.0C1( BOTTOM in Municipal Haulage
Page 49
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"Good," I said, "with petrol at 2s. lid: a gallon that is 2.55d. per mile. For oil," I said, "1 will take 1/10d. per mile, or 0.10d. It is not much either way. And now we come to tyres. We agreed that the cost of a set was £50 and if I take 16,000 miles that is 1d. a mile. Maintenance will cost you at least Id. a mile. I think we would be safer to say 1.1d. and that brings your running cost per mile to an even figure of 41d.
"Now what figure are you interested in," I asked, "daily rate, hour rate or what?"
"Hourly rate if you please," he said.
"Very well, then, we must spread that £9 18s. 6d. over 44 hours. It is 4s. 6d.
A Fair Charge "To that we must add the running cost for five .miles because the rate is based on 5 m.pl. That is Is. 101d., so that your total cost Is 6s. 41-d. per hour. One shilling and threepence halfpenny an hour profit is 20 per cent. and you ought tci make-20 per cent., so that you should charge 7s. 8d.
"For excess mileage you want to charge 41d. plus 20 per cent., which is another Id. as near as makes no matter. That iS 51d. Now let us see what thebook says."
We looked up the schedule and found that the rate per hour in a Grade II area for a 2-tanner was 6s. 6d., but the rate per mile for excess Mileage only 41d.
"You see then, that so far from the figures in R1-1/D/20 being high, they are in my view much too low.
"I am confident that .on present-day costs, 7s. 8d. per hour and .51d. per mile excess is a minimum figure for .a 2-ton lorry on municipal or council work,"
"You have .surprised me," he said. "How much profit a week am I going to make?" add 20 per cent, to that for profit, which is 5s. 6d.: the total is 33s. 6d. which, as a matter of fact, is rather more than 9d. an hour, so that the London operator who works to RH/D/20 is not really getting as much as a man in a rural area. Actually he is, in my opinion, working at a loss.
"While we are about it," I said, we might check up on the Grade I rates. The extras are 4s: a week for wages, 6d. a week for holidays with pay and so on, extra rent 2s., extra for insurance 4s. 3d., extra for establishment costs 5s. That is 15s. 9d. Add 3s. 3d. to that for profit and you get 19s., which is very nearly another 6d, an hour. The book allows only id. an hour, and it seems that whoever agreed these schedules of rates wanted to do a favour to the man in the Grade 11 area.
RH/D/20 Out of Date "And by the way," I said, "that RH/D/20 came into force on April 1,1947. Two things have happened since then which will affect costs. Petrol has gone up twice, making a total difference of 214., which on your basis of consumption is 1d. per mile or lid. per hour at 5 m.p.h. In addition thereis this wage increase which in your case is 5s. a week, or another 11d. an hour, approximately, so that for those two reasons alone these RH/D/20 rates for a 2-tanner in your area should go up 21d. an hour. You see, then, that not only is it going to be impossible for you to cut the RH/D/20 rate but you must quote considerably. more."
"Now what about the tipper? " he asked. "It's usual to add a little bit extra for a tipper, isn't it? "
"That is so," I said, " and I will deal with that next."
&TA