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G raham Fuller, managing director of Birminghambased Fuller and Sons, estimates
Page 38
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an average profit margin in haulage to be in the region of 5%—not a patch on Geoff Cecil's 27%. Fuller says he would like to give the cost-plus system a try. it would suit me as it would mean you have a guaranteed amount coming in. As things stand, it seems you're not allowed a decent profit in haulage, and you end up fighting against each other for the highest rates, or having to fall in with rates set by the big customers."
When CM explained the way costplus works and the results it can get, Jeremy Robbins, transport manager of Warwickshire-based CW Knight, said: "Can we have a go please?" Although sand and gravel transporter C&W Knight is in a slightly better position than most in that the company effectively sets its own rates. Robbins admits that margins are still "very poor", and nowhere near approaching 27%. "Ideally we need some kind of national system where costs are set. But this would be very difficult to instigate as the industry is so fragmented," he admits.