Q We operate a 24-ton-gross artic outfit
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on long-distance work (day tramp) and the gross revenue is in the region of £150 a week. Mileage is normally 1,200 a week.
Our customer will not grant us a rates increase but before we pull out we would like a considered opinion. Our main interests are outside the haulage field. Can you advise us?
AAccording to the 1968 Commercial
Motor Tables of Operating Costs, total operating costs for a vehicle of 16-ton carrying capacity with a weekly mileage of 1,200 miles will be in the region of £130. As establishment and profit margin must also be allowed for, it would appear that your revenue is at a critical level.
Without knowledge of your operations we cannot really advise you. Empty mileage is unprofitable particularly with low-rated outward traffic, and if your vehicle does normally return empty you might consider seeking back loads. A reciprocal arrangement with another small haulier at the far end of your normal run might help.
Finally we would emphasize that selfaccounting is essential. A first step would be to compare your actual costs with those giver in the published tables.