PROBLEMS OF THE HAULIER AND CARRIER.
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The Small Shopkeeper's Dilemma. Which Is the Better Course—To Own or to Hire One's Transport ?
MANY a man e woman who owns or manages a t. small shop is faced with the age-old problem— Shall I hire the necessary transport or buy something suitable for the work? The question affects such a large number of persons (who, by the way, are much at sea on transport matters as a rule), that I propose dealing with the matter this week, with the idea of helping the "doubting Thomases" so far as is possible.
As in the case of every delivery job the connection between the vehicle and the expenditure involved depends on the work which has to be performed, obviously I am not concerned with the type of business which barely provides sufficient work for one pedal-propelled delivery tricycle. Where two or more such vehicles are being run continuously, however, the substitution therefor of motor-driven transport may be the means to better business and greater economy, and may effect a saving of money.
There are two possibilities for the mall trader ; either a sidecar delivery outfit or a parcelcar—alias a light van of, say, 5 cwt. capacity; these are the two most economical types. A word of warning is necessary, however ; do not buy a bigger machine than either of these unless a sudden expansion of work honestly justifies it. The running of a 15-cwt. chassis may lend an appearance of opulence to the concern, but this advantage is rarely sufficientto balance the extra cost when compared with what may be termed an efficient and suitably sized job.
Operating Costs for the Respective Types.
Before proceeding with the hiring or owning topic, it will be well to quote the operating costs upon which the figures in succeeding paragraphs will he based. The running costs of the sidecar outfit work out at 1.08d. per mile, made up as follow :—Fuel, .3d.; lubricants, .05d.; tyres, .2Id.; maintenance, .28d.; depreciation, • .24d. Standing Charges will be approximately £2 9s. 3d. per week, composed of the following items:— Licences, 1s. 9d.; wages of driver, £2; rent and rates (in other words, garage), 3e.; insurance, 2s. 6d.; loss of interest, 2s.
Now, for the 5-cwt. parcelcar, running costs are approximately 1.59d. per mile, made up in the following way :—Fuel, .5d.; lubricants, .05d.; tyres, .36d.; maintenance, .38d.; depreciation, .3d. The standing charges are £2 13s. 8d. per week, the compilation being :— Licences, 4s.; wages, £2; garage, 3s.; insurance, 4s.; loss of interest, 2s. 8d.
Reverting to the question of work, what is the economical minimum amount to justify ownership?• The procedure for any individual is to decide the type of vehicle in which interest centres and then to work out its weekly costs in the light of personal knowledge of conditions: Having discovered the expenditure involved in the running of one machine, a comparison must be made with the cost of hiring.
The Transport of an Ironmongery Business.
Let us assume, for example, a small ironmongery business in a provincial town, serving surreunding villages and having sufficient goods to deliver to necessitate five days' work a week for a vehicle doing, say, 60 miles in that time. The sidecar outfit would cost at this rate £2 15s., working on the figures given pre 042 viously ; a hire, concern will charge about £5 15s. for this work if the outfit be retained by the ironmonger for five whole working days. This means a saving of £3 a week for the sidecar outfit if it be the trader's own property. The conclusion seems obvious, but it must not be forgotten that there will be slack weeks when, perhaps, one day's work only will be required, costing £1 for the hire of the sidecar outfit.
The year's work must be forecast and the cost prepared. The fact that standing charges must be met if the vehicle be not worked should never be overlooked. Hire charges for the three-wheeler range between is. lid, and is. per mile, roughly speaking, the former figure being for 60 miles a week and the latter for 120 miles a week, the standing charges in that case being spread over the greater mileage.
Turning now to the more ambitious vehicle, the 5-cwt. parcelcar, and taking a somewhat bigger figure, say, 100 miles per week, the cost to the owner will be about £3 7s., or £6 7s. if the van is hired. Now, a slack week, involving, say, 25 miles only, will cost £2 17s. if the van is the trader's own property, or 12 12s. if hired. Hirers' charges for parcelcars range from about 2s. 1d. per mile when doing 60 miles per week to 1s. 1d. per mile if 120 miles be covered.
Regular Deliveries or Spasmodic Work ?
From the foregoing it will be gathered that it is best to buy and to run a suitable vehicle if work be reasonably regular, but, if the deliveries are spasmodic, it is best to have a working arrangement with a reliable haulier to do what is necessary.
Two points must be remembered in connection with hired transport units. It is not always possible to despatch goods at once, owing to the vehicle having to be sent far, and the hirer does not as a rule stand much chance of getting advertisement out of the machine.
A boy of 14 can obtain a motorcycle driving licence, whereas 17 is the age of a car-driving licence. If a son of the proprietor, for instance, can do the driving, the weekly wage bill may he somewhat less, or even the proprietor himself may take a turn at the wheel, but this, of course, involves having someone to do his job in the shop. Should a youth be employed partly as driver and partly in the shop or on other duties, only a portion of his weekly wage must be debited against the motor account.
Study the " C.M." Operating Costs Tables.
Those who cannot deal with their own cases by the use of the figures given in this article can arrive at conclusions with the aid of a copy of the Operating Costs Tables published by this journal, which can be had gratis on request. Not only are owners' operating costs included, but also the charges made by hirers, thus proving of double use "to the anxious business man.
The ambitious shopkeeper is ever alive to the advantage of advertising, and he will not overlook the chance of pushing his business by means of a tastefully decorated motor vehicle. A sidecar delivery outfit or parcelcar has a certain amount of available space for painting and signwriting, but too great reliance should not be placed on the value of this type of advertising. to offset any doubts as to the advisability of employing a small vehicle economically. Business may be extended by a good delivery service, and it is in this direction that more hopes can be placed of making a small delivery vehicle not only pay its way, but help to increase the credit account at the bank.