Comparisons in Costs
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Tippers and Normal Lorries
Our Costs Expert Continues His Thesis of Last Week IN pt my previous article I gave figures for the orating costs of a 6-ton oil-engined tipper in a Grade II area,
I compared these figures with those applying to a normal sided lorry and showed that the standing charges of the tipper were 10 per cent. higher, and the running costs 20 per cent. higher, than those for the normal lorry. Taking a weekly mileage of 240, I also showed that the total operating costs of the tipper were 1211sper cent. higher than those of the normal lorry.
The figures detailed in that article are given this week in the third column of Table 11. In this Table I also reproduce figures for Grade I areas and London. In respect of areas. differences in cost are, first, in wages. In Grade I areas wages are £6 3s. 6d. per week, in London they are £6 9s., compared with £5 19s. 6d. in Grade II areas. Garage rents and insurance premiums are also dearer in Grade 1 areas and London. Again. operators in these districts have to pay higher wages to their clerical staff and incur greater expense on buildings and most of the other items which are comprised in establishment costs. I have allowed for these in the Table.
I shall now give figures, for operating a petrol-engined tipper, setting them out in detail for purposes of comparison with the oil-engined tipper, The initial cost of the chassis will, of course, be the same as for a normal sided lorry, namely, £1,600. The cost of the body and the tipping gear will come to about £190. Painting, lettering and finishing will cost another 155, so that the total.outlay will be £1,845.
Depreciation Basis
The price of a set of six tyres, £152, must first be deducted, leaving £1,693. Then I must deduct the residual value, the price which the operator may expect to obtain for the vehicle after its period of use. Taking this as £193, I am left with £1,500 as the basic figure upon which to calculate depreciation, This works out at £300 per 'annum or £6 a week.
The fixed charges will be as they appear in the last column of Table II. Taxation is calculated on the assumption that the vehicle weighs over 3 tons unladen. The item "wages" takes into consideration the pending 7s.-a-week increase in pay that is proposed in R.H.(35). The £5 19s, 6d. given under that heading includes holidays-with-pay allotments, national insurance contributions and insurance against claims under common law. Other weekly items are: insurance, £1 (in Grade Il areas); interest at 3 per cent, on the initial outlay of £1,845, £1 2s.; depreciation, £6; and £2 10s. for establishment charges. The total is £17 12s. 6d. per week -10s. less than the amount for an oil-engined tipper, In considering the running costs, attention must be given n28 to the tipper's greater fuel consumption. Tyre cost is also greater because tippers nearly always have to negotiate rough ground. Instead of allowing a tyre life of 21,500 miles, as in the case of the normal lorry, I allow only 20,000. At a cost of £152 per set that gives a tyre cost of 1.82d. per mile. There is also greater expenditure on lubricating oil.
Maintenance costs are also higher for tippers than for normal lorries, not only on account of the nature of the tipper's work, but because of the extra upkeep of the, tipping gear and bodywork. I have found that 2.75d. is a reasonable figure to take for maintenance and this brings the total running cost to 9.2d. per mile.
In Table II I have given corresponding figures for petrolengined tippers in Grade I areas and London. It is interesting to note the standing charges in a Grade II area for the tipper and the normal lorry. The tipper's are £17 12s. 6d. and the normal lorry's £16 3s. 6d., a difference of £ I 9's. a week and approximately 5 per cent. The difference in running costs, 9.22d., as compared with 7.6d., is about 21 per cent. Taking, as in the previous article, a weekly mileage of 240, the total operating cost of the normal petrol-engined lorry comes to £23 15s. 6d. and the cost of the tipper to £26 16s, The difference is about 13 per cent.
Eight-wheeler Details
A fortnight ago t wrote an article on the comparative cost of operation of a 6-tonner as between 1.st March and to-day. I shall now deal with a maximum-load eight-wheeler in the same way, Last March, an eight-wheeled chassis Would cost £2,730. A good sided body, painting and lettering would add another £400 to the price, making £3,130. Twelve 36 by 8 tyres would be needed. A cover would cost £20 Ils. 6d. and a tube LI 12s. 64., making £266 fer a complete set; Deducting this figure from the initial price I obtain £2,864. I assume the residual value to be £364 and this leaves £2,500 as a basis for depreciation.
Taking an eight-year life, the annual debit on account of depreciation comes to £312, which is £6 5s. a week. The interest on £3,130 at 3 per cent, per annum is £94, or El 19s, 6d. per week.
The weekly fixed charges can now be set out and I shall -take Grade I area figures as the most suitable: Tax, £2 8s.; wages, including various allotments, £6 4s.; garage rent, 12s. 6d.; insurance, £2; interest, £1 19s. 6d.; depreciation, 5s:; establishment costs, £5; total, £24 9s.
For the running costs I shall assume a fuel consumption of 9,1i m.p.g. in March, fuel cost Is. lid. per"gallon and that gives me 2.42d. per mile for that item, For lubricants I take 0.22d. The life of a set of tyres will be at least
30.000 miles and from the cost of a set at £266 I get 2.13d. An average figure for maintenance is 2.84d. per mile and the total running cost per mile k • 7.25d.
On the basis of a 600-mile week. the iotal operating cost will be fixed charges, £24 9s., plus 600 times 7.25d.. £18 2s. 6d., making • a sum of C42 I Is. 6d.
The initial cost of an eight-wheeler to-day, including bodywork, is £3,830.
A 36 by 8 cover to-day costs £28 16s. 6d. and a tube £2 2s. 6d. The total cost of a set of 12 tyres is therefore £372, and deducting this from the initial outlay obtain £3,458. Assuming the residual value after eight years of life to he £458, I have £3,000 as the bask upon which to reckon depreciation, which therefore comes to £375 a year or £7 10s, a week. Interest at 3 per cent. on £3,830 comes to £115 per annum or £2 6s. a week.
The fixed charges per week arc thus: Tax, £2 8s.; wages (Grade I area). E6 its. 6d.; garage rent, 12s. 6d.; insurance, 12 5s.; interest, £2 6s.; depreciation, £7 10s.; establishment costs, £5; total, £26 13s, The total is 9 per cent. higher than the figure for March.
Turning now to running costs, fuel is now 2s. 61,d. a gallon, so that the expenditure per mile on that item is 3.2d. For lubricants I take 0.24d.; tyres, 2.98d.; maintenance, 2.7d.; total, 9.12d. This is an increase of 26 per cent. over the March total.
Again taking the 600-mile week, I have the fixed charges of £26 13s., plus 600 piles at 9.12d., which is £22 16s., giving a total of £49 9s., approximately 16 per cent, greater than the March figure. 1 have set out the figures just described in Table III, together with data for Grade II areas and London. S.T.R.
[The following corrections should he •made to figures given in Table I last week for petrol-cngined vehicles: Initial cost, £1,745. less tyres at £152, leaving £1,593; residual value. £193; net cost £1,400: depreciation per annum. £234.1