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TRACTOR UNIT R&M CONTRACT PRICES Hypothetical Haulier Ltd

19th April 2012, Page 27
19th April 2012
Page 27
Page 27, 19th April 2012 — TRACTOR UNIT R&M CONTRACT PRICES Hypothetical Haulier Ltd
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Which of the following most accurately describes the problem?

Four truck manufacturers and four independent maintenance providers kindly supplied us with quotations for a hypothetical firm, showing indicative costs of five-year comprehensive R&M contracts on a batch of 10 new tractor units, summarised below.

Five-year repair and maintenance contract for 10 new 6x2 tractor units, each covering 120,000km annual distance. Contract to include: six-weekly inspections, annual tests and retests, scheduled services, repairs, UK breakdown recovery, tyres, and replacement truck if original truck is off the road for 24 hours or more. Daytime labour rate applies.

Average price (per month, per vehicle) Manufacturers (average of four) £499 Independents (average of four) £522 Our R&M quotes look pricey because they include replacement tyres. They would be £120-£150 lower if tyres were excluded, so operators should see if they can source a tyre management contract independently that is more cost-effective.

About £40 separated the cheapest and the most expensive of the manufacturers’ quotes: it was about £25 between the independents. The vehicle manufacturers emerge as marginally cheaper, but it is fair to mention that they are quoting for their own vehicles whereas the independents’ prices are for unspecified vehicles, so their willingness to offer a one-stop shop for a mixed fleet might justify the extra.

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