The customer wins
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I WOULD LIKE to refer to your report of the Fleet Management Conference (CM, Sept 26) in which I was reported. I appreciate the necessity for reporters to precis reports, but I feel that my comments at the conference were not done justice to, because in effect they rendered Mr Berry's suggestions impractical.
Mr Berry suggested writing vehicles off over a shorter period, adjusting profit margins to cover the additional write-offs and inflation and then go to the customer to explain why his rates must go up. Mr Berry is obviously right and his suggestions are what we must strive for if we are to succeed.
The main objects of my comments were : A That the Prices Commission will not accept inflation costing as a basis for a price application; these must be based on present-day known facts.
B Assuming a change of basis for a price application was accepted, the extra profits generated in order to finance future vehicle purchases would certainly be caught by the company's reference level, and would also be subject to Corporation Tax, C At a time like the present when too many operators are chasing too few orders, it is not a practical proposition to increase rates by the amount necessary. At the moment only the customer wins.
KENNETH J. FISH, ACCA BF, Director, J. Kime ec Son Ltd, Lincoln.