PROBLEMS OF THE HAULIER AND CARRIER.
Page 15
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A Few Points Regarding the Operating Costs Tables Which are Sometimes Misunderstood.
"VROM time to time the operating costs tables pup
lished by this journal appear to be at variance with the views of individual hauliers and carriers, and it will no doubt prevent misapprehension on the part of many newcomers if I deal with some of the points which appear to causedoubt or mistinderstanding.
The most common trouble is, of course, that some men will overlook the fact that the figures included in the tables are based on averages, which is the only reasonable way of compiling tables of this sort. For instance, a man running a 4-tonner on building work involving crossing fields and rough ground cannot expect to get the same fuel consumption—consequently the same fuel cost per mile—as an owner whose lorry is on long-distance jobs, such as carting cased goods for export from London to Liverpool. -Unusual circumstances have naturally entered into the table calculations in that some users reported high consumptions, others low ones ; some men had big tyre hills, others had small ones, and so on, but in the end the high and low figures gave sets of 'mean figures which are those actually incorporated in the tables.
The Tables as a Guide.
Another point is that the tables are intended to serve as a guide to users, providing a summary of the experiences of others in a handy form. Data such as this are almost unobtainable by the average commercial motor user, as competitors are not keen upon divulging their cost details to all and sundry, but they do not mind helping the industry in this way, through the tables, so long as their names do not appear and rivals cannot make undesirable comparisons. This aspect of being a guide should be remembered, as so many people run away with the mistaken idea that the data in the tables are hard and fast rulings as to everybody's particular costs and that somebody is wrong if the figures differ. Obviously, this cannot be; because the tables say that a 10-cwt. van costs three farthings a mile for petrol, it does not mean that every half-tonner does as well or as badly in this respect. Some may even cost double that sum per mile and quite reasonably so in view of the conditions under which they work.
It is folly to say that one's fuel bill is so-and-so because the tables show that figure; the only correct course is to compile one's own figures from actual experience, using the tables to fill in gaps where necessary, such as forecasting maintenance costs when data personally acquired are not at hand. Another case in which they are of great 'tise is that of the newcomer to the road transport world who has no idea of what his expenses will be and trusts to the tables to guide him through his novitiate.
Tyres are the subject of much controversy, and one or two readers disagree with the implied opinion gleaned from the tables that cushion tyres are only about a halfpenny a mile cheaper than pneumatics on a one-ton lorry. One cushion tyre enthusiast goes so far as to say that pneumatics cost three times as much as cushions, plus the delays due to punctures and bursts. This is probably an extreme view, but I can believe It in his own case, as his lorry is used for hauling bricks away from demolished buildings where had surfaces with sharp projections are the rule rather than the exception, and overloads are not by any means unknown. Most people, however, so far as one can judge by the figures they submit, estimate cushion tyres as .being good for 12,000 miles, whereas pneumatics are considered to be capable of 8,000 miles for the covers and 12,000 miles for the tubes.
The same haulier considers that a loaded vehicle is costing a great deal more to run than an empty one as regards tyres. Now the tyres may have to flex more under load than they will 'when the machine is running light and time tyre pressures are maintained at the same level,' but it must not be forgotten that the wheels of an empty vehicle are very apt to bounce off the road. Every time a wheel leaves the road surface it goes on spinning and when it touches the ground again its speed is either decreased or increased suddenly, according to whether it is a rolling wheel at the front or a driven wheel at the rear. This sudden change of speed is effected through the tread of the tyre and the abrading action which the rubber has to stand, as each impact with the road surface wears away a portion of it. This is one of the factors which balances matters to some extent. Those whose vehicles rim long distances unloaded over good roads have every reason to expect greater tyre life than those whose machines have to run on inferior surfaces. In the latter case there is generally not much difference whether miles are run light or loaded.
Another item which appears to be a them in the side of many is the common expression "establishment expenses" for which allowances are made in the "Haulier's Figures Section." One correspondent has gone so far as to say that he has no such expenses I If this were really true he would indeed be a happy man. This would only happen if he had no office rent or rates, no clerical work or. staff, no building insurance, heating or lighting, no furniture, or the many and varied items which comprise overhead charges. Presumably, he never posts a letter for business—the one addressed to me was perhaps for pleasure l—or rings anybody up on the telephone about a job. Whether he travels or advertises he does nOt say, but lie certainly has establishment expenses and does not realize the fact.
The ,Question of Profit.
Those who have a copy of the operating costs tables by them will notice that in the "Haulier's Figures Section" there is given an allowance for profit, to be taken into account when calculating the total sum to be earned for the week. One owner of a 15-cwt. vehicle cannot see why 13 5s. a week is put down as the profit alloWance in his case, whereas the owner of a 4-tanner expects 14 10s. a week according to the tables. He points out that each mansuay be equally hard-Working and the mere size of the machines should not make any difference, in his opinion. The point is that the amount of profit should be proportional to the capital invested in the business. For instance, a man who invests a toum of 11,000 in his undertaking naturally wants more per year than one who only puts down /500. Obviously the greater the financial risk the greater the desired profit.
On this basis it can be seen that there is a justification for the difference between the expected profits of the small and large vehicle-owners. The former spends as a rule about three-quarters of the sum which the latter pays for his lorry, so the desired profits are approximately in the same ratio. The cost of the vehicle alone cannot be used as the basis for calculating the required profit; it must be remembered that the entire capital invested in the business calls for a return and calculation must be made accordingly. S.T.R.