Q We have a large fleet-owner customer, who has obtained a contract for carrying containers.
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He has asked us to quote for the service contract and wishes to know at what figure
we can supply this service contract per mile without tyres. He proposes to supply 15 articulated tractors for this contract plus one reserve, making a total of 16. The fleet-owner has mentioned a figure of 2.6d per mile up to 50,000 per annum over a five-year period per vehicle.
Could you advise on this matter: is figure 2.6d sensible and is one reserve vehicle adequate?
AThe Commercial Motor Tables of Opera
ting Costs show a maintenance figure of 4.33d per mile for a 16 ton carrying capacity vehicle at 800 miles per week. Bearing in mind that your customer may be doing 1.000 miles per week this could be dropped to 4d per mile. If, however, you are to supply lubricants, which we presume you will. 0.3d should be added to cover this giving a total of 4.3d per mile.
The question of reserve vehicles is difficult: we would have thought one in 16 was adequate but a lot will depend on operating experience. For example, arduous working conditions or accidental damage could necessitate more than one vehicle being off the road at any one time.
We suggest you try to avoid getting tied to a fixed price for this contract for a period of five years. Costs could rise considerably during this time and while your customer may succeed in increasing his prices, you would not be able to do so