PROBLEMS OF THE HAULIER AND CARRIER.
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The Most Difficult of All is that Knowing How to Begin and of Starting a New Business, of the Essentials for Success.
OF all the problems of the haulier and carrier surely none can be more difficult than that which faces the beginner, the absolute tyro who, with hardly any experience or qualification except a knowledge of how to drive a motor vehicle, is inclined to believe himself qualified successfully to undertake motor-haulage contracting. Indeed, when I think of the difficulties which the beginner in this business has to face and the risks he has to run, I wonder that any new blood ever enters the industry.
Optimists All.
The variety of the problems and difficulties which beset the newcomers may be gauged from the number of different ways in which they endeavour to effect entrance into the business. One will buy a secondhand lorry but little removed from being qualified for the scrap heap. He then begins to inquire how he may find work for it and, still tackling things in the wrong way, having found it and having, most probably, taken it at the rate of payment which Is offered to him, he begins to enquire what he ought to have charged
and what profit, if any, there is in the job that he has accepted.
At the other end of the scale there is the cautious individual who has a certain amount of capital which he is willing to invest and is considering purchasing a vehicle with which to start work as a haulier. He asks almost every conceivable question in a letter, which would take weeks to answer, even partially, whilst a complete reply would be practically impossible.
The Most Important Questions.
As is natural, however, •there are certain questions which stand proud of this jumble of queries, as it were, being the most important of those which are practically common to every inquiry. These are the queries as to the necessary amount of capital, the methods of obtaining work, the competition which is likely to be met and the prospects of earning a living. Naturally, each case has to be dealt with on its merits, Eut taking these four questions in their order, they may be briefly answered as follows:—
Capital Needed and Prospects of Profit.
It will be understood that in considering the question as to the necessary amount of capital, I am mainly concerning myself with the man who proposes to make a start with only one vehicle, which he may or may not drive himself, according to circumstances. Assuming that his method of operation and the class of work which he proposes to take up are such as to make a 4-ton lorry his best choice of vehicle, then the capital outlay on its purchase, the cost of essential accessories and sundries and the licence and insurance charges for the first year would approximate to £1,000. In addition, he must have enough money to tide him over the first six months of his operations, as he should be able to keep himself and to pay the running expenses of the vehicle during that period, for he must allow for a possibility of having to give extended credit to his customers and a possible slow start in business. How much this will be depends in the first place as to whether or not he proposes to drive the vehicle himself. If he be going to drive the vehicle himself, then it is reasonable to assume that he will find it possible to live on the wage of £3 12s. per week which he will pay himself. Then he must allow about £2 a week for petrol and oil and 10s. a week for garage. Giving 8s. for sundries, the weekly total becomes £6 10s., which. for 26 weeks. is £169. if, however, the haulier
be going to engage a driver to work for him, he must allow, over the employee's money, whatever is necessary for his own maintenance.
How to Obtain Customers.
With regard to obtaining customers, the haulage contractor who is just starting business has to be his own commercial traveller. He will have to go out, preferably with his lorry, and call on the various factories, docks, wharves and railway companies' depots in the neighbourhood and canvass for orders. A little advertising in the local papers may help.
No one can judge the prospects of competition better than the prospective haulier himself. He presumably lives either in or near the district wherein he proposes to work and must get his knowledge of the competition to be faced by the exercise of his own powers of observation and by making enquiries at all possible sources of information.
The prospects of making a living at this business are good, but depend very largely upon the personality of the man himself. One thing is absolutely certain, and that is that the haulage business involves very hard work, long hours and little leisure. The profits are there, but they are slow in coming at first and no man is going to make a fortune who never runs more than one vehicle.