CM'S cost Tables are now ready
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)ur 1982/83 Tables of )perating Costs mblished his week provide merators with a guide :o their :osts and assist them to Note realistic and nofitable rates ;M's Tables of Operating Costs 982/83 will be published next veek. They can be purchased hrough our trade counter at iopton Street, London SE1 9LU, hrough a local newsagent or )rdered by post from Book & 3undry Sales Department, IPC 3usiness Press Ltd, Quadrant -louse, The Quadrant, Sutton, 3urrey SM2 5AS.
This year's issue contains nine :ables of detailed information 3nd covers commercial vehicles from 5cwt to 21 tons carrying capacity; single and double-deck buses; coaches; and saloon cars. They were compiled in association with Mercedes-Benz (UK) Ltd, Management Consultancy Services.
The tables also include details of operating costs at a variety of mileages, journeys per day and utilisation factors of 50 and 75 per cent. There are also tables of rates for these utilisation percentages for the commercial vehicles.
The base figures used have been compiled from those supplied by a wide range of operators, trade associations, manufacturers and suppliers. Budget increases have been included. Interest and insurance rates were calculated on information taken from financial and insurance sources.
The result is an accurate and comprehensive guide to what operators should charge to recover their costs and obtain a modest but sensible profit margin for their services.
While the tables are meant principally as a guide to operators' costs, they have other uses to which they have been successfully applied.
Haulage operators, when ne gotiating contracts, have used the tables, not only to compile their rates but to present independent evidence of their cost breakdown. Used in this way, the tables help to convince the potential customer of the validity of the quotation.
New 'O' licence applicants who have to satisfy the licensing authorities that they are financially viable and knowledgeable find the publication invaluable when making their application. We send a copy to every traffic area to assist the licensing authorities.
Copies of the tables at the traffic desk are an immediate reference for the traffic clerk faced with an urgent telephone enquiry for a quote. They take out the element of risk which is at best a "guesstimate". Each table shows the detailed breakdown of standing charges and running costs. This allows the operator to calculate the terminal costs involved when vehicles are unreasonably delayed at pickup or discharge points. Unpaid-for-demurrage is a costly item.
The standing charges are broken down into five elements. They are licences; wages; rent and rates; insurance; and interest. These costs are compiled on a weekly basis for a 40-hour week and a 45-week year. This takes account of the time when the vehicle will be idle because of holidays and servicing but when the costs will go on.
The running costs are based Examples of costs for the same vehicle operating in different circumstances can be drawn from the utilisation chart. To illustrate the point, we take a five-ton diesel van.
Operating over 200 miles per week covering one journey per day with no return load, the operating cost per ton is calculated at £22.29.
The same vehicle with half of a return load on the same mileage costs E14.86 per ton. The cost of an eight-ton tipper loaded one way only, making three drops in a day is £7.57. Making five drops, the cost falls to E4.54.
This type of information presented to traffic staff encourages them to sharpen their operating techniques. It also encourages the customer to ensure a quick turnround at discharge points.
The tables are also used by hauliers' customers as a means of comparing quoted rates. They use them to ensure that the rate is neither too high nor too low. A low rate suggests that corners are being cut and responsible users of transport are aware of the pitfalls of indiscriminate rate cutting.
Budgeting is an essential management tool. Accountants use our tables when estimating the company's transport or distribution costs before the start of a financial year.
Individual operators will find that their costs in some areas vary from our published costs. This is particularly true of rent and rates.
However, even if the total costs vary by as much as £1,000 per annum, over 20,000 miles, the difference in cost per mile would be as little as five pence.
The 1982/83 tables include a fuel cost calculator for a range of fuel prices. They cover performance figures from 7mpg to 35mpg.
There is also an updated transport directory showing the addresses of authorities, associations, trade unions and other transport bodies. This has been corrected to show the established and planned organisation for traffic areas and the Road Haulage Association.
Orders should be sent as early as possible with the appropriate remittance. Please allow three weeks for receipt, which could be affected by circumstances beyond our control.