Check your rates with
Page 80
If you've noticed an error in this article please click here to report it so we can fix it.
CM's
Tables
CM'S 1983/84 Tables of Operating Costs, on sale now for £3.50 including postage, covers the range of vehicles in most common use.
The tables have been compiled in association with Mercedes-Benz Transport Consultancy, a subsidiary of Mercedes-Benz (UK) Ltd.
All too frequently we hear that operators cannot get the rates we say should apply. Subsequent inquiries usually indicate that overheads are being charged at less than the 20 per cent we recommend.
In our experience, anything less than 20 per cent for these items is a step towards unprofitable operation].
Our figures are shown at a variety of mileages. They also are shown as 50 per cent utilisation or 75 per cent. We have assumed that vehicles are never fully laden on every mile they cover. Nevertheless, the operator must recoup the cost of dead mileage.
Therefore, a vehicle travelling 100 miles fully loaded and returning half loaded is 75 per cent productive but the round trip cost must be included in the rate.
On the bus and coach side of the industry the same rules apply.
Probably the most contentious point in the tables is our calculation of interest. Whether this is paid in the hire purchase or bank overdraft cost, it is on cost, and is normally charged. However, there are those operators who do not pay interest; they purchase from capital reserves. They do not include interest in their charges — they should. If the amount used to purchase the vehicle had been invested it would have attracted interest.
Burying overheads, cutting maintenance and ignoring interest will reduce haulage rates but accelerate bankruptcy.
Another heavy item of capital expenditure is the vehicle excise duty, which is paid in advance. This also would attract interest if invested.
CM's tables are widely and wisely used by operators to compare their own rates, by transport users to check quotations from hauliers and by insurance companies to compute loss of use claims.
They are meant to be used as a guide. Local authority rates vary across the country. Operators can obtain substantial discounts or take-back prices on new vehicles. These items may create small variations.
Insurance cover may vary between brokers, in the same building, for identical cover.
Thousands of operators and their customers take CM's Tables of Operating Costs every year. It is their guide to profitability. This is a publication you cannot afford to miss.
The 1983/84 edition is available now. We will be happy to quote groups for bulk orders in excess of 50. Write to The Publishing Director, Commercial Motor, Quadrant House, The Quadrant, Sutton, Surrey SM2 5AS.