost of maintenance is bound to result from overloading. The worst of maintenance costs is that not only does the work cost more in the case of an overloaded vehicle but it also involves the vehicle being off the road, and the cost of that to the haulier is much more than he thinks he saves by Overloading. So, my beginner, the last word of my recommendations to you is: "Do not on any account endeavour to make good any deficiencies in revenue by taking on loads in excess of 7 tons."