Another Invaluable " GM." Publication Which Aids Economy T HE simplest
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way of ascertaining, week by week, the operating costs of commercial vehicles is by using The Commercial Motor Operating Costs Record. It is simple because it requires the minimum of clerical work on the part of the haulier and because the information, when compiled, can be easily understood and quickly converted into figures for rates and charges. I invented it in the first place with one idea only-to ensure that small hauliers, who were so liable to cut rates, should know, week by week, what their vehicles were costing.
I felt that if I could devise some means whereby such operators could easily ascertain their costs, they would be willing to go to that small trouble. Having done so, they would have before them, every week, figures showing their real expenditure, which they could compare with weekly earnings.
My chief concern was to take precautions to ensure that none. of the 10 items of operating costs was overlooked, so
that although, in any week, actual expenditure on some item was not incurred provision would, nevertheless, be made for it. If the reader will cast his eye over the accom
panying reproduction of a page from the Costs Record, he will appreciate what. I mean by that and learn how I have achieved my object.
TOTAL FOR WEEK 792
‘2
RUNNING COSTS
Con of Fuel 124....gali. @.././:-.) ' Cost ofL.A. Oil (,,f F.". a fd: )
Cat. of Tod. Muntan.e.
and DaprrOasen (Ng,lfel ...§,2106
R.,..nlrtS CON-TOTAL
Running Cost-PER MILE
STANDING a4A1GEs
Tax • Ingoranee + Roue • Inter=
Wag,., (Ind.udiq IASUftneel 3.1141ng Chwv...-.TOTAI.
SE.ndins 4=11,..261.--PER HOUR
i4r6.1 Figures Extracted from the New Costs Tables Look first to the lower half of the page, to the item "Cost of tyres, Maintenance and depreciation." In the typical example chosen that is priced at 2.78d. per mile. That figure is obtained from The Commercial Motor Tables of OPerating Costs. Referring to the new Issue of those Tables presented with this issue and looking under the heading of 5 tons "running costs (pence per mile) 600 miles per week" the figures required are: Tyres, 0.75d.; maintenance (d), 0.22c1.; maintenance (e), 0.98d.; depreciation, 0.83d. The total is 2.78d.
Next, a little lower down, is the item; tax, insurance,' rent, interest. Those figures the operator will have for himself. I have actually taken them, from this new issue of the Tables, with a little addition to the item " insurance." I have taken 12s. for tax, 10s. for rent and rates, 15s. for insurance, and 5s. 9d. for interest, arriving at the total of 22 2s. 9d. It is important to note that these figures, once they have been ascertained, will stand for that vehicle for a year and, possibly, several years.. That piece of clerical work, therefore; does not have to be repeated for quite a long while.
During the week, or at the end of the week, whichever.. may be more convenient, the upper part of the sheet is
compntecl. I take it that no explanation is needed for that.
If someone criticizes the fact that the quantity of fuel rut into the tank is not an accurate measure of the amount actually used, as there may have been some in the tank to commence the week and none at the end, or vice versa, then I agree with him, but suggest it does not matter because in the course of a year the inaccuracy will have become so small as to be unworthy of consideration.
Having completed the top half of the page, turn again to the lower half, In connection with the cost oT fuel there are 75 gallons at 2s. per gallon, which is £7 10s.; cost of lubricating oil, 3 pints at"8c1., 2s.; cost of tyres, maintenance and depreciation, 792 miles at
2.78d., 29 3s. '6d. Thus, running costs for that week, namely, 216 15s. 6d., are ascertained, and nothing has been overlooked.
The haulier may, or may not, wish to know the running costs per mile. If he does, all he need do is divide 216 15s. 6th by the 792 miles run; he will find the answer to be 5.08d., which is 5(1, per mile as near as makes no matter.
It is necessary now only to fill in the wages paid and to add in the £2 25. 9d. which we have already calculated, to arrive at the total of standing charges-27 13s. 7d. That is 2s. 6d. per hOur for the 62 hours worked. ' the total
What Must be Added to Arrive at Total RevenUe The total of running costs and standing charges is the interesting figure; it amounts to 2.24 9s. 1d. If the haulier compares that with his earnings, he will know really whether he is making a gross profit or not. He will not know what his net profit is, because -there-is no provision in this book for recording establishment costs.
If be desires to know what his total revenue should be he must add 33+ per cent, to his total costs. One-third of 224 9s. Id. is 28 3s. Add the two and 232 12s, Id. is the amount which that vehicle should have earned in the week. incidentally, this amount is equivalent to 70, per mile run, or 7s. 8th per hour. Appropriate time and mileage charges can be ascertained from these figures, also by the simple expedient of adding 33* per cent, to the cost. It means that the approximate charges should be 3s. 41. per hour, plus 61d. per mile run. There is room in the Costs Record for recording the costs of two vehicles for a year, one vehicle for two years, four vehicles for six months, and so on. Moreover, since strongly recommend hauliers to endeavour to ascertain their .orrn actual figures. for tyre and maintenance expenditure, there is provision for that too, at the end of the book.
The price of this aid, to costing is Is. net, or Is. 3d. post included. I understand that there is a small number of the last printing still in stock and that when these copies are sold further supplies will be at an increased charge.