MORE FACTORS TO REMEMBE] VFIEN QUOTING FOR A JOB
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Salesmanship Necessary and Provisiot for Service, But it is Necessary Firs, to Know What Price to Charge it Order to Show a Profit
IN last week's article, the first of this series, I started to deal with the problem which faces a haulier who is preparing to quote for new traffic, of a kind to which he is entirely a stranger. In a way I bowed to the inevitable when I acknowledged that the first of the many factors which he would have to consider was competition. I dealt with that factor at length, coming to the conclusion that competition can be dealt with successfully only by salesmanship and service.
The slogan " Sales and Service," familiar in connection with a variety of trades, may seem strange to the haulier in application to his own business„ Yet it is just as apt in relation to haulage contracting—and the carrying of passengers, too—as it is to any other business. The pity is that so few in our industry realize that fact and so many prefer to sell their services on a price basis. , • Sound Salesmanship Brings Success •
That it is the right slogan, and that to adapt it to the needs of the road-transport industry is sound policy, is borne out by facts. Successful hauliers are not ratecutters; they are those who demand—and obtain—fair prides for the work they do. They keep their old customers, in the face of rate-cutting competition, by
the service they render. They obtain new clients, again in the face of that unfair competition, by salesmanship—by persuading the prospective customer that the service they are offering is worth the extra money they ask for those services.
However, before a haulier can set out to sell his services he must put a.price upon them. Readers of the previous article will remember that twice I had to refer to an estimated price, in putting forward my arguments about meeting competition.
It is the estimate of the cost and the assessment of the rate, on the basis of that estimate, which should come first. The factors governing that cost are indeed many. The first consideration—bearing in mind that the haulier is supposed to be new to the traffic for which he is quoting—concerns the kind of vehicle which will be required. Must it be a tipper, an insulated or ventilated van, a tank, or a plain or sided lorry? Then comes the question of capacity and, after that,
A22 • the choice of fuel—petrol or oil; I do not propose to complicate the issue by dealing with producer-gas or any other Oernative fuel.
The factors just enumerated are essentially those which must have first consideration, because, if the haulier has no such vehicle in his possession, he may decide not to quote at all.
Alternatively, he will wish to know what is the magnitude of the contract and, supposing his offer is accepted, whether there be sufficient work offering to make it worth his while to acquire vehicles suitable for the job. That is by no means an extraordinary procedure.
Assuming that conditions are favourable and that he decides to proceed with his quotation, the size and type of vehicle still come first for consideration. Upon these factors depends, to a large extent, the cost of operation.
Linked up with this, to such an extent as to make it necessary to treat it as the factor of second importance, is the tonnage available for transport and the weight of the unit load. Next, and this, too, has a bearing on the selection of the vehicle, what is the weekly or annual mileage involved? If it be comparatively small, then the choice is likely to be petrolengined, unless a vehicle of the larger type be needed, which is rare for short-distance haulage. If, however, the annual mileage be considerable, then the Choice will probably be an oil-engined machine.
• Consider the Nature of the Traffic •
In the course of acquiring the above information, other items of importance will have been brought to light. The nature of the traffic, for example. Is it easy to handle, load and unload? Is it rough on the bodywork? Is it fragile, and, therefore, likely to give rise to frequent claims for damage en route? Will it need to be insured in transit?
Is it packed in returnable cases, which must be brought back when empty? In connection with this, are the cases so bulky that they constitute a back load in themselves, thus eliminating the possibility of any other paying load in the reverse direction?
In the absence of empty cases to be brought back, is
there any prospect of return loads at fair rates and what is the proportion of return journeys which are likely to be so occupied? Always bear in mind that it is sometimes better to ignore the return-load problem, and to concentrate on getting the vehicles back again in time for the next journey, or at least, to cater only for those return loads which can be arranged beforehand and picked up with a minimum of delay.
Next comes this question : Is the work which offers likely to provide full-time employment for each of the vehicles which are put on to it? Concurrently, if not, what is the prospect of the haulier being able to fill in the otherwise idle time with other work for which these particular vehicles are suitable?
• A Factor That Can Affect Costs • Are the vehicles going to be operated from the haulier's own headquarters, or is the work some distance away, so that provision will have to be made for supervision on the spot? That is a situation which often arises and may add considerably to the cost.
Great care•must be given to the problem of wages and allowances, especially now that the Road Haulage Wages Act has become effective. Into what grade do the wage scales fall? Is it a trunk service, or will grade I, II or HI apply? In this connection regard must be had to the rule that a driver working into a district which is graded higher than that in which he is customarily employed must, on the occasions when he enters that highergraded district, be paid a wage accordingly. Will a second man be necessary in connection with this work?
Then the distance over which the traffic is to be carried must be studied. Due regard must be paid not only to the potential weekly mileage, but to the maximum reasonable mileage per day, taking into consideration driver fatigue, as well as the legal limit to driver's hours.
The matter of overtime payment, in relation to total cost of operation, must loom large in any such calculation, now that wages are controlled.
In the case of long-distance haulage, the practicability of working the service with one driver per vehicle will have to be considered. Against that there is the alternative of working drivers in opposite directions, or of operating on the shunt principle, in which each driver works from one end of the route, changing vehicles half-way with his "opposite number."
It is important that the question of subsistence allow
ances be not overlooked, as well as incidental drivers' expenses. Are there any ferries to cross, or tolls to pay? Are sheets necessary?
Another factor of importance is this: What are the times of opening and closing of the depots, warehouses, factories, etc., where deliveries are to be made and from which collections are made? Are these times likely, in view of the distance over whict the traffic is to be moved, to involve difficulties and delays owing to the vehicles arriving at either (or both) ends of the journey when it is too late to deliver or collect? If that be likely to happen frequently, the cost of the _service is going to be considerably higher.
In connection with work in which the last-named factor is of importance the haulier, in preparing his estimate, must plan the service in detail, working out a time-table as precise as that of a coach operator. Otherwise he may grossly underestimate his costs.
It is in jobs involving working to a time-table such as this, that the futility of expecting to pick up occasional back loads becomes apparent.
The question of loading and unloading times becomes prominent here. It is, of course, an important factor in every haulage operation, and a great deal depends on it. The time taken per journey, as governed by potential road speed, is not so easy to decide without experience of the route. The type of vehicle is important, as to whether it is of the SO m.p.h. or 20 m.p.h. class.
0 Difficulties in Timing Journeys •
In the case of short and medium hauls, some pretty problems arise in timing journeys. For very short leads the operator, if he be without experience, is well advised to be pessimistic as to the time taken. For medium leads he must watch the critical periods, at which the journey is of such a length, for example, as to make it difficult to know whether it will be possible just to do three runs per day, or just not to be able to do so.
If the whole of the traffic be over a short distance, the possibility of working it as a shuttle service will arise, utilizing the tractor-trailer type of vehicle, with three trailers to each tractor, one trailer being on the move whilst the others are being loaded and unloaded respectively. Here I have come full circle, and am considering, as at the beginning, what type of vehicle to buy. It seems, therefore, that this is a convenient point at which to break oil for this week. S . T. R.