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What price new vehicles?

19th December 1996
Page 24
Page 24, 19th December 1996 — What price new vehicles?
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Which of the following most accurately describes the problem?

Keywords : Business / Finance

Iwas interested in your article headlined "Franchise ends in row" last week (CM 28 Nov-4 Dec). As an owner-driver myself I can relate fully to Kevin Edwards' predicament, albeit in a different part of the country. ARC seems hell-bent on selling its concrete at a price determined by a set profit margin to supposedly maximise its end-of-year bonus.

This is excellent business sense. Or is it? Back at the plants, truckmixers await their ever decreasing amount of work, prices having lost their competitiveness in an already ridiculously cut-throat market.

Despite this ARC has been steadily increasing its prices, To mark its confidence ownerdrivers have been asked to buy new vehicles for the prestige it will bring the company on building sites around the land. All well and good, one might say, but yet again the new rates to accompany the new vehicles have increased minimally and in some circumstances have actually decreased.

If owner-drivers are told to replace their vehicles for new, work should be found, at cost if necessary, to maintain a steady income in this specialist field. It was stated in the article that the area manager of ARC Premix said that many other owner-drivers would be envious of Kevin's gross earnings. We would all probably dance around the living-room and hug Granny if we had Kevin's gross earnings hut what about his net earnings? If the SouthWest is anything to go by, next year I shall be lucky to replace the baling-twine where my laces were.

Name and address withheld.

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