Q I am running a 10-ton rigid vehicle and I
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have been (tiered traffic to London which involves a total mileage of 250 _for the round trip. There, seems to be little chance of back loads. The compan.v making the offer has suggested a rate of 158 for the job. Do you think thisis economical?
A It is difficult to be precise about costs without knowing more about your operation such as driver's wages. insurance, the price of your vehicle, etc. However, the following is an extract from CM Tables of Operating Costs for a 10ton carrying capacity diesel vehicle which could be used as a basis for comparison.
The data on which these costs are based is, cost of fuel 46.50p a gallon; fuel consumption 12Inpg; cost of tyres £473 (not spare); mileage life of tyres 45,000; mileage life of vehicle 200,000; cost of vehicle (less 10 per cent residual value and cost of tyres) £4,300.
The standing and running cost figures should be adjusted according to your own figures where this is possible.
Assuming a weekly mileage of 1.000 a week for your vehicle the total operating cost per mile will be 18.31 pm (standing costs divided by 1.000 plus running cost). For 250 miles the total operating cost will, therefore, be 18.31 multiplied by 250, that is £45.78. To this should he added 20 per cent for overheads and 20 per cent for profit and contingency giving £63.95 as a total charge.
Superficially, it would appear that the rate offered is not economic, but if your vehicles average more than 1.000 miles a week or other cost factors are lower than those given here, this could reduce your total cost per mile and might even allow you to accept the rate with advantage. A weekly mileage of 1,500, for instance, would suggest a minimum economic charge of £55 on the cost factors given.