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Carey Street Calling

26th December 1958
Page 16
Page 16, 26th December 1958 — Carey Street Calling
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Which of the following most accurately describes the problem?

Do ODYBUILDING is a precarious occupation and . peach year sees the departure of a number of its practitioners. If Mr, A. L. Sunderland, general secretary of the National Employers Association of Vehicle Builders, is not over-stating his case, the bankruptcy rate is likely to increase.

Writing in the Association's journal, he says: " It is unfortunately a sign of the times that competitive quotations for building and repairing work are becoming increasingly keener and in many cases little short of reckless. There appears to be a deplorable lack of knowledge of estimating—sometimes from inexperience but more often from carelessness.

Naturally, all bodybuilders cannot economically produce at the same price. Large concerns can buy materials at a more favourable rate than their smaller competitors, whereas they suffer the disadvantage of greater overheads. Although discounts on large orders are general in most branches of industry, a contributor to the Association's journal delivers a lively attack on the makers of light-alloy body sections who follow this "pernicious" practice. A small concern constructing a 16-ft. platform body of light alloy would, he said, have to pay 5s, 4d. a lb. for two 16-ft. side raves weighing together about 24 lb., a total of £6 8s. A large competitor buying in tons would pay only 3s. 4d. a lb. and could obtain the raves for £4. With a corresponding difference in the prices of all the sections required, the large bodybuilder could produce the body at a material cost of £87 Ws., as against £140 for the smaller concern.

The difference of £52 10s. enables the mass-producer to deliver the body to the customer at about the same price as the small manufacturer pays for only the tightalloy sections. In building a large tipping body with hollow-plank sides, the advantage to the big manufacturer in the price of supplies may be more than £100.

Possibly the scale of discounts is excessive, but the principle is inviolable_ Any buyer in bulk may reasonably expect more favourable terms than a small purchaser. The small haulier has to pay more for his supplies than British Road Services, but he still makes a living by exploiting his natural advantages. Small bodybuilders might adopt a similar course.


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