CM'S Cost Tables are now ready
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Our 1982/83 Tables of Operating Costs published next week provide operators with a guide to their costs and assist them to quote realistic and profitable rates
CM's Tables of Operating Costs 1982/83 will be published next week. They can be purchased through our trade counter at Hopton Street, London SE1 9LU, through a local newsagent or ordered by post. The cost is £3.00 or £3.50 to cover postage and packing.
This year's issue contains nine tables of detailed information and covers commercial vehicles from 5cwt to 21 tons carrying capacity; single and double-deck buses; coaches; and saloon cars. They were compiled in association with Mercedes-Benz {UK) Ltd, Management Consultancy Services.
The tables also include details of operating costs at a variety of mileages, journeys per day and utilisation factors of 50 and 75 per cent. There are also tables of rates for these utilisation percentages for the commercial vehicles.
The base figures used have been compiled from those supplied by a wide range of operators, trade associations, manufacturers and suppliers. Budget increases have been included. Interest and insurance rates were calculated on information taken from financial and insurance sources.
The result is an accurate and comprehensive guide to what operators should charge to recover their costs and obtain a modest but sensible profit margin for their services.
While the tables are meant principally as a guide to operators' costs, they have other uses to which they have been successfully applied.
Haulage operators, when negotiating contracts, have used the tables, not only to compile their rates but to present independent evidence of their cost breakdown. Used in this way, the tables help to convince the potential customer of the validity of the quotation.
Insurance companies and brokers also make use of the tables when submitting or contesting "loss of use" claims.
New '0' licence applicants who have to satisfy the licensing authorities that they are financially viable and knowledgeable find the publication invaluable when making their application. We send a copy to every traffic area to assist the licensing authorities.
Copies of the tables at the traffic desk are an immediate reference for the traffic clerk faced with an urgent telephone enquiry for a quote. They take out the element of risk which is at best a "guesstimate". Each table shows the detailed breakdown of standing charges and running costs. This allows the operator to calculate the terminal costs involved when vehicles are unreasonably delayed at pickup or discharge points. Unpaid-for-demurrage is a costly item.
The standing charges are broken down into five elements. They are licences; wages; rent and rates; insurance; and interest. These costs are compiled on a weekly basis for a 40-hour week and a 45-week year. This takes account of the time when the vehicle will be idle because of holidays and servicing but when the costs will go on.
The running costs are based on pence per mile and incluc fuel; lubricants; tyres; mainter ance; and depreciation. Tote are shown at steps of 100 miles Because of their specialise role, tippers have a table di voted to their costs, as have a ticulated vehicles.
Examples of costs for th same vehicle operating in di ferent circumstances can drawn from the utilisation char To illustrate the point, we take five-ton diesel van.
Operating over 200 miles pe week covering one journey pe day with no return load, th operating cost per ton is calci lated at £22.29.
The same vehicle with half of return load on the same mileag costs £14.86 per ton. The cost c an eight-ton tipper loaded on way only, making three drops i a day is £7.57. Making fly drops, the cost falls to £4.54.
This type of information pri sented to traffic staff encourage them to sharpen their operatin techniques. It also encourage the customer to ensure a quic turnround at discharge points.
The tables are also used h hauliers' customers as a mean of comparing quoted rates. The use them to ensure that the rat is neither too high nor too low.. low rate suggests that corner are being cut and responsibl users of transport are aware c the pitfalls of indiscriminate rat cutting.
Budgeting is an essentii management tool. Accountani use our tables when estimatin the company's transport c distribution costs before th start of a financial year.
Individual operators will fin that their costs in some area vary from our published cost: This is particularly true of rer and rates.
However, even if the tot costs vary by as much as £1,00 per annum, over 20,000 mile: the difference in cost per mil would be as little as five pence.
The 1982/83 tables include fuel cost calculator for a range ( fuel prices. They cover perfom ance figures from 7mpg t 35mpg.
There is also an updated tram port directory showing th addresses of authorities, ass( ciations, trade unions and oth( transport bodies. This has bee corrected to show the este( lished and planned organisatio for traffic areas and the Roa Haulage Association.
Orders should be sent as ear. as possible with the approprial remittance. Please allow thre weeks for receipt, which coul be affected by circumstances b yond our control.