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How the cost tables work The vehicle operating-cost tables published
Page 64
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by our sister magazine Motor Transport are divided into three sections: standing costs, running costs and charge per mile.
Standing costs are those incurred by the operator before a wheel is turned and what it's costing the company when a vehicle is standing idle. These include driver's wages, insurance, depreciation, establishment costs (overheads) and so on.
Running costs are incurred once a vehicle is working. They cover fuel, all, tyres and maintenance and can be influenced by the operator. These are the costs to tackle if savings are to be made. Charge per mile is a combination of these two elements plus a profit margin: this is the amount the operator has to charge the customer for each mile covered. Motor Transport gives this figure for a range of annual mileages: for our comparison, we have opted to use a total cost-per-annum figure, based on the cost per mile which excludes a profit margin. We have assumed an annual mileage of 70,000 (112,000km) and haven't the costs of a trailer.
For standing costs, we have put the driver's wages at £25,000 a year. Vehicle insurance is £2,000 for a basic package, and establishment costs are assumed to be about 10% of the sum of the other standing costs.
The best fuel-consumption figure used (7.2mpg) is based on information supplied by a manufacturer and is considered to be what can normally be achieved less 10%. The lower figures used make allowances for older machines which are less fuel-efficient for one reason or another. Oil usage is based on the miles-per-gallon figure; tyre costs are based on the current list price from a major supplier.