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I am considering operating a Contract A licensed vehicle for
Page 83
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a fuel distributing company and expect to average 600 miles a week, with a 16-ton four wheeler. Could you give some guidance on operating costs?
ABefore entering into the question of costs
we must first emphasize that the Transport Bill now before Parliament contains proposals, which if they become law, will change considerably the licensing system for goods vehicles. Therefore it seems inoppor• tune to become involved in financial commitments involved in setting up in business as a haulier until the debate on the new proposals has been completed and the new Transport Act published.
However, as regards costs, much more information based on individual circumstances will have to be provided before precise estimates can be made. But as some guide the total operating cost per week for a 16-tongross vehicle fitted with platform body when averaging 600 miles a week is approximately £64 at the new rates of duty and fuel tax. Allowing for an extra £850 outlay for the type of body you mention, the additional interest charges and interest premium involved would add approximately an extra £2 a week so giving a gross weekly total of £66 while additional mileage over 600 would cost 13.84d a mile.
All the figures so far given represent the actual cost to the operator. To obtain charges to be submitted to the customer there would have to be added overhead costs appropriate to individual circumstances plus a profit margin relevant to the competitive nature of the traffic carried and the duration of the contract offered.